Zhongde Securities Co., Ltd. Audit Opinion on Merui New Materials Co., Ltd. Conducting Forward Foreign Exchange Settlement and Sales and Foreign Exchange Option Business
Zhongde Securities Co., Ltd. (hereinafter referred to as "Zhongde Securities" or "Sponsor") is the continuous sponsor of Merui New Materials Co., Ltd. (hereinafter referred to as "Merui New Materials" or "the Company"). In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business", the "Shenzhen Stock Exchange GEM Stock Listing Rules", and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidance No. 2 - Norms for the Operation of GEM Listed Companies", etc., the Company (including its subsidiaries, the same below) has conducted an audit on the matter of carrying out forward foreign exchange settlement and sales and foreign exchange option business, the details of which are as follows:
I. Situation of Carrying Out Forward Foreign Exchange Settlement and Sales and Foreign Exchange Option Business
- Purpose of Carrying Out Business
In recent years, the scale of the Company's overseas sales has gradually expanded, and the settlement currencies are mainly foreign currencies such as USD and EUR. In order to effectively hedge foreign exchange market risks, prevent the adverse impact of significant exchange rate fluctuations on the Company, and enhance the Company's ability to resist exchange rate fluctuations, the Company plans to carry out forward foreign exchange settlement and sales and foreign exchange option business.
- Business Quota and Term
The Company plans to carry out forward foreign exchange settlement and sales and foreign exchange option business with a total amount not exceeding RMB 100 million (inclusive). The above quota is valid for one year from the date of approval by the eleventh meeting of the fourth board of directors. It can be used in a revolving manner within the above quota and term, and the transaction amount at any point in time within the term shall not exceed the investment quota.
- Business Method
The business that the Company plans to carry out this time is forward foreign exchange settlement and sales and foreign exchange option business. The business method is that the Company will sign forward foreign exchange settlement and sales and foreign exchange option contracts with financial institutions that have the qualification to operate forward foreign exchange settlement and sales and foreign exchange option business, specifying the foreign currency type, amount, exchange rate, and term of future foreign exchange transactions, and then conducting foreign exchange transactions according to the contract upon maturity.
The transaction currencies for the forward foreign exchange settlement and sales and foreign exchange option business to be carried out this time are limited to the relevant settlement currencies such as USD and EUR involved in the Company's production and operation.
The Company's board of directors authorizes the Company's management to sign relevant contract documents within the aforementioned quota, and the specific matters shall be organized and implemented by the finance department.
- Source of Funds