ECOVACS ROBOTICS CO., LTD. ANNOUNCEMENT REGARDING THE COMPANY AND ITS WHOLLY-OWNED SUBSIDIARY INCREASING FOREIGN EXCHANGE DERIVATIVE BUSINESS TRADING VARIETIES AND TRADING VENUES

Stock Code: 603486 Stock Abbreviation: Ecovacs Announcement No.: 2026-022

Convertible Bond Code: 113633 Convertible Bond Abbreviation: Ecovacs Convertible Bond

Ecovacs Robotics Co., Ltd. Announcement on Increasing Foreign Exchange Derivatives Trading Varieties and Trading Venues for the Company and Its Wholly-Owned Subsidiaries

The company’s board of directors and all directors guarantee that the content of this announcement contains no false records, misleading statements, or major omissions, and assume legal responsibility for its authenticity, accuracy, and completeness.

Key Highlights:

● Main Trading Information

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● Review Procedures Completed and Proposed

Ecovacs Robotics Co., Ltd. (hereinafter referred to as “the Company”) held the 26th meeting of the third board of directors on April 24, 2025, and the 2024 annual general meeting on May 16, 2025, during which the proposal on “Carrying Out Foreign Exchange Derivatives Trading Business by the Company and Its Wholly-Owned Subsidiaries” was reviewed and approved. The Company and its wholly-owned subsidiaries are authorized to conduct foreign exchange derivatives trading within a balance of no more than USD 1.15 billion, including forward contracts and options. To improve efficiency and ensure smooth subsequent operations, the general meeting authorized the general manager or authorized personnel to approve and sign related documents for foreign exchange derivatives trading within the USD 1.15 billion limit. Funds within this limit can be rolled over, with the specific implementation managed by the company’s finance department. The authorization is valid for 12 months from the date of approval by the general meeting.

On March 20, 2026, the company held the 7th meeting of the fourth board of directors, which approved the proposal to increase foreign exchange derivatives trading varieties and trading venues, adding foreign exchange futures based on existing forwards and options, and expanding trading venues to major global exchanges such as Hong Kong and Singapore, with trading limits and validity period consistent with previous approvals. The total trading amount within the USD 1.15 billion balance, including margin and premium limits for foreign exchange futures, is capped at RMB 57 million. Based on the authorization from the 2024 annual general meeting, the general manager or authorized personnel are empowered to approve and sign related documents for foreign exchange derivatives trading within the specified limit. Funds within this limit can be rolled over, with the implementation managed by the finance department. The authorization is valid until May 15, 2026.

● Special Risk Reminder:

The company’s foreign exchange derivatives trading follows principles of legality, prudence, safety, and effectiveness, and is not for speculative purposes. However, due to macroeconomic influences, market fluctuations, macroeconomic policies, and monetary and fiscal policies may pose systemic risks to this investment.

1. Trading Overview

(1) Purpose

The company’s overseas sales receipts are mainly in USD and EUR. Significant fluctuations in exchange rates could impact the company’s operating performance. As overseas revenue continues to grow and its proportion increases, the company plans to conduct foreign exchange derivatives trading to hedge against market risks, reduce the potential adverse effects of exchange rate fluctuations on normal operations, and avoid speculative or arbitrage trading that could affect core business development.

The company uses forward contracts, foreign exchange futures, etc., to hedge expected foreign exchange payments and foreign currency holdings, with derivatives serving as hedging tools and import/export expected payments as hedged items. These instruments meet the criteria for hedge effectiveness in terms of economic relationship, hedge ratio, and timing, and are not dominated by credit risk. Changes in fair value or cash flows of the hedging instruments offset those of the hedged items, achieving hedging purposes.

(2) Trading Amount

The foreign exchange derivatives trading within any point in time shall not exceed USD 1.15 billion, including credit lines and re-trading amounts, with a maximum margin and premium limit of RMB 57 million for futures. Funds within this limit are available for rolling over.

(3) Funding Source

Funds are from the company’s own capital, not involving raised funds.

(4) Trading Methods

1. Trading Varieties: Mainly includes forwards, options, and futures involving currencies such as USD and EUR.

2. Trading Tools: Uses simple, manageable foreign exchange derivatives like futures, forwards, and options, with transparent pricing and risk assessment.

3. Trading Venues: For forwards and options, trading is conducted with qualified banks and financial institutions; for futures, trading occurs on major global exchanges such as Hong Kong and Singapore.

4. Necessity of Foreign Exchange Derivatives Trading:

(1) These are approved by the People’s Bank of China as foreign exchange hedging financial products. They involve signing forward purchase/sale and swap agreements with banks, locking in future foreign exchange costs and revenues.

(2) The scale of derivatives trading aligns with the company’s actual import/export volume, overseas assets/liabilities, and is not speculative. As overseas sales expand, hedging via derivatives helps mitigate exchange rate risks.

(3) To effectively hedge against adverse currency fluctuations, the company plans to actively manage exchange rate risks through futures trading, ensuring financial stability.

(5) Trading Period

Valid for 12 months from the approval date of the 2024 annual general meeting.

2. Review Procedures

The company held the 7th meeting of the fourth board of directors on March 20, 2026, which approved the proposal to increase foreign exchange derivatives varieties and trading venues, with limits and validity consistent with previous approvals. Funds within the limit are managed by the finance department, and the authorization is valid until May 15, 2026.

3. Risk Analysis and Risk Control Measures

(1) Risk Analysis

The company’s foreign exchange derivatives operations follow the principle of hedging, not speculation or arbitrage, but still carry certain risks:

• Market Risk: Fluctuations in exchange rates and interest rates may impact derivatives positions, especially during high volatility.

• Performance Risk: Counterparties are reputable banks with long-term relationships, so credit risk is minimal.

• Other Risks: Operational errors, legal risks from unclear contract terms, and operational risks from staff not following procedures.

(2) Risk Control Measures

• The company has established the “Ecovacs Robotics Co., Ltd. Futures and Derivatives Business Management System,” ensuring operations are legal, prudent, safe, and effective, and strictly avoiding speculative trading.

• Derivatives are used solely for hedging raw materials and operational risks, not for profit.

• Transactions are conducted with qualified institutions, with close monitoring of legal and regulatory changes.

• Funds are allocated according to plans, with stop-loss measures to limit potential losses.

• The company maintains strict management of bank accounts and fund transfers.

4. Impact on the Company and Accounting Treatment

The derivatives business is closely related to daily operations, enhancing the company’s ability to manage foreign exchange risks, and supporting stable development. The company will conduct accounting in accordance with relevant Chinese accounting standards, reflecting the derivatives’ impact on assets, liabilities, and profit/loss, based on annual audits.

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This announcement is hereby made.

Board of Directors of Ecovacs Robotics Co., Ltd.

March 24, 2026