Securities code: Dongguan Aohai Technology Co.Ltd(002993) securities abbreviation: Dongguan Aohai Technology Co.Ltd(002993) Announcement No.: 2022032 Dongguan Aohai Technology Co.Ltd(002993)
Announcement on the company's foreign exchange hedging 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.
Dongguan Aohai Technology Co.Ltd(002993) (hereinafter referred to as "the company" and " Dongguan Aohai Technology Co.Ltd(002993) ") deliberated and approved the proposal on the company's foreign exchange hedging business at the 13th meeting of the second board of directors and the 12th meeting of the second board of supervisors held on April 19, 2022, and agreed that the company (including consolidated statement subsidiaries) plans to use an accumulated amount of no more than 1.3 billion yuan to carry out foreign exchange hedging business, Including but not limited to forward foreign exchange settlement and sales business, foreign exchange swap business, foreign exchange option business and other foreign exchange derivative products business, which is valid for one year from the date of deliberation and approval by the 2021 annual general meeting of shareholders. Relevant matters are hereby announced as follows:
1、 Purpose of foreign exchange hedging business
The foreign exchange hedging business carried out by the company (including consolidated statement subsidiaries) is based on normal import and export business, with the purpose of fixing the cost of foreign exchange exchange, stabilizing and expanding import and export and preventing exchange rate risk. It does not speculate and does not conduct foreign exchange transactions solely for the purpose of profit. In order to prevent the company's foreign exchange risk, further improve the ability to deal with foreign exchange fluctuation risk, better avoid and prevent foreign exchange rate fluctuation risk and enhance financial stability, the company (including consolidated statement subsidiaries) plans to carry out foreign exchange hedging business with banks and other financial institutions approved by relevant government departments and with relevant business operation qualifications.
2、 Basic information of the proposed foreign exchange hedging business
1. Business scale and source of investment: according to the actual demand, the total amount of foreign exchange hedging business approved by the company (including consolidated statement subsidiaries) this time shall not exceed the equivalent of RMB 1.3 billion. The source of funds is self owned funds and does not involve raised funds.
Banks and other financial institutions with foreign exchange hedging business qualification.
3. Currency and business type: the foreign exchange hedging business to be carried out by the company (including consolidated statement subsidiaries) is limited to the main settlement currencies used in the actual business of the company, and the main currencies are US dollar, Indian rupee, Indonesian rupiah, etc.
The specific methods or products of foreign exchange hedging business to be carried out by the company (including consolidated statement subsidiaries) mainly include forward settlement and sales of foreign exchange, foreign exchange swaps, foreign exchange options and other foreign exchange derivatives.
4. Authorization to carry out foreign exchange hedging business: the board of directors of the company authorizes the chairman of the company to make decisions within the above limit and sign contracts and agreements related to foreign exchange hedging business.
3、 Risk analysis of foreign exchange hedging business
The foreign exchange hedging business carried out by the company (including consolidated statement subsidiaries) is based on normal import and export business, with the purpose of fixing the cost of foreign exchange exchange, stabilizing and expanding import and export and preventing exchange rate risk. It does not speculate and does not conduct foreign exchange transactions solely for the purpose of profit. However, there are still certain risks in carrying out foreign exchange hedging business: 1. Exchange rate and interest rate fluctuation risk: when the foreign exchange rate fluctuates greatly, the company judges that the direction of sharp exchange rate fluctuation is inconsistent with the direction of foreign exchange hedging contract, which will cause exchange loss; If the exchange rate fluctuates in the future, a large deviation from the foreign exchange hedging contract will also cause exchange losses.
2. Internal control risk: foreign exchange hedging business is highly professional and complex, which may cause losses due to imperfect internal control system in the process of handling foreign exchange hedging business.
3. Transaction default risk: when the foreign exchange hedging counterparty defaults, it cannot pay the hedging profit of the company as agreed, so it cannot hedge the actual exchange loss of the company, which will cause the loss of the company.
4. Collection and payment forecast: the company makes collection and payment forecast according to sales orders and purchase orders. In the actual implementation process, customers or suppliers may adjust orders, resulting in inaccurate collection and payment forecast and delivery risk.
4、 Risk control measures taken by the company
1. The company has formulated the foreign exchange hedging business management system, which clearly stipulates the operation regulations, approval authority, information disclosure, management and internal operation process, information confidentiality measures, internal risk control procedures and file management of foreign exchange hedging business.
