Zheng Quan Zhi Xing·2025-06-19 10:59Core Viewpoint - The company, Jiangxi Hongbai New Materials Co., Ltd., aims to mitigate the risks associated with raw material price fluctuations by engaging in commodity futures hedging and trading activities, specifically focusing on industrial silicon, which is a key raw material for its operations [1][5]. Summary by Sections Overview of Commodity Futures Hedging and Trading - The company plans to conduct futures hedging and trading to reduce the impact of raw material price volatility on its production costs, thereby ensuring stable and sustainable business operations for itself and its subsidiaries [1]. Financial Limits and Funding Sources - The maximum margin required for the commodity futures hedging and trading activities will not exceed 40 million RMB, and the highest contract value held at any single point in time will not exceed 200 million RMB, with these limits being subject to rolling use during the approval period [2]. - The funding for these activities will come from the company's own funds and will not involve raised capital [2]. Risk Analysis and Control Measures - The company will adhere to a prudent approach, avoiding speculative trading, and will base its hedging and trading activities on normal operational needs to mitigate price fluctuation risks [3]. - Identified risks include market risk, funding risk, internal control risk, technical risk, and policy risk, which the company aims to manage through established protocols [3]. Risk Management Policies - The company has established a comprehensive trading management system that outlines principles, approval authority, management processes, risk control, and information disclosure [4]. - It will align its futures trading with its production operations, strictly control positions, and continuously optimize the scale and duration of hedging activities [4]. Accounting Policies - The accounting policies and principles for the commodity futures hedging and trading will comply with relevant Chinese accounting standards, ensuring proper financial reporting and measurement [4]. Sponsor's Review Opinion - The sponsor, CITIC Securities, believes that the company's engagement in commodity futures hedging and trading will help mitigate operational risks from raw material price fluctuations and enhance financial stability, with all procedures adhering to legal and regulatory requirements [5].