JINXUN RESOURCE (03636) plans to engage in foreign exchange derivative businesses such as forward foreign exchange settlement and sales, and swaps.

JINXUN RESOURCE (03636) announced that, in order to reduce the risks brought by exchange rate fluctuations without affecting the company's normal production and operations, the company and its subsidiaries plan to hedge exchange rate fluctuation risks by conducting foreign exchange derivative businesses such as forward foreign exchange settlement and sales and swaps. The operating process is as follows: the company and its subsidiaries sign forward foreign exchange settlement contracts with banks, agreeing on the foreign currency, amount, exchange rate and period for future foreign exchange settlement, and on the maturity date carry out foreign exchange settlement according to the currency, amount and exchange rate agreed in the contracts, thereby locking in the foreign exchange settlement cost for the current period. The company and its subsidiaries are only permitted to conduct foreign exchange derivative businesses such as forward foreign exchange settlement and sales and swaps with financial institutions approved by the People's Bank of China and the State Administration of Foreign Exchange and possessing lawful operating qualifications, and the settlement currency for the businesses shall be US dollars or other currencies. The source of funds for these foreign exchange derivative businesses is the own funds of the company and its subsidiaries, without using any raised funds, and without involving debt financing funds such as bank loans. The scale of businesses such as forward foreign exchange settlement and sales is expected not to exceed USD 50 million, and based on the business conditions of the company and its subsidiaries, the longest delivery period shall not exceed 12 months, and the arrangement shall be valid for 36 months from the date of approval by deliberation.