Sunfar Silicon to hedge forex risk with $42M program

Tangshan Sunfar Silicon Industries (SSE:603938) announced plans to implement foreign exchange hedging activities to mitigate risks associated with currency fluctuations. The program, approved by the company's board, authorizes hedging transactions up to a total of RMB 300 million (approximately $42 million USD) or its equivalent in other currencies. This figure can be used on a revolving basis. The initiative aims to stabilize financial performance by controlling the impact of exchange rate volatility on overseas sales, which are primarily denominated in US dollars. The approved hedging instruments include forward exchange contracts, currency swaps, and options, among others. The authorization period extends for twelve months from the date of board approval. The company is also taking steps to minimize the impact of operational risks and legal risks by establishing an internal control system for FX hedging.