Core Viewpoint - The document outlines the financial derivatives business management system of Zhejiang Xinkai Technology Group Co., Ltd., emphasizing risk prevention and control in derivatives trading, aligning with relevant laws and regulations [1][2]. Summary by Sections General Principles - The system aims to regulate the financial derivatives trading behavior of the company and its subsidiaries, ensuring compliance with laws such as the Company Law and Securities Law of the People's Republic of China [1]. - Financial derivatives include products like forwards, options, swaps, and currency swaps, which can be settled either through physical delivery or cash difference [1]. Operational Principles - The company and its subsidiaries must strictly control the types and scale of derivatives trading, ensuring it does not affect normal business operations [2]. - Derivatives trading should not be solely for profit but should be based on normal business operations, focusing on hedging and risk prevention related to exchange rates and interest rates [2]. Approval Authority - Any foreign exchange derivatives trading must be preceded by a feasibility analysis report submitted to the board of directors for approval [2]. - Overall plans and limits for derivatives trading must comply with regulations and require board approval; if exceeding board authority, shareholder approval is necessary [2]. Management and Operational Processes - The board authorizes the chairman and representatives to manage foreign exchange derivatives trading, including signing legal documents [4]. - The finance director leads the derivatives team, overseeing risk management, market analysis, and strategy formulation [4]. - The operations team is responsible for providing relevant data and ensuring approved funds for derivatives trading are monitored and reconciled monthly [5]. Risk Management - A risk measurement system is established to assess funding risks and price fluctuation risks associated with derivatives trading [6]. - In case of significant market changes that increase risks, the company must report and initiate emergency measures [6]. - A stop-loss mechanism is activated when market price fluctuations approach predetermined limits [6]. Information Disclosure - The company must disclose information regarding derivatives trading in accordance with regulations from the China Securities Regulatory Commission and the Shenzhen Stock Exchange [7]. - Any confirmed gains or losses from derivatives trading that exceed 10% of the most recent audited net profit must be disclosed promptly [7]. Other Provisions - The management system will be effective upon approval by the board and will be interpreted by the board [9].
信凯科技: 金融衍生品业务管理制度