Securities code: 002139 securities abbreviation: Shenzhen Topband Co.Ltd(002139) Announcement No.: 2022007 Shenzhen Topband Co.Ltd(002139)
Announcement on carrying out forward foreign exchange trading 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.
Shenzhen Topband Co.Ltd(002139) (hereinafter referred to as "the company") held the 19th meeting of the seventh board of directors on January 13, 2022, and deliberated and adopted the proposal on developing forward foreign exchange trading business. In order to effectively avoid and prevent foreign exchange market risks, the company decided to carry out forward foreign exchange trading business with a total amount of no more than US $250 million. Relevant matters are hereby announced as follows:
1、 The purpose of the company's forward foreign exchange trading business
From 2018 to January June 2021, the company's overseas sales revenue accounted for more than 50% of the total main business revenue, mainly settled in US dollars, euros, Hong Kong dollars, Vietnamese Dong, Indian rupees and Japanese yen. Under the background of floating exchange rate between RMB and foreign currency, the company faces certain exchange rate fluctuation risk. The company decided to carry out forward foreign exchange trading business, effectively reduce the risk of exchange fluctuation and lock in the transaction cost or income at the future time point through reasonable RMB forward foreign exchange trading.
2、 Overview of forward foreign exchange trading business
The forward foreign exchange transaction business decided by the company is the forward foreign exchange settlement and sales business handled in the bank to avoid and prevent exchange rate risk in order to meet the needs of normal production and operation. It refers to signing the forward foreign exchange settlement and sales contract with the bank to agree on the foreign exchange currency, amount, exchange rate and time limit for foreign exchange settlement or sales in the future, and then according to the currency, amount and time limit agreed in the forward foreign exchange settlement and sales contract Exchange rate to handle the business of settlement or sale of foreign exchange.
3、 Expected forward foreign exchange transactions
1. Forward foreign exchange transaction varieties
The forward foreign exchange trading business of the company is limited to the main settlement currencies used in the production and operation of the company - US dollar, euro, Hong Kong dollar, Vietnamese Dong, Indian rupee and Japanese yen, and carries out foreign exchange trading business with the delivery period matching the predicted collection period and the delivery amount matching the predicted collection amount.
2. Estimated amount of foreign exchange transactions during the business period and forward
The company expects to carry out forward foreign exchange trading business within 12 months from the date of deliberation and approval by the board of directors, and the transaction amount will not exceed US $250 million or equivalent in other currencies. The above quota can be used circularly.
3. Forward foreign exchange transactions carried out by the company
On January 14, 2021, the fifth meeting of the seventh board of directors approved and agreed to carry out forward foreign exchange trading business with a total amount of no more than US $100 million, and the actual transaction amount was US $60 million within the reviewed period.
4、 Risk analysis of forward foreign exchange trading business
In carrying out forward foreign exchange trading business, the company follows the principle of locking exchange rate risk and maintaining value, does not engage in speculative and arbitrage trading operations, and carries out transactions in strict accordance with the company's predicted collection period and collection amount when signing contracts. Forward foreign exchange transactions can reduce the impact of exchange rate fluctuations on the company in case of large exchange rate fluctuations, but there may also be some risks:
1. Exchange rate fluctuation risk: when the exchange rate changes greatly, the bank's forward foreign exchange settlement exchange rate quotation may be lower than the company's quotation exchange rate to customers, so that the company cannot lock according to the quotation exchange rate to customers, resulting in exchange losses.
2. Customer default risk: the customer's accounts receivable are overdue and the payment cannot be recovered within the predicted collection period, which will cause delayed delivery and cause losses to the company.
5、 Risk control measures decided by the company
1. Some raw materials of the company are purchased directly, and foreign currency transactions are used to pay foreign exchange directly, so as to reduce the amount of foreign exchange settlement and reduce exchange gains and losses.
2. The company uses the bank's forward exchange rate to quote to some overseas customers, so that the company can lock the customer's quotation exchange rate after confirming the order; If the exchange rate fluctuates greatly, when the forward foreign exchange settlement exchange rate is far lower than the quoted exchange rate to the customer, the company will put forward requirements and negotiate with the customer to adjust the price.
3. The company has formulated a special internal control system for forward foreign exchange trading business, which clearly stipulates the operation principle, approval authority, management and internal operation process, information isolation measures, internal risk reporting system, risk handling procedures and information disclosure of forward foreign exchange trading business, so as to reduce the internal control risk.
4. In order to prevent the delayed delivery of forward foreign exchange settlement, the company attaches great importance to the management of accounts receivable and actively collects accounts receivable to avoid the overdue phenomenon of accounts receivable.
It is hereby announced.
Shenzhen Topband Co.Ltd(002139) board of directors January 15, 2022
