Xin Lang Cai Jing·2025-08-29 15:32Core Viewpoint - Great Wall Motor Co., Ltd. plans to engage in foreign exchange derivative trading to mitigate foreign exchange volatility risks and enhance financial stability [1] Group 1: Trading Details - The maximum contract value for foreign exchange derivative trading will not exceed RMB 20 billion or its equivalent in other currencies [1] - The expected margin and premium used will not exceed RMB 3.5 billion or its equivalent in other currencies at any point during the trading period [1] - The trading will include various instruments such as forward foreign exchange contracts, foreign exchange swaps, currency swaps, foreign exchange options, interest rate swaps, interest rate swaps, interest rate options, and their combinations [1] - The trading venues will be institutions with legal foreign exchange trading qualifications, and the company plans to conduct related business overseas [1] - The trading period will generally not exceed three years, matching the underlying transaction period [1] Group 2: Approval Process - The matter has been approved by the 41st meeting of the 8th Board of Directors and does not require submission to the shareholders' meeting [2] - The Board of Directors has authorized the Chief Financial Officer to exercise decision-making authority and sign relevant documents within the specified limits and duration [2] Group 3: Risk Analysis and Measures - Market risk exists due to potential differences between contract exchange rates and actual rates at maturity, which may lead to losses [3] - Liquidity risk may arise from unreasonable purchasing arrangements [3] - Counterparty risk is minimized as the company will only engage with financially sound institutions with which it has long-term business relationships [3] - The company will implement strict management systems for foreign exchange derivative trading, adhering to prudent and safe principles, and will not engage in speculative trading [3] - Regular audits and evaluations of derivative trading will be conducted by the internal audit department [3] Group 4: Accounting Treatment and Audit Opinion - The company will account for the foreign exchange derivative trading business according to relevant accounting standards [4] - The Audit Committee of the Board believes that this business is closely related to daily operational needs and can mitigate the impact of foreign exchange and interest rate fluctuations, thus it is reasonable and necessary [4]