WOTE(SZ:002886) Zheng Quan Zhi Xing·2025-08-01 16:35Core Viewpoint - The article outlines the foreign exchange hedging management measures of Shenzhen Water New Materials Co., Ltd., emphasizing the need for risk management and compliance with relevant laws and regulations in conducting foreign exchange hedging transactions [1][8]. Group 1: Definition and Scope - Foreign exchange hedging business refers to transactions aimed at mitigating foreign exchange and interest rate risks through various financial instruments, including forward foreign exchange contracts, swaps, options, and other derivatives [1][2]. - The management measures apply to the company and its subsidiaries, requiring adherence to the established guidelines for conducting foreign exchange hedging activities [1][3]. Group 2: Operational Principles - The company must conduct foreign exchange hedging activities based on legality, prudence, safety, and effectiveness, avoiding speculative trading [2][3]. - Transactions are only permitted with qualified financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China [3]. Group 3: Approval Authority - Annual foreign exchange hedging plans exceeding 50% of the company's latest audited net assets require board approval and submission to the shareholders' meeting [4]. - Plans exceeding 10% must be approved by the board, while amounts below this threshold can be authorized by the general manager [4]. Group 4: Management and Internal Processes - The general manager is responsible for the operation and management of foreign exchange derivative transactions, including signing relevant agreements [5]. - The finance management center is tasked with planning, funding, and daily management of hedging activities, while other departments provide necessary operational information [5][6]. Group 5: Risk Management and Reporting - The finance management center must monitor foreign exchange transactions and report any significant risks or fluctuations in exchange rates to the general manager [6][7]. - In cases of substantial risk, the finance management center must submit analysis reports and proposed solutions to the management for timely decision-making [7]. Group 6: Information Disclosure - After board approval, the company must fulfill information disclosure obligations regarding foreign exchange hedging activities, especially in cases of significant losses [7][8]. - Documentation related to hedging activities must be archived for at least 10 years, ensuring compliance with regulatory requirements [8].