东方电缆: 东方电缆关于开展2025年度原材料期货套期保值业务的公告

Core Viewpoint - The company, Ningbo Dongfang Cable Co., Ltd., plans to continue its futures hedging business for copper and lead in 2025 to mitigate price volatility risks associated with these key raw materials used in its cable systems [1] Group 1: Purpose and Necessity of Hedging - The company aims to align with national strategies such as building a strong maritime nation and the "Belt and Road" initiative, while also expanding into new markets, particularly in offshore wind power and high-end land cable systems [1] - Copper and lead are essential raw materials for the company's products, and the hedging strategy is intended to reduce potential risks from price fluctuations [1] Group 2: Trading Volume and Duration of Hedging - The maximum holding capacity for copper is set at 40,000 tons, while for lead, it is 30,000 tons [2] - The hedging activities will be conducted from the date of approval at the 2024 annual shareholders' meeting until the 2025 annual shareholders' meeting [2] Group 3: Risk Analysis - The company acknowledges various risks associated with futures trading, including systemic risks, incorrect price predictions, and discrepancies between futures and spot prices [2][3] - Regulatory changes affecting the futures market could also introduce risks, such as market volatility or trading restrictions [2] Group 4: Risk Control Measures - The company will limit its futures trading to a scale not exceeding the previous year's audited net assets and will only engage in on-exchange transactions [3][4] - The focus will be on hedging against price risks for copper and lead, avoiding speculative trading [4] Group 5: Impact of Hedging on the Company - The use of margin trading in futures and options allows the company to lock in prices for large quantities of goods while improving capital turnover and reducing costs [4] - Engaging in hedging for copper and lead will enable the company to manage price risks effectively, stabilize product profits, and minimize the impact of raw material price fluctuations on normal operations [4]