Analysis Report on the Feasibility of Hedging Business Limit Forecast

Shenzhen Jun Dingda New Materials Co., Ltd.

Analysis Report on the Feasibility of Hedging Business Limit Forecast

Shenzhen Jun Dingda New Materials Co., Ltd. (hereinafter referred to as the Company) held the twelfth meeting of the fourth Board of Directors on March 27, 2026, and reviewed and approved the "Forecast of Hedging Business Limit". The Company will carry out hedging business in accordance with the "Shenzhen Stock Exchange GEM Stock Listing Rules", "Shenzhen Stock Exchange GEM Listed Company Self-Regulatory Supervision Guide No. 2 - Standardized Operation of GEM Listed Companies", "Shenzhen Stock Exchange GEM Listed Company Self-Regulatory Supervision Guide No. 7 - Transactions and Connected Transactions", "Articles of Association of Shenzhen Jun Dingda New Materials Co., Ltd." (hereinafter referred to as the "Articles of Association") and "Management System for Hedging Business of Shenzhen Jun Dingda New Materials Co., Ltd." (hereinafter referred to as the "Hedging Business Management System"). Relevant content can be found in the "Forecast of Hedging Business Limit Announcement" disclosed on the CNINFO website on March 31, 2026 (Announcement No.: 2026-02).

The Company and its subsidiaries plan to carry out futures and derivatives trading for hedging purposes. Among them: (1) Foreign exchange hedging business: The Company and its subsidiaries estimate that the maximum contract value held on any trading day will be RMB 200 million or equivalent foreign currency (such as USD, EUR). Foreign exchange hedging products include, but are not limited to, forward settlement and sales, foreign exchange swaps, foreign exchange options, interest rate swaps, foreign exchange futures, currency swaps, and combinations of the above products. (2) Commodity hedging business: The Company and its subsidiaries estimate that the upper limit of transaction margin and option premium to be used (including the value of collateral provided for transactions, the credit line of financial institutions expected to be used, and the margin reserved for emergencies, etc.) will be RMB 25 million or equivalent foreign currency (such as USD, EUR). The estimated maximum contract value held on any trading day will be RMB 80 million or equivalent foreign currency (such as USD, EUR). Commodity hedging products are limited to resin materials, metal wires, and other raw materials directly related to the production and operation of the Company and its subsidiaries, including but not limited to: polyester (PET), nylon (PA), polypropylene (PP), polyethylene (PE), metal wires, and other raw material-related futures and derivatives.

The authorization period for the Company and its subsidiaries to carry out futures and derivatives trading for hedging purposes is twelve months from the date of approval by the Board of Directors. Within the authorization period, the investment amount can be used in a revolving manner, but the transaction amount at any point in time within the period (including the relevant amount of profits from the aforementioned transactions that are reinvested) shall not exceed the approved limit.

The analysis of the feasibility of the Company's hedging business limit forecast for this time is as follows:

I. Basic Situation of Carrying Out Hedging Business

(I) Foreign Exchange Hedging Business

1. Investment Objective The Company and its subsidiaries have certain overseas businesses and liabilities. In the context of the two-way fluctuation of RMB exchange rates and the market-oriented financial market, in order to effectively hedge and prevent the adverse effects of significant exchange rate fluctuations on the Company's operations, control foreign exchange risks, and enhance financial stability, the Company and its subsidiaries plan to carry out foreign exchange hedging business with banks and other financial institutions approved by relevant government departments and possessing foreign exchange hedging business qualifications.

2. Transaction Amount Based on the Company's asset scale and business needs, the Company and its subsidiaries estimate that the maximum contract value held on any trading day will be RMB 200 million or equivalent foreign currency (such as USD, EUR). The investment amount can be used in a revolving manner, but the transaction amount at any point in time within the period (including the relevant amount of profits from the aforementioned transactions that are reinvested) shall not exceed the approved limit.