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/Lepu Medical: Announcement on Carrying out Foreign Exchange Hedging Business
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Lepu Medical: Announcement on Carrying out Foreign Exchange Hedging Business

Shenzhen Stock Exchange
2026/04/23

Securities code: 300003 Securities abbreviation: Lepu Medical Announcement number: 2026-032

Lepu (Beijing) Medical Equipment Co., Ltd.

Announcement on Carrying out Foreign Exchange Hedging Business

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete, and contains no false records, misleading statements or major omissions.

Special tips:

  1. Purpose of transaction: In order to effectively avoid risks in the foreign exchange market, prevent the negative impact of large exchange rate fluctuations on the company, improve the efficiency of the use of foreign exchange funds, reasonably reduce financial expenses, and reduce the risk of exchange rate fluctuations.

  2. Transaction types: mainly include but are not limited to forward foreign exchange settlement and sales, foreign exchange swaps, foreign exchange options, currency swaps, interest rate swaps, interest rate swaps, interest rate options, etc. or a combination of the above products.

  3. Transaction amount and term: Based on the company's asset size and business needs, the total foreign exchange hedging quota of the company and its holding subsidiaries shall not exceed RMB 1 billion or its equivalent in foreign currency. Within this authorized quota, the hedging quota can be used on a rolling basis, and the quota will be effective within 12 months from the date of review and approval by the company's board of directors. If the duration of a single transaction exceeds the authorization period, the authorization period will automatically be extended until the transaction is terminated.

  4. Review procedures completed: This matter has been reviewed and approved at the 21st meeting of the company’s sixth board of directors. This matter is within the deliberation authority of the company’s board of directors and does not need to be submitted to the company’s shareholders’ meeting for review.

  5. Risk warning: The company carries out foreign exchange hedging business in compliance with the principle of locking exchange rates and interest rate risks, and does not engage in speculative or arbitrage trading operations. However, the trading operations of foreign exchange hedging business still involve certain risks of exchange rate fluctuations, performance risks, operational risks, etc. Investors are advised to pay attention to investment risks.

Lepu (Beijing) Medical Devices Co., Ltd. (hereinafter referred to as the company) held the 21st meeting of the company's sixth board of directors on April 21, 2026, and reviewed and approved the "Proposal on the Company's Foreign Exchange Hedging Business", agreeing that the company and its holding subsidiaries should carry out foreign exchange hedging business with financial institutions, with a total limit not exceeding RMB 1 billion or equivalent foreign currency. The implementation limit will be implemented 12 days after the board of directors reviewed and approved it. It will continue to be valid for several months and can be used on a rolling basis within the above authorization limit. If the duration of a single transaction exceeds the authorization period, the authorization period will automatically be extended until the transaction is terminated. The specific situation is announced as follows:

1. Overview of the current foreign exchange hedging business

  1. Transaction purpose

In order to effectively prevent the adverse effects of large fluctuations in exchange rates on the company and improve the efficiency of the use of foreign exchange funds, the company and its holding subsidiaries carry out foreign exchange hedging business with financial institutions based on specific businesses, with the purpose of avoiding and preventing exchange rate risks, and not for the purpose of speculation. The company and its holding subsidiaries carry out foreign exchange hedging business, which can further improve the ability to deal with foreign exchange fluctuation risks, better avoid and prevent the risks of foreign exchange exchange rate fluctuations, and enhance financial stability.

  1. Transaction amount

Based on the company's asset size and business needs, the total foreign exchange hedging quota of the company and its holding subsidiaries shall not exceed RMB 1 billion or its equivalent in foreign currency. Within this authorized quota, the hedging quota can be used on a rolling basis.

  1. Transaction method

The company and its holding subsidiaries are only allowed to conduct foreign exchange hedging business with legally qualified financial institutions, and will not conduct transactions with other organizations or individuals other than the aforementioned financial institutions. The counterparties do not involve related parties.

The main currencies for the proposed foreign exchange hedging business transactions are RMB, US dollars, Hong Kong dollars, euros, pounds, etc. The foreign exchange hedging business conducted by the company is a foreign exchange hedging business used to avoid and prevent foreign exchange exchange rate or foreign exchange interest rate risks, which mainly includes but is not limited to: forward foreign exchange settlement and sales, foreign exchange swaps, foreign exchange options, currency swaps, interest rate swaps, interest rate swaps, interest rate options, etc. or a combination of the above products.

