Chapter 1 General Principles
Article 1
To standardize the foreign exchange hedging business of Sanyou Lianzhong Group Co., Ltd. (hereinafter referred to as "the Company") and its subsidiaries, effectively prevent and control risks, and strengthen management of foreign exchange hedging activities, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Administrative Measures for Information Disclosure of Listed Companies," "Shenzhen Stock Exchange GEM Listing Rules," "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of GEM Listed Companies," and the "Articles of Association," among other relevant regulations, combined with the actual situation of the Company.
Article 2
The foreign exchange hedging business referred to in this system is defined as activities conducted with banks and other financial institutions that have relevant business qualifications, both domestically and internationally, to avoid and prevent exchange rate or interest rate risks. This includes, but is not limited to, forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, interest rate swaps, currency swaps, interest rate options, and other foreign exchange derivative products.
Article 3
This system applies to the foreign exchange hedging business conducted by the Company and its wholly-owned subsidiaries, holding subsidiaries, or other enterprises controlled by the Company (hereinafter collectively referred to as "subsidiaries"). The foreign exchange hedging business conducted by subsidiaries is deemed to be conducted by the Company and is subject to this system. The foreign exchange hedging business of subsidiaries shall be managed uniformly by the Company.
Article 4
The Company's foreign exchange hedging activities must comply with relevant national laws, regulations, and normative documents, as well as the provisions of this system.
Chapter 2 Operational Principles
Article 5
The Company shall conduct foreign exchange hedging business in accordance with the principles of legality, prudence, safety, and effectiveness, based on normal production and operations, matching actual business needs, and primarily aimed at avoiding and preventing exchange rate or interest rate risks. Speculative or arbitrage foreign exchange transactions are prohibited.
Article 6
The Company is only allowed to conduct foreign exchange hedging transactions with banks and other financial institutions that have been approved by relevant government departments and possess the necessary business qualifications. Transactions with other organizations or individuals outside these financial institutions are not permitted.
Article 7
The Company must base its foreign exchange hedging activities on prudent forecasts of foreign currency receipts (payments), and the contract foreign currency amount must not exceed the estimated amount of foreign currency receipts (payments). Additionally, for foreign currency financing incurred by the Company, the Company shall reasonably arrange the hedging amount, variety, and timing in accordance with the above principles to ensure the effectiveness of the hedging.
Article 8
The Company must establish foreign exchange hedging trading accounts in its own name and may not use others' accounts for foreign exchange hedging operations.
Article 9
The Company must have its own funds that match the foreign exchange hedging business and may not use raised funds directly or indirectly for foreign exchange hedging activities. Transactions must strictly adhere to the approved trading limits for foreign exchange hedging, controlling the scale of funds without affecting the Company's normal operations.
Chapter 3 Approval Authority
Article 10
The Company must conduct foreign exchange hedging business after obtaining approval from the board of directo