Jiayou International(SH:603871) Zheng Quan Zhi Xing·2025-07-24 16:21Core Viewpoint - The company is expanding its futures hedging business to mitigate the risks associated with price volatility of Mongolian coking coal and other commodities, enhancing its financial stability and operational resilience [1][2][3]. Group 1: Adjustment Reasons and Trading Purpose - The company focuses on supply chain trading of Mongolian coking coal, which has experienced significant price fluctuations due to various factors such as supply and demand, costs, policies, and international markets [1][2]. - To further hedge against price volatility risks, the company is increasing the scale of its futures hedging business and raising the upper limit for futures trading [1][2]. Group 2: Adjusted Trading Amount - The maximum trading margin and premium for the futures hedging business is set to not exceed RMB 200 million or equivalent in other currencies [2][3]. - The maximum contract value held on any trading day is expected to not exceed RMB 1 billion or equivalent in other currencies [2][3]. Group 3: Funding Sources and Trading Methods - The funding for the futures hedging activities will come from the company's own funds, without involving raised capital [3]. - The trading methods include selling hedges on existing inventory, hedging fixed-price purchase and sales contracts, and hedging expected procurement or production volumes [3][4]. Group 4: Trading Duration and Approval Process - The authorization period for the futures hedging business is set for 12 months from the date of board approval [4]. - The adjustment of the futures hedging business was approved by the company's board without the need for shareholder meeting approval [2][4]. Group 5: Impact on the Company and Accounting Treatment - The futures hedging business is aligned with the company's operational needs and aims to mitigate adverse impacts from price fluctuations in bulk mineral products [4]. - The company will conduct accounting for the futures hedging business in accordance with relevant regulations from the Ministry of Finance [4].