Securities code: China National Complete Plant Import And Export Co.Ltd(000151) securities abbreviation: China National Complete Plant Import And Export Co.Ltd(000151) Announcement No.: 202223
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without any false records, misleading statements or major omissions.
China National Complete Plant Import And Export Co.Ltd(000151)
Announcement on carrying out forward foreign exchange settlement and sales business
China National Complete Plant Import And Export Co.Ltd(000151) (hereinafter referred to as "the company") held the 28th meeting of the 8th board of directors on April 22, 2022, deliberated and adopted the proposal on carrying out long-term foreign exchange settlement and sales business, and agreed that the company would carry out long-term foreign exchange settlement and sales business from May 2022 to April 2023 according to the actual needs of business, with the business scale not exceeding US $150 million. This matter does not involve related party transactions and must be submitted to the general meeting of shareholders of the company for deliberation. The details are as follows:
1、 The purpose and necessity of the company's long-term foreign exchange settlement and sales business
In 2021, the board of directors of the company reviewed and approved the long-term foreign exchange settlement and sales business, with a business scale of no more than US $150 million and a validity period from May 2021 to April 2022. At present, the business is about to expire. In order to effectively manage foreign exchange risk, the company plans to continue to carry out forward foreign exchange settlement and sales business.
In recent years, the exchange rate of RMB against US dollar and euro has fluctuated continuously. In order to reduce the impact of exchange rate fluctuation on the company's performance, the company plans to carry out forward foreign exchange settlement and sales business with banks. Forward settlement and sales of foreign exchange are foreign exchange hedging financial products approved by the people's Bank of China. The object of forward settlement and sales of foreign exchange of the company and its subsidiaries is foreign exchange hedging financial products approved by the people's Bank of China. By signing forward foreign exchange settlement and sales contracts, the company and its subsidiaries can settle or sell foreign exchange in terms of foreign exchange currency, amount and exchange rate within the agreed period, so as to lock in the cost of foreign exchange settlement and sales. Therefore, the forward settlement and sale of foreign exchange is the practical need of the company's foreign exchange risk management.
2、 Basic information of the company's long-term foreign exchange settlement and sales business
The forward settlement and sale of foreign exchange to be carried out by the company is mainly guaranteed by bank credit line, and the principal delivery or differential delivery is adopted at maturity. However, the company may pay a certain percentage of the deposit according to the agreement signed with the bank.
1. Period of validity: May 2022 to April 2023;
2. Contract term: mainly contracts of no more than 1 year;
3. Filing business scale: no more than US $150 million;
4. Counterparty: bank.
3、 Risk analysis
The forward settlement and sale of foreign exchange uses the forward foreign exchange products provided by financial institutions to lock the exchange rate level in advance, so as to avoid the exchange rate fluctuation risk faced by enterprises and minimize the impact of exchange rate fluctuation on the operation of enterprises. The forward settlement and sale of foreign exchange business is an effective tool for the exchange rate risk management of many enterprises.
In carrying out forward foreign exchange settlement and sales, the company follows the principle of locking exchange rate risk and hedging, and does not engage in speculative and arbitrage transactions. Forward foreign exchange locking can reduce the impact of exchange rate fluctuations on the company when the exchange rate fluctuates sharply, but at the same time, forward foreign exchange locking will also have some risks.
1. Exchange rate fluctuation risk: in the case of large exchange rate changes, the quotation of the bank's forward foreign exchange settlement exchange rate may be lower than the quotation exchange rate of the company to the customer, so that the company cannot lock according to the quotation exchange rate of the customer, resulting in exchange losses.
2. Internal control risk: forward foreign exchange transactions are highly professional and complex, which may cause operational risk due to imperfect internal control system.
3. Collection forecast risk: the company forecasts the collection according to the business settlement progress, accounts receivable accounting period and customer orders. In the actual implementation process, the company's payment collection forecast may be inaccurate due to business progress lag and customer default, resulting in the risk of delayed delivery.
4、 Risk control measures taken
(I) establish a special working group for long-term foreign exchange settlement and sales. The company's leaders, finance department and enterprise management department shall establish a special working group for the long-term foreign exchange settlement and sales business as the leading organization for the management of the company's long-term foreign exchange settlement and sales business.
(II) formulate management measures for long-term settlement and sale of foreign exchange. The company has formulated the measures for the management of long-term foreign exchange settlement and sales business in accordance with the relevant provisions of the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 1 - standardized operation of listed companies on the main board and in combination with the actual situation of the company, which clearly defines the post setting, approval process, department responsibilities, information isolation, audit supervision, information disclosure, risk management and reporting system involved in long-term foreign exchange settlement and sales, It can effectively ensure the standardized development of long-term foreign exchange settlement and sales business.
(III) formulate long-term foreign exchange settlement and sales plan. According to the actual revenue and expenditure of international business and the forecast of future revenue and expenditure, the company has formulated a relatively complete long-term foreign exchange settlement and sales business plan.
5、 Accounting principles for forward settlement and sale of foreign exchange
In accordance with 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 and other relevant provisions and guidelines, the company conducts corresponding accounting and disclosure of forward foreign exchange settlement and sales business.
6、 Opinions of independent directors
1. The company's long-term foreign exchange settlement and sales business complies with relevant national laws and regulations and the relevant provisions of the articles of association, which is conducive to reducing the company's business risks. 2. The company's long-term foreign exchange settlement and sales business is carried out in combination with the company's business needs. It is necessary to avoid and prevent the risk of exchange rate fluctuation and ensure the normal operating profit.
3. The company has established the management measures for long-term foreign exchange settlement and sales business, which clearly stipulates the operation, approval authority, management and internal operation process, internal risk reporting system and risk handling procedures of long-term foreign exchange settlement and sales business, and the risk control measures taken are feasible.
7、 Documents for future reference
1. Independent opinions of independent directors of the company
2. Feasibility analysis report of the company on carrying out long-term foreign exchange settlement and sales business 3. Management measures for long-term foreign exchange settlement and sales business of the company
It is hereby announced.
China National Complete Plant Import And Export Co.Ltd(000151) board of directors April 23, 2002
