Securities code: 002051 securities abbreviation: China Camc Engineering Co.Ltd(002051) Announcement No.: 2021-067 China Camc Engineering Co.Ltd(002051)
Announcement on carrying out forward foreign exchange settlement and sales business
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
The 15th meeting of the 7th board of directors of China Camc Engineering Co.Ltd(002051) (hereinafter referred to as "the company") deliberated and adopted the proposal on carrying out forward foreign exchange settlement and sales business 。 In order to prevent the risk of exchange rate fluctuation and lock in the project profit, the company is agreed to carry out the long-term foreign exchange settlement and sales business with a total amount of no more than 800 million US dollars; The business term shall be one year from the date of deliberation and approval by the board of directors. Agree to authorize the chairman of the company and his authorized representative to sign relevant agreements and documents for the company to carry out forward foreign exchange settlement and sales business. This authorization shall be valid within 12 months from the date of deliberation and approval by the board of directors of the company. If the duration of a single transaction exceeds the authorization period, the authorization period will be automatically extended to the termination of a single transaction.
1、 Overview of forward foreign exchange settlement and sales business
Forward settlement and sale of foreign exchange is a foreign exchange hedging financial product approved by the people's Bank of China. Forward foreign exchange settlement and sales refers to the foreign exchange settlement and sales business that the bank signs a forward foreign exchange settlement and sales contract with the customer to agree on the foreign exchange currency, amount, exchange rate and time limit for foreign exchange settlement or sales in the future. When foreign exchange income or expenditure occurs on the due date, it will be handled according to the currency, amount and exchange rate agreed in the forward foreign exchange settlement and sales contract.
1. Principles for the company to carry out forward foreign exchange settlement and sales business:
(1) Principle of locking income and avoiding risk: the forward foreign exchange settlement and sales business must be based on the signed and effective international engineering contract and normal import and export business, for the purpose of locking project profits and preventing exchange rate fluctuation risk, match with the variety, scale, direction and term of spot, and prohibit any form of speculative transactions.
(2) Prudent operation principle: the development of forward foreign exchange settlement and sales shall be based on the prudent prediction of the company's foreign exchange revenue and expenditure and time. The total amount and delivery period of forward foreign exchange settlement and sales contracts shall match the company's prudent prediction of foreign exchange revenue and expenditure.
2. Basic information of the company's long-term foreign exchange settlement and sales business:
(1) Currencies mainly involved: USD, euro, ruble, etc.
(2) The term of carrying out foreign exchange forward settlement and sales business: one year from the date of deliberation and approval by the board of directors.
(3) Source and scale of funds: the source of funds is self owned funds and does not involve raised funds. The total amount of the company's long-term foreign exchange settlement and sales business shall not exceed 800 million US dollars.
(4) Counterparties: financial institutions approved by the State Administration of foreign exchange and the people's Bank of China and qualified for long-term settlement and sales of foreign exchange.
(5) Liquidity arrangement: all foreign exchange capital businesses correspond to normal and reasonable business background, match the collection and payment time, and will not affect the liquidity of the company.
2、 Risk analysis of forward foreign exchange settlement and sales business
The company shall follow the principles of legality, prudence, safety and effectiveness in carrying out forward foreign exchange settlement and sales business, but there are also certain risks in the forward foreign exchange settlement and sales business:
1. Exchange rate fluctuation risk: in the case of large changes in exchange rate, if the forward exchange rate agreed in the confirmation of forward exchange settlement and sales is lower than the real-time exchange rate on the delivery date, or the forward exchange rate agreed in the confirmation of forward exchange settlement and sales is higher than the real-time exchange rate on the delivery date, exchange losses will be caused. 2. Internal control risk: forward foreign exchange settlement and sales transactions are highly professional, which may cause risks due to imperfect internal control system.
3. Collection forecast risk: the company forecasts the collection of project funds and trade funds according to the project implementation plan and import and export trade contract. In the actual implementation process, the owner and customers may adjust the project progress and orders, resulting in inaccurate collection forecast of the company, resulting in default risk of forward foreign exchange settlement and delivery.
3、 Risk control measures taken by the company
1. The company will strengthen the research and analysis of exchange rate, timely adjust the transaction scheme, and equip professionals for business operation and risk control of forward foreign exchange settlement and sales.
2. The company has formulated the management measures for China Camc Engineering Co.Ltd(002051) long-term foreign exchange settlement and sales, formulated strict decision-making procedures, reporting system and monitoring measures, and defined the scope of authorization, key operating points, information disclosure and other specific requirements. The company will strictly follow the management measures for China Camc Engineering Co.Ltd(002051) long-term foreign exchange settlement and sales when carrying out the business of long-term foreign exchange settlement and sales. 3. The company attaches great importance to the management of accounts receivable of engineering projects and trade business, and prevents and avoids the delayed delivery of forward foreign exchange settlement and sales.
4. The audit committee of the board of directors of the company is responsible for reviewing the necessity and risk control of forward foreign exchange settlement and sales business. The Audit Department of the company shall inspect the implementation of the long-term foreign exchange settlement and sales business at least once every six months, issue the inspection report and submit it to the audit committee, audit the long-term foreign exchange settlement and sales business of the company and its subsidiaries at least every year, and focus on the soundness and implementation effectiveness of the business system, the authenticity of accounting, etc.
4、 Impact of carrying out forward foreign exchange settlement and sales business on the company
The company carries out forward foreign exchange settlement and sales business in order to make full use of forward foreign exchange settlement and sales hedging tools to reduce exchange rate risk caused by exchange rate fluctuation, lock in project profit and control operation risk. The company's foreign exchange forward settlement and sales business is based on specific business operations, prohibits any form of speculative transactions, can effectively lock in transaction costs and benefits, deal with exchange rate risks brought to the company by exchange rate fluctuations, enhance the company's financial stability, and meet the requirements of the company's stable operation. The company will conduct corresponding accounting and treatment for the forward settlement and sales of foreign exchange in accordance with the relevant provisions and guidelines of the Ministry of finance, such as accounting standards for Business Enterprises No. 22 - recognition and measurement of financial instruments, accounting standards for Business Enterprises No. 37 - presentation of financial instruments, etc.
5、 Opinions of independent directors
The independent directors of the company have expressed independent opinions on the company's long-term foreign exchange settlement and sales business and relevant proposals as follows:
The company's long-term foreign exchange settlement and sales business for the purpose of hedging is conducive to the use of long-term foreign exchange settlement and sales hedging tools to reduce the exchange rate risk caused by exchange rate fluctuations, lock in project profits and control business risks; The company has formulated the measures for the management of China Camc Engineering Co.Ltd(002051) long-term foreign exchange settlement and sales, which clearly stipulates the approval procedures, management and operation regulations, risk management, supervision and inspection and information disclosure for carrying out this business, which is conducive to reducing the risk of internal control; The company has formulated the feasibility analysis report on China Camc Engineering Co.Ltd(002051) long-term foreign exchange settlement and sales business, which gives a full and detailed description of the background, basic situation, risk analysis and risk control measures of the business, which is conducive to investors' comprehensive understanding of the long-term foreign exchange settlement and sales business; The company's long-term foreign exchange settlement and sales business meets the needs of the company's business development, and the review and voting procedures comply with relevant regulations, which are legal and effective. Therefore, we agree with the voting results of the board meeting on this proposal.
6、 Documents for future reference
1. China Camc Engineering Co.Ltd(002051) resolution of the 15th meeting of the seventh board of directors; 2. China Camc Engineering Co.Ltd(002051) opinions of independent directors.
China Camc Engineering Co.Ltd(002051) board of directors December 23, 2021
