Shenzhen Bosijie Technology Co., Ltd. (hereinafter referred to as "the Company") has prepared this feasibility analysis report on conducting foreign exchange hedging business in accordance with the "Self-Regulatory Guidelines No. 7 for Listed Companies on the Shenzhen Stock Exchange - Transactions and Related Transactions," the Company's "Foreign Exchange Hedging Business Management System," and other relevant regulations. Considering the Company's procurement, sales conditions, and market exchange rates, the Company and its subsidiaries intend to conduct foreign exchange hedging business with banks and other financial institutions that have been approved by regulatory authorities and possess qualifications for foreign exchange hedging operations. The maximum scale of foreign exchange business proposed by the Company and its subsidiaries shall not exceed $80 million or equivalent in other currencies, and this limit shall be valid for 12 months from the date of approval by the 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 validity period (including amounts related to the re-trading of the aforementioned transaction profits) shall not exceed the approved limit.
1. Purpose and Necessity 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 avoid 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. The Company and its subsidiaries will adhere to a prudent principle in conducting foreign exchange hedging business and will not engage in purely profit-driven foreign exchange speculation and arbitrage transactions. All foreign exchange transactions will be based on normal production and operations, relying on specific business activities, and aimed at avoiding and preventing exchange rate risks without affecting the Company's normal production and operations. Conducting foreign exchange hedging business will better enable the Company to avoid and prevent foreign exchange rate risks, reduce foreign exchange losses, mitigate adverse effects from exchange rate fluctuations, improve the efficiency of foreign exchange fund utilization, and enhance the Company's financial stability, making it necessary.