Foreign Exchange Risk Management for Chinese Portable Energy Storage Exporters: The Huabao New Energy Case

Chinese portable energy storage exporters face foreign exchange risk arising from differences between the currencies of production costs and overseas revenues, together with uncertainty in transaction timing and cash collection. This study examines foreign exchange risk management at Huabao New Energy through a qualitative case analysis of publicly disclosed financial information and relevant literature. Drawing on enterprise risk management and principal–agent perspectives, alongside hedge accounting requirements, the analysis considers how exposure measurement, hedging decisions, accounting treatment, and governance support interact. It highlights the importance of distinguishing year-end foreign-currency monetary exposure from forecast cash-flow exposure, annual derivative transactions from outstanding contracts, and economic hedging from the application of hedge accounting. A proposed management framework integrates currency- and maturity-specific exposure measurement, exposure-matched hedging, appropriate accounting treatment, and continuous monitoring, supported by internal controls, managerial incentives, and integrated treasury information. The study provides a practical framework for evaluating foreign exchange risk management in export-oriented manufacturers. However, public disclosures alone cannot establish deficiencies in internal procedures or managerial motivations, and the effectiveness of the proposed framework requires further empirical assessment.