Securities code: Kangping Technology (Suzhou) Co.Ltd(300907) securities abbreviation: Kangping Technology (Suzhou) Co.Ltd(300907) Announcement No.: 2022014 Kangping Technology (Suzhou) Co.Ltd(300907) (Suzhou) Co., Ltd
Announcement on the company and its subsidiaries 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.
Important content tips
1. Investment type: forward foreign exchange settlement and sales business (US dollar and euro against RMB).
2. Investment amount: no more than 300 million yuan.
3. Special risk warning: Although Kangping Technology (Suzhou) Co.Ltd(300907) (Suzhou) Co., Ltd. (hereinafter referred to as "the company") and its subsidiaries carry out forward foreign exchange settlement and sales business in accordance with the principle of hedging and do not engage in speculative arbitrage transactions, there may still be certain risks. The company will timely perform the obligation of information disclosure in accordance with the provisions of relevant laws and regulations. Please pay attention to the investment risks.
1、 Overview of investment
1. Investment purpose
Due to the large proportion of overseas sales in the overall business of the company and its subsidiaries, and the main settlement currencies of overseas sales are US dollar and euro, the exchange rate fluctuation will have a certain impact on the company's performance. Therefore, in order to further improve the ability of the company and its subsidiaries to deal with foreign exchange fluctuation risks, enhance the company's financial stability and reduce the impact of future exchange rate fluctuation of US dollar and euro against RMB on the company's operating performance, after careful consideration, The company and its subsidiaries plan to carry out forward foreign exchange settlement and sales business. The company and its subsidiaries will reasonably arrange funds to carry out the long-term foreign exchange settlement and sales business according to the operating conditions. The long-term foreign exchange settlement and sales business will not have a significant adverse impact on the main business development of the company and its subsidiaries. According to the relevant accounting standards for business enterprises, the forward foreign exchange settlement and sales business carried out this time complies with the relevant provisions of hedging. The company and its subsidiaries will carry out the forward foreign exchange settlement and sales business in a timely and appropriate manner in the future according to the prediction of the exchange rate trend of the US dollar and the euro against the RMB.
2. Investment amount, term and authorization
The company and its subsidiaries intend to carry out forward foreign exchange settlement and sales business with a total amount of no more than 300 million yuan, which is effective within one year from the date of deliberation and approval by the general meeting of shareholders of the company. Within the above limit and period, the funds can be recycled. The board of directors of the company requests the general meeting of shareholders to authorize the management of the company to sign relevant agreements and documents within the above limit and period and specifically implement the forward foreign exchange settlement and sales business. If the duration of a single transaction exceeds the authorization period, the authorization period will be automatically extended to the termination of a single transaction.
3. Investment mode
The company and its subsidiaries intend to carry out forward foreign exchange settlement and sales business in financial institutions approved by the State Administration of foreign exchange and the people's Bank of China and qualified for forward foreign exchange settlement and sales business, and are limited to the main settlement currencies used in the company's production and operation, US dollars and euros. The company and its subsidiaries carry out forward foreign exchange settlement and sales business, follow the principle of hedging, do not engage in speculative arbitrage transactions, and the risk level is low.
4. Source of funds
The company's investment in long-term foreign exchange settlement and sales comes from the company's own funds and its subsidiaries, and does not involve raised funds.
2、 Review procedures for implementation
On March 31, 2022, the company held the first meeting of the Fourth Board of directors in 2022 and the first meeting of the Fourth Board of supervisors in 2022, deliberated and adopted the proposal on the company and its subsidiaries to carry out forward foreign exchange settlement and sales business, and agreed that the company and its subsidiaries should carry out forward foreign exchange settlement and sales business with a total amount of no more than 300 million yuan, which is valid for one year from the date of deliberation and approval by the general meeting of shareholders of the company, within the above-mentioned limit and period, Funds can be recycled. The board of directors of the company requests the general meeting of shareholders to authorize the management of the company to sign relevant agreements and documents within the above limit and period and specifically implement the forward foreign exchange settlement and sales business. If the duration of a single transaction exceeds the authorization period, the authorization period will be automatically extended to the termination of a single transaction. The matter still needs to be submitted to the general meeting of shareholders of the company for deliberation.
