Announcement of Zhejiang Shengda Biopharmaceutical Co., Ltd. on launching forward foreign exchange settlement and sales and other foreign exchange derivatives business
Securities code: 603079 Securities abbreviation: Shengda Biotechnology Announcement number: 2026-009
Zhejiang Shengda Biopharmaceutical Co., Ltd.
Announcement on Launching Forward Foreign Exchange Settlement and Sales and Other Foreign Exchange Derivative Products Business
The company's board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements or major omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its contents.
Important content reminder:
Main circumstances of the transaction
□Obtain investment income
Purpose of transaction Hedging (Contract category: □ Commodities; Foreign exchange; □ Others: ________) □ Others: ________
Including forward foreign exchange settlement and sales, RMB and other foreign exchange swap business, forward foreign exchange trading varieties, foreign exchange swaps, foreign exchange options, interest rate swaps, interest rate swaps, interest rate options and other businesses and the above business combinations
Estimated trading margin and premium used
No upper limit applicable (unit: 10,000 yuan)
Transaction amount
The highest contract expected to be held on any trading day
15,000.00 value (unit: 10,000 yuan)
Source of funds Own funds □Loan funds □Others: ___
Trading period: February 10, 2026 to February 9, 2027
Review procedures performed and planned to be performed
On February 10, 2026, Zhejiang Shengda Biopharmaceutical Co., Ltd. (hereinafter referred to as the "Company") held the second meeting of the fifth board of directors, and reviewed and approved the "Proposal on Carrying out Forward Foreign Exchange Settlement and Sales and Other Foreign Exchange Derivatives Business". This proposal does not need to be submitted to the shareholders' meeting for review.
Special risk warning
The company's foreign exchange derivatives business such as forward foreign exchange settlement and sales follows the principle of locking exchange rate risks and does not engage in speculative and arbitrage trading operations. However, the forward foreign exchange settlement and sales and other foreign exchange derivative product operations still involve certain risks of exchange rate fluctuations, customer default risks, payment prediction risks, internal control risks, etc. Investors are advised to pay attention to investment risks.
1. Overview of transaction situation
(1) Purpose of transaction
In 2022, 2023, 2024 and the first half of 2025, the company's self-operated exports will account for 39.48%, 35.63%, 28.56% and 29.13% of its main business revenue respectively. The company's exports mainly use US dollars as the settlement currency, and its business operations are affected by fluctuations in the RMB exchange rate to a certain extent. In order to adapt to changes in the foreign exchange market and reduce the adverse impact of exchange rate fluctuations on the company, the company plans to carry out forward foreign exchange settlement and sales and other foreign exchange derivatives businesses to achieve asset preservation for the purpose of avoiding risks and reduce the impact of exchange rate fluctuations on the company.
(2) Transaction amount
The company and its holding subsidiaries plan to use a maximum amount (total at any point in time, including the relevant amount of re-trading of proceeds) of no more than RMB 150 million (or equivalent currency, including the principal amount) to carry out forward foreign exchange settlement and sales and other foreign exchange derivatives business. The transaction currencies include but are not limited to currencies related to actual business such as US dollars and euros. Within the above limit, funds can be used on a rolling basis.
(3) Source of funds
The funds used by the company and its holding subsidiaries to carry out forward foreign exchange settlement and sales and other foreign exchange derivatives business are their own funds.
(4) Transaction method
Forward foreign exchange settlement and sale is a foreign exchange hedging financial product approved by the People's Bank of China. Its trading principle refers to the bank signing a forward foreign exchange settlement and sale agreement with the customer, agreeing on the foreign exchange currency, amount, term and exchange rate for future foreign exchange settlement or sales. On the expiration date, the foreign exchange settlement or foreign exchange sale business will be handled in accordance with the agreed currency, amount, and exchange rate of the forward foreign exchange settlement and sale agreement, thereby locking in the current foreign exchange settlement and sales costs.
The company's forward foreign exchange settlement and sales and other foreign exchange derivatives business mainly refers to forwards, swaps (swaps), options and other products or a combination of the above products. Based on the foreign currency income from overseas businesses, the company handles foreign exchange derivatives transactions in financial institutions to avoid and prevent exchange rate or interest rate risks, including forward foreign exchange settlement and sales, RMB and other foreign exchange swaps, forward foreign exchange sales, foreign exchange swaps, foreign exchange options, interest rate swaps, interest rate swaps, interest rate options and other businesses and a combination of the above businesses. Only forward foreign exchange settlement and sales business is used in foreign currency borrowing transactions. There are no related parties involved in the counterparties of this foreign exchange derivatives business such as forward foreign exchange settlement and sales.
(5) Transaction period
It shall be valid for 12 months from the date of approval at the second meeting of the fifth session of the Board of Directors.
