001312SZSE

Announcement on Carrying Out Foreign Exchange Hedging Business

Fuen Co., Ltd.·

✨ AI Summary

Hangzhou Fuen Co., Ltd. announces its plan to conduct foreign exchange hedging business to mitigate exchange rate fluctuation risks. The company will use up to USD 100 million for hedging, with funds sourced from its own capital. This initiative aims to stabilize operations and reduce financial costs, and has been approved by the board, pending shareholder approval.

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Announcement on Carrying Out Foreign Exchange Hedging Business

The company and all members of the board of directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from any false records, misleading statements, or significant omissions.

Key Content Highlights:

  1. Purpose of Transaction, Transaction Types, Transaction Instruments, Transaction Counterparties, and Transaction Amount: To hedge against exchange rate fluctuation risks and achieve the company's goal of stable operations, Hangzhou Fuen Co., Ltd. (hereinafter referred to as the "Company") (including its holding subsidiaries) plans to carry out foreign exchange hedging business related to its daily operations. Transaction counterparties will be financial institutions approved by regulatory authorities and possessing foreign exchange hedging business qualifications. The planned foreign exchange hedging business will have a quota of no more than USD 100 million or its equivalent in foreign currency. The quota will be valid for 12 months from the date of approval by the Company's 2025 Annual General Meeting of Shareholders and can be used on a rolling basis within this quota. Funds will be sourced from the Company's own capital and self-raised funds. The transaction types for the foreign exchange hedging business will include, but not be limited to, forward foreign exchange settlement and sales, foreign exchange swaps, foreign exchange options, and interest rate swaps.

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