Core Viewpoint - The company, Sun Paper, has clarified its overseas procurement strategy, focusing on raw materials such as wood pulp, wood chips, and chemical raw materials, with transactions primarily settled in US dollars [1] Group 1: Procurement Strategy - The company's overseas procurement mainly consists of wood pulp, wood chips, and chemical raw materials [1] - The primary currency for settlement in these transactions is the US dollar [1] Group 2: Foreign Exchange Management - The company's foreign exchange operations are determined based on actual import amounts [1] - The company also engages in forward foreign exchange contracts and other financial derivatives to manage exchange rate risks [1]

Core Viewpoint - The company primarily sources raw materials such as wood pulp, wood chips, and chemical raw materials from overseas, with transactions mainly settled in US dollars [1] Group 1 - The company's foreign procurement includes wood pulp, wood chips, and chemical raw materials [1] - The main currency for settlement in procurement is the US dollar [1] - The company's foreign exchange business is determined based on actual import amounts and may involve forward foreign exchange contracts to manage exchange rate risks [1]

Core Viewpoint - The company establishes a comprehensive framework for managing forward foreign exchange settlement and sales to mitigate exchange rate risks and ensure compliance with relevant regulations [1][2]. Group 1: General Principles - The company aims to conduct forward foreign exchange transactions primarily for hedging purposes, not for speculative profit [1][2]. - Transactions must be conducted with approved financial institutions and based on actual foreign currency assets and cash flows [2][3]. Group 2: Operational Guidelines - The company must establish its own forward foreign exchange trading accounts and cannot use third-party accounts [2]. - The total amount of forward foreign exchange contracts must not exceed the company's foreign currency assets and cash flows [2][3]. Group 3: Approval Authority - Forward foreign exchange transactions that do not exceed 50% of the company's latest audited total assets require board approval [3]. - Transactions that reach or exceed this threshold must be approved by the shareholders' meeting [3]. Group 4: Organizational Structure and Responsibilities - The board authorizes the establishment of a forward foreign exchange leadership group responsible for managing these transactions [3][4]. - The leadership group includes key executives and is tasked with reviewing and approving transaction proposals [4]. Group 5: Decision-Making Procedures - The foreign trade department uses daily bank rates to quote prices to customers and forecasts foreign currency receipts based on customer orders [4][5]. - The leadership group reviews and approves transaction proposals within their authority [5]. Group 6: Risk Management and Reporting - The company must monitor exchange rate fluctuations and report significant risks to the leadership group for decision-making [6][7]. - If losses exceed 10% of the latest audited net profit, the leadership group must report to the chairman and board [6][7]. Group 7: Information Disclosure - The company must disclose forward foreign exchange transactions after board approval, detailing the necessity and rationale [7][8]. - In case of significant risks, the company must report to regulatory bodies within two trading days [8].