Core Viewpoint - Honghe Technology Co., Ltd. has approved a proposal to engage in foreign exchange derivative hedging transactions to mitigate uncertainties arising from exchange rate fluctuations in its overseas business [1][2]. Group 1: Business Strategy - The company has been expanding its overseas business, which is primarily settled in foreign currencies such as USD and EUR, leading to significant exposure to exchange rate volatility [1]. - The approved foreign exchange derivative business will have a maximum trading margin and premium limit of up to $10 million, with the highest contract value on any trading day not exceeding $200 million [1]. Group 2: Risk Management - The foreign exchange derivative trading will include various products such as forward foreign exchange contracts, currency swaps, and foreign exchange options, with transactions conducted through qualified financial institutions [2]. - The company has established an internal control system for foreign exchange derivative trading to manage risks, including market, liquidity, performance, customer default, operational, and legal risks [2].

Core Points - The company held its third board meeting on August 25, 2025, with all nine directors present, and the meeting was conducted in accordance with relevant laws and regulations [1][2] - The board approved the proposal to abolish the supervisory board and amend the company's articles of association, which will require shareholder approval [2][4] - The board also approved the revision of 18 basic management systems, including the audit committee and strategic committee working rules, and the establishment of a foreign exchange derivative trading management system [2][3] - The board approved the revision of the related party transaction decision-making system, which will also require shareholder approval [4] - The board approved the establishment of a salary total management system to enhance the market-oriented salary distribution mechanism [4][5] - The board completed the review of the 2025 semi-annual report and the special report on the use of raised funds, both of which were approved unanimously [5][6] - The board approved the risk assessment report for Yunnan Yuntianhua Group Financial Co., Ltd. for the first half of 2025, with some directors abstaining from the vote [6][7] - The board approved an increase in the expected daily related party transaction limit for 2025, which will require shareholder approval [7][8] - The board approved a guarantee limit of up to RMB 500 million for its wholly-owned subsidiary Zhuhai Zhuglass Electronic Materials Co., Ltd. [8] - The board approved the proposal to conduct foreign exchange derivative hedging transactions to mitigate risks associated with foreign exchange fluctuations [8][9] - The board agreed to hold the first temporary shareholders' meeting of 2025 on September 12, 2025, to review matters requiring shareholder approval [9]

Core Viewpoint - The company, Nanjing Maolai Optical Technology Co., Ltd., plans to conduct foreign exchange derivative hedging transactions to mitigate foreign exchange risk associated with its overseas business operations, primarily settled in USD, EUR, and GBP [1][2]. Summary by Sections Basic Situation of Foreign Exchange Derivative Hedging Transactions - The purpose of the transactions is to enhance the company's ability to manage foreign exchange market risks and to prevent adverse impacts on its operating performance due to exchange rate fluctuations [1]. - The total amount for the foreign exchange derivative hedging transactions in 2025 is not to exceed 100 million RMB or equivalent foreign currency, with the ability to roll over within 12 months from the date of resolution approval [2]. - The funding source for these transactions will primarily be the company's own funds, without involving raised funds [2]. - The company will utilize simple and transparent derivative instruments such as foreign exchange forwards, options, and swaps, adhering to hedging principles and risk-neutral management [2]. - The effective period for these transactions is 12 months from the board meeting approval [2]. Risk Analysis of Foreign Exchange Derivative Transactions - The company acknowledges potential risks including unforeseen changes in domestic and international economic conditions, counterparty defaults, overdue receivables, and operational errors due to the complexity of foreign exchange derivative transactions [3][4]. Risk Control Measures - The company has established clear internal control systems, including defined responsibilities and risk reporting mechanisms, to manage the foreign exchange hedging activities [4]. Impact and Accounting Treatment of Foreign Exchange Derivative Hedging Transactions - Engaging in foreign exchange hedging is aimed at effectively mitigating risks from foreign exchange market volatility, improving the efficiency of foreign currency usage, and reducing financial costs [4]. - The company will follow relevant accounting standards for financial instruments and hedge accounting to process and disclose the hedging activities in its financial reports [4]. Review Procedures and Opinions - The board of directors and the supervisory board have approved the proposal for foreign exchange derivative hedging transactions, affirming that it will not harm the interests of the company or its shareholders [5]. - The sponsor institution has verified that the proposed hedging activities comply with legal regulations and internal control measures, supporting the company's risk management strategy [5][6].