3、 Investment risk analysis and risk control measures
1. Investment risk analysis
The company and its subsidiaries carry out forward foreign exchange settlement and sales business in accordance with the principle of hedging and do not engage in speculative arbitrage transactions, but there may still be certain risks:
(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, exchange losses will be caused;
(2) Internal control risk: forward foreign exchange settlement and sales transactions are highly professional and complex, 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 in the delivery of forward foreign exchange settlement and sales, resulting in the loss of the company;
(4) Collection forecast risk: the 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 and forecasts, resulting in inaccurate collection forecast of the company, resulting in the risk of delayed delivery of forward foreign exchange settlement and sales.
2. Risk control measures
(1) Select the forward foreign exchange settlement and sales business with simple structure, strong liquidity and controllable risk;
(2) The company has formulated the financial derivatives trading management system, which clearly stipulates the internal audit process, decision-making procedures, information isolation measures, internal risk reporting system, risk handling procedures and information disclosure;
(3) In order to prevent the delayed delivery of forward settlement and sales of foreign exchange, the company attaches great importance to the management of accounts receivable, actively collects accounts receivable, avoids the overdue phenomenon of accounts receivable, and tries to control the risk of delayed delivery within the minimum range;
(4) The company will strengthen the research and analysis of the exchange rate, pay real-time attention to the changes in the international market environment, adjust the operation strategy in time, and minimize the exchange loss.
4、 Impact of investment on the company
At present, affected by the uncertain factors of international politics and economy, the foreign exchange market fluctuates frequently and the exchange rate amplitude is increasing. However, overseas sales account for a large proportion in the overall business of the company and its subsidiaries, and the main settlement currencies of overseas sales are US dollars and euros. The exchange rate fluctuation will bring some uncertainty to the operation and settlement of the company and its subsidiaries. The company and its subsidiaries timely and appropriately carry out forward foreign exchange settlement and sales business according to their actual situation, which can effectively prevent foreign exchange market risks, reduce exchange losses and further improve the financial stability of the company. 5、 Accounting policies and accounting principles
The company and its subsidiaries shall conduct corresponding financial accounting for the forward settlement and sales of foreign exchange in accordance with the relevant provisions and guidelines of the accounting standards for Business Enterprises No. 22 - recognition and measurement of financial instruments, accounting standards for Business Enterprises No. 24 - hedge accounting, accounting standards for Business Enterprises No. 37 - Presentation of financial instruments, accounting standards for Business Enterprises No. 39 - fair value measurement, etc, Reflect relevant items in the balance sheet and income statement.
6、 Opinions of independent directors
The company and its subsidiaries carry out forward foreign exchange settlement and sales business on the basis of the company's normal production and operation, with hedging as the means and for the purpose of reducing the risk of exchange rate fluctuation. The company has perfect internal control processes, and the targeted risk control measures taken by the company and its subsidiaries are practical and feasible. The company has performed the necessary examination and approval procedures for this matter, which complies with the provisions of relevant laws and regulations and the articles of association, and there is no situation that damages the interests of the company and shareholders, especially small and medium-sized shareholders.
Therefore, we agree that the company and its subsidiaries carry out forward foreign exchange settlement and sales business.
7、 Verification opinions of the recommendation institution
After verification, the sponsor believes that: the company and its subsidiaries carry out forward foreign exchange settlement and sales business on the basis of daily business, follow the principle of hedging, and do not carry out speculative arbitrage transactions. The relevant business management system of the company is relatively complete and has corresponding risk control measures. The proposal of the company to carry out long-term foreign exchange settlement and sales business has been deliberated and approved at the first meeting of the Fourth Board of directors in 2022 and the first meeting of the Fourth Board of supervisors in 2022. The independent directors of the company have expressed their consent, and the proposal needs to be submitted to the general meeting of shareholders of the company for deliberation.
8、 Documents for future reference
1. Resolution of the first meeting of the Fourth Board of directors in 2022;
2. Resolutions of the first meeting of the Fourth Board of supervisors in 2022;
3. Independent opinions of independent directors on matters related to the first meeting of the Fourth Board of directors in 2022;
4. Verification opinions on the long-term foreign exchange settlement and sales business of Kangping Technology (Suzhou) Co.Ltd(300907) (Suzhou) Co., Ltd. and its subsidiaries issued by Huatai United Securities Co., Ltd;
5. Feasibility analysis report on the long-term foreign exchange settlement and sales business of the company and its subsidiaries;
6. Financial derivatives trading management system.
It is hereby announced.
Board of directors of Kangping Technology (Suzhou) Co.Ltd(300907) (Suzhou) Co., Ltd. April 2, 2022
