Verification Opinion of China International Capital Corporation on Beijing Ruimait Medical Technology Co., Ltd.'s Foreign Exchange Hedging Business
China International Capital Corporation (hereinafter referred to as "CICC" or "Sponsor") is the sponsor for the initial public offering and continuous supervision of Beijing Ruimait Medical Technology Co., Ltd. (hereinafter referred to as "Ruimait" or "Company"). In accordance with relevant laws, regulations, and business rules, CICC has conducted a verification of Ruimait's foreign exchange hedging business, with the details as follows:
1. Basic Situation of the Hedging Business
(1) Purpose of the Transactions
With the development of the Company's international business, a significant amount of foreign currency transactions are involved in daily operations. When exchange rates fluctuate significantly, foreign exchange gains and losses can introduce uncertainty into the Company's operating performance. To reduce the impact of exchange rate fluctuations on operations and enhance financial stability, the Company and its subsidiaries (including holding subsidiaries) plan to conduct foreign exchange hedging business. The foreign exchange hedging must be based on normal production and operations, matching the Company's actual business to achieve a certain degree of risk avoidance and prevention against exchange rate risks.
(2) Amount Limit
The Company and its subsidiaries (including holding subsidiaries) plan to conduct foreign exchange hedging business, with the transaction amount at any point in time (including the amounts related to the profits from the aforementioned transactions, excluding margin amounts) not exceeding $250 million or equivalent in other currencies. This limit can be used in a rolling manner within the specified amount.
(3) Main Currencies, Transaction Types, and Counterparties
The foreign exchange hedging business to be conducted by the Company and its subsidiaries (including holding subsidiaries) is limited to currencies that are the same as the main settlement currencies used in the Company's actual business. The main foreign currencies include USD, EUR, and HKD. Transaction types include forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, and other foreign exchange derivatives or combinations of the aforementioned types. The counterparties are banks and financial institutions approved by relevant government departments and qualified to conduct foreign exchange hedging business.