002056SZSE

Announcement on Conducting Foreign Exchange Hedging Business in 2026

Hengdian Group DMEGC Magnetics Co., Ltd.·

✨ AI Summary

The announcement outlines the company's plan to engage in foreign exchange hedging to mitigate the impact of currency fluctuations on its operations. The maximum transaction balance is set at 5 billion RMB, effective until the 2026 annual shareholders' meeting. The board has approved this plan, which does not require further shareholder approval, and emphasizes risk management measures to address market, liquidity, and operational risks.

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Full Translation

AI Translation· azure_openai

Important Content Reminder:

  1. Purpose of the Transaction: To reduce the impact of exchange rate fluctuations on the company's operating performance, the company and its subsidiaries plan to conduct foreign exchange hedging closely related to daily operations.
  2. Types of Transactions: Including but not limited to foreign exchange forward contracts (regular and optional), swaps, options, and structured foreign exchange forward contracts.
  3. Transaction Venue: Financial institutions approved by regulatory authorities and qualified to conduct foreign exchange hedging.
  4. Transaction Amount: The transaction balance at any point shall not exceed the equivalent of 5 billion RMB.
  5. Review Procedure: This transaction has been approved by the 26th meeting of the 9th Board of Directors of the company. According to the company's articles of association, it does not require submission to the shareholders' meeting for approval.
  6. Risk Warning: The company and its subsidiaries may face market risk, liquidity risk, performance risk, operational risk, and legal risk during the foreign exchange hedging process. Investors are advised to pay attention to investment risks.

I. Overview of Investment Situation

Shenzhen Hengdian Group Dongci Co., Ltd. (hereinafter referred to as "the company") and its subsidiaries plan to conduct foreign exchange hedging, with the transaction balance at any point not exceeding the equivalent of 5 billion RMB. The effective period is from the approval date of the 26th meeting of the 9th Board of Directors until the date of the 2026 annual shareholders' meeting. The above limit can be used in a rolling manner within the approval period, and the management is authorized to implement related matters. The specific situation is as follows:

(1) Purpose and Necessity of Conducting Foreign Exchange Hedging

Given that the settlement currencies for the company's export business mainly include foreign currencies such as euros, US dollars, and Japanese yen, the uncertainty of currency exchange rate fluctuations has increased due to multiple factors in the international political and economic environment. Significant fluctuations in exchange rates can greatly impact the operating performance of the company and its subsidiaries. To ensure the authenticity, accuracy, and completeness of the information disclosed by the company and all members of the board, there are no false records, misleading statements, or significant omissions.

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