China Bao'an Group Co., Ltd Regarding the subsidiary conducting foreign exchange derivatives hedging business Feasibility analysis report
- Background of Conducting Foreign Exchange Derivatives Trading Business
With BTR New Materials Group Co., Ltd. 、 International Precision Group Co., Ltd. and Zhangjiagang Youcheng New Energy Technology Co., Ltd. and other subsidiaries (hereinafter referred to as “ Subsidiaries ") Overseas business continues to expand, subsidiary The scale of foreign exchange assets and liabilities held by subsidiaries continues to increase 。 In the financial market environment of , To prevent significant exchange rate fluctuations from adversely affecting the company's operations , reasonably reduce financial expenses, Subsidiaries will not affect normal operations , engaging in foreign exchange derivatives trading business for the purpose of hedging,
This is to strengthen foreign exchange risk management and meet the company's need for prudent operations. 2. Overview of Foreign Exchange Derivatives Trading Business
| Foreign exchange derivatives trading business proposed by subsidiaries | , to lock in cost | 、 | Risk avoidance and prevention of exchange rate and profit margins | |
|---|---|---|---|---|
| Risks such as rate | ; Limited to currencies related to the main settlement currency used in its production and operations | , counterparty | ||
| Approved by the State Administration of Foreign Exchange and the People's Bank of China | , financial institutions qualified to operate foreign exchange derivatives trading business | |||
| Structure. The foreign exchange derivatives trading business conducted by subsidiaries includes forward and | NDF | Trading (forward without principal delivery) |