Special Report on Derivative Investment Situation
According to the requirements of the "Self-Regulatory Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies" and "Self-Regulatory Guidelines No. 1 - Business Handling" of the Shenzhen Stock Exchange, the board of directors of Shenzhen Jundingda New Materials Co., Ltd. (hereinafter referred to as the Company) has conducted a review of the Company's derivative investment situation for the year 2025 and issues the following special report:
1. Review and Approval of Derivative Investment
On April 19, 2025, the Company held the fifth meeting of the fourth board of directors, where it approved the proposal for conducting hedging business, allowing the Company and its subsidiaries to engage in futures and derivative trading for hedging purposes. Among them:
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Foreign Exchange Hedging Business: The Company and its subsidiaries expect the maximum contract value held on any trading day to be 200 million RMB or equivalent foreign currency (USD, EUR, etc.). The foreign exchange hedging instruments include but are not limited to forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, interest rate swaps, foreign exchange futures, currency swaps, and combinations of the aforementioned products.
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Commodity Hedging Business: The Company and its subsidiaries expect the maximum trading margin and premium limit (including the value of collateral provided for trading, expected credit limits from financial institutions, and reserved margin for emergency measures) to be 25 million RMB or equivalent foreign currency (USD, EUR, etc.), with a maximum contract value held on any trading day expected to be 80 million RMB or equivalent foreign currency (USD, EUR, etc.). The commodity hedging instruments are limited to resin materials, metal wires, and other products directly related to the production and operation of the Company and its subsidiaries, including but not limited to futures and derivatives related to polyester (PET), nylon (PA), polypropylene (PP), polyethylene (PE), and metal wires.
The authorization period for the Company and its subsidiaries to conduct futures and derivative trading for hedging purposes is valid for twelve months from the date of board approval. During the authorization period, the investment amount can be rolled over, but the trading amount at any point in time during the period (including amounts related to the reinvestment of the aforementioned trading profits) shall not exceed the approved limit. According to the "Shenzhen Stock Exchange GEM Stock Listing Rules," "Self-Regulatory Guidelines No. 2 - Standardized Operations of GEM Listed Companies," "Self-Regulatory Guidelines No. 7 - Transactions and Related Transactions," "Company Articles of Association," and "Hedging Business Management System," the implementation of this hedging business does not require submission to the shareholders' meeting for approval after being reviewed and approved by the board of directors. The sponsor institution has issued a consent verification opinion on this matter.
2. Derivative Investment Situation for 2025
The overall situation of the Company's derivative investments for hedging purposes in 2025 is as follows: