Fuliwang plans to conduct a $50 million foreign exchange hedging business to address exchange rate fluctuation risks

[Financial News] Fuliwang Precision Electromechanical (China) Co., Ltd. (Stock Code: 688678, Stock Abbreviation: Fuliwang) announced on March 17, 2026, that the company and its subsidiaries plan to conduct foreign exchange hedging business to cope with the impact of exchange rate fluctuations on the company’s operating performance. According to the announcement, the amount for this foreign exchange hedging business will not exceed 50 million US dollars or the equivalent in foreign currency, with the validity period of the amount being 12 months from the date of the board of directors’ approval, and the funding source will be self-owned funds, not involving raised funds.

The announcement indicates that Fuliwang’s export business primarily settles in foreign currencies such as US dollars and euros, and exchange rate fluctuations may lead to foreign exchange gains or losses affecting the company’s operating performance. To effectively mitigate foreign exchange market risks, the company plans to engage in foreign exchange hedging business with banks and other financial institutions, including but not limited to forward foreign exchange settlement, forward foreign exchange transactions, purchase options, and option combinations or combinations of the aforementioned products.

Main Content of Foreign Exchange Hedging Business

The company emphasizes that this foreign exchange hedging business is based on normal production and operations, aimed at avoiding and preventing exchange rate risks, and will not engage in speculative and arbitrage trading solely for profit purposes. To control related risks, the company has established the “Foreign Exchange Hedging Business Management System,” which clearly stipulates the business limits, types, approval authority, internal review processes, etc., and the finance department will manage business operations uniformly while the internal audit department conducts supervision and inspection.

In terms of risk control, the company will continuously monitor market information, track price changes in hedging business, assess risk exposure in a timely manner, and select large commercial banks with high credit ratings as counterparties to reduce performance and legal risks.

The ninth meeting of the fourth board of directors and the fifth meeting of the fourth audit committee have reviewed and approved the above proposal. The board believes that conducting foreign exchange hedging business will help improve the efficiency of foreign exchange fund utilization, reasonably reduce financial costs, and is in line with the interests of the company and its shareholders. The sponsor, CITIC Securities Co., Ltd., also has no objections to this business.

This foreign exchange hedging business does not need to be submitted for review by the company’s shareholders’ meeting and will be implemented from the date of the board of directors’ approval.

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Editor: Xiao Lang Kuaibao