MZT(SH:688355) Xin Lang Cai Jing·2025-08-29 18:35Core Viewpoint - Suzhou Mingzhi Technology Co., Ltd. has announced the initiation of foreign exchange derivative trading to mitigate foreign exchange market risks and enhance financial stability [1][2]. Group 1: Reasons and Objectives - The company aims to effectively hedge against foreign exchange market risks due to its export business, preventing adverse impacts from significant exchange rate fluctuations on its performance [2]. - The initiative is expected to improve the efficiency of foreign exchange fund utilization and reduce financial costs [2]. Group 2: Types of Transactions - The foreign exchange derivative trading will include products closely related to the company's core business, such as foreign exchange forwards, swaps, options, structured forwards, interest rate swaps, interest rate options, and currency swaps [3]. Group 3: Transaction Limits, Duration, and Authorization - The total amount for foreign exchange derivative trading is capped at $20 million, which can be rolled over within 12 months from the date of board approval [4]. - The board has authorized the chairman or designated personnel to make decisions and sign relevant documents within the approved limit [4]. Group 4: Risk Analysis and Control Measures - The company has identified risks such as exchange rate fluctuations, liquidity risks, and counterparty risks, with measures in place to mitigate these risks [4]. - A management system for foreign exchange derivative trading has been established to ensure compliance and risk control [4]. Group 5: Accounting Policies and Principles - The company will follow relevant accounting standards for the recognition and measurement of financial instruments, ensuring accurate reflection in financial statements [5]. Group 6: Supervisory Board Opinion - The supervisory board supports the foreign exchange derivative trading initiative, stating it effectively mitigates foreign exchange market risks and enhances fund utilization efficiency [6]. - The approval process complies with legal regulations and the company's articles of association, ensuring no harm to the company or shareholders [6].