Yinxi Technology approved to conduct foreign exchange hedging business of up to $25 million to address exchange rate fluctuation risks

On March 27, Guangdong Yinxi Technology Co., Ltd. (Securities Code: 300221, Securities Short Name: Yinxi Technology) released an announcement stating that the company has considered and approved a proposal to carry out foreign exchange hedging and preservation business. Within the next 12 months, the company will conduct foreign exchange hedging and preservation business with a total amount not exceeding USD 25 million or an equivalent amount in other currencies, in order to address the risk of exchange-rate fluctuations in international trade business.

The announcement shows that on March 26, 2026, Yinxi Technology held the 22nd meeting of the Sixth Session of the Board of Directors, at which it considered and approved the “Proposal on Carrying Out Foreign Exchange Hedging and Preservation Business.” This matter falls within the scope of the Board of Directors’ review authority and does not require submission to the shareholders’ meeting for deliberation.

Business Scale and Transaction Instruments Are Clearly Defined

Yinxi Technology stated that, with the continuous increase in the company’s international trade business, foreign-currency settlement business is becoming increasingly frequent. To effectively avoid foreign-exchange market risks and prevent adverse effects on the company caused by large exchange-rate fluctuations, the company has decided to carry out foreign exchange hedging and preservation business.

An Improved Risk Control System

The announcement provides detailed disclosure of the risks that foreign exchange hedging and preservation business may face and the risk control measures the company plans to take. The company particularly emphasizes that all foreign exchange hedging and preservation business is based on normal production and operations, relying on specific operating businesses, and that the company will not engage in foreign exchange and interest-rate transactions for the purpose of speculation.

For risks arising from exchange-rate and interest-rate fluctuations, the company will strengthen research and analysis of exchange rates, closely monitor changes in the international market environment in real time, and adjust operating strategies in a timely manner; to prevent internal control risks, the company has formulated the “Administrative System for Foreign Exchange Hedging and Preservation Business,” which clarifies operating standards, approval authority, and internal operating procedures; when selecting counterparties, the company will cooperate only with large financial institutions and other entities with valid legal qualifications to control counterparty default risk.

The Audit Committee Issues a Positive Opinion

After deliberating on the proposal, the company’s audit committee stated that the related decision-making procedures for Yinxi Technology to carry out foreign exchange hedging and preservation business comply with relevant national laws and regulations and the “Company Charter.” Based on normal production and operations, it uses foreign exchange hedging and preservation instruments to reduce exchange-rate risk and does not involve circumstances that would harm the company and all its shareholders, especially the interests of minority shareholders. At the same time, the company has established a sound internal control system, and risks are controllable.

According to the announcement, the Board of Directors authorizes the legal representative or its authorized representative to approve the plan for daily foreign exchange hedging and preservation business and to sign related contracts. The company will account for this business in accordance with the relevant accounting standards issued by the Ministry of Finance.

This round of carrying out foreign exchange hedging and preservation business is an important initiative for Yinxi Technology to respond to changes in the international trade environment and to strengthen financial risk management. It will help the company stabilize its operating performance and improve efficiency in the use of foreign exchange funds.

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Responsible editor: Xiao Lang Express