Anhui Huilong Agricultural Means Of Production .Co.Ltd(002556)
Measures for the administration of forward foreign exchange settlement and sales business
Chapter I General Provisions
Article 1 in order to standardize the operation of forward foreign exchange settlement and sales business of Anhui Huilong Agricultural Means Of Production .Co.Ltd(002556) (hereinafter referred to as "the company") and its subsidiaries, strengthen the management of forward foreign exchange settlement and sales business, and effectively prevent and control the risk of foreign currency exchange rate, in accordance with the company law of the people's Republic of China, the securities law of the people's Republic of China, the regulations of the people's Bank of China on the administration of foreign exchange collection, sale and payment and other relevant laws, regulations and normative documents, These measures are formulated in combination with the specific reality of the company.
Article 2 the term "long-term foreign exchange settlement and sales business" as mentioned in these Measures refers to the business of foreign exchange settlement and sales, foreign exchange options and foreign exchange option combination signed by the company and the bank to determine the currency, amount, exchange rate and time limit in the future. In principle, the company shall not operate a single foreign exchange option business. In case of special circumstances, it shall be approved level by level to the financial director of the company.
Article 3 the company does not conduct foreign exchange transactions solely for the purpose of profit. All foreign exchange transactions are based on normal production and operation, relying on specific business operations, hedging as a means, and for the purpose of avoiding and preventing exchange rate risks.
Article 4 the company is only allowed to conduct transactions with financial institutions approved by the State Administration of foreign exchange and the people's Bank of China and qualified for the operation of forward foreign exchange settlement and sales business, and shall not conduct transactions with other organizations or individuals other than the above-mentioned financial institutions.
Article 5 the company's forward foreign exchange settlement and sales transactions must be based on the foreign currency assets and foreign currency receipts (payments) generated by the company's real transactions. The foreign currency amount of the forward foreign exchange settlement and sales contract shall not exceed the amount of the company's foreign currency assets and foreign currency receipts (payments). The delivery period of forward foreign exchange settlement and sales business shall match the company's current foreign currency assets and the predicted time of foreign currency receipt (payment). The long-term foreign exchange settlement and sales quota shall not exceed the business quota approved by the board of directors or the general meeting of shareholders.
Article 6 the company must establish a forward foreign exchange settlement and sales trading account in its own name or in the name of its subordinate companies, and shall not use the account of others for forward foreign exchange settlement and sales business.
Article 7 the company shall have its own funds matching with the forward foreign exchange settlement and sales business, and shall not use the raised funds to conduct the forward foreign exchange settlement and sales transactions directly or indirectly. In addition, the capital scale shall be controlled in strict accordance with the long-term foreign exchange settlement and sales transaction limit approved by the review and approval, and the normal operation of the company shall not be affected.
Article 8 these measures are applicable to the long-term foreign exchange settlement and sales business of the company and its subsidiaries. Without the approval of the company, its subsidiaries shall not carry out such business by themselves.
Chapter II approval authority and management organization
Article 9 the company shall reasonably predict the scope, amount and duration of the long-term foreign exchange settlement and sales business, and submit it to the board of directors and the general meeting of shareholders for decision based on the amount and duration.
Article 10 the approval authority of the company's long-term foreign exchange settlement and sales business is:
(I) if the maximum balance of forward foreign exchange settlement and sales business at any time point accounts for more than 10% (including 10%) of the company's latest audited net assets and the absolute amount exceeds RMB 10 million, it can be implemented after being submitted to the board of directors for deliberation;
(II) if the maximum balance of forward foreign exchange settlement and sales business at any time point accounts for more than 50% (including 50%) of the company's latest audited net assets and the absolute amount exceeds 50 million yuan, it shall also be submitted to the general meeting of shareholders for deliberation after being deliberated and approved by the board of directors.
