Announcement on Engaging in Foreign Exchange Derivative Transactions
The company and all members of the board of directors guarantee the content of the information disclosure is true, accurate, and complete, and there are no false records, misleading statements, or major omissions.
Key Information Highlights:
- Zhejiang Jiaxin Silk Co., Ltd. (hereinafter referred to as the "Company") plans to engage in foreign exchange derivative transactions within 12 months from the date of approval, with a transaction amount not exceeding USD 200 million. The transaction amount can be used repeatedly within the above limit and period, and renewal transactions will not be counted repeatedly.
- The above matter has been reviewed and approved by the 15th meeting of the 9th Board of Directors and needs to be submitted to the shareholders' meeting for review.
- Special risk warning: This investment does not guarantee returns. There are market risks, liquidity risks, and performance risks during the investment process. Investors are reminded to pay attention to investment risks.
I. Overview of Foreign Exchange Derivative Transaction Business
- Purpose of Engaging in Foreign Exchange Derivative Transaction Business
Approximately 55% of the company's products are exported overseas and settled in foreign currencies such as USD. Therefore, when exchange rates fluctuate significantly, exchange gains and losses will have a certain impact on the company's operating performance. To effectively hedge foreign exchange market risks and prevent adverse effects from significant exchange rate fluctuations, the company plans to engage in foreign exchange derivative transactions. The foreign exchange derivative transactions to be carried out by the company are all aimed at locking in costs and hedging exchange rate risks, not for profit. The foreign exchange derivative transactions will not affect the development of the company's main business.