Xiaoxiong Electric Appliance: Intends to carry out a foreign exchange hedging business with a maximum contract value of 50 million US dollars.

Xiaomeng Electric announced that the 28th meeting of the third session of the Board of Directors approved the proposal to conduct foreign exchange derivative hedging transactions. The purpose of the transactions is to hedge exchange rate risks and reduce the impact of exchange rate fluctuations. The types of transactions include forward exchange transactions, and the trading venues are approved non-affiliated financial institutions. The maximum contract value at any given point within the validity period does not exceed 50 million US dollars or the equivalent currency, and it is expected that the maximum amount of margin and premium used will not exceed 10 million US dollars or the equivalent currency. The limit can be rolled over and the term is 12 months. The business is subject to market and internal control risks, and the company has formulated risk control measures.