Shenzhen and H&T Intelligent Control Co., Ltd.
Feasibility Analysis Report on Developing Forward Foreign Exchange Transaction Business
Shenzhen and H&T Intelligent Control Co., Ltd. (hereinafter referred to as the "Company") plans to develop forward foreign exchange transaction business related to its daily operations. The business details and feasibility analysis are as follows:
I. Purpose of the Company's Forward Foreign Exchange Transaction Business
Shenzhen and H&T Intelligent Control Co., Ltd. (hereinafter referred to as the "Company") has export sales revenue accounting for over 50% of its main business revenue, primarily settled in USD, EUR, HKD, VND, and IDR. Against the backdrop of fluctuating RMB exchange rates against foreign currencies, the Company faces certain exchange rate fluctuation risks. The Company plans to develop forward foreign exchange transaction business to effectively reduce exchange rate loss risks through reasonable RMB forward foreign exchange transactions. Through forward foreign exchange transactions, the Company can effectively hedge against exchange rate risks, lock in transaction costs or revenues at future points in time, and achieve asset preservation for the purpose of hedging risks.
II. Overview of Forward Foreign Exchange Transaction Business
- Transaction Amount
Based on the Company's production and operation plan, combined with its raw material procurement and product export plans, the Company plans to conduct forward foreign exchange transaction business within 12 months from the date of approval by the Board of Directors, with a total amount not exceeding the equivalent of USD 400 million (all other foreign currencies converted to USD). This quota can be used repeatedly.