Securities code: 603335 securities abbreviation: Guangdong Dcenti Auto-Parts Stock Limited Company(603335) Announcement No.: 2022-008 Guangdong Dcenti Auto-Parts Stock Limited Company(603335)
Announcement on carrying out forward foreign exchange settlement and sales 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 individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Guangdong Dcenti Auto-Parts Stock Limited Company(603335) (hereinafter referred to as "the company") convened the ninth meeting of the third board of directors on January 20, 2022, and deliberated and adopted the proposal on carrying out forward foreign exchange settlement and sales business. Most of the company's products are sold to overseas markets. In order to avoid the impact of foreign exchange fluctuations on sales gross profit and reduce the impact of future exchange rate fluctuations between us dollar and RMB on the company's operating performance, it is agreed that the company shall handle forward foreign exchange settlement and sales business in banks, with a cumulative amount of no more than US $15 million, which can be recycled and rolled, And authorize the management of the company to carry out forward foreign exchange settlement and sales business and sign relevant transaction agreements within the above amount according to the actual situation. The authorization period is within 12 months from the date of deliberation and approval by the board of directors.
1、 Purpose of carrying out forward foreign exchange settlement and sales business
In 2020, the company's export sales accounted for 91.54% of its operating revenue, and the export sales accounted for a large proportion. The settlement currency is mainly US dollars. Therefore, when the exchange rate fluctuates greatly, the summary profit and loss will have an impact on the company's operating performance. In order to avoid and prevent the risk of exchange rate fluctuation, the company plans to carry out forward foreign exchange settlement and sales business in banks. 2、 Overview of forward foreign exchange settlement and sales business
Forward foreign exchange settlement and sales business refers to the foreign exchange hedging financial products approved by the people's Bank of China. It refers to the forward foreign exchange settlement and sales agreement signed through negotiation between banks approved by the State Administration of foreign exchange and the people's Bank of China and qualified for foreign exchange derivatives business, which stipulates the foreign currency currency currency, amount, exchange rate and time limit for foreign exchange settlement or sales in the future. When it expires, That is, the foreign exchange settlement and sales business shall be handled in accordance with the agreement. The forward settlement and sale of foreign exchange transfers the time structure of the exchange rate from the future to the present, and the exchange rate for the bank to handle the settlement or sale of foreign exchange on a certain day in the future is agreed in advance, so as to lock in the cost of settlement and sale of foreign exchange in the current period.
3、 Risk analysis of forward foreign exchange settlement and sales business
The forward foreign exchange settlement and sales business can reduce the impact of exchange rate fluctuation on the company's production and operation in case of large exchange rate fluctuation, but there are still certain risks in the transaction of forward foreign exchange settlement and sales business:
1. Exchange rate fluctuation risk: in case of large exchange rate fluctuation, exchange loss will be caused when the forward exchange rate agreed in the confirmation of forward exchange settlement and sales is lower than the real-time exchange rate.
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 the delay of long-term foreign exchange settlement and sales, resulting in losses to the company.
4、 Risk control measures for forward foreign exchange settlement and sales business
In carrying out forward foreign exchange settlement and sales business, the company follows the principles of legality, prudence, safety and effective hedging, does not engage in speculative arbitrage transactions, and strictly implements the relevant provisions of the company's internal control system for forward foreign exchange settlement and sales hedging business. The main risk control measures are as follows:
When signing the forward foreign exchange settlement and sales business contract, transactions shall be carried out in strict accordance with the predicted foreign exchange collection and payment period and amount of the company. All forward foreign exchange settlement and sales businesses have real trade background.
The company signed a contract with clear terms with the trading bank and strictly implemented the management system to prevent legal risks. Strengthen the business training of the company's forward foreign exchange trading operators, strictly implement the operation regulations and risk management system of forward foreign exchange trading business, pay close attention to the market trend, and timely adjust the operation strategy in combination with the market situation to improve the hedging effect.
In order to prevent the delayed delivery of forward foreign exchange settlement and sales contracts, the company attaches great importance to the management of accounts receivable and actively collects accounts receivable to avoid serious overdue of accounts receivable.
The Finance Department of the company shall track the relevant market factors involved in the forward foreign exchange settlement and sales contract and regularly report to the management of the company.
5、 Opinions of independent directors
The long-term foreign exchange settlement and sales business between the company and the bank is to avoid and prevent the impact of exchange rate fluctuations on the company's operating performance, help to ensure the stability of the company's profits, and there is no situation that damages the interests of the company and all shareholders, especially minority shareholders. The company's review procedures comply with the provisions of laws, regulations and the articles of association. Therefore, it is agreed that the company will carry out forward foreign exchange settlement and sales business with an accumulated amount of no more than US $15 million within the authorization period.
6、 Documents for future reference
1. Resolutions of the 9th meeting of the 3rd board of directors;
2. Independent opinions of independent directors of the third board of directors on the company's long-term foreign exchange settlement and sales business.
It is hereby announced.
Guangdong Dcenti Auto-Parts Stock Limited Company(603335) board of directors January 20, 2022
