Hengtong(SH:600226) Zheng Quan Zhi Xing·2025-08-25 16:30Core Viewpoint - The document outlines the management system for forward foreign exchange settlement and sales at Zhejiang Hengtong Holdings Co., Ltd, aiming to standardize operations, mitigate foreign exchange risks, and ensure compliance with relevant laws and regulations [1][2]. Group 1: General Principles - The forward foreign exchange settlement and sales business is defined as contracts with banks to agree on future foreign exchange transactions, including currency, amount, exchange rate, and deadline [1]. - The system applies to the company and its subsidiaries, with subsidiaries requiring company approval for operations [1]. - The company must adhere to national laws and the internal regulations set forth in this document [1]. Group 2: Responsibilities and Approval Authority - The document specifies the responsibilities and approval authority for forward foreign exchange operations, including the need for shareholder approval in certain high-value transactions [1][2]. - Transactions requiring shareholder approval include those where the transaction margin exceeds 50% of the latest audited net profit or where the maximum contract value exceeds 50% of the latest audited net assets [1][2]. Group 3: Operational Principles - The company will not engage in foreign exchange trading solely for profit; all operations must be based on normal business activities and aimed at risk mitigation [2]. - Transactions are only permitted with qualified financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China [2]. - The foreign exchange amounts in contracts must not exceed the company's cautious forecasts of foreign currency receipts and payments [2]. Group 4: Management and Internal Procedures - The company president is responsible for the actual operation of forward foreign exchange business within the authorized scope [3]. - The finance department is tasked with the specific operations, including monitoring exchange rate trends and proposing business actions [3][4]. - A detailed internal process is established for transaction approval, execution, and monitoring, ensuring compliance and risk management [4][5]. Group 5: Information Disclosure and Record Management - The company must disclose forward foreign exchange business activities according to relevant regulations and report any significant risks within two trading days [6][7]. - All transaction documents and records must be maintained for a period of 10 years by the finance department [6][7]. Group 6: Compliance and Enforcement - Violations of the established system will result in accountability measures against responsible individuals [7]. - The system is subject to the constraints of Chinese laws and regulations, and any inconsistencies will defer to legal provisions [7].