Securities Short: Yi'an Technology Announcement No. 2021-035
Dongguan Yi'an Technology Co., Ltd
Announcement on the company's forward settlement and sale of foreign exchange business
The Company and all members of the Board of Directors warrant that the information disclosed is true, accurate and complete, and that there are no false records, misleading statements or material omissions.
On June 29, 2021, Dongguan Yi'an Technology Co., Ltd. (hereinafter referred to as "Company" or "Yi'an Technology") held the 12th and 11th meetings of the 4th Board of Supervisors, considered and adopted the Bill on the Company's Forward Settlement and Sale of Foreign Exchange Business, and agreed to carry out forward closing business between the Company and financial institutions such as banks totalling not more than US$30 million (or other currencies equivalent).
According to the Shenzhen Stock Exchange GEM Stock Listing Rules and the Articles of Association and other relevant provisions, the forward closing and sale of foreign exchange matters fall within the decision-making authority of the board of directors of the company, without the need to submit to the general meeting of shareholders for consideration. This forward settlement and sale of foreign exchange does not constitute a related transaction and a major asset reorganization as stipulated in the Measures for the Administration of Major Assets Reorganization of Listed Companies. The details are as follows:
1. First, the purpose of carrying out forward settlement and sale of foreign exchange business
The company's overseas sales are mainly settled in US dollars, and when the exchange rate fluctuates greatly, the exchange gain or loss will have a certain impact on the company's operating performance. In order to reduce the impact of exchange rate fluctuations on the company's performance, after careful consideration, the company intends to carry out forward settlement and sale of foreign exchange business with banks and other financial institutions.
The company carries out forward settlement and sale of foreign exchange transactions based on normal business operations, based on the principle of soundness, with the purpose of preserving the value of the currency and reducing exchange rate risk, do not do speculative transactions without actual demand, do not conduct foreign exchange transactions solely for profit purposes, and reduce the risk of exchange rate fluctuations by locking the exchange rate.
2. Overview of forward closing and sale of foreign exchange business
Forward settlement and sale of foreign exchange is a foreign exchange risk-averse financial product approved by the Chinese People's Bank of China. The trading principle is: sign a forward settlement contract with the bank, agree on the future settlement or sale of foreign exchange currency, amount, exchange rate and period, when the maturity date of foreign exchange income or expenditure, and then in accordance with the forward settlement contract agreed to the currency, amount, exchange rate of the settlement or sale of foreign exchange business, thereby locking in the current closing cost of foreign exchange.
Third, forward closing and sale of foreign exchange business scale, business period, business authorization The Company intends to use its own funds to carry out forward settlement and sale of foreign exchange business to a total of not more than US$30 million (or equivalent).
other currencies), which may be used on a rolling basis within the limits and valid for 12 months from the date of consideration and adoption by the Current Board of Directors. The Board of Directors of the Company authorizes management to conduct forward closing and selling of foreign exchange within the scope of this amount in accordance with the business situation and actual needs.
Fourth, the background and feasibility of carrying out forward settlement and sale of foreign exchange business
In recent years, influenced by international political and economic uncertainties, the foreign exchange market fluctuates more frequently and the exchange rate fluctuates more and more frequently, leading to an increase in operational uncertainties. There are overseas sales and overseas procurement in the course of the company's business activities, so when the exchange rate fluctuates greatly, the exchange rate profit and loss will have a greater impact on the company's business performance. In order to guard against foreign exchange rate risk, it is necessary for the company to carry out the forward settlement and sale of foreign exchange business according to the specific situation. The forward settlement and sale of foreign exchange business carried out by the company is closely related to the company's business, based on the company's foreign exchange assets, liabilities and foreign exchange income and expenditure business, can further improve the company's ability to deal with the risk of foreign exchange fluctuations, better avoid and prevent the company's foreign exchange rate, interest rate fluctuations risk, enhance the company's financial soundness.
The company's forward settlement and sale of foreign exchange business will be carried out around the company's main business, based on specific business operations, not simply for profit purposes of forward foreign exchange transactions. By locking the exchange rate as a means to avoid and prevent the risk of exchange rate fluctuations, it is necessary for the company to protect the normal operating profits, the company has perfected the relevant internal control process, the targeted risk control measures taken are feasible. By carrying out forward closing and selling foreign exchange business, we can lock in the transaction income or cost at the future point in time and realize the preservation of assets for risk aversion purposes. Therefore, it is necessary and feasible for the company to carry out forward settlement and sale of foreign exchange business to effectively reduce the risk of exchange rate fluctuations.
