Core Viewpoint - Ningbo Changyang Technology Co., Ltd. has announced the initiation of foreign exchange hedging activities to mitigate risks associated with currency fluctuations and improve the efficiency of foreign exchange fund utilization [1][2]. Group 1: Necessity of the Business - The company primarily conducts export transactions in foreign currencies such as USD, making it susceptible to exchange rate fluctuations that can impact operational performance [2]. - The foreign exchange hedging activities aim to prevent adverse effects from currency volatility, enhance the efficiency of foreign exchange funds, and reduce financial costs [2]. - The hedging activities will include various products such as forward foreign exchange contracts, foreign exchange swaps, and other foreign exchange derivatives, with a maximum amount of $50 million or equivalent [2]. Group 2: Risk Analysis and Control Measures - The company acknowledges potential risks including market risk, operational risk, and default risk, and has implemented several control measures [3]. - The hedging activities are based on normal business operations and are not intended for speculative trading [3]. - The finance department will continuously monitor market information and assess risk exposure, while a specific management regulation for foreign exchange hedging has been established [3]. Group 3: Impact on the Company and Opinions - The foreign exchange hedging activities are expected to enhance the company's ability to manage foreign exchange risks, thereby protecting operational performance and profits [4]. - The supervisory board supports the initiative, confirming that it aligns with the company's development needs and complies with legal procedures [4]. - The sponsoring institution agrees with the decision, emphasizing the importance of training for staff and adherence to risk control measures to prevent speculative behavior [4].