HSSM(SZ:002290) Zheng Quan Zhi Xing·2025-05-20 09:17Core Viewpoint - The article outlines the management system for forward foreign exchange settlement and sales by Suzhou Hesheng New Materials Co., Ltd, aiming to standardize operations, mitigate foreign exchange risks, and comply with relevant laws and regulations [1][2]. Summary by Sections General Principles - The forward foreign exchange settlement and sales business is defined as agreements with banks to settle or sell foreign currencies at a future date, specifying the currency, amount, exchange rate, and deadline [1]. - The system applies to the company and its subsidiaries, requiring approval for subsidiaries to engage in such transactions [1][2]. - All operations must comply with national laws and the company's internal regulations [1]. Operational Principles - The company will not engage in foreign exchange trading solely for profit; all transactions must be based on normal business operations to hedge against exchange rate risks [2]. - Transactions are only permitted with qualified financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China [2]. - The foreign currency amount in forward contracts must not exceed 90% of the annual foreign currency payment plan [2]. Approval Authority - The board of directors and shareholders' meeting are the decision-making bodies for forward foreign exchange transactions [3]. - Specific approval thresholds are set, such as requiring board approval for transactions exceeding 10% of the latest audited net assets or 10 million RMB [3][4]. - The board's audit committee is responsible for reviewing the necessity and feasibility of transactions [4]. Management and Internal Processes - The finance department manages daily operations related to forward foreign exchange transactions [5]. - A dedicated team is established to oversee these transactions, including key executives and finance personnel [5]. - The finance department is responsible for transaction execution, risk assessment, and reporting [6]. Risk Management - A strict risk management mechanism is established to prevent and mitigate various risks associated with foreign exchange transactions [7]. - The finance department must monitor and report on the use of funds and transaction outcomes regularly [8]. Information Disclosure - The company must disclose information regarding forward foreign exchange transactions as per regulatory requirements [9]. - Losses exceeding 10% of the latest audited net profit must be disclosed promptly [9]. Miscellaneous - The system will be revised in accordance with future laws and regulations [9].