Realized loss of individual derivative transaction exceeds the regulated ceiling.

1.Type of contract:Future contract.
2.Date of occurrence of the event:2022/03/10
3.Contract price:USD699,000。
4.Monetary value of margin or royalties paid:None
5.Ceiling on losses for aggregate or individual contracts
set forth in the Procedures:30% of the monetary value of the individual
contract。
6.Reason for derivative transaction:Hedging.
7.Item(s) being hedged:Palladium (raw material).
8.Monetary value of the hedged item(s):USD699,000。
9.Profit (loss) of the hedged item(s):USD 224,400 of loss。
10.The losses (including realized and unrealized losses)
assessed using fair value: Sum of realized loss USD 224,400.
11.Reason for occurrence of the losses and the impact to the Company:
The price of palladium has since escalated after the transaction on 02/14,
resulting in realized loss exceeding 30% of the individual contract value.
However, as the correlating physical palladium inventory will have
unrealized profit, the combination of both will not cause loss to the
Company.
12.Contract period:2022/2/14~2022/5/26
13.Restrictive covenants:None
14.Other important terms and conditions:None
15.Any other matters that need to be specified:None