ECEC(SZ:002199) Zheng Quan Zhi Xing·2025-03-24 14:12Core Viewpoint - The company plans to conduct foreign exchange hedging business to mitigate risks associated with currency fluctuations, which significantly impact its financial performance due to a high proportion of foreign sales [1][2][3]. Group 1: Background and Overview - The company has a high proportion of foreign sales, primarily settled in foreign currencies like USD, making it vulnerable to exchange rate fluctuations [1][2]. - The proposed foreign exchange hedging business will not exceed RMB 50 million or its equivalent in foreign currency, utilizing the company's own funds [1][2]. Group 2: Necessity and Feasibility - The company needs to engage in foreign exchange hedging due to its export activities and the import of raw materials, which are affected by international market volatility [2][3]. - The hedging activities are closely related to the company's foreign currency assets and liabilities, enhancing its ability to manage exchange rate and interest rate risks [2][3]. Group 3: Risk Management and Control Measures - The company has established an internal management system for foreign exchange hedging, detailing the scope of business, approval authority, operational processes, and risk reporting [3][4]. - The company will adhere to strict operational protocols to ensure effective risk control and compliance with relevant laws and regulations [4][5]. Group 4: Conclusion on Feasibility - The foreign exchange hedging business is deemed necessary and feasible, aimed at reducing exchange rate risks and preventing losses without engaging in speculative trading [4][5].