Securities code: 002925 securities abbreviation: Xiamen Intretech Inc(002925) Announcement No.: 2022-004 Xiamen Intretech Inc(002925)
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.
Xiamen Intretech Inc(002925) (hereinafter referred to as "the company") convened the 16th meeting of the 4th board of directors and the 16th meeting of the 4th board of supervisors on December 30, 2021, deliberated and adopted the proposal on carrying out long-term foreign exchange settlement and sales business. In order to effectively avoid and prevent foreign exchange market risks, the company (including subsidiaries, the same below) plans to carry out forward foreign exchange settlement and sales transactions with a total amount of no more than US $1 billion in 2022, which will be effective within one year from the date of deliberation and approval by the general meeting of shareholders of the company. The relevant matters are hereby announced as follows:
1、 Purpose of carrying out forward foreign exchange settlement and sales business
The company's products are mainly exported. From 2017 to January June 2021, the proportion of the company's overseas sales revenue in the total main business revenue is more than 90%. The settlement currency of the company's export business is mainly USD, and the fluctuation of RMB exchange rate against USD will have a certain impact on the company's production and operation. In order to cope with the risk of exchange rate fluctuation and reduce the impact of exchange rate fluctuation on the company's operating performance, the company plans to carry out forward foreign exchange settlement and sales business in 2022 to avoid exchange rate risk.
The company does not conduct foreign exchange transactions solely for the purpose of profit or non locking unilateral transactions. All foreign exchange transactions are based on normal production and operation, relying on specific business operations, and for the purpose of hedging, avoiding and preventing exchange rate risks. The company's forward foreign exchange settlement and sales business only deals with financial institutions approved by the State Administration of foreign exchange and the people's Bank of China or the financial and foreign exchange administration authorities of the country and region where it is located and qualified for the operation of forward foreign exchange settlement and sales business, and does not deal with other organizations or individuals other than the above-mentioned financial institutions. The capital sources of the company's long-term foreign exchange settlement and sales business are the company's own funds, and there is no use of the raised funds for financial derivatives trading business.
2、 Overview of forward foreign exchange settlement and sales business
The forward foreign exchange settlement and sales business proposed by the company is a forward foreign exchange settlement and sales business conducted in the bank to avoid and prevent exchange rate risk in order to meet the needs of normal production and operation. It refers to signing a forward foreign exchange settlement and sales contract with the bank to agree on the foreign exchange currency, amount, exchange rate and time limit for foreign exchange settlement or sales in the future, and then according to the currency, amount Exchange rate to handle the business of settlement or sale of foreign exchange. The company's forward settlement and sales of foreign exchange are limited to the main settlement currency of the company's import and export business, USD.
3、 Necessity of carrying out forward foreign exchange settlement and sales business
The company's export business is mainly denominated in US dollars. Therefore, when the exchange rate fluctuates greatly, it will have a great impact on the company's operating performance. In order to effectively prevent and reduce the risk of foreign exchange rate fluctuation, it is necessary for the company to carry out forward foreign exchange settlement and sales business matching the actual business scale of the company according to the actual situation of import and export business. 4、 2022 forward foreign exchange settlement and sales business plan
According to the company's management system for long-term foreign exchange settlement and sales, in combination with relevant laws, regulations and other relevant provisions and the company's actual business needs, the total amount of the company's proposed long-term foreign exchange settlement and sales business in 2022 shall not exceed US $1 billion, and the general meeting of shareholders shall be submitted to authorize the company's president on duty and his authorized persons to sign relevant transaction documents. To carry out forward foreign exchange settlement and sales business, the company may pay a certain proportion of deposit according to the agreement signed with the bank.
5、 Business period
It shall be valid for one year from the date of deliberation and approval by the general meeting of shareholders of the company.
6、 Accounting principles for forward settlement and sales of foreign exchange
In accordance with the accounting standards for Business Enterprises No. 22 - recognition and measurement of financial instruments, accounting standards for Business Enterprises No. 23 - transfer of financial assets, accounting standards for Business Enterprises No. 24 - hedging, accounting standards for Business Enterprises No. 37 - presentation of financial instruments and other relevant standards and guidelines, the company conducts corresponding accounting treatment for the proposed long-term foreign exchange settlement and sales business, Reflect relevant items in the balance sheet and income statement.
