Securities code: China Haisum Engineering Co.Ltd(002116) securities abbreviation: China Haisum Engineering Co.Ltd(002116) Announcement No.: 2022009
China Haisum Engineering Co.Ltd(002116)
Announcement on the development of forward foreign exchange settlement and sales business by wholly-owned subsidiaries
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.
On March 8, 2022, China Haisum Engineering Co.Ltd(002116) (hereinafter referred to as "the company") held the 23rd Meeting of the 6th board of directors, deliberated and adopted the proposal on the company's wholly-owned subsidiaries to carry out long-term foreign exchange settlement and sales business. In order to prevent the risk of exchange rate fluctuation and lock in the project profit, China Light Industry Nanning Design Engineering Co., Ltd. (hereinafter referred to as "Nanning company"), a wholly-owned subsidiary of the company, is approved to carry out forward foreign exchange settlement and sales business with a total amount of no more than 50 million euros, with a business term of one year from the date of deliberation and approval by the board of directors. It also authorizes the chairman of Nanning company and his authorized representative to sign relevant agreements and documents for carrying out forward foreign exchange settlement and sales business. This authorization is 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 the 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, which stipulates 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 shall be handled according to the currency, amount and exchange rate agreed in the forward foreign exchange settlement and sales contract.
1. Principles of carrying out forward foreign exchange settlement and sales business
(1) Principle of locking income and avoiding risk: Nanning company carries out long-term foreign exchange settlement and sales business based on the signed and effective international engineering contract, aims to lock the project profit and prevent the risk of exchange rate fluctuation, matches the variety, scale, direction and term of spot, and prohibits any form of speculative trading.
(2) Prudent operation principle: Nanning company's long-term settlement and sales of foreign exchange shall be based on international engineering contracts
Securities code: China Haisum Engineering Co.Ltd(002116) securities abbreviation: China Haisum Engineering Co.Ltd(002116) Announcement No.: 2022009 prudent prediction of foreign exchange revenue and expenditure and time. The total amount and delivery period of forward foreign exchange settlement and sales contracts shall match the prudent prediction of foreign exchange revenue and expenditure.
2. Basic information of carrying out forward foreign exchange settlement and sales business
(1) Currency mainly involved: Euro, etc.
(2) Business term: 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 the total amount of funds does not exceed 50 million euros.
(4) Counterparty: a financial institution approved by the State Administration of foreign exchange and the people's Bank of China and qualified for long-term foreign exchange settlement and sales.
(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
Nanning company will 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 loss 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. Prediction risk of payment collection: Nanning company predicts the recovery of project payment according to the international project implementation plan. In the actual implementation process, the owner may adjust the project progress, resulting in inaccurate prediction of payment collection and default risk of forward foreign exchange settlement and delivery.
3、 Risk control measures taken by the company
1. The company will strengthen the management and guidance for Nanning company to carry out the business of long-term settlement and sales of foreign exchange, strengthen the research and analysis of exchange rate, timely guide Nanning company to adjust the transaction plan, and equip professionals such as business operation and risk control to carry out the business of long-term settlement and sales of foreign exchange.
2. The company has formulated China Haisum Engineering Co.Ltd(002116) forward foreign exchange settlement and sales management office
Securities code: China Haisum Engineering Co.Ltd(002116) securities abbreviation: China Haisum Engineering Co.Ltd(002116) Announcement No.: 2022009
The law stipulates the decision-making procedures, reporting system and monitoring measures for the long-term settlement and sales of foreign exchange, and defines the scope of authorization, key points of operation, information disclosure and other specific requirements. Nanning company will strictly follow the measures for the administration of China Haisum Engineering Co.Ltd(002116) 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 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 Center shall be responsible for the implementation of the audit and settlement system of the subsidiary's long-term business, and supervise the implementation of the risk management system of the subsidiary's long-term business.
4、 Impact of carrying out forward foreign exchange settlement and sales business on the company
Nanning company, a wholly-owned subsidiary of the company, carries out the forward foreign exchange settlement and sales business in order to make full use of the hedging tools of forward foreign exchange settlement and sales, reduce the exchange rate risk caused by exchange rate fluctuation, lock in the project profit and control the operation risk. Nanning company's foreign exchange forward settlement and sales business is based on specific international engineering business. It prohibits any form of speculative transactions, which can effectively lock in transaction costs and benefits, deal with exchange rate risks brought 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 long-term settlement and sales of foreign exchange in accordance with the relevant provisions and guidelines of the Ministry of finance, such as the accounting standards for Business Enterprises No. 22 - recognition and measurement of financial instruments and the accounting standards for Business Enterprises No. 37 - presentation of financial instruments.
5、 Opinions of independent directors
Nanning company, a wholly-owned subsidiary of the company, plans to carry out forward foreign exchange settlement and sales business for the purpose of hedging, which is conducive to using forward foreign exchange settlement and sales hedging tools to reduce the exchange rate risk caused by exchange rate fluctuations, lock in project profits and control operational risks; The company has formulated the measures for the management of China Haisum Engineering Co.Ltd(002116) 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 the development of this business, which is conducive to reducing the risk of internal control; Feasibility analysis report on long-term foreign exchange settlement and sales business formulated by Nanning company,
Securities code: China Haisum Engineering Co.Ltd(002116) securities abbreviation: China Haisum Engineering Co.Ltd(002116) Announcement No.: 2022009 gives a full and detailed description of the background, basic information, 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; Nanning company's long-term foreign exchange settlement and sales business meets the needs of business development, and the deliberation and voting procedures of the board of directors of the company comply with relevant regulations, which are legal and effective. Therefore, Nanning company is approved to carry out long-term foreign exchange settlement and sales business.
It is hereby announced.
China Haisum Engineering Co.Ltd(002116) board of directors
March 9, 2022
