Announcement on Conducting Foreign Exchange Derivative Trading Business
The company and its board of directors guarantee the truthfulness, accuracy, and completeness of the information disclosed herein, and that there are no false records, misleading statements, or material omissions.
I. Overview of Trading Situation
(I) Purpose of Trading
The company's revenue is mainly derived from semiconductor distribution business, and it is also vigorously developing its semiconductor product business. As these businesses involve foreign currency transactions, under the condition of ensuring the company's normal operating capital needs, to effectively hedge against foreign exchange market risks, prevent adverse impacts from significant exchange rate fluctuations on operations, and reduce financial costs, the company and its consolidated subsidiaries plan to conduct foreign exchange derivative trading business under the authorization of the board of directors.
(II) Trading Amount
The maximum amount of transaction margin required for foreign exchange derivative trading business (including margin occupied by financial institution credit lines) shall not exceed RMB 271 million or its equivalent in other foreign currencies. The highest contract value held on any trading day shall not exceed RMB 1.87 billion. The above limits are valid for 12 months from the date of approval by the board of directors. During the period, the amount at any point in time (including amounts from profits from the aforementioned transactions that are re-traded) shall not exceed the approved amount. Within the above limits, funds can be used cyclically. If the duration of a single transaction exceeds the authorized period, the authorization period will be automatically extended until the termination of such transaction.