Company No. 9 plans to conduct 9 billion yuan in foreign exchange hedging transactions to prevent exchange rate fluctuation risks

On March 31, Ninebot Co., Ltd. (Securities Code: 689009, Securities Abbreviation: Ninebot Company) released an announcement, stating that in order to effectively prevent adverse impacts of exchange-rate fluctuations on the company’s operating performance, the company plans to carry out foreign-exchange hedging business. The expected maximum contract value held on any single trading day will not exceed RMB 9.0 billion or the equivalent in foreign currency.

The announcement shows that Ninebot Co., Ltd. and its subsidiaries have overseas sales business, with settlement currencies mainly using the U.S. dollar, the euro, and others. When the exchange rate experiences significant fluctuations, foreign exchange gains and losses will have a certain impact on the company’s operating performance. To control foreign-exchange risk, the company plans to conduct foreign-exchange hedging business with banks. This business is closely related to production and operations, follows the principle of locking in exchange-rate risk, and does not carry out speculative trading.

The foreign-exchange hedging business that the company plans to conduct is limited to major settlement currencies such as the U.S. dollar and the euro used for production and operations. The specific products include forward foreign exchange purchase/sale for settlement, foreign-exchange swaps, foreign-exchange options, and option combinations, etc. The source of funds for the hedging business is own funds, and it does not involve proceeds from fundraising. The trading term for each business transaction does not exceed one year.

In terms of approval procedures, this proposal has been approved at the company’s Third Board of Directors’ Eighth Meeting, and still needs to be submitted to the company’s 2025 annual shareholders’ meeting for consideration. The company’s board of directors agrees to authorize management to use the above limits on a rolling basis, and authorizes the finance department to handle the specific matters.

The announcement also highlights related risks, including market risk, customer default risk, liquidity risk, performance risk, and operational risk, etc. The company states that it will strictly comply with the hedging principles, establish and improve internal control systems and risk-control measures, continuously track changes in the foreign-exchange market, promptly assess risk exposures, and ensure that the business is carried out in a sound manner.

In terms of accounting treatment, the company states that this hedging business meets the applicable conditions of 《Enterprise Accounting Standards No. 24 — Hedge Accounting》, and the company plans to use hedge accounting to recognize and measure it. The company will conduct corresponding accounting and disclosures for financial hedging transactions in accordance with the relevant accounting standards.

Ninebot Co., Ltd. says that by carrying out foreign-exchange hedging transactions, it can further improve its ability to respond to risks arising from foreign-exchange fluctuations, lock in transaction costs and returns at future time points, balance foreign-currency assets and liabilities, and enhance the company’s financial soundness.

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Statement: There are risks in the market; investment requires caution. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s viewpoints. Any information appearing in this article is for reference only and does not constitute personal investment advice. If there are discrepancies, please refer to the actual announcement. If you have any questions, please contact [email protected].

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