Guangzhou Tinci Materials Technology Co.Ltd(002709) Guangzhou Tinci Materials Technology Co.Ltd(002709) ）
Securities code: Guangzhou Tinci Materials Technology Co.Ltd(002709) securities abbreviation: Guangzhou Tinci Materials Technology Co.Ltd(002709) Announcement No.: 2022026 Guangzhou Tinci Materials Technology Co.Ltd(002709)
Announcement on carrying out foreign exchange hedging 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.
On March 18, 2022, Guangzhou Tinci Materials Technology Co.Ltd(002709) (hereinafter referred to as “the company”) held the 27th meeting of the 5th board of directors, deliberated and approved the proposal on carrying out foreign exchange hedging business in 2022, and agreed that the company and its subsidiaries included in the consolidated statements should carry out foreign exchange hedging business, and the transaction balance at any time should not exceed the equivalent of US $30 million (including US $30 million), The term of validity is one year (calculated from the date of deliberation and approval by the board of directors). Relevant information is announced as follows:
1、 Purpose of foreign exchange hedging business
In order to effectively resolve the exchange rate or interest rate risk faced by import and export business and foreign currency borrowing, combined with the current change trend of foreign exchange market, the company plans to carry out foreign exchange hedging business.
2、 Types of foreign exchange hedging business
The main varieties of foreign exchange hedging business include forward settlement and sales of foreign exchange, swap business of RMB and other foreign exchange, foreign exchange trading, foreign exchange swap, foreign exchange option, interest rate swap, interest rate option, etc. 3、 Foreign exchange hedging business period, business scale and relevant authorization
If the foreign exchange amount of the subsidiary company (including the amount of USD 30 million) is considered by the board of directors during the effective period of the hedging business, it shall be calculated from the date when the foreign exchange amount of the subsidiary company (including the amount of USD 30 million) can be used prudently, and it shall not be calculated according to the effective period of the hedging business. Authorize the legal representatives of the company and its subsidiaries incorporated into the consolidated statements to sign relevant legal documents, and authorize the financial department of the company to go through relevant business procedures.
4、 Risk analysis of foreign exchange hedging business
Guangzhou Tinci Materials Technology Co.Ltd(002709) Guangzhou Tinci Materials Technology Co.Ltd(002709) ）
1. Exchange rate and interest rate fluctuation risk: in case of significant deviation between the exchange rate or interest rate market trend and the company’s expectation, the cost expenditure of the company after locking the exchange rate or interest rate cost may exceed the cost expenditure when it is not locked, resulting in potential losses.
2. Default risk of customers or suppliers: the overdue accounts receivable of customers, the failure to recover the payment within the predicted collection period, or the delay of the payment to suppliers will affect the cash flow of the company, which may make the actual cash flow unable to fully match the term or amount of the operated foreign exchange hedging business. 5、 Risk control measures to be taken by the company
1. The company has formulated the foreign exchange hedging management system, which stipulates the approval authority, management, internal operation process, risk control and internal report of the company’s foreign exchange hedging business.
2. The finance department is responsible for the unified management of the company’s foreign exchange hedging business. All foreign exchange transactions are based on normal production and operation and rely on specific business operations. Speculation and arbitrage transactions are not allowed. Business operations are carried out in strict accordance with the provisions of the foreign exchange hedging management system to effectively ensure the implementation of the system. 3. The audit department shall supervise and inspect the foreign exchange hedging business every month, review the actual operation, fund use and profit and loss of the foreign exchange hedging business every quarter, and report the review to the audit committee of the board of directors.
4. The company will control the scale of hedging funds in strict accordance with the approval authority, and operate only after the amount is approved according to the system. At the same time, the company will timely disclose information according to the risk control report and handling procedures.
6、 Opinions of independent directors
The purpose of the company’s foreign exchange hedging business is to avoid the risk of the foreign exchange market and prevent the adverse impact of large exchange rate fluctuations on the company. The company has established the foreign exchange hedging management system and supervision and inspection mechanism, which can effectively manage and control the risk of foreign exchange hedging business. We believe that the company’s foreign exchange hedging business meets the needs of the company’s business development. The procedures for the board of directors to consider this matter are legal and compliant, in line with the provisions of relevant laws and regulations, and there is no situation that damages the interests of the company’s shareholders. Therefore, we agree with the company to carry out foreign exchange hedging business.
7、 Opinions of the sponsor
The sponsor believes that the company’s foreign exchange hedging business has been deliberated and approved by the board of directors and fulfilled
Guangzhou Tinci Materials Technology Co.Ltd(002709) Guangzhou Tinci Materials Technology Co.Ltd(002709) ）
Necessary legal procedures have been. The company has formulated the management system of foreign exchange hedging business and taken necessary risk control measures in accordance with the provisions of relevant laws and regulations. The development of this business is in line with the actual business needs of the company, which is conducive to avoiding the risks of the foreign exchange market, preventing the adverse impact of large exchange rate fluctuations on the company, improving the use efficiency of foreign exchange funds and reasonably reducing financial expenses.
The recommendation institution has no objection to the company’s foreign exchange hedging business in 2022.
Documents for future reference:
Resolution of the 27th meeting of Guangzhou Tinci Materials Technology Co.Ltd(002709) the 5th board of directors. It is hereby announced.
Guangzhou Tinci Materials Technology Co.Ltd(002709) board of directors March 22, 2022
