Securities code: Changying Xinzhi Technology Co.Ltd(002664) securities abbreviation: Changying Xinzhi Technology Co.Ltd(002664) Announcement No.: 2022022
Changying Xinzhi Technology Co.Ltd(002664)
Announcement on carrying out forward foreign exchange settlement business in 2022
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.
Important content tips:
1. Investment type: the company plans to carry out forward foreign exchange settlement business
2. Investment amount: no more than USD 40 million and EUR 30 million
3. Special risk warning: there is no income guarantee for this investment. There are exchange rate fluctuation risk, internal control risk, customer default risk and payment collection prediction risk in the investment process. Please pay attention to the investment risk.
1、 Overview of investment
1. Investment purpose: Changying Xinzhi Technology Co.Ltd(002664) (hereinafter referred to as "the company") about 13% of its operating income is for export, and the settlement is mainly in US dollars and euros. In order to adapt to the fluctuations of the foreign exchange market and avoid the continuous impact of the exchange rate on the company's operating interests, the company plans to avoid the risk of future exchange rate fluctuations through bank long-term foreign exchange settlement products. 2. Investment amount: no more than 40 million US dollars and 30 million euros
3. Investment method: forward foreign exchange settlement products refer to the foreign exchange settlement business conducted on the delivery date according to the currency, amount and exchange rate agreed in the forward foreign exchange settlement contract signed by the company and the bank, which stipulates the foreign exchange currency, amount, exchange rate and time limit for foreign exchange settlement in the future.
4. Investment period: valid within one year from the date of completing the relevant approval procedures (the proposal has been deliberated by the board of directors and does not need to be submitted to the general meeting of shareholders for deliberation).
5. Source of funds: the company's own funds, not involving raised funds.
2、 Review procedure
On March 16, 2022, the 18th meeting of the 4th board of directors of the company deliberated and approved the proposal on carrying out forward foreign exchange settlement business in 2022. In order to adapt to the fluctuation of foreign exchange market and avoid the continuous impact of exchange rate on the company's operating interests, the company plans to avoid the risk of future exchange rate fluctuation through bank forward foreign exchange settlement products, and the cumulative amount of forward foreign exchange settlement shall not exceed US $40 million and 30 million euros, And authorize the chairman to approve the handling of the financial department within the above limit. The independent directors of the company have expressed independent opinions on this matter. According to Article 6 of the company's internal control system for forward foreign exchange trading business, "If the cumulative amount involved in the framework agreements or forward foreign exchange transactions signed by the company within 12 consecutive months accounts for less than 30% of the company's latest audited net assets and less than 50% of the company's audited operating income in the latest fiscal year, it shall be reviewed and approved by the board of directors; it accounts for more than 30% (including 30%) of the company's latest audited net assets Or accounting for more than 50% (including 50%) of the audited operating income of the company in the latest fiscal year, it shall be submitted to the general meeting of shareholders for deliberation and approval. "This foreign exchange forward settlement and sales transaction belongs to the decision-making authority of the board of directors of the company and does not need to be submitted to the general meeting of shareholders for deliberation.
3、 Investment risk analysis and risk control measures
1. Exchange rate fluctuation risk: when the exchange rate fluctuates greatly, it will not only affect the normal operation of the company's export business, but also cause exchange losses to the company. In view of this risk, the company will strengthen the research and analysis of exchange rate and timely adjust its business strategy to stabilize the export business and avoid exchange losses to the greatest extent.
2. Internal control risk: the long-term foreign exchange settlement is highly professional, and there may be internal control risk. In view of this risk, the company has formulated the internal control system for forward foreign exchange trading business, which clearly stipulates the operation principle, approval authority, organization and its responsibilities and implementation process of forward foreign exchange settlement, which is conducive to reducing the internal control risk.
3. Customer default risk: the customer's accounts receivable may be overdue, resulting in the risk of delayed delivery of forward foreign exchange settlement. In view of this risk, the company will strengthen the management of accounts receivable and plan to strengthen the handling of export credit insurance, so as to reduce the risk of customer default.
4. Collection forecast risk: the company forecasts the collection according to the customer's orders and expected orders. The inaccurate collection forecast may lead to the risk of delayed delivery of forward foreign exchange settlement. The company will strictly control the risks it may face in the long term.
4、 Impact of forward foreign exchange settlement business on the company
The forward foreign exchange settlement carried out by the company is based on normal export business and aims to prevent the risk of exchange rate fluctuation. It does not speculate and does not conduct foreign exchange transactions solely for the purpose of profit. At present, the company mainly deals with foreign exchange revenue and expenditure according to the capital situation and the spot market exchange rate. Compared with the existing business model, carrying out forward foreign exchange settlement business can lock the exchange rate of remote foreign exchange settlement, help to reduce the impact on the fluctuation of the company's operating performance, and prevent exchange rate risk and foreign currency hedging.
5、 Opinions of independent directors
The company's long-term foreign exchange settlement business is based on the specific business operation, and the bank's long-term foreign exchange settlement products are used to lock the transaction costs or benefits at the future time point, so as to realize the asset preservation for the purpose of avoiding risks. This business can adapt to the fluctuations of the foreign exchange market and avoid the continuous impact of the exchange rate on the company's operating interests, which is in line with the needs of the company's actual operation and development, as well as the relevant national laws Relevant provisions of laws and regulations and the articles of association. The company has formulated a management system for the long-term foreign exchange settlement business. The risk is controllable and will not have an adverse impact on the normal operation and business development of the company. The decision-making procedure of this matter is legal and effective, and there is no situation that damages the interests of the company and all shareholders. To sum up, we agree that the company will carry out forward foreign exchange settlement business within the range of no more than 40 million US dollars and 30 million euros. 6、 Documents for future reference
1. Resolution of the 18th meeting of the 4th board of directors
2. Independent opinions of independent directors on relevant matters of the 18th meeting of the Fourth Board of directors
It is hereby announced.
Changying Xinzhi Technology Co.Ltd(002664) board of directors
March 18, 2022
