Feasibility Analysis Report on Ruijie Network Co., Ltd.'s Foreign Exchange Derivative Hedging Business
I. Background and Purpose of Conducting Foreign Exchange Derivative Hedging Business
In recent years, Fujian Star-Net Communication Co., Ltd. (hereinafter referred to as "the Company" or "Star-Net")'s subsidiary, Ruijie Network Co., Ltd. (hereinafter referred to as "Ruijie Network" or "the Subsidiary"), has been continuously expanding its overseas business. Overseas operations are primarily settled in foreign currencies such as USD and JPY. To enhance the Company's ability to cope with foreign exchange market risks, hedge against the adverse effects of exchange rate fluctuations on the Company's operating performance, and strengthen financial stability, Ruijie Network and its subsidiaries plan to conduct foreign exchange derivative trading business. This transaction is for hedging purposes and will not involve speculative or arbitrage trading.
II. Main Content of Conducting Foreign Exchange Derivative Hedging Business
(I) Transaction品种
Ruijie Network and its subsidiaries plan to conduct foreign exchange derivative hedging business, including but not limited to spot transactions, forward transactions, swap transactions, option transactions, and other foreign exchange derivative products. These transactions will be used to hedge foreign exchange exposure against exchange rate fluctuations, lock in future exchange rates, and reduce the risk of exchange rate volatility.