BYD: It plans to carry out foreign exchange derivatives trading business of 4.3 billion US dollars

BYD issued an announcement on the development of the foreign exchange derivatives trading business. The announcement stated that BYD intends to carry out foreign exchange derivatives trading business or other equivalent foreign currencies with a quota of 4.3 billion US dollars, and authorizes the management of the company to exercise decision-making power related to this business and sign relevant agreements. It is valid for 12 months from the date of approval at the eighteenth meeting of the seventh board of directors.

Regarding the purpose of this investment, BYD stated that with the continuous expansion of the company's overseas business, the scale of foreign exchange receipts and payments has also grown simultaneously. Affected by factors such as international politics and economic situation, the fluctuations in exchange rates and interest rates have continued to increase, and risks in the foreign exchange market have increased significantly.

In order to lock in costs and avoid and prevent exchange rate and interest rate risks, the company plans to appropriately carry out foreign exchange hedging through foreign exchange derivatives transactions according to specific circumstances.

The foreign exchange derivatives trading business carried out by the company is closely related to the company's daily business needs, and is carried out based on the company's foreign currency assets, liabilities, and foreign exchange receipts and payments. The company's appropriate foreign exchange derivatives trading business can improve the company's ability to actively deal with foreign exchange fluctuation risks, better avoid the foreign exchange rate and interest rate risks faced by the company, and enhance the company's financial stability.