Core Points - The article outlines the foreign exchange derivatives trading management system of SiKan Technology (Hangzhou) Co., Ltd, aiming to standardize trading practices and enhance risk management [1][2] - The system is established in accordance with relevant laws and regulations, including the Company Law and Securities Law of the People's Republic of China, and is designed to ensure the safety of the company's assets [1][2] Group 1: General Principles - The foreign exchange derivatives trading business includes various products such as forward foreign exchange, swaps, options, and interest rate derivatives, aimed at mitigating exchange rate and interest rate risks [2][3] - The system applies to the company and its consolidated subsidiaries, requiring unified management and operation of foreign exchange derivatives trading by the company [2][3] Group 2: Basic Principles of Trading - The company must adhere to principles of legality, prudence, safety, and effectiveness in foreign exchange derivatives trading, focusing on normal business operations and avoiding speculative activities [2][3] - Transactions are only permitted with qualified financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China [3] Group 3: Approval Authority - The company's shareholders' meeting or board of directors serves as the decision-making and approval body for foreign exchange derivatives trading, with specific thresholds for approval based on transaction size and impact on net profit [4][5] - The board of directors can authorize the chairman to make investment decisions within approved limits [4][5] Group 4: Management and Operational Procedures - The management layer proposes trading limits based on estimated business scale and market analysis, which must be approved by the board of directors or shareholders' meeting [12] - The financial department is responsible for the specific operation and management of foreign exchange derivatives trading [12][13] Group 5: Risk Management Procedures - The financial department must monitor and report any significant abnormal situations in trading that may pose risks, ensuring timely communication with the board of directors [18][19] - Losses exceeding 10% of the company's most recent audited net profit must be disclosed promptly [19] Group 6: Confidentiality and Compliance - All personnel involved in foreign exchange derivatives trading must adhere to confidentiality protocols, ensuring that sensitive information is not disclosed without authorization [15][16] - The internal audit institution is responsible for supervising compliance with risk control policies and procedures [16]

Core Viewpoint - The document outlines the foreign exchange hedging policy of Jiangxi Fuxiang Pharmaceutical Co., Ltd., emphasizing risk management and compliance with relevant laws and regulations [3][4][5]. Summary by Sections General Provisions - The policy aims to standardize the foreign exchange hedging activities of the company and its subsidiaries to effectively prevent and control risks [3]. - Foreign exchange hedging activities are defined as transactions conducted with qualified financial institutions to mitigate exchange rate or interest rate risks [3]. Operational Regulations for Foreign Exchange Hedging - The company will not engage in hedging solely for profit; all activities must be based on normal business operations and aimed at risk avoidance [4]. - Transactions are restricted to approved financial institutions, and the company must establish its own hedging accounts [4][5]. - The company must have sufficient self-owned funds to match the margin for hedging activities and cannot use raised funds for these transactions [4]. Approval Authority for Foreign Exchange Hedging - All hedging activities require approval from the board of directors or shareholders, with specific thresholds for reporting to shareholders based on investment amounts [5][6]. - The chairman of the board or authorized personnel are responsible for the implementation and management of hedging activities [6]. Management and Internal Procedures - The finance department is responsible for the execution of hedging activities, including planning, funding, and daily management [7]. - The audit department oversees the actual operations of hedging activities, ensuring compliance and monitoring financial performance [7]. Confidentiality and Risk Reporting - All personnel involved in hedging must adhere to confidentiality protocols regarding the company's hedging strategies and financial information [8]. - In the event of significant risks or losses, the finance department must report to the board and propose countermeasures [8]. Information Disclosure - The company is required to disclose relevant information regarding its foreign exchange hedging activities in accordance with regulations from the China Securities Regulatory Commission and the Shenzhen Stock Exchange [8]. Miscellaneous - The policy will take effect upon approval by the board and will be interpreted by the board of directors [9].