BIYI(SH:603215) Zheng Quan Zhi Xing·2025-08-25 16:34Core Viewpoint - The document outlines the management system for foreign exchange derivative trading at Zhejiang Biyi Electric Appliance Co., Ltd, aiming to standardize operations, mitigate investment risks, and ensure asset safety [1][2][3]. Group 1: General Principles - The foreign exchange derivative trading business is defined as transactions aimed at mitigating exchange rate and interest rate risks, including various products like forward contracts, swaps, and options [1]. - The company must conduct foreign exchange derivative transactions only with qualified financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China [2]. - Transactions must be based on prudent forecasts of foreign currency inflows and outflows, with limits set by the board or shareholders [2][3]. Group 2: Approval and Internal Processes - The board of directors and shareholders are responsible for approving the annual limits for foreign exchange derivative trading, with the chairman or authorized personnel managing the execution [3][4]. - The finance department is tasked with daily operations, including transaction management, risk assessment, and reporting to the board [4][5]. - A risk analysis report must be submitted to management and the board, detailing trading positions, risk assessments, and compliance with stop-loss limits [5][6]. Group 3: Risk Management and Reporting - In case of significant market fluctuations, the finance department must analyze the situation and report to management promptly [6]. - The audit department is responsible for supervising the actual operations and financial outcomes of the trading activities [4][6]. - Information regarding trading activities must be disclosed in accordance with regulatory requirements, especially if losses exceed 10% of the company's audited net profit [7]. Group 4: Documentation and Compliance - All trading documents and records must be maintained for a period of 10 years, with the finance department responsible for their organization and archiving [7]. - The management system must comply with relevant laws and regulations, and any conflicts with mandatory provisions must be resolved in favor of those provisions [7].