The finance department shall handle specific matters related to the forward foreign exchange settlement and sales business in strict accordance with the authorization of the board of directors or the general meeting of shareholders. Within the validity period of the authorization, the long-term foreign exchange settlement and sales quota approved after deliberation can be recycled. After the approval of the board of directors, the amount of the proposed transaction shall not exceed the amount approved by the board of directors. If the amount of the proposed transaction has exceeded the amount approved by the board of directors, it shall not exceed the amount approved by the board of directors.
Article 11 for the approved long-term foreign exchange settlement and sales business, if the continuation of the business will cause a significant increase in risk and may cause major losses due to major changes in national policies and markets, it shall timely take the initiative to report according to the authority, start the emergency amendment and take countermeasures.
Article 12 the finance department shall establish an exchange rate operation account to register the exchange rate operation of each business.
Chapter III operation process
Article 13 operation process of forward foreign exchange settlement and sales business:
(I) the business department is the demand Department of forward foreign exchange settlement and sales business, which is responsible for proposing foreign exchange receipt and payment forecast and trading plan.
(II) in the process of foreign trade contract circulation, the business personnel need to indicate the accounting exchange rate or breakeven exchange rate in the circulation sheet or cost accounting sheet. When calculating the cost, the business personnel should fully consider the forward quotation in this period of time. The financial director and the general manager of the division are responsible for the review.
(III) after the foreign trade contract is signed, the exchange rate operator shall make an inquiry from the bank and select the best. For import business, we need to fully consider the issuing limit and forward foreign exchange settlement and sales limit of the issuing bank, and open letters of credit and carry out forward foreign exchange settlement and sales in the same bank to avoid the risk of China's foreign exchange transfer. The bank shall confirm the operation information with the person in charge of the business at the first time after the quotation, and reach a transaction after reaching an agreement through communication.
(IV) after receiving the transaction notice of long-term settlement and sale of foreign exchange from the financial institution, the exchange rate operator shall check whether it is consistent with the original application for foreign exchange locking, and keep it on file after being signed by the person in charge of the business division.
(V) the exchange rate operator shall be responsible for sorting and submitting relevant materials, registering the exchange rate operation account, and reminding the expiration and delivery of each forward delivery.
Chapter IV information isolation measures
Article 14 all personnel involved in the company's long-term foreign exchange settlement and sales business shall abide by the company's confidentiality system and shall not disclose the company's long-term foreign exchange settlement and sales business transaction scheme, transaction situation, settlement situation, capital status and other information related to the company's long-term foreign exchange settlement and sales business without permission.
Article 15 the operation links of forward foreign exchange settlement and sales business are independent of each other, and the relevant personnel are independent of each other. The principle of incompatible posts and personnel separation shall be strictly implemented.
Chapter V risk management procedures
Article 16 during the operation of forward foreign exchange settlement and sales business, the finance department shall timely settle with financial institutions according to the foreign exchange amount, exchange rate and delivery period agreed in the forward foreign exchange settlement and sales contract signed with financial institutions. The audit department shall supervise the actual implementation of the above-mentioned internal risk reporting system and risk handling procedures. If it is found that the implementation is not in accordance with the regulations, it shall timely report to the board of directors or its Committee.
Article 17 in case of major risks or possible major risks in the company's long-term foreign exchange settlement and sales business, the finance department shall timely submit analysis reports and solutions to the person in charge of finance, report them to the general manager or his authorized personnel, and copy them to the Secretary of the board of directors. The general manager or his authorized personnel shall discuss the countermeasures with the person in charge of Finance and other relevant personnel, make decisions, and timely perform the obligation of information disclosure in accordance with relevant regulations when necessary.
Chapter VI supplementary provisions
Article 18 matters not covered in these Measures shall be implemented in accordance with relevant laws, regulations, normative documents, articles of association and other relevant provisions.
Article 19 the power of interpretation of these measures belongs to the board of directors of the company.
Article 20 these Measures shall come into force as of the date of deliberation and adoption by the board of directors of the company, and the same shall apply to amendments.
Anhui Huilong Agricultural Means Of Production .Co.Ltd(002556)
Board of directors
March 2022