V. Risk analysis of forward closing and selling foreign exchange business
The company carries out forward settlement and sale of foreign exchange business in accordance with the principle of soundness, does not carry out foreign exchange transactions for speculative purposes, all forward settlement and sale of foreign exchange business is based on normal production and operation, based on specific business operations, in order to avoid and prevent exchange rate risks for the purpose. However, there are risks in making forward closings and selling foreign exchange:
(1) Risk of exchange rate fluctuations
When the foreign exchange rate fluctuates greatly, the company will cause exchange losses when it determines that the direction of large exchange rate fluctuations is inconsistent with the direction of forward settlement and sale business contracts, and if the exchange rate fluctuates in the future, the deviation from the forward settlement and sale business contracts will also result in exchange losses.
(2) Risks of internal control
Forward closing and selling of foreign exchange business is highly specialized and complex, which may pose risks due to inadequate internal control mechanism.
(3) The risk of default on the transaction
In the event of default, the counterparty of the forward closing and sale of foreign exchange business cannot pay the profits of the company's forward settlement and sale of foreign exchange transactions in accordance with the agreement, thus failing to hedge the actual exchange losses of the company, which will result in the loss of the company.
(4) The risk of receiving and receiving payment forecast
The company according to sales orders and purchase orders, such as collection and payment forecast, in the actual implementation process, customers or suppliers may adjust the order, resulting in the company's payment forecast is not correct, resulting in delivery risk.
6. Risk control measures taken by the company
(1) In order to avoid the risk of large fluctuations in exchange rates, the Company will strengthen the research and analysis of exchange rates, pay real-time attention to changes in the international market environment, adjust business strategies in a timely manner, and minimize exchange losses.
(2) In order to control the risk of default on a transaction, the company shall conduct forward settlement and sale of foreign exchange only with financial institutions approved by the State Administration of Foreign Exchange and the Chinese People's Bank, qualified for the operation of forward settlement and sale of foreign exchange options, and pay close attention to relevant policies and regulations at home and abroad to ensure the legality of the conduct of transaction management.
(3) The Company will carefully review the terms of contracts with eligible financial institutions and strictly implement the risk management system to guard against legal risks.
(4) The company's forward settlement and sale of foreign exchange business must be based on the company's careful forecast of foreign currency receipts (payments), and the delivery date of the forward settlement and sale of foreign exchange business shall match the foreign currency receipt, deposit time or foreign currency payment time predicted by the company. The foreign currency amount of the transaction contract must not exceed the foreign currency receipt or the forecast amount of the foreign currency payment.
(5) In order to prevent the deferred delivery of forward closing and sale of foreign exchange, the Company shall control the total amount of foreign exchange funds and the time of settlement and sale of foreign exchange in strict accordance with the payment plan.
(6) The Company shall regularly review the actual operation, use of funds and profit and loss of forward settlement and sale of foreign exchange business.
The impact of forward closing and selling of foreign exchange business on the company
At present, there is great uncertainty about global economic and trade relations and economic development trends, foreign exchange rate fluctuations are large, the conduct of this business is conducive to the company to avoid the risk of exchange rate fluctuations, as far as possible to minimize the adverse effects of the company due to foreign currency exchange rate changes. The business is to meet the company's own actual business needs, in line with the overall interests of the company and long-term development, there is no harm to the interests of the company and shareholders.
Opinions of independent directors
Upon verification, the independent directors believe that the company's forward settlement and sale of foreign exchange business is carried out around the company's main business,
It is necessary to avoid and prevent the risk of exchange rate fluctuation in order to protect normal operating profit.
The decision-making procedure in this matter conforms to the relevant laws, regulations and the provisions of the Articles of Association, and the review procedure is lawful and valid, and there is no situation that harms the interests of the company and all shareholders, especially small and medium-sized shareholders. All independent directors agree that the Company will conduct forward closing and selling foreign exchange business this time.
Opinions of the Supervisory Board
After examination, the Supervisory Board held that: the company's forward settlement and sale of foreign exchange business is carried out around the company's main business, to currency preservation and avoid exchange rate risks for the purpose, rather than purely for profit purposes of forward foreign exchange transactions. This matter complies with the relevant laws and regulations, normative documents and the Articles of Association, and the review procedure is lawful and effective. Therefore, the Supervisory Board agreed to the Company's forward settlement and sale of foreign exchange business this time.
Ten, check the documents
(1) Resolution of the 12th Meeting of the 4th Board of Directors of Dongguan Yi'an Technology Co., Ltd.
(2) Resolution of the 11th Meeting of the 4th Supervisory Board of Dongguan Yi'an Technology Co., Ltd.
(3) Independent Opinions of Independent Directors of Dongguan Yi'an Technology Co., Ltd. on Matters Related to the 12th Meeting of the 4th Board of Directors of the Company
We hereby make this announcement.
Dongguan Yi'an Technology Co., Ltd
June 29, 2021
AI
