Dawei Co., Ltd. plans to conduct $50 million in foreign exchange hedging activities to lock in exchange rate risk and enhance financial stability.

【Shenzhen News】Shenzhen Dawei Innovation Technology Co., Ltd. (Stock Code: 002213, Stock Abbreviation: Dawei Co.) announced on March 17th that to hedge against exchange rate fluctuations, the company and its controlling subsidiaries plan to engage in foreign exchange hedging activities, with a total transaction limit of no more than USD 50 million (or other equivalent foreign currencies). This matter has been approved by the board of directors and is subject to approval at the company’s first extraordinary general meeting in 2026.

The announcement states that some of the company’s business involves import and export foreign exchange receipts and payments. Due to the impact of international political and economic conditions, exchange rate fluctuations have increased, creating certain foreign exchange risk exposure. To lock in costs and strengthen financial stability, the company has decided to carry out foreign exchange hedging activities.

The main features of this foreign exchange hedging business are as follows:

The company states that the foreign exchange hedging activities will strictly adhere to principles of legality, prudence, safety, and effectiveness, and will not involve speculative or arbitrage trading. To address potential risks such as exchange rate fluctuations, default risks, and operational risks, the company has formulated the “Foreign Exchange Hedging Business Management System,” which standardizes operational procedures, clarifies approval authority, and will monitor market information, adjust strategies, and conduct internal audits to control risks.

Regarding accounting treatment, the company will follow relevant provisions of the “Enterprise Accounting Standards” to account for and record foreign exchange derivative transactions, and relevant information will be truthfully reflected in financial statements.

The implementation of this foreign exchange hedging business is expected to help Dawei Co. effectively hedge against exchange rate risks, stabilize operating costs, and enhance the company’s overall risk resistance. Market analysts point out that in the context of increasing global exchange rate volatility, using reasonable foreign exchange risk management tools to stabilize business expectations is beneficial for improving the company’s sustainable profitability.

The company reminds investors that despite risk control measures, foreign exchange hedging still involves market risk, liquidity risk, and performance risk. Investors are advised to be cautious of investment risks.

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