  1. Transaction period and authorization

The transaction limit will continue to be effective within 12 months after being approved by the board of directors. If the duration of a single transaction exceeds the authorization period, the authorization period will automatically be extended until the transaction is terminated. If subsequent changes such as the foreign exchange hedging quota occur, they need to be resubmitted to the board of directors for review.

The chairman is authorized to review and approve daily foreign exchange hedging business plans and sign contracts related to foreign exchange hedging business within the scope of authorization of this board of directors, and agrees that the chairman of the board of directors can sub-authorize matters related to signing agreements related to foreign exchange hedging business within the scope of the aforementioned authorization.

  1. Source of funds

To carry out foreign exchange hedging business, the company and its holding subsidiaries do not need to invest other funds except paying a certain proportion of margin and option fees according to the agreement signed with the financial institution. The margin will use the company's own funds. The proportion of deposits and option fees paid is determined according to specific agreements signed with different banks.

2. Review procedure

On April 21, 2026, the company held the 21st meeting of the sixth board of directors and reviewed and approved the "Proposal on Carrying out Foreign Exchange Hedging Business". According to the "Shenzhen Stock Exchange GEM Stock Listing Rules" and the "Articles of Association" and other relevant regulations, this foreign exchange hedging business matter is within the scope of approval authority of the company's board of directors and does not need to be submitted to the shareholders' meeting for review. The company's board of directors authorizes the company's management to implement the foreign exchange hedging business plan and sign relevant agreements and documents in accordance with relevant regulations within the above quota and validity period.

3. Transaction risk analysis and risk control measures

(1) Transaction risk analysis

The company carries out foreign exchange hedging business in compliance with the principle of locking exchange rates and interest rate risks, and does not engage in speculative or arbitrage trading operations. However, there are still certain risks in the trading operations of foreign exchange hedging business.

  1. Exchange rate fluctuation risk: When the trend of foreign exchange rates deviates significantly from the company's judgment of the direction of exchange rate fluctuations, the company's costs after locking the exchange rate may exceed the costs without locking, thus causing losses to the company.

  2. Performance risk: The counterparties for the company's foreign exchange hedging transactions are all banks and other financial institutions with good credit and which have established long-term business relationships with the company, so the performance risk is low.

  3. Operational risk: When conducting transactions, if operators fail to conduct foreign exchange hedging transactions according to prescribed procedures or fail to fully understand foreign exchange hedging information, operational risks will arise; if the terms of the transaction contract are unclear, they may face legal risks.

(2) Risk control measures to be taken

  1. The company has formulated the "Foreign Exchange Hedging Business Management System", which clearly stipulates the operating regulations, approval authority and information disclosure, management and internal operating procedures, information confidentiality measures, internal risk control procedures and file management of the foreign exchange hedging business;

  2. In order to avoid the risk of significant exchange rate fluctuations, the company will strengthen research and analysis on exchange rates, pay real-time attention to changes in the international market environment, and adjust business strategies in a timely manner to avoid exchange losses to the greatest extent;

  3. In order to avoid internal control risks, the company has a dedicated department responsible for the unified management of the company's foreign exchange hedging business. Speculation and arbitrage transactions are not allowed, and business operations are conducted in strict accordance with the provisions of the "Foreign Exchange Hedging Business Management System" to effectively ensure the implementation of the system;

  4. In order to control the risk of transaction default, the company only conducts foreign exchange hedging business with large banks and other financial institutions with legal qualifications, strictly abides by relevant national laws and regulations, prevents legal risks, and regularly conducts supervision and inspection on the standardization of hedging business and the effectiveness of internal control mechanisms.

4. Transaction-related accounting treatment

The company conducts corresponding accounting processing for the proposed foreign exchange hedging business in accordance with relevant regulations and guidelines such as the Ministry of Finance's "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 24 - Hedge Accounting", "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments" and other guidelines. The final accounting treatment shall be subject to the accounting statements audited and confirmed by the company's annual audit agency.

5. Documents for reference

  1. Resolution of the 21st meeting of the company’s sixth board of directors;

  2. Feasibility analysis report on carrying out foreign exchange hedging business.

Announcement is hereby made.

Board of Directors of Lepu (Beijing) Medical Devices Co., Ltd.

April 23, 2026