Guotai Junan Securities Co., Ltd. Audit Report on Jiujiang Defu Technology Co., Ltd.'s 2025 Derivatives Investment
Guotai Junan Securities Co., Ltd. (hereinafter referred to as "Guotai Junan" or "Sponsor") as the sponsor and continuous supervision institution for the initial public offering of Jiujiang Defu Technology Co., Ltd. (hereinafter referred to as "Defu Technology" or "Company") on the ChiNext market, according to the "Administrative Measures for Securities Issuance and Listing Sponsorship Business", the "ChiNext Stock Listing Rules of the Shenzhen Stock Exchange", the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 2 - Norms for the Operation of ChiNext Listed Companies", and other relevant laws, regulations, and normative documents, has audited the 2025 derivatives investment situation of Defu Technology. The details are as follows:
I. Review and Approval of Derivatives Investment
The Company held the 8th meeting of the Third Board of Directors on November 28, 2024, and the 2024 Second Extraordinary General Meeting of Shareholders on December 16, 2024. The proposal "Proposal on Hedging Business for 2025" was deliberated and approved. The Company and its subsidiaries plan to carry out hedging business. Among them, the margin and premium for cathode copper hedging business shall not exceed RMB 100 million, and the maximum contract value held on any trading day shall not exceed RMB 900 million. The balance of foreign exchange hedging business at any point in time shall not exceed RMB 250 million or its equivalent in foreign currency. The funds for the hedging business carried out by the Company and its subsidiaries come from the Company's own funds. The authorization period is from January 1, 2025, to December 31, 2025, and the quota can be used flexibly and rolled over within the approval period.
The Company held the 14th meeting of the Third Board of Directors on July 18, 2025, and the 2025 First Extraordinary General Meeting of Shareholders on August 5, 2025. The proposal "Proposal on Increasing the Quota for Foreign Exchange Hedging Business in 2025" was deliberated and approved. The Board of Directors agreed that the balance of foreign exchange hedging business of the Company and its subsidiaries at any point in time shall be increased from not exceeding RMB 250 million or its equivalent in foreign currency to not exceeding RMB 2.1 billion or its equivalent in foreign currency. The funds for the foreign exchange hedging business carried out by the Company and its subsidiaries come from the Company's own funds or self-raised funds. The authorization period is from the date of approval by the shareholders' meeting to December 31, 2025. The quota can be used flexibly and rolled over within the approval period. If the contract duration of a single transaction exceeds the authorization period, the authorization period will be automatically extended until the expiration of the contract for that transaction.
The specific content can be found in the "Announcement on Hedging Business for 2025" disclosed by the Company on November 28, 2024, and the "Announcement on Increasing the Quota for Foreign Exchange Hedging Business in 2025" disclosed on July 18, 2025.
II. 2025 Derivatives Investment Situation of the Company
In 2025, the overall situation of the Company's derivatives investment for hedging purposes is as follows: