Zheng Quan Zhi Xing·2025-03-25 11:35Core Viewpoint - The company plans to conduct forward foreign exchange settlement and sales to mitigate the impact of exchange rate fluctuations on its business performance, allowing it to focus on production and sales [1][2]. Summary by Sections Purpose of Conducting Forward Foreign Exchange Business - The company engages in overseas procurement and sales, primarily using currencies such as USD, EUR, SGD, VND, and THB. The forward foreign exchange business aims to reduce the impact of exchange rate fluctuations on the company's operating performance [1][2]. Types of Forward Foreign Exchange Business - The forward foreign exchange business will be limited to the main settlement currencies used in the company's operations: USD, EUR, SGD, VND, and THB [2]. Business Period and Scale - The company has received approval from its board and supervisory committee to conduct forward foreign exchange business within 12 months from the board's approval date, with a maximum foreign currency amount not exceeding RMB 300 million (including this amount), which can be used on a rolling basis [2][3]. Feasibility Analysis - The company’s reliance on foreign currencies for procurement and sales makes it vulnerable to significant exchange rate fluctuations. Engaging in forward foreign exchange business is seen as a way to lock in exchange rates, thereby stabilizing profit levels and aligning with future operational needs [2][3]. Risk Analysis - The forward foreign exchange business is designed to hedge against exchange rate risks and is not intended for speculative or arbitrage trading. However, there are risks such as potential exchange losses if the forward rates deviate from actual rates at the time of settlement [3]. Risk Control Measures - The company has established a comprehensive internal control system for foreign exchange forward business and has implemented effective risk response measures. This includes monitoring customer payment capabilities and improving the accuracy of cash flow forecasts [4][5]. Review Procedures and Special Opinions - The board and supervisory committee have approved the proposal to conduct forward foreign exchange business, confirming that it aligns with the company's operational needs and complies with relevant laws and regulations [4][5]. Sponsor Institution's Review Opinion - The sponsor institution has verified that the proposed forward foreign exchange business has been approved by the company's board and supervisory committee, and it complies with necessary legal procedures [5].