002045SZSE

Internal Control System for Foreign Exchange Derivative Trading Business (April 2026)

GUOGUANG ELECTRIC COMPANY LIMITED·

✨ AI Summary

Guoguang Electric Corporation has established an Internal Control System for its Foreign Exchange Derivative Trading Business, effective April 2026. The system aims to regulate trading activities, prevent risks, and ensure compliance with regulations. Key figures include the President leading the management team and the shareholders' meeting setting the maximum trading limit. Material outcomes involve defining approved derivative types, establishing strict approval processes for trading amounts and contracts, and outlining organizational responsibilities for execution and supervision to hedge against exchange rate and interest rate risks.

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Chapter 1 General Provisions

Article 1 To regulate the foreign exchange derivative trading business of Guoguang Electric Corporation (hereinafter referred to as the "Company") and its controlled enterprises, effectively prevent and control related risks, and in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Listing Rules of the Shenzhen Stock Exchange," "Management Measures for Information Disclosure of Listed Companies," and other relevant regulations, as well as the Company's actual situation, this system is hereby formulated.

Article 2 The term "foreign exchange derivative trading business" as used in this system refers to products such as forward foreign exchange settlement and sales, foreign exchange options, and swaps, or combinations thereof, signed between the Company and banks.

  1. Forward foreign exchange settlement and sales: This refers to the business where the Company and a bank sign a forward foreign exchange settlement and sales contract, stipulating the currency, amount, exchange rate, and term for future settlement or sales of foreign exchange, and conducting settlement or sales of foreign exchange according to the stipulated currency, amount, and exchange rate within the contract period.
  2. Foreign exchange options: This refers to the business where the Company and a bank sign a foreign exchange option contract, which is a transaction based on the option to buy or sell a certain amount of foreign exchange at a specified execution exchange rate and other agreed-upon conditions within a specified period.
  3. Currency swap: This refers to the business where the Company and a bank sign a currency swap contract, converting the Company's debt into debt denominated in another currency. The principal is exchanged at the beginning, and the principal is exchanged back at the same exchange rate at the end, hedging the exchange rate risk of the debt. A currency swap contract effectively converts the cost of the two mutually converted currencies into interest costs, essentially equivalent to a forward swap.
  4. Interest rate swap: This refers to the business where the Company and a bank sign an interest rate swap contract, converting its floating-rate debt into fixed-rate debt to lock in interest costs and hedge against the risk of future interest rate increases; or converting fixed-rate debt into floating-rate debt to reduce borrowing costs when interest rates fall.

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