Core Points - The board of directors of Changzhou Shichuang Energy Co., Ltd. held its 27th meeting on August 11, 2025, where all 8 attending directors approved several key proposals [1][2][3] Group 1: Board Meeting Details - The meeting was convened by Chairman Fu Liming and complied with relevant laws and regulations, ensuring the legality and validity of the resolutions made [1] - All 8 directors were present, and the meeting included attendance from supervisors and senior management [1] Group 2: Financial Proposals - The board approved a proposal to temporarily use up to RMB 40 million of idle raised funds to supplement working capital, with a usage period not exceeding 12 months from the date of approval [1][2] - The proposal received unanimous support with 8 votes in favor and no opposition or abstentions [2] Group 3: Risk Management Initiatives - The board approved the establishment of a "Futures and Derivatives Trading Management System," aimed at regulating trading activities and mitigating risks [2] - The board also approved a proposal for the company and its subsidiaries to engage in commodity futures and foreign exchange hedging to manage price and exchange rate volatility risks [3] - The management team was authorized to implement the hedging activities within the approved limits and timeframe, following the established management system [3]

Core Viewpoint - The company has established a comprehensive set of regulations governing its securities investment, futures, and derivatives trading activities to mitigate investment risks and protect investor rights while ensuring compliance with relevant laws and regulations [1][2]. Group 1: Investment and Trading Principles - The company must adhere to national laws and regulations when engaging in securities investment, futures, and derivatives trading [2]. - Investments should be conducted in a legal, prudent, safe, and effective manner, with a focus on risk control and investment efficiency, aligned with the company's risk tolerance [2]. - The funding for these investments must come from the company's own funds, prohibiting the use of raised funds for such activities [2]. Group 2: Decision-Making Authority - The company's board of directors and shareholders' meeting are responsible for decision-making regarding securities investment, futures, and derivatives trading [2]. - Any securities investment exceeding 50 million RMB must be submitted for shareholder approval, along with timely disclosures [2]. - For futures and derivatives transactions that significantly impact the company's financials, a feasibility analysis must be prepared and approved by the board before submission to shareholders [2]. Group 3: Management and Audit - A decision-making committee comprising key executives is established to oversee investment projects and develop emergency response mechanisms [3]. - The investment department must conduct comprehensive analyses of potential projects, including market prospects and economic feasibility, before proceeding [4]. - The risk control department is tasked with monitoring market conditions and assessing the risk exposure of traded products [4]. Group 4: Information Disclosure - The company is required to disclose relevant information regarding its securities investment, futures, and derivatives activities in accordance with regulatory requirements [6][7]. - Regular reports must include details of securities investments and derivatives trading activities conducted during the reporting period [7]. Group 5: Internal Reporting Procedures - The company must follow internal reporting procedures for significant information related to securities investment, futures, and derivatives trading [5]. - Any major changes in investment plans or external conditions must be reported immediately to the board and the president [5]. Group 6: Compliance and Amendments - The established regulations apply to the company and its subsidiaries, with provisions for amendments in line with national laws and regulations [7]. - The board of directors is responsible for interpreting these regulations, which take effect upon approval [7].

Core Points - The document outlines the management system for futures and derivatives trading at Jiangxi Hongbai New Materials Co., Ltd, aiming to standardize trading behavior, prevent investment risks, and protect the interests of the company and its shareholders [1][2] - The company must adhere to principles of legality, prudence, safety, and effectiveness in its trading activities, ensuring a robust internal control system and risk management [1][2] - The company is prohibited from using raised funds for futures and derivatives trading, emphasizing the importance of focusing on its main business [2] Section Summaries General Principles - Futures trading refers to transactions involving futures contracts or standardized options, while derivatives trading includes swaps, forwards, and non-standardized options [1] - The company must analyze the feasibility and necessity of investments, establish strict decision-making procedures, and define specific requirements for authorization and information disclosure [1][2] Approval Authority - A feasibility analysis report must be prepared and submitted to the board of directors for review before engaging in futures and derivatives trading [4] - Certain trading scenarios require shareholder approval if they exceed specified thresholds related to net profit and net assets [4] Professional Management - The company will establish a leadership group responsible for organizing and overseeing futures and derivatives trading, ensuring compliance with approved plans [9] - Different departments are designated for managing trading operations, market analysis, and financial management, ensuring a structured approach to trading activities [6][12] Risk Control - Strict separation of duties is mandated to prevent conflicts of interest among trading, finance, and audit personnel [14] - The company must implement stop-loss limits and regularly assess market risks, reporting findings to the leadership group and board of directors [8] Information Disclosure - The company must disclose significant losses or gains related to futures and derivatives trading that meet specified thresholds [19] - Information regarding the purpose, types, and expected financial commitments of proposed trading activities must be disclosed to ensure transparency [20] Confidentiality - All personnel involved in trading must adhere to confidentiality protocols, preventing unauthorized disclosure of sensitive trading information [22][10] Miscellaneous - The management system will be revised as necessary to comply with relevant laws and regulations, and it will take effect upon approval by the board of directors [24][25]

Core Viewpoint - The company has established a comprehensive management system for futures and derivatives trading to mitigate foreign exchange risks and ensure asset safety, in compliance with relevant laws and regulations [1][2][3]. Group 1: Management Structure - The management system applies to the company and its subsidiaries, requiring headquarters' approval for subsidiaries to engage in futures and derivatives trading [1][2]. - The board of directors and shareholders are responsible for reviewing futures and derivatives trading within their authority [1][2]. Group 2: Responsibilities and Procedures - The general manager is responsible for reviewing and signing relevant agreements and documents within authorized limits [2]. - The finance department manages daily operations, including drafting regulations, monitoring market risks, and ensuring sufficient funds for settlement [2][6]. - The audit department oversees the actual operations of futures and derivatives trading, including fund usage and compliance with internal controls [2][3]. Group 3: Risk Management and Compliance - The audit committee evaluates the necessity and feasibility of trading, and may hire professionals for feasibility analysis [3]. - All trading activities must be based on normal business operations and aimed at hedging against exchange rate risks, prohibiting speculative trading [3][4]. - The company must ensure that the foreign currency amounts in contracts do not exceed prudent forecasts of foreign currency receipts or payments [4][5]. Group 4: Approval and Reporting - Significant trading activities require prior approval if they exceed specified thresholds related to net profit and net assets [4][5]. - The finance department must report trading activities to headquarters and ensure compliance with approval authority [5][6]. - Any losses exceeding 10% of the company's audited net profit must be disclosed promptly [7].