002364SZSE

Announcement on Carrying Out Foreign Exchange Hedging Business

✨ AI Summary

Hangzhou Hengdian Electric Co., Ltd. announces its plan to conduct foreign exchange hedging business to mitigate exchange rate risks arising from increased market volatility and international business expansion. The total transaction amount will not exceed USD 20 million or equivalent, with a term of up to 12 months. The board of directors has approved this measure, which is intended to stabilize operations and reduce potential losses.

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Full Translation

AI Translation· gemini_document

Securities Code: 002364 Securities Abbreviation: Zhongheng Electric Announcement No.: 2026-15 Hangzhou Hengdian Electric Co., Ltd. Announcement on Carrying Out Foreign Exchange Hedging Business

The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.

Key Information Prompt:

  1. Transaction Purpose: Due to increased foreign exchange market volatility, to effectively prevent and resolve exchange rate risks, the Company plans to carry out foreign exchange hedging business based on its normal production and operation, with the aim of hedging and avoiding exchange rate risks, thereby reducing the impact of market fluctuations on the Company's operations and profits and losses.
  2. Transaction Products and Instruments: Forward foreign exchange settlement and sales, foreign exchange swaps, foreign exchange options, or a combination of the above products.
  3. Transaction Venue: Financial institutions approved by regulatory authorities, such as banks, that have business qualifications for foreign exchange derivative trading.
  4. Transaction Amount: Not exceeding USD 20 million or equivalent currency, with a term not exceeding 12 months. Funds can be used cyclically within the authorized limit.
  5. Deliberation Procedures Completed: On April 17, 2026, the Company held the seventh meeting of the Ninth Board of Directors, which deliberated and approved the "Proposal on Carrying Out Foreign Exchange Hedging Business." This matter falls within the scope of the Board of Directors' approval authority and does not require submission to the shareholders' meeting for deliberation.
  6. Risk Warning: During the process of carrying out foreign exchange hedging business, the Company may face risks such as exchange rate fluctuation risk, credit risk, payment and collection forecast risk, and internal control risk. Investors are kindly requested to pay attention to investment risks.

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