Sichuan Kelun Pharmaceutical Co., Ltd.
Analysis Report on the Feasibility of Hedging Operations
I. Purpose of the Company's Hedging Operations
To mitigate the impact of exchange rate and interest rate fluctuations on the company's operations, and to ensure normal daily capital operations and capital security, the company plans to conduct exchange rate and interest rate hedging operations.
II. Overview of the Company's Planned Hedging Operations
The hedging operations that the company and its subsidiaries plan to conduct include, but are not limited to, forward foreign exchange settlement and sales, foreign exchange swaps, foreign exchange forwards, foreign exchange options, interest rate swaps, interest rate forwards, interest rate options, and other financial derivative products, or a combination of these businesses.
III. Necessity and Feasibility of the Company's Hedging Operations
In the context of two-way fluctuations in the RMB exchange rate and market-oriented interest rates, it is necessary for the company to appropriately conduct exchange rate and interest rate hedging operations based on specific circumstances to effectively prevent market risks.
The company's hedging operations are closely related to its business. Based on the company's foreign exchange assets and liabilities, foreign exchange receipts and payments, and interest-bearing liabilities, these operations can further enhance the company's ability to cope with exchange rate and interest rate fluctuation risks, better hedge and prevent the foreign exchange rate and interest rate fluctuation risks faced by the company, and enhance the company's financial stability.