Shenzhen Energy(SZ:000027) Xin Lang Cai Jing·2025-08-27 16:44Core Viewpoint - Shenzhen Energy Group Co., Ltd. announced that its wholly-owned subsidiary, Sheneng (Hong Kong) International Co., Ltd., plans to use foreign exchange forward settlement and sales tools to conduct foreign exchange hedging business to effectively mitigate exchange rate fluctuation risks [1] Business Overview - Purpose: The Hong Kong company engages in the import and export trade of bulk commodities such as coal and natural gas, primarily settling in USD and HKD. The hedging aims to lock in revenue, costs, or risk exposure related to its operations, aligning with actual business needs and financial strength, and is not for speculative purposes [1] - Amount: The total scale of the hedging business is planned to not exceed $500 million (or equivalent foreign currency) within 12 months after board approval, with any single transaction not exceeding $200 million (or equivalent foreign currency) [1] - Method: The company plans to conduct hedging transactions by signing foreign exchange forward contracts with financial institutions qualified for foreign exchange hedging [1] - Duration: The hedging business will be conducted for a period of 12 months from the date of board approval [1] - Funding Source: The Hong Kong company will use its own funds, without involving raised funds or bank credit [1] Approval Process - The foreign exchange hedging business has been approved by the Audit and Risk Management Committee and the Board of Directors in meetings held on August 26, 2025. According to the company's articles of association, this matter does not require submission to the shareholders' meeting for approval [2] Risk and Control - The company acknowledges certain risks associated with the hedging business, including credit risk, exchange rate fluctuation risk, internal control risk, and liquidity risk. To mitigate these risks, the company has implemented several control measures: - Established internal control management standards for foreign exchange hedging, clarifying approval authority, organizational structure, and responsibilities [3] - Ensured that forward exchange rates match actual business needs, aiming to lock in procurement costs based on confirmed orders, prohibiting speculative and arbitrage trading [3] - Partnered with financial institutions that have relevant qualifications and high credit ratings to reduce performance risk [3] - Limited single transaction credit usage to no more than 50% of the total credit limit; established a dynamic monitoring system to track available credit balances and reserve a 20% liquidity buffer; regularly conducted extreme exchange rate stress tests to anticipate funding gaps; and actively expanded credit limits with partner banks to ensure smooth emergency financing channels [3] Accounting Treatment and Board Review - The company will account for and disclose the foreign exchange hedging business in accordance with relevant accounting standards. The board has approved the feasibility analysis report for the hedging business and confirmed the business scale, duration, and transaction currencies [4]