SEP(SH:600021) Zheng Quan Zhi Xing·2025-05-13 11:13Overview - The company plans to conduct financial derivative business in 2025 to manage foreign exchange risks and mitigate the impact of exchange rate and interest rate fluctuations on its performance [1][5]. Financial Derivative Business Overview - The purpose of the financial derivative business is to meet foreign exchange risk management needs and effectively avoid the impact of exchange rate and interest rate fluctuations on the company's performance [1]. - As of December 31, 2024, the company's subsidiary EMBA had a net position of $290 million (approximately 2.083 billion RMB) in currency derivatives [1]. Specific Derivative Contracts - The Hong Kong subsidiary plans to hedge against USD/JPY exchange rate fluctuations with a forward contract not exceeding 17 billion JPY, maturing on July 22, 2025 [2]. - The Hong Kong subsidiary also plans to hedge against EUR/USD exchange rate fluctuations with a forward contract not exceeding €250 million, maturing on July 22, 2025 [2]. - EMBA plans to enter into interest rate swap contracts to lock in rates for project financing loans, with a nominal principal amount not exceeding $566 million [2]. - EMBA intends to conduct forward foreign exchange contracts for TRY/USD to lock in costs related to Turkish coal-fired power generation, with a nominal principal amount not exceeding 10.5 billion TRY (approximately $306 million) [2]. Additional Derivative Activities - The Hungarian subsidiary plans to conduct forward foreign exchange contracts for HUF/EUR with a contract amount not exceeding 3.4 billion HUF (approximately €8.15 million) [3]. - The Hungarian subsidiary also plans to enter into interest rate swap contracts with a nominal principal amount not exceeding €6.4 million [4]. - The Serbian subsidiary plans to conduct interest rate swap contracts with a nominal principal amount not exceeding €18.8 million [4]. - The Japanese subsidiary plans to enter into interest rate swap contracts with a nominal principal amount not exceeding 25 billion JPY [4]. - The Greek project company plans to conduct interest rate swap contracts with a nominal principal amount not exceeding €6.3 million [4]. - The Romanian subsidiary plans to conduct interest rate swap contracts with a nominal principal amount not exceeding €3.3 million [4]. Feasibility and Risk Management - The company has established a foreign exchange risk management framework to ensure professional and centralized management of risks associated with financial derivative activities [5]. - A dedicated foreign exchange risk management team has been formed, consisting of professionals from various departments and external banking experts, to review hedging proposals and monitor risks [5]. Approval Process - The financial derivative business plan for 2025 was approved by the company's board of directors with unanimous consent [6].