Background and Purpose of the Transaction
Due to the company's business primarily using foreign currencies such as the US dollar for settlement, it intends to engage in forward foreign exchange settlement to reduce risks from foreign exchange rate fluctuations. The company will adhere to a prudent principle, avoiding speculative and profit-driven foreign exchange trading. All forward foreign exchange settlement activities 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.