Shanghai Hande Information Technology Co., Ltd. Management System for Foreign Exchange Derivative Trading Business
Chapter 1 General Provisions
Article 1 To standardize the foreign exchange derivative trading business and related information disclosure of Shanghai Hande Information Technology Co., Ltd. (hereinafter referred to as the "Company"), strengthen the management of the foreign exchange derivative trading business, prevent investment risks, and improve the Company's foreign exchange derivative trading business management mechanism and ensure the Company's asset safety, in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Shenzhen Stock Exchange GEM Stock Listing Rules," "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 2 - Norms for the Operation of Listed Companies on the GEM," and other relevant laws and regulations, and the "Articles of Association of Shanghai Hande Information Technology Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in conjunction with the Company's actual situation, this system is formulated.
Article 2 The term "foreign exchange derivative business" as used in this system refers to various foreign exchange transactions conducted with financial institutions possessing relevant business qualifications, aimed at hedging and preventing exchange rate risks to meet the Company's normal operating and business needs. This includes, but is not limited to, forward settlement and sales, options, futures, swaps, and other products or transactions with mixed characteristics of the above products.
Article 3 This system applies to the foreign exchange derivative trading of the Company and its subsidiaries (including all subsidiaries included in the consolidated financial statements of the Company). Foreign exchange derivative trading by subsidiaries is deemed as foreign exchange derivative trading by the Company and is subject to this system. However, subsidiaries shall not conduct this business without the Company's consent. The Company shall fulfill relevant approval and information disclosure obligations in accordance with the relevant provisions of this system.
Chapter 2 Operational Principles
Article 4 The Company's foreign exchange derivative trading business adheres to the principles of legality, prudence, safety, and effectiveness. All foreign exchange derivative trading business is based on normal production and operation, relies on specific business operations, and aims to hedge and prevent exchange rate or interest rate risks. Speculative and illegal arbitrage transactions are prohibited.
Article 5 The Company's foreign exchange derivative trading business is only permitted with financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China and possessing foreign exchange derivative trading business qualifications. Transactions with organizations or individuals other than the aforementioned financial institutions are prohibited.
The Company's intention to conduct foreign exchange derivative trading overseas shall be subject to prudent evaluation of the necessity of the transaction and the political, economic, and legal risks in the relevant countries and regions, taking into full consideration factors such as settlement convenience, transaction liquidity, and exchange rate volatility.
Article 6 The Company's foreign exchange derivative trading must be based on the Company's forecast of foreign currency receipts from exports and payments for imports, or foreign currency bank deposits and loans derived therefrom. The foreign currency amount of the foreign exchange derivative trading contract shall not exceed the forecast amount of foreign currency receipts, deposits, or payments. The settlement date of the foreign exchange derivative trading business shall match the Company's forecast foreign currency receipt, deposit time, or foreign currency payment time, or match the maturity date of the corresponding foreign currency bank loan.