CIMC Vehicles(301039) Approved to Launch $115 Million Foreign Exchange Forward Hedging Business

To address the risk of volatility in the foreign exchange market, China International Marine Containers (Group) Co., Ltd. (Securities Code: 301039, abbreviated as “CIMC Vehicles”) held its 2026 first meeting of the third session of the board of directors on March 24, 2026, and examined and approved the resolution titled “Proposal on Continuing to Carry Out Foreign Exchange Forward Hedging Business in 2026.” According to the announcement, the company and its controlling subsidiaries plan to carry out foreign exchange forward hedging business with a maximum aggregate open position of no more than the equivalent of USD 115 million in 2026, with the aim of enhancing the company’s financial soundness.

Background and Necessity for Carrying Out the Business

In recent years, affected by international political and economic conditions, the fluctuation range of foreign-currency exchange rates, mainly the U.S. dollar, has continued to expand, and risks in the foreign exchange market have increased significantly. As an internationally operated enterprise, CIMC Vehicles has decided, in order to further enhance its ability to respond to risks arising from foreign exchange fluctuations and to better avoid and mitigate the risks of foreign exchange rate and interest rate fluctuations, to manage its foreign exchange risk exposure through forward instruments.

The company emphasizes that the foreign exchange forward hedging business will strictly focus on the actual foreign-currency receipts and payments arising from the company’s main business operations, relying on specific business activities, with the purpose of avoiding and mitigating risks from foreign exchange rate fluctuations, and it will not engage in speculative transactions. The company has formulated the “Foreign Exchange Risk Management System,” established a comprehensive internal control system, and the relevant risk management measures are feasible.

Specific Arrangements for the Hedging Business

Basic Transaction Elements

Authorization Arrangements

The board of directors authorizes the chairman who also serves as CEO and the persons authorized by them to carry out, within the scope of the above limits, the specific matters related to foreign exchange trading business and to sign the relevant transactions and legal documents. If the term of a single transaction exceeds the authorization period, the authorization period will automatically be extended until the termination of that transaction.

Risk Analysis and Control Measures

In the announcement, the company notes that although the company carries out foreign exchange forward hedging business for the purpose of locking in costs and hedging risks, there are still potential risks such as market risk, liquidity risk, operational risk, policy risk, and technical risk.

To effectively control risks, the company will implement a number of measures:

• Strictly follow the principles of avoiding and hedging foreign exchange risks, and prohibit any form of risk speculation
• Implement the “Foreign Exchange Risk Management System,” assign professional personnel, and clarify account and fund management, decision-making procedures, reporting systems, and risk monitoring measures
• Carefully review the contract terms signed with banks to prevent legal risks
• Continuously track changes in foreign exchange market prices and regularly assess changes in foreign exchange risk exposure
• The internal audit department will supervise and inspect the compliance of the hedging business decisions, management, execution, and related work

Impact on the Company and Accounting Treatment

CIMC Vehicles states that carrying out foreign exchange forward hedging business is intended to better avoid and mitigate risks of foreign exchange rate and interest rate fluctuations, and to enhance the company’s financial soundness, and there is no circumstance that would harm the interests of the company or all of its shareholders.

In terms of accounting treatment, the company will, in accordance with the relevant provisions and guidance of the “Accounting Standards for Business Enterprises No. 22—Recognition and Measurement of Financial Instruments,” the “Accounting Standards for Business Enterprises No. 24—Hedge Accounting,” the “Accounting Standards for Business Enterprises No. 37—Presentation of Financial Instruments,” and other relevant standards, conduct the corresponding accounting and disclosure for the foreign exchange forward hedging business.

Decision-Making Procedures Followed

This resolution was examined and approved at the March 16, 2026 meeting of the Audit Committee of the third session of the board of directors, and the committee agreed to submit it for consideration by the board of directors. On March 24, 2026, the third first meeting of the third session of the board of directors considered and approved the resolution. According to relevant laws and regulations and the “Articles of Association,” this matter on carrying out foreign exchange forward hedging business falls within the decision-making authority of the board of directors and does not require submission for review by the shareholders’ meeting, nor does it constitute a related-party transaction.

Investors may consult the “Feasibility Analysis Report on Carrying Out Foreign Exchange Forward Hedging Business” published by the company on the same day for more information.

Click to view the original announcement text >>

Statement: There are risks in the market; invest with caution. This article is automatically published by an AI model based on third-party databases and does not represent Sina Finance’s views. Any information appearing in this article is for reference only and does not constitute personal investment advice. If there is any discrepancy, please refer to the actual announcement. If you have any questions, please contact biz@staff.sina.com.cn.