Shenzhen Zhaowei Machinery&Electronics Co.,Ltd. (02692) has announced its intention to engage in foreign exchange hedging transactions with financial institutions such as banks. This decision is driven by the company's expanding international operations and its strategic push for deeper global presence. The primary objective is to enhance the company's capability to manage risks associated with foreign exchange market volatility. By undertaking these hedging activities, Zhaowei aims to effectively mitigate potential adverse impacts stemming from significant fluctuations in foreign exchange rates and interest rates. The initiative is also designed to optimize financial expenses rationally and strengthen the overall financial stability of the company.

Based on its operational requirements, the company plans that the total transaction margin and option premium allocated for these foreign exchange hedging activities will not exceed RMB 120 million (or its equivalent in foreign currency) at any given time. This amount includes the value of collateral provided for transactions, utilized credit lines from financial institutions, and reserves set aside for contingency measures. Furthermore, the maximum contract value held on any single trading day, which includes amounts from reinvesting proceeds of aforementioned transactions, is expected not to exceed RMB 500 million (or its equivalent in foreign currency).