Stock Code: 002 105 securities referred to: Nobutaka Industry
Announcement Number: 2016-008
HL CORP(SHENZHEN) , Ltd.
About the year 2016 to continue its forward foreign exchange trading
announcement
The Company and all members of the Board to ensure that the information
disclosed is true, accurate, complete, not false, misleading statements or
material omissions.
HL CORP(SHENZHEN) , Ltd.
forward foreign exchange transactions to be carried out by the fourteenth
meeting of the fourth session of the Board considered and approved "on the
2016 annual foreign exchange transactions continue to carry forward the
motion," now announced as follows:
First, the purpose of carrying out forward foreign exchange transactions
Forward foreign exchange transactions carried out by the company intends to
meet the needs of normal production and operation, as well as to prevent and
avoid exchange rate risk as the premise, the next appointment time agreed to
sell the currency exchange rate of foreign currency to buy or sell the currency
to buy foreign currency transactions behavior.
The company's products more than 65 percent of exports, and are self-export
revenues, the use of US dollar and other foreign currency for settlement, and
procurement of mostly domestic-based procurement, more daily to be paid in RMB,
the larger the monthly settlement company needs Therefore, when the exchange
rate greater volatility, the exchange gains and losses on the company's
operating performance will result in a greater impact. 2015 year, the company
held its consideration of the Board of Directors approved the company to carry
out forward foreign exchange trading business, as of the reporting date, all
delivery contracts have been completed. Now plans to continue to carry out forward
foreign exchange transactions, the main purpose remains the full use of forward
foreign exchange hedging to reduce the impact of exchange rate fluctuations on
the company, the company focused on the production and management.
Second, the business situation is expected to forward foreign exchange
transactions carried out by
1, forward foreign exchange transactions varieties:
The company intends to carry out forward foreign exchange transactions, limited
to major settlement currencies used in production and management company ---
dollar forward foreign exchange business.
2, is expected during the operations and the amount of forward foreign exchange
transactions:
The company expects from the date of approval by the board of directors within
12 months, domestic and foreign commercial banks as counterparties, totals no
more than $ 30 million in forward foreign exchange business.
3, is expected to take up capital:
Carrying out forward foreign exchange transactions business, the company in
addition to the agreement signed with banks and does not require any security
deposit and other inputs, when due delivery company will use its own funds, not
involved in fund-raising.
Third, forward foreign exchange transactions have been carried out in the year
2015
YTD total maturity deliverable forward foreign exchange transactions 36 pen, a
total amount of $ 3,932.65 million and produced a total of 744,400 yuan foreign
exchange earnings.
Fourth, the transaction is reasonable and influence on the company's
1, the reasonableness of the transaction:
Sales revenue to achieve export-oriented, multi-payment in US dollars and other
foreign currencies, and material procurement to domestic procurement mainly in
RMB settlement payment, the company has a large amount of the monthly settlement
needs to carry this forward foreign exchange knot sale of foreign exchange
accumulated amount not to exceed $ 30 million, total long-term foreign exchange
accounts for about 17% of the company's audited 2014 total export revenue, far
less than the normal amount of foreign exchange company in the current RMB
exchange rate two-way volatility normalization and increased range under the
situation, in order to prevent the yuan to appreciate in the future caused by
the company to produce large amounts of monthly foreign exchange losses, the
company continued to carry out forward foreign exchange business, the
settlement will be part of the normal risk of locking in advance, this trade is
a scientific and rational.
2, the impact on the company:
Whereas:
Forward foreign exchange transactions to be carried out based on (i) to prevent
and avoid exchange rate risk for the purpose;
(Ii) The Board of Directors has developed forward foreign
exchange transactions in the internal control system;
(Iii) the internal audit department, the Audit Committee will be regular,
irregular signatures and verification of the implementation of the actual
trading contracts.
In summary, the expected forward exchange transactions carried out on the
company's operating results will not be materially adversely affected.
Fifth, forward foreign exchange trading business risk analysis
Company to carry out forward foreign exchange transactions are governed by the
principle of locking the exchange rate risk, hedging, not speculation, arbitrage
trading operations. Forward foreign exchange transactions in the exchange rate
can fluctuate significantly reduce the impact of exchange rate fluctuations on
the company, the company focused on the production and operation, but at the
same time forward foreign exchange transactions at the market exchange rate
fluctuation is large, that is, when the agreement is less than the expected
appreciation of the renminbi when a predetermined exchange rate, the company in
accordance with the settlement agreement will expire produce exchange losses.
Sixth, the company intends to take risk control measures
1, the company has developed a special " HL CORP(SHENZHEN) , Ltd. forward
foreign exchange transactions in the internal control system", the operating
principle of the system of forward foreign exchange transactions, the approval
authority, responsible departments and responsible persons, the internal
operating procedures, information to quarantine measures, internal risk
reporting and risk management procedures and information disclosure clearly
stipulates that the company will strictly follow.
2, the company will bank forward foreign exchange reference exchange rate quote
to the customer, in order to determine the order after the company is able to
offer customers lock the exchange rate; when exchange rate fluctuations, if the
exchange rate has been well below the long-term settlement of the exchange
offer customers the company the request, in consultation with the customer to
adjust the price.
3, in order to prevent long-term settlement deferred settlement, the company
will further strict management of accounts receivable, accounts receivable
collection and actively avoid the phenomenon of overdue accounts receivable.
4, the company forward foreign exchange transactions shall be in strict
accordance with the company's forecast of foreign currency receivables, forward
foreign exchange transactions shall not exceed the actual amount of the total
import and export business of foreign exchange revenue, the company may face
the risk control within the affordable range.
Seven, the fair value of forward foreign exchange transactions carried out
analysis and accounting principles
Company to carry out forward foreign exchange business at fair
value at the end of the recognition, measurement, changes in fair value through
profit or loss. According to "Enterprise Accounting Standard No. 22 -
Financial Instruments Recognition and Measurement," "Enterprise
Accounting Standards No. 37 - Financial Instruments" and the relevant
provisions of the guidelines, the corresponding forward foreign exchange
business accounting and disclosure.
Eight, in accordance with the provisions of the company "forward foreign
exchange transactions in the internal control system", the date of the
Executive Board of the matter for consideration and approval of the candidate.
Special announcement
HL CORP(SHENZHEN) , Ltd.
Board of Directors
March 11, 2016