Core Viewpoint - The document outlines the foreign exchange derivative hedging management system of Hanhigh Group Co., Ltd, aimed at regulating and guiding the company's foreign exchange derivative hedging activities to effectively prevent and control foreign exchange rate risks [2][3]. Group 1: General Principles - The purpose of the system is to standardize the foreign exchange derivative hedging business and strengthen management in accordance with relevant laws and regulations [2]. - The foreign exchange derivative hedging business includes various products such as forward foreign exchange contracts, foreign exchange swaps, currency swaps, foreign exchange options, interest rate swaps, and interest rate options [2][3]. - The system applies to both the company and its subsidiaries, treating their hedging activities as those of the company itself [2]. Group 2: Operational Regulations - The company must adhere to prudent and stable risk management principles, ensuring that all hedging activities are based on daily operational needs and do not involve speculative trading [3]. - Transactions are only permitted with financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China, and the hedging amount must not exceed the limits approved by the board of directors or shareholders [3][4]. - Hedging contracts must align with the company's foreign exchange income and expenditure forecasts, ensuring that the foreign currency amounts do not exceed the predicted amounts [3][4]. Group 3: Approval Authority - A feasibility analysis report must be prepared and submitted to the board of directors for approval before engaging in foreign exchange derivative hedging activities [5]. - Certain transactions, such as those involving significant amounts or not intended for hedging purposes, require additional approval from the shareholders' meeting [5]. - The company can estimate the scope, amount, and duration of hedging transactions for up to twelve months in advance, subject to board approval [5]. Group 4: Management and Internal Procedures - The management team is authorized by the board or shareholders to oversee the foreign exchange derivative hedging business, including research and approval of specific operational plans [6]. - Relevant departments are responsible for providing necessary information, planning, and tracking the execution of hedging activities [6]. - The internal audit department supervises compliance with the risk management procedures and reports any violations to the board [6][7]. Group 5: Information Disclosure - The company must disclose information regarding foreign exchange derivative hedging activities promptly after board approval [8]. - If losses from hedging activities reach 10% of the company's most recent audited net profit, timely disclosure is required, along with an evaluation of the effectiveness of the hedging relationship [9]. Group 6: Miscellaneous - Any matters not covered by this system will be governed by relevant national laws and regulations [10]. - The board holds the rights to interpret and amend this system, which takes effect upon board approval [10].
悍高集团: 外汇衍生品套期保值管理制度