Verification Opinion on the Special Report of Derivative Investment Situation of Shenzhen Jundingda New Materials Co., Ltd.
CITIC Construction Investment Securities Co., Ltd. (hereinafter referred to as "CITIC Construction Investment" or "the Sponsor") is the sponsor for the initial public offering and listing on the Growth Enterprise Market of Shenzhen Jundingda New Materials Co., Ltd. (hereinafter referred to as "Jundingda" or "the Company"). According to relevant regulations including the "Administrative Measures for Securities Issuance and Listing Sponsorship," "Shenzhen Stock Exchange Growth Enterprise Market Listing Rules," and "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Listed Companies," the derivative investment situation of Jundingda for the year 2025 has been verified, with specific details as follows:
1. Approval of Derivative Investment
On April 19, 2025, the Company held the fifth meeting of the fourth board of directors, where it reviewed and 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 maximum contract value held on any trading day is expected to be 200 million RMB or equivalent foreign currency (USD, EUR, etc.). The foreign exchange hedging varieties 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 above products.
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Commodity Hedging Business: The upper limit of trading margin and premiums (including the value of collateral provided for trading, expected credit limits from financial institutions, and reserved margin for emergency measures) is expected to be 25 million RMB or equivalent foreign currency (USD, EUR, etc.), with a maximum contract value held on any trading day of 80 million RMB or equivalent foreign currency (USD, EUR, etc.). The commodity hedging varieties 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 recycled, but the trading amount at any point in time within the period (including the reinvestment of the aforementioned trading profits) shall not exceed the approved limit. According to the "Shenzhen Stock Exchange Growth Enterprise Market Listing Rules," "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Listed Companies," "Self-Regulatory Guidelines No. 7 for Listed Companies on the Shenzhen Stock Exchange - 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.