Review Opinion on Conducting Forward Foreign Exchange Settlement Business
Guosen Securities Co., Ltd. (hereinafter referred to as "Guosen Securities" or "the Sponsor") is the ongoing supervisory institution for Shenzhen Minexplosion Optoelectronics Co., Ltd. (hereinafter referred to as "Minexplosion Optoelectronics" or "the Company") during its initial public offering and listing on the Growth Enterprise Market. In accordance with the "Regulations on the Management of Sponsorship for Securities Issuance and Listing" and "Rules on the Supervision of Funds Raised by Listed Companies," Guosen Securities has conducted a prudent review of Minexplosion Optoelectronics' plan to engage in forward foreign exchange settlement business. The specific review details are as follows:
1. Background and Purpose of the Transaction
Due to the fact that some of the Company's business primarily settles in foreign currencies such as the US dollar, the Company intends to conduct forward foreign exchange settlement business to reduce risks arising from fluctuations in foreign exchange rates. The Company will adhere to a prudent principle in conducting this business, avoiding speculative and profit-driven foreign exchange transactions. All forward foreign exchange settlement activities will be based on normal production and operations, aimed at hedging and preventing exchange rate risks without affecting the development of the Company's main business.
2. Basic Situation of the Transaction
Forward foreign exchange settlement refers to a contract signed between a bank and a client, agreeing on the foreign currency, amount, exchange rate, and term for future settlement or sale of foreign exchange. On the maturity date, the foreign exchange income or expenditure will be settled according to the terms of the forward foreign exchange settlement contract.
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Main Currencies Involved: The Company's forward foreign exchange settlement business is limited to currencies involved in actual business transactions (primarily US dollars).
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Investment Amount and Term: The amount for the forward foreign exchange settlement business will not exceed $100 million (inclusive), and the term will be valid for 12 months from the date of approval by the Company's board of directors. This amount can be used in a revolving manner within the approval period. If the duration of a single transaction exceeds the authorized period, the authorization period will automatically extend until the termination of that transaction.
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Counterparties: The counterparties will be financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China, qualified to conduct forward foreign exchange settlement business, and there are no related party relationships with the Company.