Zheng Quan Zhi Xing·2025-07-25 16:26Core Viewpoint - The company intends to conduct foreign exchange derivative hedging to mitigate risks associated with currency fluctuations, primarily due to its significant overseas sales revenue denominated in USD [1][2]. Transaction Overview - The company has a high proportion of overseas sales revenue, primarily settled in USD, making it vulnerable to foreign exchange market volatility [1]. - The maximum balance for foreign exchange derivative hedging will not exceed 800 million USD, with the ability to roll over this amount within the specified period [2]. - The company plans to engage with qualified financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China for these transactions [2]. - The investment period for these transactions is set for 12 months from the date of approval by the shareholders' meeting [2]. - The funding for these hedging activities will come from the company's own funds, without involving raised capital [3]. Risk Analysis and Control Measures - The company aims to lock in exchange and interest rate risks without engaging in speculative trading, although some market risks remain [3]. - The company has established relationships with compliant financial institutions to minimize performance risk [3]. - The company has implemented clear operational principles, approval authority, internal processes, and risk control measures to manage transaction risks effectively [4]. Impact on the Company - The proposed foreign exchange derivative transactions are closely related to the company's operations and are expected to enhance its ability to manage foreign exchange risk, thereby improving financial stability [5]. Approval Process and Opinions - The board of directors and the supervisory board have approved the proposal for foreign exchange derivative hedging, which will be submitted to the shareholders' meeting for final approval [5]. - The supervisory board believes that the hedging activities align with the company's operational needs and will effectively mitigate currency fluctuation risks, protecting the interests of all shareholders [5]. - The sponsoring institution has confirmed that the proposal complies with relevant regulations and does not harm the interests of shareholders, particularly minority shareholders [6].