Core Viewpoint - Sichuan Haowu Electromechanical Co., Ltd. has approved its wholly-owned subsidiary, Neijiang Jinhong Crankshaft Co., Ltd., to engage in financial derivative trading to manage foreign exchange risks associated with its technological transformation plan [2][10]. Group 1: Board Meeting and Approval - The 8th meeting of the 10th Board of Directors was held on September 5, 2025, with all 9 directors present, ensuring compliance with legal and regulatory requirements [1][3]. - The board unanimously approved the proposal for the subsidiary to conduct financial derivative trading, with 9 votes in favor and no opposition [3][12]. Group 2: Financial Derivative Trading Details - The total trading limit for the financial derivative transactions is set at a maximum of €15 million (or equivalent in other foreign currencies), with a maximum contract balance of €6 million at any time [2][9]. - The expected maximum margin and premium to be utilized for these transactions is capped at ¥5 million [2][10]. - The trading activities will be conducted in the on-market environment, exclusively with large commercial banks that have no affiliation with the company [10][11]. Group 3: Purpose and Risk Management - The primary purpose of the trading is to effectively manage foreign currency liabilities and payment budget exchange rate risks, ensuring controllable project investment costs [8][10]. - The board has established risk control measures, including strict adherence to hedging principles, total amount control, and only engaging with financially sound counterparties [14][15]. Group 4: Investor Engagement - The company will participate in an online investor reception day on September 12, 2025, to enhance communication with investors regarding its performance and strategic direction [19][20].