Xin Lang Cai Jing·2026-03-10 20:04Core Viewpoint - Qingdao Danuo Environmental Equipment Co., Ltd. plans to conduct foreign exchange hedging activities to manage currency and interest rate risks associated with its expanding overseas sales, aiming to protect its foreign exchange assets and ensure long-term operational stability [2][8]. Summary by Sections 1. Transaction Overview - The company and its subsidiaries intend to engage in foreign exchange hedging activities, including forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, interest rate swaps, interest rate options, and currency swaps [2][4]. - The maximum transaction margin and premiums expected to be utilized during the authorization period will not exceed 25 million RMB or equivalent, with the maximum contract value held on any trading day not exceeding 200 million RMB or equivalent [3][4]. 2. Funding Source - The funding for the foreign exchange hedging activities will come from the company's own funds and will not involve raised funds [4][8]. 3. Transaction Authorization and Duration - The board of directors has authorized the management to make decisions related to hedging activities within the specified limits and duration, which is valid for 12 months from the date of board approval [5][8]. 4. Risk Analysis and Control Measures - The company acknowledges potential risks associated with foreign exchange hedging, including market risk, internal control risk, counterparty default risk, and legal risk [6][7]. - To mitigate these risks, the company will monitor market prices, choose simple and liquid derivatives, engage with reputable financial institutions, and adhere to legal and prudent principles in its hedging activities [7]. 5. Impact on the Company - The foreign exchange hedging activities are expected to enhance the company's financial stability without affecting its normal business operations, as the planned margin size aligns with its actual needs [8][9]. - The company will follow relevant accounting standards for the proposed foreign exchange derivative transactions, ensuring proper financial reporting [9]. 6. Sponsor Institution's Review - The sponsor institution has confirmed that the company's foreign exchange hedging activities are necessary for mitigating currency risk and are in line with its operational needs, having followed the required legal procedures [9][10].