Under the expectation of RMB appreciation, the company's exposure to USD is relatively large mainly because: (1) its behavior of reserving USD cash may be beneficial to its own trade, but it may be unreasonable in terms of the amount.

(2) The company doesn't know the future exchange rate trend, only knows the trend of the US dollar against the RMB, and doesn't know the exchange rate trend of other currencies against the RMB, so it can't correctly grasp the key points of foreign exchange management. (3) Lack of understanding of foreign exchange risk management tools. For the company, the suitable tools are foreign exchange forward, foreign exchange futures, foreign exchange swaps and foreign exchange options, but the company is not familiar with these tools, which makes it impossible to correctly measure which tools are suitable for avoiding risks. (4) Financial support is not ready, and the company itself is not clear about the cost of exchange rate risk management.