Union Precision(SH:688210) Zheng Quan Zhi Xing·2025-08-29 17:34Core Viewpoint - The document outlines the foreign exchange hedging management system of Shenzhen Panhai Tonglian Precision Manufacturing Co., Ltd, aiming to standardize operations and mitigate foreign currency exchange risks through various hedging activities [1][2]. Group 1: General Principles - The foreign exchange hedging activities are defined as measures taken to avoid and mitigate exchange rate or interest rate risks, including but not limited to forward foreign exchange transactions, foreign exchange swaps, interest rate swaps, and foreign exchange options [1][2]. - The company is prohibited from engaging in foreign exchange transactions solely for profit, emphasizing that all activities must be based on normal business operations and aimed at risk mitigation [2][3]. - All foreign exchange hedging transactions must be conducted with qualified financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China [2][3]. Group 2: Responsibilities and Approval Authority - The board of directors and the shareholders' meeting serve as the approval decision-making bodies for foreign exchange hedging activities, requiring a feasibility analysis report for transactions exceeding certain thresholds [4][5]. - The company must operate within the approved limits and cannot engage in transactions before obtaining necessary approvals [4][5]. Group 3: Internal Management and Procedures - The document specifies the internal operational processes for foreign exchange hedging, including planning, fund allocation, and daily management, with oversight from the audit department [5][6]. - In the event of significant exchange rate fluctuations, the finance department is responsible for timely analysis and reporting to senior management for appropriate action [6][7]. Group 4: Information Security Measures - All personnel involved in foreign exchange hedging must adhere to confidentiality protocols, ensuring that sensitive information regarding transactions and financial status is not disclosed without authorization [6][7]. Group 5: Risk Reporting and Management - The finance department must report any losses that exceed 10% of the company's audited net profit from the previous year, along with necessary remedial measures [7][8]. - The company is required to reassess the effectiveness of hedging relationships and disclose any discrepancies in expected outcomes [7][8].