Board of directors of Pharmaron Beijing Co.Ltd(300759) (Beijing) new drug Technology Co., Ltd
Special instructions on hedging product transactions of the company in 2021
In accordance with the securities law, Shenzhen Stock Exchange GEM Listing Rules and self-discipline supervision of listed companies
Guideline No. 2 - laws, regulations, normative documents and articles of association of companies listed on GEM
Management system of financial derivatives trading business and other relevant regulations and requirements, Pharmaron Beijing Co.Ltd(300759) (Beijing) new drug technology
The board of directors of the company limited by shares (hereinafter referred to as "the company") on the trading of hedging products of the company in 2021
After careful verification, the relevant information is described as follows:
1. Consideration of hedging product trading limit
The ninth meeting of the second board of directors held on March 26, 2021 and May 28, 2021
The 2020 annual general meeting of shareholders held on September 1 deliberated and adopted the decision on hedging product trading in 2020
Recognizing the proposal on the forecast of the transaction amount of hedging products in 2021, and agreeing that according to the company's export income
Overseas business scale, overseas financing and the practice of Companies in the same industry, and the advance payment of the company and its subsidiaries
In 2021, the trading volume of hedging products is US $700 million or other equivalent foreign currencies, and the source of funds is
The company has its own funds, and the above transaction limit can be recycled. The proposal has been reviewed since the 2020 annual general meeting of shareholders
The proposal will be valid until the date of the 2021 annual general meeting of shareholders.
2. Transactions of hedging products
Source of self owned funds for hedging product trading investment
Case involved (if applicable) none
Review the trading volume of hedging products
Disclosure date of the resolution of the board of directors on March 29, 2021
(if any) review the trading volume of hedging products
Disclosure date of resolutions of the general meeting of shareholders on May 28, 2021
Period (if any)
The company's foreign exchange hedging business follows the principle of prudence and prudence, and does not conduct foreign exchange transactions for the purpose of speculation. All foreign exchange hedging businesses are aimed at avoiding and preventing exchange rate risks. However, there will also be certain risks in the foreign exchange hedging business of hedging products in the external reporting period, mainly including: risk analysis and control measures. 1. Exchange rate fluctuation risk: when the trend of foreign exchange rate deviates greatly from the judgment of the company, The company clearly (including but not limited to market risk, the cost of carrying out foreign exchange hedging business may exceed the expectation, resulting in the loss of the company. Risk, liquidity risk, credit risk, 2. Internal control risk: foreign exchange hedging business is highly professional and complex, which may be caused by operational risk, legal risk, etc.) due to the operation error of employees System failure and other reasons lead to losses in the process of handling foreign exchange hedging business.
3. Transaction default risk: the foreign exchange hedging counterparty defaults and cannot pay the company as agreed
The profit of foreign exchange hedging can not hedge the actual exchange loss of the company, which will cause the loss of the company.
Risk control measures:
1. The company has formulated the financial derivatives trading business management system, which clearly stipulates the operation regulations, business processes, confidentiality system, risk management and other aspects of foreign exchange hedging business.
2. In order to control the risk of sharp fluctuation of exchange rate, the company will strengthen the research and analysis of exchange rate, pay real-time attention to the changes in the international and Chinese market environment, timely adjust the operation and business operation strategies, and avoid exchange losses to the greatest extent.
3. In order to prevent internal control risks, all foreign exchange transactions of the company are aimed at avoiding and preventing exchange rate risks. Speculation and arbitrage transactions are not allowed, and business operations are carried out in strict accordance with the provisions of the financial derivatives trading business management system, so as to effectively ensure the implementation of the system. The internal control and internal audit department of the company regularly audits the actual operation, capital use and profit and loss of foreign exchange hedging business, and whether the transaction and information disclosure are implemented in accordance with relevant internal control systems.
4. In order to control the risk of transaction default, the company only carries out foreign exchange hedging business with banks and other financial institutions with relevant business operation qualifications to ensure the legitimacy of the company's hedging product transaction management.
The reporting company of invested hedging products confirmed the trading profit and loss of hedging products during the reporting period: for the financial assets generated from the market price or fair value of products in the extension period that have been delivered due, the cumulative loss from changes in fair value in the reporting period is 831161 million yuan, and the investment income from hedging is 906161 million yuan, The analysis of the total amount of operating income and written off financial expenses, about the fair value of human value products, should be RMB 404929 million; Disclose the specific methods used and the derivative financial assets that have not yet been delivered. During the reporting period, it is included in other comprehensive income, about RMB 150921, about the setting of assumptions and parameters.
Hedging products of the company during the reporting period
Accounting policies and accounting verification of transactions since January 1, 2021, the company has started to conduct accounting and report presentation for the qualified hedging business in accordance with the specific principles of hedge accounting and the requirements of the previous reporting period. Description of whether there are significant changes compared with
3. Implementation of internal control system
The company has formulated the internal control management system, which shall be formulated in the process of internal control management
Understand and check the relevant situation of hedging product transactions. Take effective measures to strengthen investment decision-making and investment
Implementation and risk control to prevent and control investment risks.
The company has formulated the financial derivatives trading business management system, which has the right to approve the foreign exchange hedging business
Make clear provisions in terms of limits, operating regulations, business processes, risk management, etc. At the same time, the company is equipped with professionals
The staff shall carry out hedging product transaction management, financial management and risk control construction. Be cautious when engaging in financial derivatives business
Focus on the selection of large domestic and foreign commercial banks with better strength to carry out foreign exchange hedging business, and closely track the relevant issues
Laws and regulations to avoid possible legal risks.
After careful verification, the board of Directors believes that the trading of hedging products of the company strictly follows the articles of association and
The relevant provisions of the financial derivatives trading business management system did not violate laws, regulations and normative documents
Specified circumstances. It is reasonable and sufficient for the company to carry out hedging business to avoid exchange rate and interest rate risks
Based on investigation, demonstration and risk analysis, it will not affect the development of the company's main business and will not damage the interests of the company and shareholders. During the reporting period, the company had no securities investment business.
It is hereby explained!
Pharmaron Beijing Co.Ltd(300759) (Beijing) new drug Technology Co., Ltd. board of directors March 28, 2022
