Important Content Reminder:
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Purpose, Types of Transactions, and Amounts: To improve the efficiency of foreign exchange fund usage, reasonably reduce financial costs, and lessen the impact of exchange rate fluctuations on the company's operations, the company intends to conduct forward foreign exchange settlement and sale business with its own funds, totaling no more than USD 100 million (inclusive). The company will not engage in foreign exchange trading for speculative or profit-making purposes.
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Review Procedure: On March 31, 2026, the company held the fifth meeting of the Audit Committee of the third board and the ninth meeting of the third board, where the proposal on conducting forward foreign exchange settlement and sale business was approved. The company is authorized to conduct forward foreign exchange settlement and sale business not exceeding USD 100 million (inclusive), valid for 12 months from the date of board approval, with the amount available for rolling use within the approval period. According to the Shenzhen Stock Exchange GEM Listing Rules, the Self-Regulatory Guidelines No. 7 on Transactions and Related Transactions, and the company's Financial Derivative Trading Management System, this matter falls within the decision-making authority of the board and does not require submission to the shareholders' meeting for review.
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Risk Warning: During the implementation of the forward foreign exchange settlement and sale business, there are market risks, legal risks, transaction risks, and performance risks. The company will fulfill its subsequent information disclosure obligations in a timely manner as required, and investors are advised to pay attention to investment risks.
Shenzhen Minbao Optoelectronics Co., Ltd. (hereinafter referred to as "the Company") held the ninth meeting of the third board on March 31, 2026, where the proposal on conducting forward foreign exchange settlement and sale business was approved. The company is authorized to conduct forward foreign exchange settlement and sale business not exceeding USD 100 million (inclusive), valid for 12 months from the date of board approval, with the amount available for rolling use within the approval period. This transaction does not constitute a related party transaction and does not require submission to the shareholders' meeting for review.
Background and Purpose of the Transaction
Due to the fact that some of the company's businesses primarily settle in foreign currencies such as USD, the company intends to conduct forward foreign exchange settlement and sale business to reduce the risks brought by foreign exchange rate fluctuations. The company will adhere to prudent principles in conducting forward foreign exchange settlement and sale business, avoiding speculative and profit-driven foreign exchange trading. All forward foreign exchange settlement and sale transactions will be based on normal production and operations, aimed at hedging and preventing exchange rate risks without affecting the development of the company's main business.
Basic Situation of the Transaction
Forward foreign exchange settlement and sale refers to the agreement between banks and clients to settle foreign exchange at a future date, specifying the currency, amount, exchange rate, and term. On the maturity date, the foreign exchange income or expenditure will be settled according to the terms of the forward foreign exchange settlement and sale contract.