7、 Risk analysis
The forward foreign exchange settlement and sales business carried out by the company follows the principle of locking exchange rate risk and does not engage in speculative and arbitrage transactions, but there are still some risks in the forward foreign exchange settlement and sales operation:
1. Exchange rate fluctuation risk: when the exchange rate changes greatly, 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, 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. Customer default risk: the customer's accounts receivable are overdue, and the payment cannot be recovered within the predicted collection period, which will cause the delay of long-term foreign exchange settlement and cause losses to the company.
4. Collection forecast risk: the company's sales department forecasts the collection according to the customer's orders and expected orders. In the actual implementation process, the customer may adjust their own orders, resulting in inaccurate collection forecast of the company, resulting in the risk of delayed delivery of forward foreign exchange settlement.
5. Legal risk: due to changes in relevant laws or counterparties' violation of relevant legal systems, the contract may not be executed normally and bring losses to the company.
8、 Risk control measures
1. The company has formulated the management system for long-term settlement and sales of foreign exchange, which has made clear provisions on the company's operation principles, approval authority, internal operation process, responsible departments and persons, information isolation measures and risk management of long-term settlement and sales of foreign exchange. The system can meet the needs of actual operation, and the formulated internal control and risk management measures are practical and effective.
2. As the relevant responsible departments, the financial center and the Audit Department of the company have clear management positioning and responsibilities, and the responsibilities are implemented to the posts. Through hierarchical management, the risk of single person or separate department operation is fundamentally eliminated, and the response speed to the risk is also improved on the premise of effective risk control.
3. In order to prevent the delayed delivery of forward foreign exchange settlement and sales, the company attaches great importance to the management of accounts receivable and actively collects accounts receivable to avoid the overdue phenomenon of accounts receivable.
4. The company conducts financial derivatives trading business with large commercial banks with legal qualifications, closely tracks laws and regulations in relevant fields, and avoids possible legal risks.
5. The company's forward foreign exchange settlement and sales transactions must be based on the prudent prediction of the company's foreign currency receipts (payments). The foreign currency amount of the forward foreign exchange settlement and sales contract shall not exceed 90% of the annual planned total amount of foreign currency receipts (payments). The delivery period of forward foreign exchange settlement and sales business shall match the foreign currency collection time predicted by the company.
9、 Relevant review and approval procedures
(i) Deliberations of the board of directors
In order to effectively avoid and prevent foreign exchange market risks, the board of directors agreed to the feasibility analysis report on carrying out forward foreign exchange settlement and sales business submitted by the company's management, and agreed that the company would carry out forward foreign exchange settlement and sales business with a total amount of no more than US $1 billion in 2022. The business period shall be valid within one year from the date of deliberation and approval by the general meeting of shareholders of the company. Propose to the general meeting of shareholders to authorize the president on duty and his authorized person to sign relevant transaction documents. The board of directors agreed to submit this proposal to the first extraordinary general meeting of shareholders in 2022 for deliberation.
（2） Deliberations of the board of supervisors
After deliberation, the board of supervisors believes that the decision-making procedures of the company's proposed long-term foreign exchange settlement and sales business comply with relevant regulations. The company's long-term foreign exchange settlement and sales business is aimed at avoiding and preventing exchange rate risk, based on normal production and operation, relying on specific business operations, not simply for profit, and is conducive to controlling foreign exchange risk. The proposed long-term foreign exchange settlement and sales business has fulfilled the necessary review procedures, conforms to the provisions of relevant laws and regulations, and conforms to the interests of the company and all shareholders. It is agreed that the company will carry out forward foreign exchange settlement and sales transactions with a total amount of no more than US $1 billion in 2022.
（3） Opinions of independent directors
The company plans to carry out forward foreign exchange settlement and sales business with a total amount of no more than US $1 billion in 2022. The contents and procedures comply with the relevant provisions of the stock listing rules of Shenzhen Stock Exchange, the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange, the articles of Association and the company's management system for forward foreign exchange settlement and sales, and meet the actual needs of the company's production and operation, It is conducive to controlling foreign exchange risk and is in the interests of the company and all shareholders. The independent directors unanimously agree that the company will carry out forward foreign exchange settlement and sales transactions with a total amount of no more than US $1 billion in 2022, and agree to submit this proposal to the first extraordinary general meeting of shareholders of the company in 2022 for deliberation.
10、 Documents for future reference
1. Resolution of the 16th meeting of the 4th board of directors.
2. Resolution of the 16th meeting of the 4th board of supervisors.
3. Independent opinions of independent directors on matters related to the 16th meeting of the Fourth Board of directors of the company.
It is hereby announced.
Xiamen Intretech Inc(002925) board of directors
January 4, 2022
