Guangdong Dongfang Zirconium Technology Co., Ltd. Feasibility Analysis Report on Developing Foreign Exchange Derivative Business
I. Objectives of Developing Foreign Exchange Derivative Business
With the gradual expansion of the company's overseas markets and the continuous growth of its overseas business scale, foreign currency settlement business is becoming increasingly frequent. Therefore, significant exchange rate fluctuations will have a certain impact on the company's operating performance. Considering the expected foreign exchange receipts and payments of the company and its holding subsidiaries in overseas operations and international trade, to prevent exchange rate and interest rate fluctuation risks, enhance the company's ability to cope with foreign exchange fluctuation risks, reduce the impact of market fluctuations on the company's operations and profits, and strengthen the company's financial stability, the company and its holding subsidiaries plan to develop foreign exchange derivative business.
II. Basic Situation of Foreign Exchange Derivative Business
(I) Types of Foreign Exchange Derivative Business
The foreign exchange derivative business that the company and its holding subsidiaries plan to develop includes, but is not limited to, forward foreign exchange settlement and sales, foreign exchange swaps, foreign exchange exchanges, foreign exchange options, or a combination of the above products.
(II) Scale and Term of Foreign Exchange Derivative Business