Gaoxin Xingke Technology Group Plans to Conduct Foreign Exchange Hedging Business Not Exceeding $10 Million to Address Exchange Rate Volatility Risk

On March 23, Gaoxin Xing Technology Group Co., Ltd. (Stock Code: 300098, Stock Abbreviation: Gaoxin Xing) announced that the company and its subsidiaries plan to carry out foreign exchange hedging activities to manage the exchange rate fluctuation risks brought by the growth of overseas business. According to the announcement, the business limit does not exceed USD 10 million, with an investment period of 12 months from the date of the board approval.

Business Overview

Gaoxin Xing stated that as the company’s overseas operations continue to expand, the demand for foreign currency settlements is increasing. To effectively hedge against foreign exchange market risks, the company plans to engage in foreign exchange hedging with banks and other financial institutions. This activity mainly involves the settlement currencies used in the company’s overseas operations, primarily USD, with trading varieties including forward foreign exchange contracts, foreign exchange swaps, and foreign exchange options.

The company emphasizes that this foreign exchange hedging activity is conducted to meet normal production and operational needs, will not affect the development of the main business, and the funds will be used reasonably. All funds are from the company’s own resources and do not involve fundraising.

Approval Process

The proposal was approved at the company’s 7th Board of Directors’ second meeting on March 23, 2026. According to relevant regulations such as the “Guidelines for Self-Regulation of Listed Companies on the Shenzhen Stock Exchange No. 7—Transactions and Related Party Transactions,” this business does not require approval from the shareholders’ meeting. The company’s board of directors has authorized the chairman and authorized personnel to implement the specific foreign exchange hedging plan in accordance with company policies and to sign related agreements and documents.

Risk Analysis and Control Measures

The announcement details the potential risks involved in engaging in foreign exchange hedging activities and the corresponding control measures:

Main Risks

• Exchange Rate Fluctuation Risk: If the foreign exchange rate moves significantly away from the company’s judgment, locking in the rate may result in costs exceeding the losses that would have occurred without hedging.
• Internal Control Risk: Losses caused by employee operational errors or system failures.
• Counterparty Default Risk: The risk that the counterparty defaults, leading to inability to hedge actual foreign exchange losses.
• Legal Risks: Changes in relevant laws or illegal activities by counterparties may prevent the proper execution of contracts.

Risk Control Measures

• Establish a “Foreign Exchange Hedging Business Management System” to build risk control systems before, during, and after transactions.
• Strengthen exchange rate research and analysis, monitor macroeconomic changes domestically and internationally in real-time, and adjust foreign currency payment and receipt strategies accordingly.
• The finance department will centrally manage foreign exchange hedging activities, strictly follow the system, ensure the business background is reasonable, and prevent speculative activities.
• Legal and audit departments will conduct regular supervision and inspections, reviewing actual operations, fund usage, and profit and loss quarterly.
• Only engage with legitimate financial institutions such as large and medium-sized commercial banks with relevant business qualifications.

Impact on the Company

Gaoxin Xing stated that engaging in hedging activities can effectively reduce or avoid exchange rate fluctuation risks, decrease foreign exchange losses, and control operational risks. The company will account for this business according to relevant accounting standards issued by the Ministry of Finance and reflect it in the balance sheet and income statement.

The company’s board of directors believes that engaging in foreign exchange hedging aligns with the company’s development needs, helps improve the company’s ability to cope with foreign exchange volatility, and ensures the stability of operational performance.

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