C&S(SZ:002511) Xin Lang Cai Jing·2025-10-27 12:31Core Viewpoint - Zhongshun Jierou Paper Co., Ltd. plans to conduct foreign exchange derivative hedging transactions in 2026 to mitigate the impact of exchange rate fluctuations on its operating performance [1][2]. Group 1: Foreign Exchange Derivative Transactions - The company intends to use a maximum of $30 million for foreign exchange derivative transactions, which will be rolled over within 12 months after approval from the shareholders' meeting [2]. - The types of derivatives include but are not limited to forward foreign exchange contracts, structured forwards, foreign exchange swaps, and currency options [2]. - The transactions will be executed through financial institutions that are approved by regulatory authorities and have good credit ratings [2]. Group 2: Approval Process - The foreign exchange derivative transaction proposal has been approved by the company's board of directors and supervisory board, but it still requires final approval from the shareholders' meeting [3]. - The supervisory board believes that this business will enhance the company's ability to manage foreign exchange market risks and improve financial stability [3]. Group 3: Risk Management Measures - The company has established a comprehensive risk control mechanism for derivative trading, including pre-trade, in-trade, and post-trade risk management [4]. - Specific measures include prioritizing hedging over speculative trading, carefully selecting trading partners, and closely monitoring foreign exchange market dynamics [4]. Group 4: Financial Impact - Engaging in foreign exchange derivative trading is expected to stabilize the company's financial performance by locking in import raw material costs and mitigating adverse effects from significant exchange rate fluctuations [5]. - The company will adhere to accounting standards for this business, ensuring that related assets, liabilities, and profit or loss are accurately reflected in financial statements [5].