Share¡¯s code£º 000550 Share¡¯s Name£º Jiangling Motors No.£º 2025£056
Jiangling Motors Corporation, Ltd.
Public Announcement on Y2026 Foreign Exchange Hedging Business
Jiangling Motors Corporation, Ltd. and the members of its Supervisory Board
undertake that the information disclosed herein is truthful, accurate and
complete and does not contain any false statement, misrepresentation or major
omission.
Important Content Tip:
risks, reducing the risk of exchange rate fluctuations by locking in the exchange rate.
Trading varieties: foreign exchange.
Trading instrument: forward settlement.
Trading venues: financial institutions approved by regulatory agencies and qualified
to operate foreign exchange derivatives trading business.
Transaction amount: the quota of the forward foreign exchange transactions of
Jiangling Motors Corporation, Ltd. (hereinafter referred to as ¡°JMC¡± or ¡°the
Company¡±) is US$ 50 million and Euro€ 8 million. The Company expects to use no
more than US$ 30 million and Euro € 6 million in trading margin and rights fees,
with a term of 2026. At any point within the year, the trading amount shall not exceed
these quotas.
Proposal on Y2026 Foreign Exchange Hedging Business in the Eleventh Session of
the Eleventh Board of Directors on December 19, 2025. The proposal does not need
to be submitted to the shareholders' meeting for consideration.
legal risk in the process of business development, and investors are advised to pay
attention to the investment risk.
I. Overview of foreign exchange hedging business
adversely affecting the Company when there are large fluctuations in exchange rates,
the company plans to carry out forward settlement and sale of foreign exchange
business with financial institutions. The Company does not engage in speculative
transactions and reduces the risk of exchange rate fluctuations by locking in the
exchange rate on the basis of normal production and operation and on the principle of
soundness, with the purpose of hedging and avoiding exchange rate risks.
Company is US$ 50 million and Euro€ 8 million. The Company expects to use no
more than US$ 30 million and Euro€ 6 million in transaction margin and rights fees
with a term of 2026. At any point within the year, the trading amount shall not exceed
these quotas.
business mainly consists of forward settlement and sale of foreign exchange and other
businesses. Trading venues are financial institutions approved by regulatory agencies
and qualified to operate foreign exchange derivatives trading business.
funds or bank credit funds.
needs of daily business activities, which is in line with the Company's requirements
for risk avoidance and prevention, and complies with relevant national policies and
laws.
II. Procedures for consideration of foreign exchange hedging operations
The Company considered and approved the Proposal on Y2026 Foreign Exchange
Hedging Business in the Eleventh Session of the Eleventh Board of Directors on
December 19, 2025, which does not involve related party transactions and there is no
need to perform the review procedures for related party transactions. In accordance
with the relevant provisions of the Shenzhen Stock Exchange Self-Regulatory
Guidelines for Listed Companies No. 7 - Transactions and Related Party Transactions
(Revised in 2025) and other relevant regulations, this proposal is not required to be
submitted to the Shareholders' Meeting for consideration.
III. Risk Analysis and Risk Control Measures of the Foreign Exchange Hedging
Business
i. Risk analysis:
the deviation of the exchange rate of the forward contract from the market spot rate on
the maturity date of the contract;
the forward is inconsistent with the actual delivery date, resulting in insufficient funds
available for use at the time of delivery, which triggers the risk of fund liquidity and
leads to failure to deliver as scheduled;
forward is not consistent with the actual delivery period, resulting in the risk of
delayed delivery caused by the forward foreign exchange transactions cannot be
delivered according to the agreed time;
and improper operation mode of operators;
contract terms or disputes over jurisdictional terms.
ii. Risk control measures:
forecasts of forward foreign exchange demand in accordance with its business plan to
meet operational needs, to avoid and prevent the impact of exchange rate fluctuations
on the Company, and does not engage in speculative transactions;
exchange derivative transactions, the business execution department of the Company
has established a tracking mechanism to implement tracking management of the
progress of business receipts and payments to effectively prevent the risk of default on
delivery and ensure that potential losses are controlled within the minimum scope;
enhanced the comprehensive business quality of relevant personnel and improved the
ability to identify and prevent risks;
operators strictly follow the requirements of the system;
credit and long-term business relations with the Company as counterparties for
forward foreign exchange transactions, with low risk of default.
IV. Accounting policies and accounting principles
In accordance with the Ministry of Finance's Accounting Standard for Business
Enterprises (ASBE) No. 22, ¡°Recognition and Measurement of Financial Instruments,¡±
ASBE No. 24, ¡°Hedge Accounting,¡± ASBE No. 37, ¡°Presentation of Financial
Instruments,¡± and other relevant regulations and its guidelines, the Company conducts
corresponding accounting treatments for the proposed forward foreign exchange
transactions to reflect relevant items on the balance sheet and income statement.
V. Documents for reference
Board of Directors
Jiangling Motors Corporation, Ltd.
December 23, 2025
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