Lutian Machinery (SH:605259) Zheng Quan Zhi Xing·2025-08-21 09:14Core Viewpoint - Greenfield Machinery Co., Ltd. plans to engage in futures hedging to mitigate risks associated with raw material price fluctuations, ensuring relative stability in product costs and reducing operational impacts [1][2]. Summary by Sections Transaction Overview - The company and its subsidiaries aim to utilize the futures market for hedging to avoid risks from raw material price volatility, thereby stabilizing product costs and minimizing operational impacts. The maximum margin for futures trading is set at RMB 10 million, with an authorization period not exceeding 12 months, focusing on raw materials relevant to production, including copper, aluminum, and polypropylene [1][2]. Review Procedures - The board of directors convened on August 21, 2025, to approve the proposal for futures hedging, which does not require shareholder meeting approval [1][3]. Funding Sources - The funding for the futures hedging activities will come from the company's own funds [3]. Trading Method - The company plans to conduct futures hedging through domestic commodity exchanges, focusing on raw materials relevant to its operations [3]. Trading Duration - The authorization for the hedging activities is valid for 12 months from the date of board approval [3]. Authorization Matters - The board has authorized a futures hedging working group to implement the hedging activities and sign relevant documents within the specified limits and duration [3]. Risk Analysis and Control Measures - The company emphasizes that the hedging activities will be conducted legally, cautiously, and effectively, primarily to mitigate risks from raw material price fluctuations. However, there are inherent risks, including potential trading losses and liquidity risks. The company has established a comprehensive risk management system to address these risks [2][4]. Impact on the Company - Engaging in futures hedging is expected to enhance the company's ability to respond to market price fluctuations, thereby strengthening its core competitiveness. The planned margin investment aligns with the company's self-funding capabilities and operational needs, ensuring no adverse effects on normal business operations [4][5].