On 15 June 2026, Sunmart Trading FZCO, an indirect wholly-owned subsidiary of Softcare Limited, executed three EUR/USD forward contracts with China CITIC Bank Corporation Limited Guangzhou Branch to mitigate foreign-exchange risk linked to the Group’s euro-denominated assets.

The contracts require Sunmart to sell a total of EUR29.90 million and purchase USD34.69 million on pre-agreed settlement dates—24 June, 26 June and 13 July 2026—at forward rates of 1.1599, 1.1608 and 1.1616, respectively. All trades will be settled by full delivery.

To secure its obligations, Sunmart has placed deposits amounting to RMB14.07 million with the bank; the funds will be released once all settlements are completed. Payments under the contracts are fully funded from the Group’s internal resources.

The hedging initiative addresses currency risk arising from Sunmart’s procurement and trading activities with Group subsidiaries in West and Central Africa, where local currencies (XOF and XAF) are pegged to the euro. By locking in exchange rates, Softcare aims to stabilise financial results and strengthen currency risk management.

Under Hong Kong Listing Rule 14.07, the highest applicable percentage ratio for the transaction exceeds 5% but remains below 25%, classifying the FX forward contracts as a discloseable transaction. Consequently, the deal requires public disclosure but is exempt from shareholder approval and circular issuance.

Softcare Limited develops, manufactures and sells baby and feminine hygiene products, while Sunmart oversees the Group’s raw-material procurement and trading. The counterparty, China CITIC Bank Corporation Limited Guangzhou Branch, is a third party independent of Softcare and its connected persons.