Tongda Chuangzhi adjusts foreign exchange hedging business, expanding trading varieties to include all categories of derivatives.

[Finance.com News] On March 27, Tongda Chuangzhi (Xiamen) Co., Ltd. (Stock Code: 001368,简称 “Tongda Chuangzhi”) announced that the company’s board of directors has approved an adjustment plan for foreign exchange hedging business, fully lifting restrictions on trading varieties and adding derivatives such as foreign exchange futures and options to enhance exchange rate risk hedging capabilities.

The announcement shows that the core of this adjustment is to expand the foreign exchange hedging product range from the original limited “forward exchange settlement and sale, foreign exchange swaps” to include “forward exchange settlement and sale, foreign exchange swaps, foreign exchange swaps, foreign exchange futures, foreign exchange options, and other foreign exchange derivatives.” After the adjustment, the company and its subsidiaries at all levels can flexibly use all categories of foreign exchange derivatives to hedge exchange rate risk, with other business parameters remaining unchanged.

Core Business Parameters Remain Stable

The company states that this business adjustment is based on the current high proportion of export business. Although settlement is mainly in RMB, USD settlement still accounts for a certain proportion. By expanding the scope of foreign exchange derivatives, the aim is to more effectively respond to exchange rate fluctuations, prevent abnormal fluctuations in financial expenses, and ensure operational stability.

Risk Control System Also Improved

The announcement emphasizes that all foreign exchange transactions are based on normal production and operation, strictly following hedging principles, and do not involve speculative arbitrage. The company has established the “Foreign Exchange Hedging Business Management System,” constructing a full-process control system covering operational procedures, approval authority, and risk monitoring.

To address potential risks such as exchange rate fluctuations, internal control risks, performance risks, and legal risks, the company will adopt multiple preventive measures: selecting financial institutions with good credit as trading counterparts; establishing dynamic monitoring mechanisms to assess the impact of exchange rate changes; conducting regular internal control audits to ensure compliance.

Compliance and Effective Decision-Making Process

This adjustment has been reviewed and approved at the 17th meeting of the company’s second Audit Committee and the 22nd meeting of the second Board of Directors. According to the Shenzhen Stock Exchange Listing Rules and the company’s Articles of Association, this matter falls within the decision-making authority of the Board and does not require shareholder approval.

Financial data shows that Tongda Chuangzhi has been expanding its overseas business in recent years, with increasing demand for foreign exchange exposure management. After this adjustment, the company will have more flexible tools for managing exchange rate risk, helping to stabilize performance in complex international currency environments and providing financial security for long-term development.

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