Chapter 1 General Principles
Article 1
To standardize the operation of foreign exchange hedging business at Jushen Logistics Group Co., Ltd. (hereinafter referred to as "the Company") and effectively prevent and reduce risks caused by exchange rate fluctuations, this system is formulated in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Shenzhen Stock Exchange Listing Rules, the Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations of Main Board Listed Companies, and other relevant laws, regulations, and normative documents, as well as the provisions of the Articles of Association of Jushen Logistics Group Co., Ltd., combined with the specific circumstances of the Company.
Article 2
The foreign exchange hedging business referred to in this system is defined as various activities conducted with banks and other financial institutions that have relevant business qualifications, aimed at avoiding and preventing exchange rate or interest rate risks, including but not limited to forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, interest rate swaps, interest rate swaps, and other foreign exchange derivatives.
Article 3
This system applies to the Company and its controlling subsidiaries. The foreign exchange hedging business conducted by controlling subsidiaries is deemed to be conducted by the Company and is subject to this system. The foreign exchange hedging business of controlling subsidiaries shall be managed and operated uniformly by the Company. Without the Company's consent, wholly-owned and controlling subsidiaries are not allowed to operate this business.
Article 4
The Company and its controlling subsidiaries engaging in foreign exchange hedging business shall adhere to the principles of legality, prudence, safety, and effectiveness.
Chapter 2 Basic Principles of Foreign Exchange Hedging Business
Article 5
The Company shall not engage in foreign exchange transactions solely for profit. All foreign exchange transactions must be based on specific business operations, aimed at avoiding and preventing exchange rate risks, and shall not affect the Company's normal production and operation. Speculative and arbitrage transactions are prohibited.
Article 6
The Company shall conduct foreign exchange hedging business only with financial institutions that have corresponding business qualifications.
Article 7
The foreign exchange hedging business must be based on prudent forecasts of the Company's foreign currency receipts and payments, and the foreign currency amount of the hedging contracts must match the prudent forecast of foreign currency receipts and payments. The delivery period of the foreign exchange hedging must align with the Company's forecasted foreign currency receipt time.
Article 8
The Company and its subsidiaries must establish foreign exchange hedging accounts in their own names and shall not use others' accounts for foreign exchange hedging business.
Article 9
The Company must have self-owned funds that match the margin for foreign exchange hedging business and shall not use raised funds directly or indirectly for foreign exchange hedging transactions. It must strictly adhere to the trading limits approved by the board of directors or shareholders' meeting, without affecting the Company's normal production and operation.
Article 10
The Company shall revise and improve this system based on actual needs to ensure that it can adapt to practical operations and risk control requirements.
Chapter 3 Approval Authority for Foreign Exchange Hedging Business
Article 11
The Company shall prepare a feasibility analysis report for foreign exchange hedging business and submit it for board approval.