Hangzhou Fu'en Co., Ltd.
Feasibility Analysis Report on Developing Foreign Exchange Hedging Business
I. Background and Objectives of the Company's Foreign Exchange Hedging Business
Hangzhou Fu'en Co., Ltd. (hereinafter referred to as "the Company") (including its holding subsidiaries) proposes to carry out foreign exchange hedging business, which is closely related to its daily operations. This will help control the adverse impact of exchange rate fluctuations on the company's finances, improve fund utilization efficiency, and reasonably reduce financial expenses.
II. Basic Information of Foreign Exchange Hedging Business
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Types of Currencies and Business Products Involved: The foreign exchange hedging business that the Company plans to carry out is limited to currencies that are the same as the main settlement currencies used in the Company's actual business operations, mainly including US dollars and other currencies. The specific methods or products of foreign exchange hedging that the Company plans to carry out include, but are not limited to, forward settlement and sales, foreign exchange swaps, foreign exchange options, and interest rate swaps.
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Counterparties: Financial institutions approved by regulatory authorities and possessing foreign exchange hedging business qualifications. The aforementioned financial institutions have no relationship with the Company.
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Term and Authorization: It is proposed that the shareholders' meeting authorize the Company's management to implement the relevant matters of the foreign exchange hedging business within the approved limit. The authorization period is 12 months from the date of approval by the Company's shareholders' meeting.