Feasibility Analysis Report on Developing Foreign Exchange Derivative Trading Business
I. Objectives of Developing Foreign Exchange Derivative Trading Business
The company is an export-oriented enterprise with significant foreign currency settlement business. To enhance its ability to cope with exchange rate and interest rate fluctuations and reduce the impact on its operating profit, the company deems it necessary to engage in foreign exchange derivative trading with financial institutions based on its actual business needs. The scale of foreign exchange derivative trading will be matched with the company's actual business scale, and there will be no speculative trading operations. This investment will not affect the company's daily operations and the development of its main business. The company will reasonably arrange the use of funds based on its actual situation.
II. Types of Foreign Exchange Derivative Trading Business
The foreign exchange derivative trading products that the company will engage in are closely related to its actual business. These primarily include forward foreign exchange settlement and sales, foreign exchange options, swaps, or combinations of these products. These foreign exchange derivative trading products are matched with the company's business in terms of product type, scale, direction, tenor, and currency.
III. Scale of Proposed Foreign Exchange Derivative Trading Business
Based on the company's actual business situation, the total scale of foreign exchange derivative trading business with financial institutions will be tracked and rolled over based on sales, procurement, and financing situations over the next 24 months. The scale of foreign exchange derivative trading business will be calculated based on foreign currency sales, procurement, and financing, and will not exceed the sum of these sales, procurement, and financing amounts. The estimated maximum amount of trading margin and premium (including the value of collateral provided for the transaction, the credit line of the financial institution expected to be used, and the margin reserved for emergencies) will not exceed RMB 100,000,000,000.