OrientZirconic(SZ:002167) Shang Hai Zheng Quan Bao·2025-04-26 02:12Core Viewpoint - The company, Guangdong Dongfang Zirconium Industry Co., Ltd., plans to conduct foreign exchange derivative business for the year 2025 to mitigate risks associated with currency and interest rate fluctuations as its overseas market expands [2][4]. Group 1: Business Overview - The company and its subsidiaries intend to engage in foreign exchange derivative transactions with a limit of up to $20 million, including products such as forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, and combinations of these products [2][3]. - The decision to proceed with this business has been approved by the company's strategic committee, board of directors, and supervisory committee, and does not require shareholder approval [2][9]. Group 2: Business Details - The foreign exchange derivative business will have a maximum transaction balance of $20 million at any point in time, with a maximum contract value not exceeding this limit, and the margin required will not exceed 30% of the maximum contract value [4][8]. - The business is expected to be conducted over a one-year period, with the possibility of rolling over the funds within the approved limit [4]. Group 3: Risk Management - The company emphasizes a prudent approach to foreign exchange derivatives, avoiding speculative trading and focusing on hedging against currency and interest rate risks [10][12]. - A risk management system will be established, including regular audits and compliance with internal control procedures to monitor the effectiveness of the foreign exchange derivative activities [13].