Yongxing Materials plans to carry out a $50 million forward foreign exchange settlement and sale to prevent exchange rate fluctuation risks

MaticHoleFiller · 2026-03-25T20:45:28+00:00

Yongxing Materials announced that it will carry out a forward foreign exchange settlement and sale business of no more than 50 million US dollars to reduce the impact of exchange rate fluctuations on its performance and to strengthen financial stability. This move will help stabilize operating costs and support the healthy development of its foreign trade business, while the company will also enhance risk management and control measures.

MaticHoleFiller

2026-03-25 20:45:28

Abstract generation in progress

[Finance Website News] On March 18, Yongxing Special Materials Technology Co., Ltd. (Stock Code: 002756, Stock Abbreviation: Yongxing Materials) announced that in order to reduce the impact of exchange rate fluctuations on the company’s performance, the company and its controlling subsidiaries plan to carry out forward foreign exchange settlement and sales for hedging purposes. The total transaction amount will not exceed $50 million (or equivalent foreign currency).

The announcement shows that Yongxing Materials and its subsidiaries mainly settle foreign trade transactions in US dollars and euros. When exchange rates fluctuate continuously, it not only affects the normal conduct of the company’s foreign trade business but also impacts operating performance through exchange gains and losses. To strengthen foreign exchange risk management, the company plans to sign forward foreign exchange contracts with banks, specifying the foreign currency, amount, exchange rate, and term for future settlement or sale, and conducting these transactions within the agreed conditions during the contract period.

Details of the business are as follows:

Item	Specific Content
Purpose of Transaction	Reduce the impact of exchange rate fluctuations on company performance, prevent foreign exchange risk, and enhance financial stability
Types of Transactions	US dollars and euros (main currencies used in the company’s foreign trade)
Transaction Amount	Total amount not exceeding $50 million (or equivalent foreign currency)
Term of Transaction	Valid within twelve months from the date of approval by the Board of Directors
Funding Source	Own funds
Decision Procedure	Approved at the 2nd extraordinary meeting of the 7th Board of Directors, no need for shareholder approval
Business Management	Authorized management team responsible for operation and management; Finance department responsible for specific handling

Yongxing Materials emphasizes that the company’s forward foreign exchange settlement and sales are based on normal foreign trade activities, aiming to hedge and prevent exchange rate risks by locking in exchange costs. The company does not engage in purely profit-driven foreign exchange transactions. The use of funds is reasonable and will not affect the development of the company’s main business.

Regarding potential risks of the forward foreign exchange business, the company has conducted analysis and formulated corresponding control measures: in terms of exchange rate fluctuation risk, the company will strengthen research and analysis of exchange rates and adjust business strategies accordingly; in internal control risk, the company will clarify operational principles, approval authority, and implementation procedures; in customer default and receivables forecast risk, the company will strictly control business scale and strengthen accounts receivable management.

In terms of accounting treatment, the company will follow relevant regulations such as “Enterprise Accounting Standard No. 22—Financial Instruments: Recognition and Measurement” and “Enterprise Accounting Standard No. 24—Hedging” to account for and disclose the forward foreign exchange transactions.

The implementation of this business will help Yongxing Materials stabilize operating costs in the current complex exchange rate environment, improve financial stability, and support the sustained and healthy development of the company’s foreign trade business.

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