002422SZSE

Announcement on the Company and its Subsidiaries Engaging in Hedging Business

✨ AI Summary

Sichuan Kelun Pharmaceutical Co., Ltd. announces its plan to engage in foreign exchange and interest rate hedging business with its subsidiaries. The purpose is to mitigate the impact of currency and interest rate fluctuations on operations. The total amount will not exceed RMB 2 billion or equivalent foreign currency, using self-owned funds or bank credit. The board of directors has approved this proposal.

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Full Translation

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Stock Code: 002422 Stock Abbreviation: Kelun Pharmaceutical Announcement No.: 2026-020

Sichuan Kelun Pharmaceutical Co., Ltd. Announcement on the Company and its Subsidiaries Engaging in Hedging Business

The Company and all members of its board of directors guarantee the content of this information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions.

Key Content Highlights:

  1. Transaction Purpose: To mitigate the impact of exchange rate and interest rate fluctuations on the company's operations, while ensuring normal daily fund operations and fund security, the company plans to engage in exchange rate and interest rate hedging business. This hedging business will not affect the development of the company's main business, and the company's fund utilization arrangements are reasonable.
  2. Transaction Varieties and Instruments: The hedging transactions that the company plans to carry out refer to hedging business handled by banks and other financial institutions with legal operating qualifications to hedge and prevent exchange rate or interest rate risks, in order to meet the company's normal production and operation needs. This includes, but is not limited to, forward foreign exchange settlement and sales, foreign exchange swaps, foreign exchange forwards, foreign exchange futures, foreign exchange options, interest rate swaps, interest rate forwards, interest rate options, and other financial derivative products or combinations of businesses.
  3. Transaction Counterparties: Banks and other financial institutions with legal operating qualifications.
  4. Transaction Amount: Not exceeding RMB 2 billion or equivalent foreign currency, using self-owned funds or bank credit funds.
  5. Deliberation Procedures Completed: The hedging business has been reviewed and approved by the twelfth meeting of the Eighth Board of Directors of the Company. It does not require submission to the shareholders' meeting for deliberation. It has been reviewed and approved by the special committee of independent directors before submission to the board of directors.
  6. Risk Warning: The Company and its subsidiaries will not engage in hedging business solely for the purpose of profit. However, there are still certain risks in the course of business operations, including but not limited to market risk, internal control risk, performance risk, and legal risk. Investors are kindly requested to pay attention to investment risks.

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