*ST Jiawo Approved to Conduct Foreign Exchange Hedging Business with a Maximum Amount Not Exceeding 10 Million USD

Log in to Sina Finance App and search for [Information Disclosure] to see more evaluation levels

On March 16, Javo Food Co., Ltd. (Stock Code: 300268, Stock Abbreviation: *ST Javo) announced that the company has approved the plan to conduct foreign exchange hedging business. The company will use its own funds to hedge foreign exchange risk, with a trading amount at any point in time not exceeding $10 million or equivalent in other currencies. The validity period is within 12 months from the date of board approval, and the quota can be reused cyclically.

The announcement shows that the company and its subsidiaries engage in a large volume of foreign currency transactions in their daily operations. In the context of exchange rate fluctuations, to effectively hedge against foreign exchange and interest rate risks, the company has decided to carry out foreign exchange hedging business. The trading instruments will be limited to forward foreign exchange contracts, foreign exchange swaps, options, interest rate swaps, and their combinations, with counterparties being qualified financial institutions with legal licenses.

Key Elements of Foreign Exchange Hedging Business

The company emphasizes that this foreign exchange hedging business strictly follows prudent principles, relying on genuine business operations and not engaging in speculative trading. However, the announcement also notes that the business still faces potential risks such as market risk, liquidity risk, counterparty default risk, and internal control risk.

To manage these risks, the company has formulated the “Management System for Financial Derivative Trading Business,” which clarifies operational procedures, approval processes, and risk control measures. The Finance Department will serve as the centralized management unit, implementing responsibilities through a tiered management mechanism, continuously monitoring market changes to ensure compliance and orderly conduct of the business.

This proposal has been reviewed and approved by the company’s Fifth Board of Directors Audit Committee at its second meeting in 2026, and by a special meeting of independent directors. It was also approved at the 19th meeting of the Fifth Board of Directors on March 13. Both the board and independent directors believe that engaging in foreign exchange hedging will enhance the company’s ability to cope with exchange rate fluctuations and does not harm the interests of the company or shareholders.

Financial data shows that *ST Javo’s overseas business proportion has been increasing in recent years, along with greater foreign exchange exposure risk. Conducting hedging will help the company lock in operating costs, reduce the impact of exchange rate fluctuations on the income statement, and support steady business development. The company will account for and disclose the hedging business in accordance with relevant provisions of the “Accounting Standards for Business Enterprises.”

Click to view the original announcement>>

Disclaimer: Market risks exist; investment should be cautious. This article is automatically published by an AI model based on third-party databases and does not represent Sina Finance’s views. All information in this article is for reference only and does not constitute personal investment advice. Please refer to the actual announcement for accuracy. If you have questions, contact biz@staff.sina.com.cn.