300153SZSE

Analysis Report on the Feasibility of Conducting Foreign Exchange Hedging Business

Shanghai Cooltech Power Co., Ltd.··3 pages

✨ AI Summary

This report analyzes the feasibility of Shanghai KeTai Power Co., Ltd. and its subsidiaries conducting foreign exchange hedging business. The purpose is to mitigate foreign exchange and interest rate risks arising from international business expansion and currency fluctuations, thereby enhancing financial stability. The company has established a management system and risk control measures to ensure the business is conducted appropriately and in line with normal operations.

Summary generated by AI · Always verify with source document

Full Translation

AI Translation· gemini_document

Analysis Report on the Feasibility of Conducting Foreign Exchange Hedging Business

I. Background of Conducting Foreign Exchange Hedging Business

As the company's global business layout deepens and overseas operations expand, the scale of the company's foreign exchange receipts and payments has also increased. Given the uncertainties in global economic and financial environments, such as currency and interest rate fluctuations, the company aims to prevent exchange rate and interest rate risks, enhance financial stability, and achieve the preservation and appreciation of company assets. The company and its subsidiaries plan to conduct foreign exchange hedging business moderately through foreign exchange derivative transactions with banks and other financial institutions.

The foreign exchange hedging business conducted by the company and its subsidiaries is aimed at hedging foreign exchange risks and does not involve speculative foreign exchange transactions, nor does it affect the company's normal production and operation.

II. Overview of Conducting Foreign Exchange Hedging Business

The company will strictly follow the regulations and procedures stipulated in the "Foreign Exchange Hedging Business Management System" for the operation and management of hedging business.

  1. Main currencies involved: The foreign exchange hedging business of the company and its subsidiaries is limited to currencies that are the same as the main settlement currencies used in the company's production and operation, such as USD.
  2. Types of transactions: Including, but not limited to, forward foreign exchange settlement and sales, foreign exchange swaps, foreign exchange options, interest rate swaps, currency swaps, interest rate futures, interest rate options, dual currency deposits, and combinations of the aforementioned foreign exchange derivative products.
  3. Trading venues: Financial institutions approved by regulatory authorities and possessing foreign exchange derivative trading business qualifications.
  4. Transaction amount: The maximum scale of foreign exchange hedging business to be conducted by the company and its subsidiaries shall not exceed USD 10 million or its equivalent in other currencies.
  5. Transaction period: The usage period is valid for 12 months from the date of approval by the company's shareholders' meeting. If the duration of a single transaction exceeds the usage period, the usage period will be automatically extended until the termination of the single transaction. Within the above-mentioned quota and resolution validity period, funds can be used on a revolving basis.
  6. Funding source: The company and its subsidiaries will use their own funds for foreign exchange hedging business, and will not use raised funds or bank credit funds.
  7. Authorization matters: The board of directors proposes that the shareholders' meeting authorize the chairman or a designated person by the chairman to be responsible for the implementation of matters related to foreign exchange hedging business and to sign relevant documents.

Sign in to read the full translation

Free accounts get 10 full releases per month. Pro subscribers get unlimited access.

Sign in to read moreSee Pro pricing