Zheng Quan Zhi Xing·2025-07-18 16:24Core Viewpoint - The article outlines the foreign exchange derivatives trading management system of Great Wall Motor Co., Ltd, emphasizing the need for risk management and internal control mechanisms to mitigate market risks and ensure asset safety [1][2]. Group 1: General Principles - The management of foreign exchange derivatives should be based on normal business operations, aiming to hedge against exchange rate or interest rate risks while adhering to prudent and stable operational principles [2][3]. - The group must not engage in speculative foreign exchange trading and should focus on "hedging" rather than "value appreciation" to minimize the negative impact of exchange rate fluctuations on core business and financial performance [2][3]. Group 2: Risk Management Principles - The foreign exchange derivatives used for hedging must be limited to products and materials related to the group's operations, ensuring that the types, scale, and duration of derivatives match the risks being managed [3]. - The group is required to manage foreign exchange derivatives transactions through the financial director, with daily management conducted by the financial management department [3][4]. Group 3: Authorization and Approval Management - The board of directors and shareholders' meeting are the decision-making bodies for foreign exchange derivatives trading, and any trading must be within the approved limits [4][5]. - A feasibility analysis report must be prepared for foreign exchange derivatives trading, which requires board approval before proceeding [5][6]. Group 4: Department Responsibilities and Internal Processes - The financial management department is responsible for daily management, risk assessment, and strategy formulation for foreign exchange derivatives trading [6][7]. - Subsidiary financial departments must monitor foreign exchange exposure and provide necessary data for risk analysis [7][8]. Group 5: Risk Assessment and Reporting - The financial management department must implement measures to prevent funding risks and accurately assess currency positions for timely settlements [8][9]. - In cases of significant risk, such as severe fluctuations in exchange rates, the company must disclose relevant information and submit analysis reports to the board [9][10]. Group 6: Information Disclosure - The group must disclose foreign exchange derivatives trading activities in accordance with relevant laws and regulations, ensuring timely communication of any significant risks or losses [10][11]. - All trading documents and records must be maintained for at least ten years to ensure compliance and accountability [11].