Verification Opinion on Guangdong Feinan Resource Utilization Co., Ltd.'s Securities and Derivatives Investment for 2025
Xiangcai Securities Co., Ltd. (hereinafter referred to as "the Sponsor" or "Xiangcai Securities") is the sponsor for the initial public offering and listing of Guangdong Feinan Resource Utilization Co., Ltd. (hereinafter referred to as "Feinan Resources" or "the Company"). In accordance with relevant regulations, including the "Administrative Measures for Securities Issuance and Listing Sponsorship," the "Shenzhen Stock Exchange GEM Listing Rules," and various self-regulatory guidelines, the Company’s securities and derivatives investment situation for 2025 has been verified. The specific circumstances are as follows:
1. Review and Approval of Securities and Derivatives Investments
At the 27th meeting of the second board of directors held on December 4, 2024, and the fourth extraordinary general meeting of shareholders held on December 23, 2024, it was approved that the Company may use futures contracts for price risk management of certain metal inventories based on spot needs, with a margin balance not exceeding 400 million yuan. The trading varieties include standard futures contracts for copper, nickel, tin, gold, silver, and other metals related to the Company's production, and no over-the-counter trading will be conducted. The duration is 12 months from the date of approval by the general meeting of shareholders, and the quota can be used in a rolling manner within the approval period.