EA(SZ:002183) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-12-14 23:44Core Viewpoint - The company has approved a proposal for the forecast of derivative and commodity hedging trading limits for 2026, which will be submitted for shareholder review and does not constitute a related party transaction [1]. Group 1: Risk Analysis of Foreign Exchange Derivative Trading - Price fluctuation risk exists due to significant changes in foreign exchange market conditions, potentially leading to losses from market price volatility [2]. - Liquidity risk arises from insufficient market liquidity, which may hinder the completion of transactions [3]. - Performance risk is present if contracts cannot be fulfilled upon expiration, leading to default risks [4]. - Internal control risks may occur due to the complexity of derivative trading, which could result from an inadequate internal control system [5]. - Operational risks may arise from incomplete computer systems or human errors [6]. Group 2: Risk Analysis of Commodity Hedging Business - Abnormal price fluctuation risk may occur in irrational market conditions, affecting the company's hedging operations and potentially causing losses [7]. - Funding risk is associated with margin requirements and daily market monitoring, where excessive investment could lead to liquidity issues and forced liquidation [8]. - Technical risks may arise from uncontrollable system failures, network issues, or communication breakdowns, leading to transaction delays or errors [9]. - Policy risks could result from significant changes in laws and regulations affecting the futures market, leading to market volatility or trading restrictions [10]. - Systemic risks may stem from adverse impacts on futures trading due to political, economic, social, environmental, or technological factors [11]. Group 3: Risk Control Measures for Foreign Exchange Derivative Trading - The company will select simple, liquid, and controllable financial derivative instruments for hedging operations [8]. - Careful selection of trading counterparts for financial derivatives will be implemented [9]. - Dedicated personnel will monitor and report various risks associated with financial derivative contracts, especially during market volatility [10]. - Derivative trading will prioritize hedging to mitigate exchange rate risks, with strategies adjusted based on market conditions [11]. - The total amount for foreign exchange derivative trading by the company and its subsidiaries will not exceed $16 billion, requiring board and shareholder approval for any excess [12]. - Strict control over the scale of funds used for derivative trading will be enforced, prohibiting the use of raised funds for hedging [13]. - A specialized risk control position will be established with strict authorization and checks, along with enhanced training for relevant personnel [14]. - Adequate trading, communication, and information service systems will be established to ensure normal trading operations [15]. Group 4: Risk Control Measures for Commodity Hedging Business - The company has established internal control systems for futures hedging, ensuring compliance with operational needs and regulatory requirements [11]. - The scale of hedging business will align with the company's operational activities to maximize the hedging of commodity price risks [12]. - The company will use its own funds for hedging, strictly controlling the scale of funds and monitoring margin contributions [13]. - Professional personnel will be arranged according to internal control systems, with strict authorization and checks in place [14]. - Adequate computer systems and facilities will be established to ensure normal trading operations, with prompt measures taken in case of failures [15]. Group 5: Accounting Treatment Related to Trading - The company will account for foreign exchange derivative trading and commodity hedging in accordance with relevant accounting standards, measuring trading financial assets based on fair value determined by financial institutions [16].