Core Viewpoint - The document outlines the financial derivatives trading management system of Yijing Photovoltaic Technology Co., Ltd., aiming to standardize trading practices and mitigate associated risks [1][2]. Group 1: General Principles - The system applies to the company and its subsidiaries, requiring that subsidiaries do not engage in derivatives trading without company approval [2]. - Derivatives trading must adhere to principles of legality, prudence, safety, and effectiveness, complying with national laws and the established internal regulations [2][3]. Group 2: Trading Operations - The company does not engage in derivatives trading solely for speculation or arbitrage; all trades must be based on actual needs to hedge against price volatility [3]. - Trading is permitted only with financial institutions approved by the People's Bank of China and the financial regulatory authority [3]. - The company must maintain its own funds for derivatives trading and cannot use raised funds for such activities [3]. Group 3: Approval Authority - The board of directors or shareholders' meeting serves as the approval body for derivatives trading, requiring feasibility reports for transactions [4]. - Certain transactions exceeding specified thresholds must be approved by both the board and shareholders [4][5]. Group 4: Internal Management and Procedures - The finance department is responsible for managing derivatives trading, including drafting management plans and monitoring compliance [6]. - A structured internal process is established for trading operations, including risk assessment and transaction documentation [6][7]. Group 5: Information Disclosure and Accountability - The company must disclose information regarding derivatives trading in accordance with regulations from the China Securities Regulatory Commission and the Shanghai Stock Exchange [7]. - Violations of laws or internal regulations related to derivatives trading will result in serious consequences for responsible personnel [8].

General Principles - The financial derivatives trading management system is established to regulate the trading activities of Shanghai Yaopi Glass Group Co., Ltd. and its subsidiaries, ensuring compliance with relevant laws and regulations [1][2] - Financial derivatives include products such as futures, options, forwards, and swaps, which can be traded on-exchange or off-exchange, and can involve various underlying assets [1] Basic Principles of Trading - The company and its subsidiaries must conduct financial derivatives trading based on legitimate, prudent, safe, and effective principles, primarily for risk hedging rather than speculative profit [2][3] - Trading is restricted to approved financial institutions with foreign exchange derivatives trading qualifications, and the company must use its own funds for such transactions [3] Approval Authority - The board of directors or shareholders' meeting serves as the approval authority for financial derivatives trading, requiring a feasibility analysis report for different asset categories or product types [4] - Specific thresholds for trading activities require additional approval from the shareholders' meeting if they exceed certain financial limits, such as 50% of the latest audited net profit or 50% of the latest audited net assets [4] Management and Workflow - The management is responsible for reviewing and deciding on strategies for managing exchange rate and commodity price risks, including establishing basic principles for financial derivatives business risk management [5][6] - The finance department handles daily operations and management of financial derivatives trading, while the legal department ensures compliance with laws and regulations [6][7] Internal Risk Control Measures - The finance department must analyze significant price fluctuations of underlying assets and report to management to prevent further risk escalation [8][9] - The risk control department supervises the execution of internal risk control measures and ensures compliance with established procedures [10] Information Disclosure - The company must disclose the purpose, types, tools, trading venues, and expected margin requirements for futures and derivatives trading, along with risk warnings [11][12] - Any significant risks or losses must be reported if they meet specific thresholds related to the company's audited net profit [12]

Core Points - The company has established a set of regulations to manage its financial derivatives trading activities and ensure compliance with relevant laws and regulations [1][2][3] Group 1: General Principles - The company and its subsidiaries must conduct financial derivatives trading in accordance with legal, prudent, safe, and effective principles, focusing on risk avoidance rather than speculation [2][3] - Financial derivatives include but are not limited to forwards, swaps, options, and futures, with underlying assets such as exchange rates, interest rates, currencies, and raw materials [1][2] Group 2: Approval and Responsibilities - The finance department is responsible for the implementation and management of financial derivatives trading, while the audit and supervision department oversees compliance and auditing [3][4] - Any financial derivatives trading must be approved by the company's board of directors or shareholders if it exceeds certain thresholds, such as 50% of the latest audited net profit or 50% of the latest audited net assets [4][5] Group 3: Operational Procedures - The finance department must create a trading plan based on market trends and submit it for approval by the finance head and the general manager [5][6] - The company must maintain a financial derivatives management ledger and regularly report the trading performance to the finance head and general manager [5][6] Group 4: Information Disclosure and Record Keeping - The company is required to fulfill information disclosure obligations in accordance with regulations from the China Securities Regulatory Commission and stock exchanges [7] - All trading documents and records must be organized and archived by the finance department for a minimum of 10 years [7]