Nanjing Panda Subsidiary Plans to Conduct $30 Million Forward Foreign Exchange Trading Business to Hedge Against Exchange Rate Fluctuation Risk

MaticHoleFiller · 2026-03-23T06:12:24+00:00

Nanjing Panda Electronics Co., Ltd. announced that its controlling subsidiary Jinghua Information plans to conduct forward foreign exchange settlement and sale business not exceeding $30 million to hedge foreign exchange market risks. Jinghua Information is primarily engaged in digital product exports, with export business accounting for over 65%. The company will manage risks through spot and forward foreign exchange transactions and establish relevant management systems for compliance supervision. Despite implementing multiple risk control measures, the company may still face various risks.

MaticHoleFiller

2026-03-23 06:12:24

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[Finance.com News] On March 18, Nanjing Panda (Rights Protection) Electronics Co., Ltd. (Stock Code: 600775, Stock Abbreviation: Nanjing Panda) announced that to hedge against foreign exchange market risks, the company’s controlling subsidiary, Shenzhen Jinghua Information Technology Co., Ltd. (hereinafter referred to as “Jinghua Information”), plans to conduct forward foreign exchange settlement and sales hedging business with a total amount not exceeding $30 million.

The announcement states that Jinghua Information mainly produces and sells personal digital products, with export sales accounting for over 65% of total sales, and its import and export transactions mainly settled in US dollars. Due to economic uncertainties, exchange rate fluctuations could negatively impact the company’s normal operations, cost control, and gross profit. Therefore, the company has decided to manage foreign exchange risks through a combination of spot and forward foreign exchange transactions to reduce exposure and strengthen financial stability.

According to the announcement, the main parameters of this forward foreign exchange settlement and sales business are as follows:

Transaction Element	Details
Transaction Type	Foreign exchange currency matching the settlement currency of import/export transactions
Trading Instrument	Forward foreign exchange settlement and sales
Trading Venue	Domestic over-the-counter market
Counterparty	Large commercial banks qualified to conduct forward foreign exchange business
Transaction Amount	Total not exceeding $30 million, with the maximum contract value on any trading day not exceeding this limit
Margin and Premium	Not exceeding RMB 5 million, fully utilizing bank credit lines
Funding Source	Own funds
Transaction Period	From the date of board approval until December 31, 2026

The company states that this business aims to lock in revenue and hedge against sharp exchange rate fluctuations, not for arbitrage or speculation. To control risks, the company has formulated the “Management System for Forward Foreign Exchange Settlement and Sales Business,” which clearly defines operational principles and procedures. The internal audit department will supervise and inspect compliance.

Regarding approval procedures, this matter was approved at the company’s 11th Board of Directors special meeting on March 18, 2026, after review and approval by the Audit and Risk Management Committee. Since it does not involve related-party transactions, it does not require shareholder approval.

The announcement also reminds that, despite multiple risk control measures, forward foreign exchange settlement and sales may still face market risk, liquidity risk, operational risk, policy risk, and technical risk. The company will actively implement risk control measures, operate prudently, and prevent related risks.

In terms of financial accounting, the company will recognize and measure the forward foreign exchange business in accordance with the relevant provisions of the “Enterprise Accounting Standards” using hedge accounting.

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