Bosh Co., Ltd. plans to carry out a 100 million yuan foreign exchange hedging business to prevent exchange rate fluctuation risks

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【Financial Network News】BoShen Co., Ltd. (002282) announced on the evening of March 17th that to hedge against exchange rate fluctuations in international trade, the company plans to continue foreign exchange hedging activities in 2026, with a total annual transaction amount not exceeding the equivalent of 100 million RMB.

The announcement shows that as the company’s international trade and investment scale expands, foreign exchange exposure continues to increase. To effectively avoid the adverse impact of significant exchange rate fluctuations on operating performance, the company plans to conduct forward foreign exchange settlement and sales, RMB and foreign currency swaps, foreign exchange options, and other related transactions through banks. The main trading currencies are USD and EUR. According to the plan, the amount of a single foreign exchange hedge shall not exceed the equivalent of 40 million RMB, and the activity period is within 12 months from the date the board approves.

The company emphasizes that this foreign exchange hedging activity is based on normal production and operation, strictly follows hedging principles, and does not involve speculative trading solely for profit. The funds come from the company’s own resources, and a certain proportion of margin will be paid according to agreements with banks. It does not involve the use of raised funds.

Regarding risk control, the company has established the “Foreign Exchange Hedging Business Management System,” which includes internal control measures such as business approval, operational procedures, and risk monitoring. Specific measures include: quoting clients based on bank forward exchange rates to lock in exchange rate risk; strengthening accounts receivable management to avoid overdue risks; the audit department regularly reviews business operations and fund usage; and strictly controlling the scale of hedging to match actual business needs.

The board of directors approved this proposal on March 13, authorizing the general manager to make decisions within the limit, with the financial director and finance management department responsible for implementation. This matter falls within the authority of the board of directors and does not require approval at the shareholders’ meeting.

In terms of accounting treatment, the company will follow relevant standards such as “Enterprise Accounting Standard No. 22” and “Enterprise Accounting Standard No. 24” for accounting and disclosure. The announcement also reminds investors that, despite the company’s risk control measures, foreign exchange hedging activities may still face risks such as exchange rate fluctuations, internal controls, customer defaults, and receivables forecasts. Please be aware of related investment risks.

BoShen Co., Ltd. states that engaging in foreign exchange hedging helps stabilize the company’s operational expectations, reduces the impact of exchange rate fluctuations on financial results, and aligns with the long-term interests of the company and all shareholders.

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Editor: Xiao Lang Kuai Bao