Zheng Quan Zhi Xing·2025-08-21 05:39Core Viewpoint - The company intends to conduct foreign exchange hedging to mitigate risks associated with currency fluctuations, thereby enhancing financial stability and operational efficiency [1][5]. Group 1: Purpose of Foreign Exchange Hedging - The company aims to engage in foreign exchange hedging due to increasing foreign exchange income and expenses as it accelerates its internationalization, which exposes it to significant foreign exchange risks [1]. - The hedging activities are designed to control exchange rate risks, reduce foreign exchange losses, and minimize the impact of currency fluctuations on the company's performance [1]. Group 2: Overview of Foreign Exchange Hedging Business - The foreign exchange hedging activities will be limited to the primary currencies used in the company's operations, including forward foreign exchange settlements, foreign exchange swaps, futures, options, and other derivatives [2]. - The scale of the hedging business is capped at 1.5 billion RMB or its equivalent in foreign currency, with the ability to roll over funds within this limit [2]. Group 3: Feasibility Analysis - The company plans to conduct forward foreign exchange hedging to mitigate adverse impacts from significant fluctuations in exchange rates, focusing on risk avoidance rather than speculation [3]. - The hedging strategy aims to enhance the company's ability to manage foreign exchange risks and improve the stability and sustainability of its operational performance [2][3]. Group 4: Risk Control Measures - The company has established a management system for foreign exchange hedging that prohibits speculative trading and outlines clear procedures for risk control, including transaction limits and internal review processes [3][5]. - The company possesses sufficient own funds to match the required margins for the hedging transactions, ensuring compliance with regulatory requirements [3]. Group 5: Approval Process - The proposed foreign exchange hedging activities have been approved by the company's audit committee and board of directors, confirming that they align with the company's operational needs and do not harm shareholder interests [5]. - The proposal will be submitted for approval at the shareholders' meeting as per relevant regulations [5]. Group 6: Sponsor's Review Opinion - The sponsor has concluded that the company's foreign exchange hedging activities are necessary for reducing exchange rate risks and have been developed in accordance with legal requirements [6].