RICHEN(SH:603755) Zheng Quan Zhi Xing·2025-08-22 16:28Core Viewpoint - The document outlines the foreign exchange hedging management system of Qingdao Richen Food Co., Ltd., emphasizing the importance of risk management and compliance with relevant laws and regulations [1][2]. Summary by Sections General Principles - The system aims to strengthen the management of foreign exchange hedging, standardize related operations, and prevent risks associated with exchange rate fluctuations [1]. - The policy applies to the company and its subsidiaries, requiring approval for any hedging operations [1]. Operational Principles - The company is prohibited from engaging in speculative foreign exchange trading; all hedging activities must be based on actual business needs [2]. - Transactions must be conducted through qualified financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China [2]. - The company must have sufficient own funds for hedging activities and adhere to approved trading limits [2]. Approval Authority - Any foreign exchange hedging activities require a feasibility analysis report to be submitted for board approval, and certain conditions necessitate shareholder approval [4]. - Specific thresholds for transaction guarantees and contract values are set, including a cap of 50% of the latest audited net profit for certain transactions [4]. Internal Operating Procedures - The finance department is responsible for the execution and management of hedging activities, including risk management and documentation [6][7]. - A detailed internal process is established for forecasting foreign currency receipts and payments, analyzing market conditions, and executing approved hedging plans [7]. Confidentiality - All personnel involved in hedging activities must maintain confidentiality regarding the company's hedging strategies and financial information [8]. Internal Risk Reporting and Management - The finance department must ensure timely settlement with financial institutions based on actual foreign exchange inflows and outflows [8]. - In case of significant exchange rate fluctuations, the finance department must analyze the situation and report to the general manager for further instructions [8]. Information Disclosure - The company is required to disclose information regarding its foreign exchange hedging activities in accordance with regulations from the China Securities Regulatory Commission and the Shanghai Stock Exchange [9]. - Any significant risks associated with hedging activities must be disclosed promptly if they meet regulatory standards [9]. Definitions and Additional Provisions - The document includes definitions for various hedging instruments such as forward foreign exchange contracts, foreign exchange swaps, and currency swaps [9]. - The policy is subject to revisions based on future legal and regulatory changes [9].