Core Viewpoint - Wuhan LianTe Technology Co., Ltd. plans to engage in financial derivatives trading to mitigate foreign exchange risk due to significant overseas business operations [1][2] Business Overview - The purpose of the financial derivatives business is to reduce or hedge against foreign exchange and interest rate fluctuations, thereby protecting the company's main operations from adverse financial market impacts [2] - The types of financial derivatives to be engaged in include foreign exchange forwards, swaps, options, and interest rate derivatives [2] - The total trading limit is set at a maximum of 220 million RMB (or equivalent foreign currency), with a maximum contract value of 2.2 billion RMB (or equivalent foreign currency) at any point during the contract's duration [2] Risk Analysis and Control - Identified risks include foreign exchange fluctuation risk, transaction default risk, operational risk, and legal risk [3] - Risk control measures involve conducting business with the aim of hedging, careful forecasting based on foreign currency receipts and payments, and establishing a robust risk warning and reporting mechanism [3] Accounting Policies and Principles - The company will adhere to relevant accounting standards, including the Accounting Standard for Enterprises No. 24 - Hedge Accounting, ensuring accurate and truthful transaction reporting [4] Business Impact and Review - Engaging in financial derivatives trading is expected to enhance the company's ability to manage foreign exchange risks, stabilize operating performance, and align with daily operational needs without speculative intent [5] - The business initiative has been approved by the board of directors, supervisory board, and independent directors, with no objections from the sponsoring institution [5]