Fenglin Group(SH:601996) Zheng Quan Zhi Xing·2025-08-14 16:38Core Points - The company establishes a management system for futures hedging to regulate its operations and mitigate risks associated with price fluctuations in raw materials and finished products [1][2][3] - The primary goal of the futures hedging business is to control risks related to the rising costs of major commodities and to protect profit margins during the order-to-revenue confirmation period [2][3] - The company emphasizes that futures trading should only be for hedging purposes and prohibits speculative trading [1][2] Group 1: General Principles - The company is limited to conducting hedging transactions in domestic futures exchanges and must not engage in off-market trading [1][2] - The hedging positions must align with the company's operational timelines and the types and scales of the underlying assets [2][3] - The company must maintain sufficient self-owned funds to match the margin requirements for hedging and cannot use raised funds for this purpose [1][2][3] Group 2: Organizational Structure - A dedicated hedging working group is established, comprising decision-making, risk control, and operational teams to oversee the hedging activities [3][4] - The decision-making team is responsible for determining whether to operate new futures contracts based on sales orders and production plans [4] - The risk control team evaluates the reasonableness of existing positions and assesses market liquidity risks [4] Group 3: Decision Authorization - The company must prepare feasibility analysis reports for hedging activities and submit them for board approval [5][6] - If the trading frequency and time constraints make it difficult to follow the approval process for each transaction, the company can estimate the scope and limits of futures trading for the next 12 months [5][6] - The hedging working group is authorized to execute daily operations within the approved limits [5][6] Group 4: Operational Execution - The company must adhere to strict operational procedures for futures hedging, ensuring that all departments comply with trading instructions [22][23] - The trading strategy must be developed based on market analysis and forecasts, with regular updates to the decision-making team [24][25] - After trading, the company must either close the futures positions or proceed with physical delivery as per the trading instructions [25][26] Group 5: Risk Management - A robust risk management system is established to prevent, identify, and mitigate risks associated with futures trading [29][30] - The risk control team is responsible for timely risk assessments, including funding risks and price fluctuation risks [31][32] - Internal reporting and risk handling procedures are in place to address significant market fluctuations and compliance issues [33][34] Group 6: Other Management Matters - The company must disclose any significant losses or gains related to futures trading that exceed specified thresholds [41][42] - All trading documents and records must be maintained for at least 10 years, ensuring compliance with regulatory requirements [43][44] - The management system will be enforced strictly, with penalties for violations [45][46]