I. Background of Developing Foreign Exchange Hedging Business
Based on the development of new energy vehicles and the company's strategic planning for overseas expansion, in order to effectively mitigate foreign exchange risks faced by the company in its future export business and overseas investment, and in conjunction with the current market trends, the company intends to develop foreign exchange hedging business to a certain extent to stabilize the company's earnings, prevent exchange rate fluctuations from adversely affecting the company's profitability, and enhance the efficiency of capital utilization.
II. Development Methods of Foreign Exchange Hedging Business
- Types of Foreign Exchange Hedging Business
The foreign exchange hedging business mainly includes forward foreign exchange contracts, currency swaps, and other foreign exchange derivatives.
- Investment Scale
Based on the company's foreign currency income (receivables) forecast, the company and its subsidiaries will report the foreign exchange hedging business to the board of directors. At any time, the transaction amount shall not exceed USD 3 million (including USD 3 million).
- Implementation
The company and its subsidiaries will report the foreign exchange hedging business to the board of directors based on the actual needs of the company, and relevant legal documents will be submitted for approval.
- Approval
The validity period is one year (from the date of approval), and if the approved amount exceeds the limit, it will be submitted for re-approval.