Core Viewpoint - Jiangsu Hongwei Technology Co., Ltd. plans to conduct forward foreign exchange trading to hedge against currency risk and stabilize overseas revenue, using its own funds for transactions not exceeding RMB 150 million or equivalent foreign currency [1][2][3] Transaction Overview - The company and its subsidiaries will engage in forward foreign exchange trading primarily in USD and EUR, with a maximum contract value of RMB 150 million or equivalent foreign currency on any trading day [2][3][8] - The expected maximum margin and premium for these transactions will not exceed RMB 5 million [2][3][8] - The authorization for these transactions is valid for 12 months from the date of approval by the board of directors [2][3][8] Purpose of the Transactions - The company aims to mitigate the adverse effects of significant exchange rate fluctuations on its operating performance, as it has overseas procurement and sales activities [3][5] - The trading activities will be based on normal business operations and will not be speculative in nature [3][5] Risk Management - The company has established a comprehensive internal control system to manage risks associated with forward foreign exchange trading, including approval authority, operational processes, and risk handling procedures [6][7] - The company will continuously monitor market conditions and adjust strategies to minimize potential foreign exchange losses [6][7] Financial Impact - Engaging in forward foreign exchange trading is expected to enhance the company's financial stability and ability to respond to currency fluctuations [7][8] - The company will account for these transactions in accordance with relevant accounting standards [7][8] Approval Process - The board of directors approved the proposal for forward foreign exchange trading on July 25, 2025, and the proposal does not require shareholder approval as it does not involve related party transactions [8][9]