- Risk Management
Business Risk Management
BizLink regularly holds strategic development meetings each year to discuss our operational strategies for long-term development in the future. In order to protect shareholders’ interests, BizLink focuses on our performance in the businesses we engage in based on the principles of soundness and pragmatic business philosophy; therefore, we do not engage in any high-risk or high-leverage investing activities. BizLink has established the “Procedures for Loaning of Funds” and the “Procedures for Providing Endorsements/Guarantees” for compliance within our company, but continues to actively assess the risks and benefits of incorporating new technologies and enhance our competitiveness in our core businesses. On the other hand, we increase our production capacity and manufacturing capabilities by maximizing the use of existing equipment while staying committed to transforming ourselves into an all-round solution provider and offering high-value-added services that are more convenient and adaptable in hopes of increasing our gross profit margin.
Financial Risk Management
Exchange rate, interest rate, and fluctuations in product prices pose more challenges to BizLink because any slight miscalculation will not only eat away our profits, but also affect shareholders’ interests. Therefore, BizLink has established the “Procedures for Trading Derivative Instruments”, which clearly specifies the hedging instruments to be used and assessment and evaluation of these instruments. BizLink uses various financial instruments, including
spot or forward contracts, swaps, and options, to minimize risks. The main currencies currently used by BizLink are the U.S. dollar and the Chinese Yuan. Since quotations for product exports and raw materials purchased overseas are denominated in the U.S. dollar, most of the foreign currencies can be written-off through regular transactions so as to achieve the effect of auto hedging. In the future, we will intensify the auto hedging effect by offsetting foreign currency obligations and debts, and also use derivative instruments to conduct hedging under appropriate risk regulations.