2. In order to avoid 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 of international market environment, timely adjust operation and business operation strategies, and avoid exchange loss to the greatest extent. 3. In order to avoid internal control risks, the authorized department of the company 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 management system of foreign exchange hedging business to effectively ensure the implementation of the system.
4. In order to control the risk of transaction default, the company only carries out foreign exchange hedging business with legally qualified large banks and other financial institutions to ensure the legitimacy of the company's management of foreign exchange derivatives transactions.
5、 Necessity and feasibility analysis of the company's foreign exchange hedging business
The company's foreign exchange hedging business is carried out around the company's main business. It is not a forward foreign exchange transaction solely for the purpose of profit, but based on specific business operations, with hedging as a means, for the purpose of avoiding and preventing the risk of exchange rate fluctuation
The purpose of the company's foreign exchange hedging business is to make full use of foreign exchange hedging tools to reduce or avoid exchange rate risks caused by exchange rate fluctuations, reduce exchange losses and control operational risks.
The company has formulated the management system of foreign exchange hedging business, improved the relevant internal control system, and equipped professionals for foreign exchange hedging business. The targeted risk control measures taken by the company are practical and feasible, and it is feasible to carry out foreign exchange hedging business.
By carrying out foreign exchange hedging business, the company can avoid the risks in the foreign exchange market to a certain extent, prevent the adverse impact of large exchange rate fluctuations on the company, improve the use efficiency of foreign exchange funds and enhance financial stability, without damaging the interests of the company and all shareholders.
6、 Accounting policies and accounting principles
In accordance with the relevant provisions and guidelines of 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 and accounting standards for Business Enterprises No. 39 - fair value measurement of the Ministry of Finance, the company conducts corresponding accounting treatment for the proposed foreign exchange hedging business, Reflect relevant items in the balance sheet and income statement.
7、 Opinions of independent directors
The company's foreign exchange hedging business depends on the company's specific business, does not carry out foreign exchange transactions for the purpose of speculation, and aims to avoid and prevent exchange rate risks, reduce exchange losses and control business risks. It is necessary and feasible.
The company's foreign exchange hedging business complies with the provisions of the articles of association, the Listing Rules of Shenzhen Stock Exchange and other laws, regulations and normative documents, and there is no situation that damages the interests of the company and all shareholders, especially small and medium-sized shareholders. At the same time, the company has formulated the management system of foreign exchange hedging business, and formulated specific operating procedures for the company to engage in foreign exchange hedging business by strengthening internal control and implementing risk prevention measures.
Therefore, we agree to the proposal on the company's foreign exchange hedging business and agree to submit the proposal to the general meeting of shareholders of the company for deliberation.
8、 Opinions of the board of supervisors
After review, the board of supervisors believes that the company's foreign exchange hedging business is conducive to meeting the needs of normal operation and business, further improving the ability to deal with foreign exchange fluctuation risks, better avoiding and preventing exchange rate fluctuation risks, and enhancing financial stability. This proposal complies with the relevant documents of China Securities Regulatory Commission and Shenzhen Stock Exchange. The board of supervisors agreed to the proposal on the company's foreign exchange hedging business.
9、 Verification opinions of the recommendation institution
After verification, the recommendation institution believes that:
Dongguan Aohai Technology Co.Ltd(002993) this foreign exchange hedging business has gone through the necessary approval procedures, in line with the relevant provisions of the measures for the administration of securities issuance and listing recommendation business, the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 - standardized operation of listed companies on the main board, and the stock listing rules of Shenzhen Stock Exchange. To sum up, the recommendation institution has no objection to Dongguan Aohai Technology Co.Ltd(002993) this foreign exchange hedging business.
10、 Documents for future reference
1. Resolution of the 13th meeting of Dongguan Aohai Technology Co.Ltd(002993) the second board of directors;
2. Resolution of the 12th meeting of Dongguan Aohai Technology Co.Ltd(002993) the second board of supervisors;
3. Independent director's independent opinions on matters related to the 13th meeting of the second board of directors;
4. Verification opinions of Sinolink Securities Co.Ltd(600109) on Dongguan Aohai Technology Co.Ltd(002993) carrying out foreign exchange hedging business.
It is hereby announced.
Dongguan Aohai Technology Co.Ltd(002993) board of directors April 20, 2022
