I. Background of Foreign Exchange Hedging Business
With the development of the overseas business of Beisheng Energy Control Group Co., Ltd. (hereinafter referred to as "the Company"), the demand for foreign exchange hedging has increased. As exchange rate fluctuations become more pronounced, the Company aims to stabilize its economic operations. To mitigate foreign exchange risks and reduce the impact of exchange rate fluctuations on the Company's operating results, the Company plans to develop foreign exchange hedging services, enhancing capital utilization efficiency and strengthening financial stability.
II. Basic Situation of Foreign Exchange Hedging Business
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Transaction Amount: The Company currently plans to develop foreign exchange hedging services not exceeding 100 million yuan or equivalent in foreign currencies. Within the effective period, the above-mentioned amount may be adjusted as needed, but the total amount of foreign exchange hedging services shall not exceed 10 million yuan or equivalent in foreign currencies.
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Trading Methods: The Company will develop foreign exchange hedging services mainly including forward contracts, options, swaps, and other products. All business activities are subject to approval by relevant government departments, with specific operational guidelines.
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Trading Period: The foreign exchange hedging services mentioned above are valid for a maximum of 12 months.
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Funding Sources: The Company’s foreign exchange hedging business will be funded by its own funds and other financing sources.