Jiayuan Technology Plans to Conduct $2 Billion USD Foreign Exchange Derivatives Trading to Hedge Currency Fluctuation Risk

On March 13, Guangdong Jiayuan Technology Co., Ltd. (Stock Code: 688388, Stock Abbreviation: Jiayuan Technology) announced that to hedge against exchange rate fluctuation risks, the company plans to engage in foreign exchange derivatives trading with a transaction cap of $200 million and a margin and premium limit of $50 million. The matter has been approved by the Board of Directors and is subject to review at the company’s second extraordinary general meeting in 2026.

The announcement states that the primary purpose of Jiayuan Technology’s foreign exchange derivatives trading is hedging, not for investment gains. As the company’s import and export business expands and foreign exchange trading volume increases, the risk of exchange rate fluctuations becomes more significant. The company indicates that this move aims to reduce or avoid related foreign exchange risks, ensure financial security, and enhance the ability to respond to exchange rate volatility.

Main Details of Foreign Exchange Derivatives Trading

The company’s Board of Directors and Audit Committee believe that engaging in foreign exchange derivatives trading is based on normal business operations, aimed at avoiding and preventing exchange rate risks. By using appropriate foreign exchange derivatives, the company can manage profit volatility caused by exchange rate fluctuations, improve the efficiency of foreign exchange fund utilization, and reasonably reduce financial costs. The company has established the “Foreign Exchange Derivatives Trading Management System” and improved related internal control systems. The targeted risk control measures are feasible and effective.

According to the announcement, the company’s foreign exchange derivatives trading will strictly adhere to principles of legality, prudence, safety, and effectiveness, and will not involve speculative or arbitrage transactions. Counterparties will be financial institutions approved by regulatory authorities with foreign exchange derivatives trading qualifications. To facilitate business operations, the Board of Directors has proposed that shareholders authorize the company’s President (General Manager) to organize and handle related transactions and sign relevant agreements and documents within the specified period and limits.

Regarding risk control, the company will implement multiple measures to prevent potential risks, including strict control of trading limits, careful selection of counterparties, deployment of professional personnel, continuous monitoring of market prices, and regular internal audits. The announcement emphasizes that despite active risk management, due to the complexity and unpredictability of exchange rate movements, the business may still face market risk, liquidity risk, performance risk, credit risk, and operational risk.

In terms of accounting treatment, the company states it will strictly follow the relevant provisions of the “Enterprise Accounting Standards” for accounting and recognition of foreign exchange derivatives trading. The announcement indicates that the company’s hedging activities meet the conditions of “Enterprise Accounting Standard No. 24 — Hedge Accounting.”

The launch of foreign exchange derivatives trading by Jiayuan Technology is an important measure to respond to exchange rate fluctuations and ensure operational stability. It will help the company operate steadily in an increasingly complex international economic environment. Market analysts believe that for companies with a high proportion of import and export business, the proper use of foreign exchange derivatives for hedging is beneficial, but potential risks associated with such activities should also be carefully monitored.

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