Zheng Quan Zhi Xing·2025-08-11 10:12Core Viewpoint - The company intends to conduct commodity futures hedging to mitigate price volatility risks associated with its main product, lithium carbonate, produced by its subsidiary Jiangxi Jinde Lithium New Energy Technology Co., Ltd [1][2]. Group 1: Purpose of Hedging - The primary objective of the commodity futures hedging business is to effectively avoid and reduce the risks related to price fluctuations of production products, ensuring relative price stability and minimizing the impact of price volatility on operations [1][2]. Group 2: Basic Situation of Hedging - The company plans to engage in commodity futures hedging based on actual operational conditions, with a maximum margin and rights amount not exceeding RMB 30 million or equivalent foreign currency [2]. - The maximum contract value held at any trading point will not exceed RMB 300 million or equivalent foreign currency, with the authorization valid for twelve months from the board's approval date [2]. Group 3: Review Procedures - The company held meetings on August 8, 2025, where the board's audit committee and the board itself approved the proposal for commodity futures hedging, allowing for a maximum margin and rights amount of RMB 30 million [2]. Group 4: Risk Analysis - Potential risks include price fluctuation risks leading to trading losses, risks from inadequate internal controls, and risks from system malfunctions causing delays or errors in trading instructions [3][4]. Group 5: Risk Control Measures - The company has established clear regulations regarding the approval authority, operational processes, and risk control for the hedging business, including effective supervision and risk management mechanisms [3][4]. Group 6: Accounting Policies - The company will follow the relevant provisions of the Ministry of Finance's "Enterprise Accounting Standards" for accounting treatment of the hedging business, reflecting related items in the balance sheet and income statement [4]. Group 7: Sponsor Institution's Review Opinion - The sponsor institution, CITIC Securities, believes that the company's hedging activities are aimed at mitigating price volatility risks and ensuring price stability, and has noted the establishment of a management system for hedging business [4].