Core Viewpoint - The company has announced an increase in its financial derivatives trading limit and an extension of the authorization period to better manage foreign exchange risks due to significant fluctuations in the international foreign exchange market [1][2]. Group 1: Financial Derivatives Trading Limit - The company plans to increase its foreign exchange hedging limit by $900 million, raising the total limit from $1 billion to $1.9 billion, effective immediately after board approval [1][2]. - The current authorization for financial derivatives trading is valid from April 1, 2025, to March 31, 2026, and the company intends to extend this authorization period to April 30, 2026 [2]. Group 2: Risk Management and Trading Practices - The company will engage in foreign exchange derivatives trading primarily using its own funds, avoiding speculative or arbitrage trading practices [2][3]. - The trading instruments will include various currencies such as RMB, USD, TWD, EUR, JPY, MXN, and PLN, with the main tools being forward contracts and swaps [2]. - The company has established risk control measures, including prohibiting speculative trading, implementing strict control systems, and conducting regular compliance audits [2][3]. Group 3: Business Relevance - The financial derivatives business is closely related to the company's daily operations, enhancing its ability to manage foreign exchange volatility and contributing to long-term development and shareholder interests [3].

Core Viewpoint - The document outlines the management system for foreign exchange derivative trading at Hanbo High-tech Materials (Hefei) Co., Ltd, emphasizing the need for risk prevention, compliance with regulations, and safeguarding company assets [1][2]. Group 1: Definition and Scope - Foreign exchange derivative business includes various transactions aimed at hedging against exchange rate risks, such as forward contracts, options, futures, and swaps [2]. - The system applies to all subsidiaries of the company, prohibiting subsidiaries from engaging in derivative trading without company approval [2]. Group 2: Operational Principles - The company must conduct foreign exchange derivative trading legally, prudently, and effectively, focusing on risk mitigation related to exchange and interest rates [3]. - Transactions are only permitted with qualified financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China [3][4]. Group 3: Approval Authority - The company's shareholders' meeting and board of directors serve as the decision-making bodies for foreign exchange derivative trading, requiring approval for any trading activities [4][5]. - Subsidiary management does not have final approval authority for derivative trading; all transactions must be reported for unified approval [5]. Group 4: Internal Procedures - The finance department is responsible for managing foreign exchange derivative trading, including planning, funding, and daily management [6]. - The internal process includes risk assessment, contract review by the legal department, and compliance with approval procedures before executing trades [6][7]. Group 5: Information Disclosure and Record Keeping - The company must disclose foreign exchange derivative trading information in accordance with regulations from the China Securities Regulatory Commission and the Shenzhen Stock Exchange [8][9]. - The finance department is tasked with maintaining all relevant documentation related to foreign exchange derivative trading [9].