Hunan Youneng New Energy Battery Materials Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of this information disclosure is true, accurate, and complete, without any false records, misleading statements, or significant omissions.
Important Content Reminder:
- Purpose of Trading: To effectively reduce the potential risks posed by fluctuations in raw material prices to the Company's operations, better avoid and prevent related business risks from exchange rates or interest rates, and enhance the Company's financial stability, the Company and its subsidiaries plan to conduct commodity and foreign exchange hedging activities.
- Types of Transactions: The commodity hedging activities planned by the Company and its subsidiaries will be limited to lithium salts directly related to the Company's production and operations. The foreign exchange hedging activities will involve the same currencies used for major settlements in the Company's and its subsidiaries' operations, including but not limited to US dollars, euros, and other currencies relevant to actual business.
- Trading Instruments: The trading instruments for commodity hedging include but are not limited to futures, options, and other derivative contracts. The trading instruments for foreign exchange hedging include but are not limited to forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, interest rate swaps, currency swaps, interest rate swaps, interest rate options, and their combinations.
- Trading Venue: The trading venue for commodity hedging is limited to legally operating domestic futures exchanges. Foreign exchange hedging activities are limited to financial institutions approved by regulatory authorities that have the qualifications for foreign exchange derivative trading.
- Transaction Amount: Based on the Company's operational and business needs, the maximum limit for the margin and premiums for commodity hedging activities in 2026 (including the value of collateral provided for trading, expected credit limits from financial institutions, and reserved margins for emergency measures) will not exceed RMB 2 billion, and the maximum contract value held on any trading day will not exceed RMB 3 billion. The limit for foreign exchange hedging activities will not exceed RMB 2 billion (or equivalent foreign currency), and the transaction amount at any point during the authorized period (including amounts related to the reinvestment of the aforementioned trading profits) will not exceed the above limits.
- The above limits can be used in a revolving manner within the approval period.
- Review Procedures: The 20th meeting of the second Board of Directors approved the proposal for the implementation of hedging activities in 2026, which still needs to be submitted for review at the Company's 2025 annual shareholders' meeting.
- Special Risk Warning: The Company and its subsidiaries conduct commodity and foreign exchange hedging activities to avoid and prevent risks, not for speculative or arbitrage purposes. However, there are still certain risks associated with hedging activities, and investors are advised to pay attention to investment risks.