Shenzhen Bosijie Technology Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of this information disclosure is true, accurate, and complete, without any false records, misleading statements, or significant omissions.
1. Purpose of the Transaction
To effectively prevent and control the impact of exchange rate fluctuations on the Company's operating performance, the Company and its subsidiaries intend to conduct foreign exchange hedging business with banks and other financial institutions.
2. Transaction Methods and Types
The Company and its subsidiaries plan to engage in foreign exchange hedging business with banks and other financial institutions that are approved by regulatory authorities and have the qualifications to conduct foreign exchange hedging. The transaction types include, but are not limited to, forward foreign exchange settlement and sales, foreign exchange swap, foreign exchange futures, foreign exchange options, and other foreign exchange derivative products.
3. Transaction Amount and Duration
The maximum scale of the foreign exchange hedging business to be conducted by the Company and its subsidiaries shall not exceed $80 million or equivalent in other currencies, with a validity period of 12 months from the date of board approval. Within the above limit and validity period, funds can be recycled. The transaction amount at any point in time during the period (including the amounts related to the proceeds from the aforementioned transactions) shall not exceed the approved limit.
4. Review Procedures Completed
This matter has been reviewed and approved by the 11th meeting of the Audit Committee of the Company's second Board of Directors and the 14th meeting of the second Board of Directors. This matter is within the review authority of the Company's Board of Directors and does not require submission to the shareholders' meeting for approval.
5. Risk Warning
The Company conducts foreign exchange hedging business in accordance with the principles of legality, prudence, safety, and effectiveness, and does not engage in speculative or arbitrage trading operations. However, there are certain risks associated with foreign exchange hedging, including exchange rate fluctuation risk, transaction default risk, internal control risk, and legal risk. Investors are advised to pay attention to investment risks.
6. Overview of Foreign Exchange Hedging Business
(1) Purpose of Conducting Foreign Exchange Hedging Business
With the development of the Company's overseas business, the demand for foreign exchange settlement is continuously increasing. To control foreign exchange market risks and effectively prevent and control the impact of exchange rate fluctuations on the Company's operating performance, the Company and its subsidiaries intend to conduct foreign exchange hedging business with banks and other financial institutions. Conducting foreign exchange hedging business can better avoid and prevent foreign exchange rate risks, reduce exchange losses, and mitigate the adverse effects of exchange rate fluctuations, thereby enhancing the Company's financial stability.
(2) Transaction Methods and Types
The Company and its subsidiaries plan to engage in foreign exchange hedging business with banks and other financial institutions that are approved by regulatory authorities and have the qualifications to conduct foreign exchange hedging. The transaction types include, but are not limited to, forward foreign exchange settlement and sales, foreign exchange swap, foreign exchange futures, foreign exchange options, and other foreign exchange derivative products.