Zheng Quan Zhi Xing·2025-08-29 17:25Core Viewpoint - The company intends to conduct foreign exchange hedging activities to mitigate foreign exchange market risks and enhance the efficiency of foreign currency usage, ensuring that these activities are based on actual business needs and not speculative trading [2][5]. Summary by Sections Overview of Hedging Activities - The purpose of the hedging activities is to avoid adverse impacts from exchange rate fluctuations on the company's operational performance [2]. - The maximum transaction amount for the hedging activities will not exceed 300 million RMB or equivalent in other currencies at any given time [2]. - Funding for these activities will come from the company's own funds and other legally permitted sources, without involving raised funds [2]. - The hedging will involve currencies relevant to the company's actual business, including but not limited to USD, EUR, and JPY [2]. - The validity of the hedging limit is 12 months from the date of board approval, allowing for rolling usage within this period [2]. Review Procedures - The proposal for the hedging activities was approved by the company's board and supervisory committee, and it does not require shareholder approval as it is not classified as a related party transaction [3]. - The board has authorized the general manager and designated representatives to implement the hedging activities within the approved limits [3]. Risk Analysis and Control Measures - The company acknowledges potential risks associated with the hedging activities, including market risk, liquidity risk, operational risk, credit risk, and legal risk [4]. - To mitigate market risk, the company will enhance its analysis of exchange rates and adjust its operational strategies accordingly [4]. - For liquidity risk, the company will ensure that it has sufficient funds for settlement and will select simple, liquid hedging products [4]. - Operational risks will be managed through established procedures and dedicated personnel to ensure timely communication and compliance with protocols [4]. - Credit risk is minimized by dealing with reputable financial institutions with which the company has established long-term relationships [4]. - Legal risks will be addressed through training and establishing reporting systems for unusual situations [4]. Impact on the Company and Accounting Treatment - The hedging activities are expected to reduce foreign exchange market risks and enhance the company's financial stability [4]. - The company will follow relevant accounting standards for the recognition and measurement of financial instruments and will disclose the hedging activities accordingly [5]. - The final accounting treatment will be confirmed by the company's annual audit [5]. Sponsor's Opinion - The sponsor believes that the company's hedging activities are aligned with its business development needs and have undergone necessary approval processes [5].