Sunwoda Electronic Co.Ltd(300207)
Special report on Securities and derivatives investment in 2021
In accordance with the requirements of the self regulatory guidelines for companies listed on the Shenzhen Stock Exchange No. 2 – standardized operation of companies listed on the gem, and the self regulatory guidelines for companies listed on the gem of Shenzhen Stock Exchange No. 1 – business handling, the board of directors of the company checked the investment in Securities and derivatives of the company in 2021, and the relevant information is described as follows:
1、 Review and approval of securities and derivatives investment
Sunwoda Electronic Co.Ltd(300207) (hereinafter referred to as “the company”) held the 7th Meeting of the 5th board of directors, the 7th Meeting of the 5th board of supervisors and the 2020 annual general meeting of shareholders respectively on February 24, 2021 and April 7, 2021, deliberated and adopted the proposal on the company’s foreign exchange hedging business, in order to effectively manage the company’s foreign currency assets, liabilities and cash flow and avoid the risk of exchange rate fluctuation in the foreign exchange market, It is agreed that the company and its subsidiaries use foreign exchange hedging instruments to conduct rolling operation within the amount of no more than 8 billion yuan equivalent throughout the year, and carry out foreign exchange hedging business with relevant financial institutions. The details are as follows:
2、 Hedging of the company in 2021
Hedge type quota start date end date occupation quota at the end of the period the proportion of occupation quota at the end of the period in the company’s net assets at the end of the reporting period
Foreign exchange hedging 802021 / 1 / 1 2021 / 12 / 31 0.64 0.46%
3、 Risk analysis of foreign exchange hedging business
The foreign exchange hedging business carried out by the company is for the purpose of effectively managing the company’s foreign currency assets, liabilities and cash flow, avoiding the risk of exchange rate fluctuation in the foreign exchange market and improving the efficiency of financial management. It does not carry out any foreign exchange transactions solely for the purpose of speculation, but there are still certain risks in carrying out foreign exchange hedging business:
1. Exchange rate market risk: in case of large exchange rate fluctuation, the foreign exchange hedging business may bring large fair value fluctuation; If the foreign exchange rate and interest rate trend deviate significantly from the judgment of the company, exchange losses will be caused;
2. Credit risk: the counterparties of the company’s foreign exchange hedging business are the State Administration of foreign exchange and the people’s Bank of China or financial institutions approved by the financial and foreign exchange administration authorities of the country and region where the company is located and qualified to handle foreign exchange hedging business, so there is basically no performance risk;
3. Liquidity risk: the company’s current foreign exchange hedging business is fixed income derivatives business, which is based on the company’s import and export collection and payment business, does not substantially occupy the available funds, and the liquidity risk is small;
4. Internal operational risk: foreign exchange hedging business is highly professional, which may cause losses in the process of handling foreign exchange hedging business due to staff operation errors, system failures and other reasons.
4、 Risk management measures
1. The company will carry out foreign exchange hedging business for the purpose of avoiding and preventing exchange rate risks, follow the principles of legality, prudence, safety and effectiveness, do not carry out speculation and arbitrage transactions, and conduct transactions strictly based on the predicted amount of the company’s foreign exchange revenue and expenditure when signing contracts;
2. Choose foreign exchange hedging business with simple structure, strong liquidity and low risk of fixed income;
3. The foreign exchange hedging business takes hedging as the principle to avoid the risks caused by exchange rate fluctuations to the greatest extent. The authorized departments and personnel shall pay close attention to and analyze the market trend, and timely adjust the operation strategy in combination with the market situation to improve the hedging effect;
4. The company has formulated the hedging internal control system, which clearly stipulates the organization, approval authority, authorization system, business process, risk management system, reporting system, confidentiality system, information disclosure and file management system of the company for hedging, so as to effectively standardize the hedging business behavior.
5、 Opinions of independent directors on the company’s investment in Securities and derivatives in 2021
According to the relevant regulations of Shenzhen Stock Exchange, we have carefully checked the company’s investment in Securities and derivatives in 2021. It is verified that the company did not make securities investment in 2021 and only carried out foreign exchange hedging business. We believe that the company’s funds for foreign exchange hedging business come from the company’s own funds and funds raised by the company in other ways permitted by laws and regulations, which has not affected the development of the company’s main business. The company carried out foreign exchange hedging business in strict accordance with relevant laws and regulations, Sunwoda Electronic Co.Ltd(300207) articles of association and relevant systems of the company, performed corresponding approval procedures, and did not violate relevant laws, regulations, rules and regulations, and did not damage the interests of the company and small and medium-sized shareholders.
6、 Verification opinions of the recommendation institution
After verification, the recommendation institution believes that the securities investment of 3 Kairuide Holding Co.Ltd(002072) 021 does not violate the Listing Rules of Shenzhen Stock Exchange gem (revised in 2020) and the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 2 – standardized operation of listed companies on GEM The situations stipulated in the self regulatory guidelines for companies listed on the growth enterprise market of Shenzhen Stock Exchange No. 1 – business handling and other relevant laws, regulations and normative documents comply with the relevant provisions of Sunwoda Electronic Co.Ltd(300207) articles of association, the decision-making procedures are legal and compliant, and the safety of funds can be guaranteed.
Sunwoda Electronic Co.Ltd(300207) board of directors
April 13, 2022
