Securities code: 688075 securities abbreviation: Anxi biotechnology Announcement No.: 2022-009 Hangzhou Anxi Biotechnology Co., Ltd
Announcement on carrying out forward foreign exchange settlement and sales and foreign exchange derivatives business
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal liabilities for the authenticity, accuracy and integrity of its contents according to law.
Hangzhou Anxi Biotechnology Co., Ltd. (hereinafter referred to as "company" or "Anxi biotechnology") Hangzhou Anxi Biotechnology Co., Ltd. (hereinafter referred to as "company") held the 21st Meeting of the first board of directors and the 9th meeting of the first board of supervisors on January 17, 2022, The proposal on carrying out forward foreign exchange settlement and sales and foreign exchange derivatives business was deliberated and adopted, and it was agreed that the amount of the company (including wholly-owned and holding subsidiaries at home and abroad, the same below) carrying out forward foreign exchange settlement and sales and foreign exchange derivatives and other foreign exchange transactions in 2022 should not exceed the equivalent of US $100 million or other equivalent foreign currency currencies, which can be used on a rolling basis within the validity period of the resolution. The relevant information is hereby announced as follows:
1、 Purpose of carrying out forward foreign exchange settlement and sales business
There are overseas sales and overseas purchases in the course of the company's business activities, and the settlement currency is mainly USD. In order to effectively avoid foreign exchange market risks, prevent the adverse impact of large exchange rate fluctuations on the company's operating performance and improve the efficiency of the use of foreign exchange funds, the company plans to carry out forward foreign exchange settlement and sales and foreign exchange derivatives with banks to keep the company's performance stable.
2、 Overview of forward foreign exchange settlement and sales and foreign exchange derivatives business
Forward foreign exchange settlement and sales business refers to the forward foreign exchange settlement and sales contract signed by the company and the bank, which stipulates the foreign exchange currency, amount, exchange rate and time limit for foreign exchange settlement and sales in the future. When foreign exchange income or expenditure occurs on the delivery date, the foreign exchange settlement or sales business shall be handled according to the currency, amount and exchange rate specified in the forward foreign exchange settlement and sales contract.
Foreign exchange derivatives business is a kind of financial contract. Foreign exchange derivatives usually refer to foreign exchange trading instruments derived from original assets. Its value depends on one or more underlying assets or indexes. The basic types of contracts include forward, swap (SWAP) and option. Foreign exchange derivatives also include structured financial instruments with one or more characteristics of forwards, swaps (swaps) and options.
The long-term foreign exchange settlement and sales and foreign exchange derivatives business carried out by the company are closely related to daily operation, based on the real import and export business, for the purpose of avoiding and preventing exchange rate risk, and implemented in accordance with the management system for long-term foreign exchange settlement and sales and foreign exchange derivatives business of Hangzhou Anxi Biotechnology Co., Ltd. 3、 Estimated business quota and authorization period of relevant foreign exchange transactions
According to the actual business needs, the amount of foreign exchange transactions such as forward settlement and sales of foreign exchange and foreign exchange derivatives carried out by the company in 2022 shall not exceed the equivalent of US $100 million or other equivalent foreign currency currencies, which can be used on a rolling basis within the validity period of the resolution. The board of directors authorizes the chairman to exercise the decision-making power and sign relevant legal documents, and authorizes the company's finance department to be responsible for handling specific matters within the above-mentioned period and limit.
4、 Risk analysis of foreign exchange trading business
The forward foreign exchange settlement and sales and foreign exchange derivatives business carried out by the company follows the principle of locking in exchange rate risk and does not engage in speculative and arbitrage transactions. The forward foreign exchange settlement and sales and foreign exchange derivatives business can reduce the impact of exchange rate fluctuations on the company, and the company can still maintain a relatively stable profit level in case of large exchange rate fluctuations, But at the same time, there will also be some risks in the forward settlement and sales of foreign exchange:
(I) exchange rate fluctuation risk: in case of large exchange rate fluctuation, the bank's 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.
(II) internal control risk of the company: forward foreign exchange settlement and sales and foreign exchange derivatives business transactions are highly professional and complex, which may cause risks due to imperfect internal control system.
(III) default risk of the company's customers: the customer's receivables are overdue, and the payment for goods cannot be recovered within the predicted collection period, which will cause delayed delivery and cause losses to the company.
(IV) the company's payment collection forecast risk: the company forecasts the payment collection according to the customer's orders and expected orders. In the actual implementation process, the customers may adjust their own orders and forecasts, resulting in inaccurate payment collection forecast and delayed delivery risk.
(V) liquidity risk: the risk that the transaction cannot be completed due to insufficient market liquidity.
(VI) performance risk: there is a risk of default caused by failure to perform the contract upon expiration when carrying out forward foreign exchange settlement and sales and foreign exchange derivatives business.
(VII) legal risk: the company may suffer losses due to changes in relevant laws and regulations or the counterparty's violation of relevant legal systems, which may cause the normal execution of the contract.
5、 Risk control measures taken by the company
1. The company has formulated the management system for forward foreign exchange settlement and sales and foreign exchange derivatives business, established a strict and effective risk management system, and used the risk control measures before, during and after the event to prevent, discover and resolve various risks. At the same time, make clear provisions on transaction approval authority, internal audit process, decision-making procedures, information isolation measures, internal risk reporting system, risk handling procedures, information disclosure, etc;
2. The above businesses of the company are only allowed to trade with financial institutions with legal business qualifications, and shall not trade with informal institutions.
3. The company attaches great importance to the management of accounts receivable, actively collects accounts receivable, avoids overdue accounts receivable, and reduces the risk of customer default and default.
4. When signing forward foreign exchange settlement and sales and foreign exchange derivatives business contracts, transactions are carried out in strict accordance with the predicted foreign exchange collection period and amount of the company, and all businesses have real transaction background.
5. The company's forward foreign exchange settlement and sales transactions must be based on the company's overseas income, and the foreign currency amount of the contract shall not exceed the overseas income forecast. 5、 Description of special opinions
(I) opinions of independent directors
The independent directors of the company believe that the company's long-term foreign exchange settlement and sales and foreign exchange derivatives business are closely related to the daily business needs, which is the measures taken by the company to avoid the risk of foreign exchange rate fluctuations and is conducive to ensuring the robustness of the company's profits. The procedures of the board of directors of the company to consider this matter are legal and compliant, comply with the provisions of relevant laws and regulations, and there is no situation that damages the interests of the company and shareholders.
In conclusion, we agree that the amount of foreign exchange transactions such as forward foreign exchange settlement and sales and foreign exchange derivatives carried out by the company in 2022 shall not exceed the equivalent of US $100 million or other equivalent foreign currency currencies, which can be used on a rolling basis within the validity period of the resolution.
(II) opinions of the board of supervisors
The board of supervisors of the company believes that the company's long-term foreign exchange settlement and sales and foreign exchange derivatives business are closely related to the daily business needs. It is a measure taken by the company to avoid the risk of foreign exchange rate fluctuation, which is conducive to ensuring the stability of the company's profits. The procedures of the board of directors of the company to consider this matter are legal and compliant, comply with the provisions of relevant laws and regulations, and there is no situation that damages the interests of the company and shareholders.
In conclusion, the board of supervisors agreed that the amount of foreign exchange transactions such as forward foreign exchange settlement and sales and foreign exchange derivatives carried out by the company in 2022 should not exceed the equivalent of US $100 million or other equivalent foreign currency currencies, which can be used on a rolling basis within the validity period of the resolution.
It is hereby announced.
Board of directors of Hangzhou anxiu Biotechnology Co., Ltd. January 18, 2022
