Securities Code: 301501 Securities Abbreviation: Hengxin Life Announcement Number: 2026-018
Hefei Hengxin Life Technology Co., Ltd.
Announcement on Carrying Out Foreign Exchange Hedging Business and Feasibility Analysis
The Company and all members of the Board of Directors guarantee the content of the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.
Key Content Reminder:
- To effectively hedge and prevent foreign exchange market risks, Hefei Hengxin Life Technology Co., Ltd. (hereinafter referred to as the "Company") and its subsidiaries plan to conduct foreign exchange hedging business with banks and other financial institutions. The balance of such business shall not exceed USD 30 million (inclusive) at any point in time. The term is within 12 months from the date of approval by the Company's general meeting of shareholders. This quota can be used cyclically within its validity period. The amount at any point in time within the period (including the amount related to the reinvestment of profits from the aforementioned transactions) shall not exceed the approved quota.
- The foreign exchange hedging instruments that the Company and its subsidiaries plan to carry out include forward foreign exchange settlement and sales, foreign exchange swaps, foreign exchange options, structured forwards, and other businesses. These products are for hedging purposes, aimed at locking in costs and hedging against interest rate and exchange rate risks.
- According to the "Self-Regulatory Guidelines for Listed Companies of Shenzhen Stock Exchange No. 7 - Transactions and Connected Transactions" and the "Listing Rules of the Shenzhen Stock Exchange ChiNext Market" and other regulations, the foreign exchange hedging business to be carried out has been reviewed and approved by the Company's Board of Directors and needs to be submitted to the general meeting of shareholders for approval.
- During the process of carrying out this foreign exchange hedging business, there are risks such as exchange rate fluctuation risk, operational risk, transaction default risk, and customer default risk. Investors are reminded to pay attention to investment risks.
On April 25, 2026, the Company held the eleventh meeting of the Second Board of Directors, which reviewed and approved the "Proposal on Carrying Out Foreign Exchange Hedging Business and Feasibility Analysis." To effectively hedge and prevent foreign exchange market risks and prevent adverse impacts from significant exchange rate fluctuations on the Company's operations, while ensuring the normal production and operation of the Company, it is agreed that the Company and its subsidiaries will conduct foreign exchange hedging business with banks and other financial institutions. This proposal needs to be submitted for review at the 2025 annual general meeting of shareholders. The relevant matters are hereby announced as follows:
I. Purpose of Carrying Out Foreign Exchange Hedging Business With the continuous development of the Company's international business, exchange rate fluctuations can have a certain impact on the Company's performance due to exchange gains and losses. To effectively hedge and prevent foreign exchange market risks and prevent adverse impacts from significant exchange rate fluctuations on the Company's operations, while ensuring the normal production and operation of the Company, the Company and its subsidiaries plan to conduct foreign exchange hedging business with banks and other financial institutions, which is not for speculation or arbitrage.