Securities code: Xiamen Guang Pu Electronics Co.Ltd(300632) securities abbreviation: Xiamen Guang Pu Electronics Co.Ltd(300632) Announcement No.: 2022016 Xiamen Guang Pu Electronics Co.Ltd(300632)
Announcement on carrying out commodity futures 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.
Xiamen Guang Pu Electronics Co.Ltd(300632) (hereinafter referred to as "the company") deliberated and adopted the proposal on developing commodity futures hedging business at the fifth meeting of the Fourth Board of directors held on April 21, 2022, and agreed that the company and its subsidiaries should carry out futures hedging business with their own funds with a maximum margin of no more than RMB 20 million. Within the above scope, the funds can be recycled, The business period is valid within one year from the date of deliberation and approval by the board of directors. The details are hereby announced as follows:
1、 Purpose of commodity futures hedging business
The company and its subsidiaries carry out commodity futures hedging business, mainly to make full use of the hedging function of the futures market, reasonably avoid the risk of price fluctuation of main raw materials, lock in product costs, reduce the impact of price fluctuation of raw materials on the normal operation of the company, improve the overall risk resistance ability of the company and enhance financial stability. 2、 Basic information of commodity futures hedging business
1. Futures hedging trading varieties: futures trading varieties related to the main raw materials of the company and its subsidiaries, such as aluminum, copper, hot rolled coil, pulp, etc.
2. Business period: valid for one year from the date of deliberation and approval by the board of directors.
3. Business scale: the maximum deposit amount shall not exceed 20 million yuan, which shall be recycled within the validity period.
4. Source of funds: self owned funds.
3、 Risk analysis of commodity futures hedging
The futures hedging business carried out by the company and its subsidiaries is not for profit, but mainly to effectively avoid the impact of the sharp fluctuation of the market price of raw materials on the company's operation, but there will also be certain risks, as follows:
1. Price fluctuation risk: when the futures market fluctuates sharply, the company may not be able to buy hedging at the required locked price or close its position at the predetermined price, resulting in losses.
2. Transaction risk: futures hedging transaction is highly professional and complex. The transaction result depends on the decision-maker's subjective analysis and judgment and risk control ability, and the execution result of the transaction is uncertain. There may be risks caused by imperfect internal control system.
3. Counterparty default risk: when the futures price fluctuates unfavourably, the client's counterparty may violate the relevant provisions of the contract and cause losses to the company.
4. Technical risk: due to uncontrollable or unpredictable system, network and communication failures, the trading system operates abnormally, resulting in problems such as delay, interruption or data error of trading instructions, resulting in corresponding risks.
5. Policy risk: major changes in futures market laws and regulations may cause market fluctuations or inability to trade, resulting in risks.
4、 Risk control measures
In order to cope with the above risks brought by commodity futures hedging business, the company takes the following risk control measures:
1. The company has formulated the futures hedging business management system in accordance with the Shenzhen Stock Exchange gem stock listing rules, Shenzhen Stock Exchange listed companies self regulatory guidance No. 2 - standardized operation of GEM listed companies, the articles of association and other relevant provisions, and in combination with the actual situation of the company Information confidentiality and isolation measures, internal risk control and handling procedures, reporting system, archives management system, responsibility undertaking principle, etc. The company will control all links in strict accordance with the management system of futures hedging business.
2. Follow the principle of locking the price risk of raw materials and hedging, and operate only for the futures trading varieties related to the company's main raw materials, rather than speculative and arbitrage futures trading.
3. Reasonably plan and arrange the use of margin to ensure the normal hedging process. At the same time, reasonably select the hedging month to avoid market liquidity risk.
4. The company has set up computer systems and related facilities that meet the requirements to ensure the normal operation of transactions. In case of failure, corresponding treatment measures shall be taken in time to reduce losses.
5. Strengthen the grasp and understanding of relevant policies of the state and relevant regulatory institutions, and timely and reasonably adjust hedging ideas and schemes.
6. The internal audit department of the company shall regularly and irregularly inspect the hedging transaction business, supervise the hedging transaction business personnel to implement the risk management system and risk management procedures, and timely prevent operational risks in the business.
5、 Accounting policies and accounting principles
The company conducts corresponding accounting and disclosure of futures hedging business in accordance with the accounting standards for Business Enterprises No. 22 - recognition and measurement of financial instruments, accounting standards for Business Enterprises No. 24 - hedging, accounting standards for Business Enterprises No. 37 - presentation of financial instruments and other relevant provisions and guidelines.
6、 Relevant review and approval procedures
(I) opinions of the board of directors
The board of Directors believes that the futures hedging business carried out by the company and its subsidiaries is conducive to locking in the company's product cost, preventing and resolving the market risk caused by the price change of raw materials, and reducing the fluctuation of product cost caused by the price fluctuation of raw materials. The board of directors agrees that the company and its subsidiaries use their own funds to carry out futures hedging business.
(II) opinions of the board of supervisors
The board of supervisors believes that the relevant approval procedures for the company and its subsidiaries to carry out futures hedging business comply with the relevant national laws and regulations, the articles of association and the company's futures hedging business management system, and have set up corresponding risk control measures, without damaging the interests of the company and all shareholders. The board of supervisors agrees that the company and its subsidiaries use their own funds to carry out futures hedging business.
(III) opinions of independent directors
After verification, the independent directors believe that the relevant approval procedures for the company and its subsidiaries to carry out futures hedging business comply with the relevant national laws and regulations and the relevant provisions of the articles of association. The company has formulated the futures hedging business management system, which defines the approval process, risk prevention and management and other internal control procedures, which plays a role in ensuring the company's control of futures risks. The company's futures hedging business can effectively avoid and prevent the operating risks brought to the company by the price fluctuation of main products, make full use of the hedging function of the futures market, reduce the impact of price fluctuation on the company, and do not harm the interests of the company and all shareholders. Independent directors unanimously agree that the company and its subsidiaries carry out futures hedging trading business.
(IV) verification opinions of the recommendation institution
After verification, the sponsor believes that it is reasonable and necessary for the company and its subsidiaries to carry out commodity futures hedging business in order to make full use of the hedging function of the futures market, avoid and prevent the operating risks brought to the company by the price fluctuation of main products and reduce the impact of price fluctuation on the company; The company has formulated the internal control system related to futures hedging, made clear provisions on hedging business, and formulated relevant risk control measures. The above matters have been deliberated and approved by the board of directors and the board of supervisors of the company, and the independent directors have expressed clear consent to the matter. The relevant examination and approval procedures comply with the relevant laws and regulations such as the Listing Rules of GEM stocks of Shenzhen Stock Exchange, the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 2 - standardized operation of companies listed on GEM and the articles of association, and there is no situation detrimental to the interests of the company and all shareholders. The recommendation institution has no objection to the commodity futures hedging business carried out by the company and its subsidiaries.
It is hereby announced.
Xiamen Guang Pu Electronics Co.Ltd(300632) board of directors April 25, 2022
