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Shandong Xinhua Pharmaceutical Co., Ltd. (00719) plans to launch derivatives hedging trading business
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Zhitong Finance App News, Shandong Xinhua Pharmaceutical Co., Ltd. (00719) issued an announcement. The company held the 12th meeting of the 11th board of directors on August 25, 2026 to review and pass the “Proposal on Launching Derivatives Hedging Trading Business” and agreed that the company would carry out derivatives trading business. The purpose of this derivatives transaction is only to hedge and achieve exchange rate neutrality. All derivatives varieties match the exchange rate and interest rate risk exposure corresponding to the company's export business, and the two have a natural risk hedging economic relationship. Through standardized foreign exchange instruments such as forwards and options, forward foreign exchange settlement prices are locked in advance to hedge against fluctuations in foreign currency payments and exchange. It is expected that management effects can be achieved to mitigate exchange rate shocks and improve financial soundness.

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