Hainan Drinda New Energy Technology (02865) is engaged in commodity futures hedging business.

Hainan Drinda New Energy Technology (02865) announced that the main raw materials involved in the company's daily production and operation include silver, polysilicon, and other bulk commodities, which are easily affected by macroeconomic conditions, changes in supply and demand in the industry chain, and may experience significant price fluctuations. In order to reasonably avoid the potential impact of raw material price fluctuations on the company's production and operation, and to control market risks and enhance operational stability, the company and its subsidiaries plan to carry out commodity futures hedging business. The commodity futures hedging business conducted by the company and its subsidiaries will not engage in any speculative trading for the purpose of affecting the company's main business development. It is estimated that the transaction margin and premium to be used in the commodity futures hedging business to be conducted by the company and its subsidiaries this time will not exceed RMB 280 million (including the principal) or the equivalent amount in other currencies, and the maximum contract value held on any trading day is expected not to exceed RMB 1.6 billion (including the principal) or the equivalent amount in other currencies. Within the above limits, funds can be used repeatedly, but the margin, premium, or maximum contract value at any point in time within the term should not exceed the approved limit. The board of directors authorizes the company's management to specifically implement the above hedging business matters within the above limits. The commodity futures business varieties to be conducted by the company and its subsidiaries are limited to bulk commodity raw materials related to the company's production and operation (including but not limited to silver, polysilicon), and will be conducted on trading venues approved by regulatory authorities, possessing corresponding business qualifications, and meeting the company's hedging business needs, or by institutions with relevant business operating qualifications. The trading tools include commodity futures and options, and other financial instruments.