2. Review procedure
On February 10, 2026, the company held the second meeting of the fifth session of the Board of Directors, and reviewed and approved the "Proposal on Carrying out Forward Foreign Exchange Settlement and Sales and Other Foreign Exchange Derivatives Business", and agreed that the company plans to use the maximum amount (total at any point in time, including the relevant amount of re-trading with proceeds) not to exceed RMB 150 million (or equivalent currency, including the principal amount) to carry out forward foreign exchange settlement and sales and other foreign exchange derivatives business.
The company's board of directors authorizes the chairman or general manager to sign the above-mentioned agreements and documents related to the forward foreign exchange settlement and sales and other foreign exchange derivatives business; it also authorizes the company's financial director to be responsible for the specific handling of forward foreign exchange settlement and sales and other foreign exchange derivatives business within the above-mentioned quota range and business period.
3. Transaction risk analysis and risk control measures
(1) Risk analysis of forward foreign exchange settlement and sales and other foreign exchange derivatives businesses
The company's forward foreign exchange settlement and sales and other foreign exchange derivatives business follow the principles of locking exchange rate risks and hedging, and do not engage in speculative or arbitrage trading operations. However, there are still certain risks in the forward foreign exchange settlement and sales and other foreign exchange derivative product operations:
Risk of exchange rate fluctuations: When the exchange rate changes significantly, it will cause large fluctuations in the fair value of financial derivatives; if the exchange rate trend deviates from the company's locked price fluctuations, there is a risk of increasing exchange losses.
Customer default risk: Customer accounts receivable are overdue and the payment cannot be collected within the predicted payment period, which will cause delayed delivery and cause losses to the company.
Payment forecast risk: The business department makes payment forecasts based on customer orders and expected orders. During the actual execution process, customers may adjust their orders and forecasts, causing the company's payment forecast to be inaccurate, leading to the risk of delayed delivery.
Internal control risk: The foreign exchange derivatives business is highly professional, and there may be risks of losses in the process of handling foreign exchange derivatives business due to operational errors, system failures and other reasons.
(2) Risk control measures taken by the company
In order to reduce the risk of exchange rate fluctuations, the company will pay close attention to the international market environment in real time, strengthen research and analysis on exchange rates, and timely adjust business strategies according to changes in exchange rates.
The company has established the "Foreign Exchange Hedging Business Management System", which clearly stipulates the operating principles, approval authority, business processes, risk management and other aspects of the corresponding business, which can effectively regulate foreign exchange derivatives trading behavior and control foreign exchange derivatives trading risks.
In order to prevent delayed delivery, the company attaches great importance to the management of accounts receivable, promptly grasps information on customers' payment capabilities, and intensifies efforts to track and collect accounts receivable. At the same time, the company uses letters of credit to settle payments with customers as much as possible to avoid overdue accounts receivable.
The company's foreign exchange derivatives transactions such as forward foreign exchange settlement and sales must be based on the company's export foreign exchange income, and the foreign currency amount of the contract must not exceed the forecast volume of export business.
During the business operation process, the company will carefully review the terms of contracts signed with banks and other financial institutions, strictly abide by relevant laws and regulations, prevent legal risks, and regularly conduct supervision and inspection on the standardization of foreign exchange derivatives business and the effectiveness of internal control mechanisms.
4. The impact of the transaction on the company and related accounting treatments
The company carries out forward foreign exchange settlement and sales and other foreign exchange derivatives business on the basis of normal production and operation, on the principle of stability, and for the purpose of avoiding operating risks caused by exchange rate fluctuations. It does not engage in speculative arbitrage transactions, which is conducive to the company's production and operation.
In accordance with the Ministry of Finance's "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 24 - Hedge Accounting", "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments" and other relevant regulations and guidelines, the company conducts correct accounting, presentation and disclosure of the proposed forward settlement and sales business. The final accounting treatment shall be based on the accounting statements audited and confirmed by the company's annual audit agency.
Whether the hedging business complies with Accounting Standards for Business Enterprises No. 24 - Hedging
□Yes No Accounting》Applicable conditions
It is planned to adopt hedge accounting for recognition and measurement □Yes No
5. Opinions of intermediaries
After verification, the sponsoring agency believes that the company's forward foreign exchange settlement and sales and other foreign exchange derivatives business matters have been reviewed and approved by the company's board of directors, and the decision-making process complies with the "Shanghai Stock Exchange Stock Listing Rules", "Shanghai Stock Exchange Self-Regulatory Supervision Guidelines for Listed Companies No. 1 - Standardized Operations" and other relevant regulations. The main purpose of carrying out forward foreign exchange settlement and sales and other foreign exchange derivatives business is to improve the company's ability to deal with foreign exchange fluctuation risks, enhance the company's financial stability, reduce the impact of future foreign currency exchange rate fluctuations against the RMB on the company's operating performance, and adopt certain risk control measures.
To sum up, the sponsor has no objection to the company’s forward foreign exchange settlement and sales and other foreign exchange derivatives business.
Announcement is hereby made.
Board of Directors of Zhejiang Shengda Biopharmaceutical Co., Ltd.
February 11, 2026