Core Viewpoint - The company Long-term Logistics (stock code: 603569) announced on August 27, 2025, its plan to engage in financial derivative transactions with reputable domestic commercial banks to mitigate foreign exchange market risks and reduce the impact of exchange rate fluctuations on its profits [1]. Transaction Details - The authorized period for the proposed financial derivative transactions is up to 12 months from the board's approval date, with a maximum transaction amount not exceeding RMB 300 million (including equivalent foreign currency amounts) at any point within the authorized limit [2]. - The maximum margin and premium to be utilized for these transactions will not exceed RMB 35 million (including equivalent foreign currency amounts), and the funds can be recycled within the authorized period [2]. - The types of transactions include but are not limited to forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, interest rate swaps, interest rate options, currency swaps, and combinations thereof, involving major settlement currencies such as USD, EUR, and PLN [2]. Review Situation - This matter was approved at the 13th meeting of the fifth board of directors held on August 26, 2025, and does not require submission to the shareholders' meeting as it falls within the board's approval authority [3]. - The company had previously approved a similar proposal on August 23, 2024, which was successfully executed without exceeding the authorized limit, necessitating a new application due to the expiration of the 12-month authorization period [3]. Risk and Control - The company acknowledges the market, performance, liquidity, and operational risks associated with financial derivative transactions and has implemented several measures to control these risks [4]. - These measures include selecting simple and controllable products aimed at hedging, adhering to the authorized limit, and establishing clear responsibilities and approval processes [4]. - The finance department is responsible for implementation and monitoring, while the audit department oversees compliance, with independent directors and the supervisory board having the authority to conduct inspections [4]. Impact on the Company - The purpose of engaging in these transactions is to hedge against the risks posed by foreign exchange market fluctuations, thereby enhancing the company's ability to manage exchange rate risks without engaging in speculative or arbitrage activities [5]. - The company assures that this will not affect its daily cash flow or core business operations, and it will account for the transactions according to relevant accounting standards and disclose pertinent information in a timely manner [5].

Group 1: Investment Outlook - Domestic fixed asset investment is expected to slow down, while overseas markets will be the focus of capital expenditure, with plans to establish factories in various countries as the business teams mature [2] - The company has been developing its overseas shrimp seed business for the past two to three years, particularly in Indonesia [3] Group 2: Regional Profitability - The South American region has a favorable natural resource endowment, leading to globally competitive shrimp farming costs, with rapid increases in farming volume expected to continue [4] Group 3: Risk Management - The company adopts a strict approach to controlling foreign exchange risks by carefully selecting settlement currencies and balancing regional cash flows through structural arrangements [5] Group 4: Production Capacity - Overall overseas production capacity is tight, prompting the company to actively expand its capacity in relevant regions through various means [6] Group 5: Industry Competition - The domestic feed industry is shifting from single-dimensional competition to multi-dimensional competition, focusing on seedling, animal health, feed product quality, and technical service capabilities, leading to increased industry concentration [7] Group 6: Customized Services - The company provides personalized R&D services to large clients to address their specific aquaculture challenges and needs, requiring cross-disciplinary and cross-functional support [8] Group 7: Expansion Strategy - The company primarily focuses on self-built overseas capacity expansion, considering leasing and light asset expansion methods, while remaining attentive to acquisition opportunities [9] Group 8: Investor Participation - A total of 36 investors from various institutions participated in the recent broker strategy meeting in Shanghai, including notable firms such as China International Capital Corporation and Harvest Fund Management [10]