RICHEN(SH:603755) Zheng Quan Zhi Xing·2025-08-22 16:29Core Viewpoint - The company aims to mitigate foreign exchange market risks and reduce the adverse impact of exchange rate fluctuations on its operating performance by engaging in foreign exchange hedging activities [1][3]. Summary by Sections Transaction Overview - The total amount for the foreign exchange hedging business is not to exceed 50 million RMB or its equivalent in foreign currency, with the capacity for rolling use within the effective period [1][3]. - The funding for the hedging activities will come from the company's own funds [1]. - The primary currencies involved in the transactions will include Japanese Yen and US Dollar [1][3]. - The types of transactions will include, but are not limited to, forward foreign exchange settlements, foreign exchange swaps, foreign exchange options, and other foreign exchange derivatives [1][3]. - The transactions will take place in domestic trading venues approved by regulatory authorities [1][3]. Authorization and Validity - The board of directors has authorized the general manager or their designated agent to implement the foreign exchange hedging activities and sign relevant documents within the specified limits and duration [2]. - The approval for these activities is valid for one year from the date of the board meeting [2]. Risk Analysis and Control Measures - The company will adhere to principles of legality, prudence, safety, and effectiveness in its hedging activities, avoiding speculative or arbitrage transactions [4]. - Risks associated with hedging include opportunity costs from locking in exchange rates and potential inability to fulfill contracts at maturity due to uncontrollable risks [4]. - The company has established internal management systems to clearly define approval authority, operational processes, and risk control measures for foreign exchange hedging [4]. Impact on the Company - Engaging in foreign exchange hedging is expected to enhance the liquidity and safety of the company's funds while reducing operational risks associated with exchange rate fluctuations [4].