Chapter 1 General Principles
Article 1
In order to standardize the foreign exchange hedging business of Dezhou United Petroleum Technology Co., Ltd. (hereinafter referred to as "Dezhou United" or "the Company"), strengthen management, prevent investment risks, improve the management mechanism of the foreign exchange hedging business, and ensure the safety of the Company's assets, 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," "Shenzhen Stock Exchange Stock Listing Rules," "Shenzhen Stock Exchange Self-Regulatory Guidelines No. 2 - Standard Operation of GEM Listed Companies," and other relevant regulations, combined with the actual situation of the Company.
Article 2
The foreign exchange hedging transactions referred to in this system are those conducted with banks to avoid and prevent exchange rate or interest rate risks, including forward contracts for currency exchange, foreign exchange swaps, foreign exchange options, currency swaps, interest rate swaps, interest rate options, and related combination products. This system applies to the foreign exchange hedging business of the Company and its holding subsidiaries. The foreign exchange hedging business of the Company's holding subsidiaries is regarded as the Company's foreign exchange hedging business. The foreign exchange hedging business of the holding subsidiaries shall be managed uniformly by the Company, and without the approval of the Company's board of directors, the holding subsidiaries shall not engage in foreign exchange hedging business.
Chapter 2 Principles of Foreign Exchange Hedging Operations
Article 3
The Company shall conduct foreign exchange hedging business in accordance with the principles of legality, prudence, safety, and effectiveness, and shall not engage in speculative foreign exchange trading. All foreign exchange hedging activities shall be based on normal production and operation, relying on specific business operations, and aimed at avoiding and preventing exchange rate or interest rate risks.
Article 4
Domestic companies may only conduct foreign exchange hedging business with financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China that have the qualifications for foreign exchange hedging business, and shall not conduct transactions with other organizations or individuals outside of these financial institutions.