Financial Risk Management
Actions are taken to mitigate the impact of exchange rate and interest rate fluctuations on company operations. The following hedging strategies are employed:
1. Approximately 60% of the Company’s revenue is in US dollars. Natural hedging is achieved by offsetting accounts payable in US dollars, and we also exchange foreign currency as needed based on monthly requirements for Taiwan dollars, to control inventory and avoid excess US dollar holdings.
2. We utilize deposit positions for time deposits, earning interest through rate differentials to offset bank borrowing interest spendings.
3. All financial operations are conducted for hedging purposes, such as forward foreign exchange, foreign exchange swaps (SWAP), and interest rate exchanges.
4. We do not engage in high-leverage financial activities.
1. Approximately 60% of the Company’s revenue is in US dollars. Natural hedging is achieved by offsetting accounts payable in US dollars, and we also exchange foreign currency as needed based on monthly requirements for Taiwan dollars, to control inventory and avoid excess US dollar holdings.
2. We utilize deposit positions for time deposits, earning interest through rate differentials to offset bank borrowing interest spendings.
3. All financial operations are conducted for hedging purposes, such as forward foreign exchange, foreign exchange swaps (SWAP), and interest rate exchanges.
4. We do not engage in high-leverage financial activities.