Suqian Unitech (SH:603065) Zheng Quan Zhi Xing·2025-08-27 10:29Core Viewpoint - The document outlines the foreign exchange hedging management system of Suqian Liansheng Technology Co., Ltd., aiming to standardize the company's foreign exchange hedging activities and related information disclosure to mitigate foreign currency exchange rate risks and ensure asset safety [1]. Group 1: General Principles - The foreign exchange hedging business is defined as activities conducted with financial institutions to mitigate exchange rate risks, including but not limited to forward foreign exchange contracts, foreign exchange swaps, options, and other derivatives [2]. - The company must adhere to principles of legality, prudence, safety, and effectiveness in its foreign exchange hedging activities, which should be based on normal business operations and not for speculative purposes [3]. Group 2: Business Operation Guidelines - The company and its subsidiaries must establish foreign exchange hedging accounts in their own names and are prohibited from using third-party accounts for these transactions [3]. - Transactions must only be conducted with financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China [3]. - The foreign exchange hedging contracts' foreign currency amounts must not exceed the prudent forecast of foreign currency receipts and payments [3]. Group 3: Approval Authority - A feasibility analysis report must be prepared for all foreign exchange hedging activities, regardless of the amount, and submitted to the board of directors for approval [4]. - Specific conditions require that transactions involving a margin or premium exceeding 50% of the company's most recent audited net profit or absolute amounts over 5 million RMB must also be submitted to the shareholders' meeting for approval [4]. Group 4: Internal Operation Processes - The board of directors and shareholders' meeting serve as the decision-making bodies for foreign exchange hedging activities, with the chairman responsible for specific decision-making within approved limits [5]. - The finance department is tasked with risk management, planning, execution, and documentation of foreign exchange hedging activities [5]. - A detailed internal process is established for forecasting foreign currency receipts and payments, analyzing risks, and submitting plans for approval [6]. Group 5: Risk Management and Reporting - The finance department must report any confirmed losses or floating losses that reach 10% of the company's most recent audited net profit and exceed 10 million RMB to the board of directors immediately [7]. - The company is required to track changes in net exposure after hedging and continuously evaluate the effectiveness of the hedging activities [8]. Group 6: Information Disclosure and Record Keeping - The company must fulfill information disclosure obligations in accordance with regulations after board or shareholder approval of foreign exchange hedging activities [9]. - Relevant records related to foreign exchange hedging must be maintained by the finance department for a period of ten years [9].