YAPP(SH:603013) Zheng Quan Zhi Xing·2025-04-03 09:17Overview of Financial Derivative Business - The company aims to manage exchange rate risks associated with its import business, primarily settled in USD, by utilizing financial derivatives for cost locking [1][2] - The proposed scale of the financial derivative business for 2025 is capped at a maximum of 45 million USD [1] - Funding for this initiative will come from the company's own resources, without involving raised capital [1] Risk Analysis of Financial Derivative Investment - Market risk exists due to potential increases in purchase costs resulting from fluctuations in exchange rate market prices [1] - Credit risk is minimized as the company will engage with reputable banks with which it has established long-term relationships, thus reducing performance risk [1] Risk Control Measures - The company has established the "Yapu Financial Derivative Business Management Regulations" to clearly define approval processes, risk control, and reporting for financial derivative transactions [1][2] - The company will select simple and controllable financial derivative products and will not engage in speculative derivative trading [2] - Regular audits will be conducted by the company's audit department to ensure compliance with risk control procedures and the effectiveness of internal controls [2] - A specialized task force will be formed to respond promptly to significant market changes or substantial losses [2] Feasibility Analysis of Financial Derivative Business - The proposed financial derivative business aligns with the company's actual international operations and aims to mitigate exchange rate volatility risks, serving the interests of all shareholders [2] - The established regulations effectively govern the approval processes and risk management for financial derivative activities, confirming the feasibility of the initiative [2]