Deye(SH:605117) Zheng Quan Zhi Xing·2025-08-25 17:05Core Viewpoint - The company plans to increase the foreign exchange hedging business limit for 2025 to enhance financial stability and risk management due to the expansion of overseas operations and increasing foreign currency transactions [1][4]. Group 1: Background of Foreign Exchange Hedging - The company is expanding its overseas business and facing increased foreign exchange risks due to unpredictable international conditions [1]. - The need for effective foreign exchange risk management has grown as the scale of foreign exchange income and expenditure continues to rise [1]. Group 2: Proposed Foreign Exchange Hedging Business Details - The proposed hedging limit will increase from an equivalent of $1.5 billion to an amount not exceeding the limit approved by the shareholders' meeting [1]. - The funding for this hedging will come from the company's own funds and will not involve raised capital [1]. - The hedging methods include forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, interest rate swaps, interest rate options, and other foreign exchange derivatives [1]. Group 3: Transaction Duration - The hedging activities will be conducted within 12 months from the date of approval by the shareholders' meeting [2]. Group 4: Risk Analysis - The company will adhere to legal, prudent, safe, and effective principles in conducting hedging activities, avoiding speculative or arbitrage transactions [2]. - Risks include exchange rate risk, internal operational risk, and counterparty default risk [2]. Group 5: Risk Control Measures - The company has established clear management principles, approval authority, and internal operational processes to effectively control risks associated with foreign exchange hedging [2]. - The company will collaborate with financially stable and reputable financial institutions approved by the People's Bank of China [2]. Group 6: Accounting Policies and Principles - The company will follow relevant accounting standards for the recognition and measurement of financial instruments and hedge accounting [3]. Group 7: Feasibility Conclusion - The decision to increase the hedging limit is based on the company's global business strategy and the increasing proportion of foreign exchange [4]. - The hedging activities will not involve raised funds or speculative trading, ensuring normal cash flow for daily operations [4].