301330SZSE

Feasibility Analysis Report on Conducting Foreign Exchange Derivative Trading Business

ZKTECO CO., LTD.·

✨ AI Summary

The purpose of this report is to analyze the feasibility of conducting foreign exchange derivative trading to mitigate exchange rate risks affecting the company's performance. The company plans to engage in transactions up to USD 90 million, authorized by the board. The analysis concludes that such trading is necessary and feasible, supported by established internal controls and risk management measures.

Summary generated by AI · Always verify with source document

Full Translation

AI Translation· azure_openai

1. Purpose of Conducting Foreign Exchange Derivative Trading

Entropy Technology Co., Ltd. (hereinafter referred to as "the Company") has a relatively high proportion of export business, with exports primarily settled in USD. Given the increased volatility in the foreign exchange market, the Company and its subsidiaries plan to conduct foreign exchange derivative trading to reduce the impact of exchange rate fluctuations on operational performance. The trading will be based on normal production and operations, adhering to principles of prudence, aiming to preserve currency value and reduce exchange rate risk, without engaging in speculative trading without actual demand or purely profit-driven foreign exchange transactions. By locking in exchange rates, the Company aims to mitigate the risk of performance volatility due to exchange rate changes.

Sign in to read the full translation

Free accounts get 10 full releases per month. Pro subscribers get unlimited access.