Heehee Information (688615) Approved to Conduct Foreign Exchange Hedging Business with Maximum Contract Value Reaching 60 Million US Dollars

Shanghai H&H Information Technology Co., Ltd. (Stock Code: 688615, Stock Abbreviation: H&H Information) announced on March 16th that the company’s 26th meeting of the second board of directors approved the proposal to carry out foreign exchange hedging business in 2026. The company agreed to conduct foreign exchange hedging within the authorized period to manage exchange rate fluctuation risks.

According to the announcement, the main purpose of H&H Information’s foreign exchange hedging business is to effectively avoid foreign exchange market risks, prevent significant exchange rate fluctuations from adversely affecting the company’s operating performance, improve the efficiency of foreign exchange fund utilization, and reasonably reduce financial expenses. As the company’s business develops, foreign currency income continues to increase as a proportion of total revenue, and exchange rate volatility has become an important factor affecting the stability of the company’s performance.

The announcement indicates that this foreign exchange hedging business will mainly target USD currency, with counterparties being domestic and foreign financial institutions such as banks with relevant qualifications. Regarding business limits, the company expects that the maximum contract value held on any trading day will not exceed $60 million, and related limits can be rolled over within the approval period. The board has authorized the chairman and CFO to approve daily foreign exchange hedging plans and sign related contracts.

In terms of risk control, the company emphasizes strict adherence to the “risk-neutral” principle, avoiding any speculative or arbitrage trading operations. The company has established the “Foreign Exchange Hedging Business Management System,” which creates a comprehensive internal control system covering operational principles, approval authority, internal processes, and risk management. The finance department will continuously monitor market price changes, regularly assess risk exposure, and the internal audit department will supervise compliance.

The announcement specifically notes that, despite multiple risk control measures, foreign exchange hedging may still face risks such as exchange rate fluctuations, performance risks, and operational risks. If the exchange rate trend deviates significantly from the company’s judgment, it may result in costs higher than those if the rate were not locked or revenues lower than if not hedged.

According to relevant accounting standards, this foreign exchange hedging business does not qualify for hedge accounting and will be accounted for in accordance with the “Enterprise Accounting Standard No. 22 — Recognition and Measurement of Financial Instruments” and other relevant regulations.

The company’s sponsor has confirmed after review that H&H Information’s foreign exchange hedging business has completed necessary approval procedures, aligns with the company’s actual operational needs, helps reduce the impact of exchange rate fluctuations on performance, and does not harm the interests of the company or minority shareholders.

This matter does not constitute a related-party transaction and does not require submission to the shareholders’ meeting for approval.

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