Verification Opinion on the Hedging Business Quota Estimate of Shenzhen Jundingda New Materials Co., Ltd.
CITIC Construction Investment Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "the Sponsor") is the sponsor for the initial public offering and listing on the Growth Enterprise Market of Shenzhen Jundingda New Materials Co., Ltd. (hereinafter referred to as "Jundingda" or "the Company"). According to relevant regulations including the "Administrative Measures for Securities Issuance and Listing Sponsorship," "Self-Regulatory Guidelines No. 13 for Listed Companies on the Shenzhen Stock Exchange - Sponsorship Business," "Listing Rules for Growth Enterprise Market Stocks of the Shenzhen Stock Exchange," and "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations for Growth Enterprise Market Companies," CITIC Securities has conducted a verification of the hedging business quota estimate for Jundingda. The specific situation is as follows:
I. Overview of Investment Situation
(1) Foreign Exchange Hedging Business
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Investment Purpose
The Company and its subsidiaries have certain overseas businesses and liabilities. In the context of fluctuating RMB exchange rates and a market-oriented interest rate environment, to effectively avoid and prevent adverse impacts from significant exchange rate fluctuations on the Company's operations, control foreign exchange risks, and enhance financial stability, the Company and its subsidiaries plan to conduct foreign exchange hedging business with banks and financial institutions approved by relevant government departments and qualified for foreign exchange hedging operations. -
Transaction Amount
Based on the Company's asset scale and business needs, the maximum contract value held on any trading day is estimated to be RMB 200 million or equivalent foreign currency (USD, EUR, etc.). The investment amount can be rolled over, but the transaction amount at any point within the term (including amounts related to the profits from the aforementioned transactions) shall not exceed the approved quota. -
Transaction Method
The foreign exchange hedging business will use the main settlement currencies used in the Company's production and operations, such as USD and EUR. Main products include but are not limited to forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, interest rate swaps, foreign exchange futures, currency swaps, and combinations of the above products. The foreign exchange hedging business will utilize the Company's comprehensive credit limits or margin trading, with settlement at maturity using either principal delivery or differential settlement. -
Transaction Duration
The above quota is valid for twelve months from the date of approval by the board of directors. Within the transaction amount and duration, the board authorizes the Company's general manager (legal representative) or their authorized agents to approve daily foreign exchange hedging business plans and sign relevant contracts, with specific implementation and management organized by the Company's finance department. -
Source of Funds
The Company will use its own funds to conduct foreign exchange hedging business, without involving the use of raised funds or bank credit funds. Except for a certain proportion of margin (or credit limit) occupied according to agreements with financial institutions, no other funds are required, and the margin ratio is determined based on the products involved in the foreign exchange hedging business.