Verification Opinion on Foreign Exchange Hedging Business
Guolian Minsheng Securities Co., Ltd. (hereinafter referred to as "the Sponsor") serves as the sponsor for Shenzhen Bosijie Technology Co., Ltd. (hereinafter referred to as "Bosijie" or "the Company") during its continuous supervision phase following its initial public offering and listing on the Growth Enterprise Market. In accordance with relevant regulations, including the "Administrative Measures for Securities Issuance and Listing Sponsorship," the "Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 13 - Sponsorship Business," the "Listing Rules for Growth Enterprise Market Stocks of the Shenzhen Stock Exchange," and the "Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 2 - Standard Operation of Growth Enterprise Market Listed Companies," the Sponsor has conducted a verification of Bosijie's foreign exchange hedging business. The specific verification details are as follows:
I. 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 manage the impact of exchange rate fluctuations on the Company's operating performance, the Company and its subsidiaries plan to engage in foreign exchange hedging business with banks and other financial institutions. Conducting foreign exchange hedging business will better help the Company 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 conduct foreign exchange hedging business with banks and other financial institutions that are approved by regulatory authorities and possess the qualifications for foreign exchange hedging business. 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 implemented 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 approval by the Company's board of directors. Within the above limit and validity period, funds may be used in a revolving manner. 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) Source of Funds
The Company and its subsidiaries will use their own funds for the hedging business, without involving raised funds or bank credit funds.
(5) Implementation Method
The Company's board of directors authorizes the chairman or his authorized representatives to be responsible for formulating and approving daily foreign exchange hedging business plans, signing relevant agreements and documents, etc., within the above limit and validity period, with the financial officer responsible for handling specific matters. This authorization is valid for 12 months from the date of approval by the board of directors.