Zheng Quan Zhi Xing·2025-08-07 11:22Core Viewpoint - The company, Guizhou Hangyu Technology Development Co., Ltd., plans to engage in foreign exchange financial derivatives trading to mitigate financial risks associated with currency fluctuations and enhance financial stability [2][3][7]. Summary by Sections 1. Overview of Trading Activities - The company aims to conduct foreign exchange derivatives trading due to the increasing scale of its international business, which primarily involves transactions in foreign currencies like USD and EUR [2]. - The maximum amount for foreign exchange derivatives trading is set at 300 million RMB (or equivalent in other currencies), with the approval valid for 12 months from the board's decision [2][3]. 2. Trading Instruments and Methods - The trading activities will include spot, forward, swap, and options products, focusing on underlying assets such as interest rates, exchange rates, and currencies [2][3]. 3. Counterparties and Funding Sources - The trading counterparties will be stable and reputable state-owned and joint-stock banks, with no related party transactions involved [3]. - The funding for these trading activities will come from the company's own funds, without using raised capital [3]. 4. Approval Process - The board of directors approved the trading activities on August 7, 2025, and authorized the management to execute specific trading operations within the approved limits [3][7]. 5. Risk Analysis and Control Measures - The company will adhere to principles of hedging and will not engage in speculative trading, although risks from international political and economic factors remain [4][5]. - Risk control measures include establishing internal control systems, defining approval authority, and implementing risk reporting procedures [5][6]. 6. Impact on the Company - Engaging in foreign exchange derivatives trading is expected to reduce risks from currency and interest rate fluctuations, improve capital efficiency, and safeguard shareholder interests [6][7]. 7. Accounting Treatment - The company will follow relevant accounting standards for financial instruments and hedge accounting to reflect the trading activities in its financial statements [6][7].