Zhiyou Home Technology Co., Ltd. (hereinafter referred to as "the Company") and all members of the board of directors guarantee that the information disclosed is true, accurate, and complete, without any false records, misleading statements, or significant omissions.
Important Content Reminder:
- To better avoid and prevent foreign exchange rate fluctuation risks and enhance financial stability, Zhiyou Home Technology Co., Ltd. and its subsidiaries intend to conduct foreign exchange hedging business with qualified financial institutions in 2026. The maximum contract value held on any trading day is expected to not exceed RMB 2.9 billion or its equivalent in foreign currency. The hedging activities may include foreign exchange forwards, swaps, options, or combinations of these. The maximum margin and premium to be utilized (including the value of collateral provided for transactions, expected credit limits from financial institutions, and reserved margin for emergency measures) is expected to not exceed 10% of the maximum contract value held on any trading day.
- The above quota is valid for 12 months from the date of approval by the 2025 annual general meeting of shareholders. Within this period, the transaction amount can be recycled and used within the above quota. The board of directors authorizes the management to make decisions regarding foreign exchange hedging transactions and sign relevant transaction documents, with the financial center responsible for the specific handling of these transactions.
- Review Procedures Completed: On April 27, 2026, the Company held the 20th meeting of the second board of directors, which approved the proposal regarding the estimated quota for foreign exchange hedging business for 2026. This proposal still needs to be submitted to the 2025 annual general meeting of shareholders for review.
- Risk Warning: During the conduct of foreign exchange hedging business, there are main risks including market risk, receivables forecast risk, and operational risk. Investors are advised to pay attention to investment risks.
Overview of Foreign Exchange Hedging Business Transactions
(1) Transaction Purpose
The foreign exchange hedging business conducted by the Company and its subsidiaries is closely related to daily operations.
With the rapid development of the Company's cross-border e-commerce retail business, the foreign exchange assets and liabilities held by the Company and its subsidiaries have increased. To minimize foreign exchange market risks and prevent adverse effects from exchange rate fluctuations, the Company and its subsidiaries plan to conduct foreign exchange hedging business without affecting the development of the Company's main business and capital usage arrangements.