QA(SH:603758) Zheng Quan Zhi Xing·2025-08-22 16:28Core Points - The article outlines the hedging management system of Chongqing Qin'an M&E PLC, aimed at regulating hedging activities, mitigating trading risks, and leveraging the functions of futures and derivatives markets [2][3][4]. Summary by Sections General Principles - The company establishes this system to standardize hedging transactions and prevent trading risks, in accordance with relevant laws and regulations [2]. - The system applies to the company and its subsidiaries, including wholly-owned and controlled subsidiaries [2]. - The hedging activities are limited to products, raw materials, and foreign exchange related to the company's operations, aiming to reduce the impact of price fluctuations on business results [2]. Approval Authority - The hedging business must be approved by the company's board of directors or shareholders [3]. - A feasibility analysis report must be prepared and submitted for board review, especially for significant transactions exceeding 50% of the latest audited net profit or 5 million RMB [3][4]. Organizational Structure and Responsibilities - A hedging leadership group is established, led by the chairman, with members from various departments responsible for managing hedging activities [5]. - Each department has specific responsibilities, including providing sales and procurement plans, maintaining trading accounts, and monitoring risks [5][6]. Business Management - The hedging process includes planning, funding allocation, risk management, and evaluation of effectiveness [7][8]. - The procurement department is responsible for drafting the annual hedging plan and ensuring compliance with the approved budget and strategies [9]. Reporting System - The procurement department must report the execution status of the hedging plan weekly and monthly, comparing actual activities with the annual plan [10]. - The finance department is responsible for reporting the previous month's hedging fund usage and effectiveness evaluation by the 2nd of each month [10]. Risk Management - The company must assess potential risks before engaging in hedging activities and implement effective risk control measures [11]. - Daily monitoring of hedging accounts is required to ensure timely reflection of gains and losses in financial reports [11][12]. Archive Management - The company is required to retain all original transaction and settlement documents related to hedging for at least 10 years [13]. Confidentiality - Personnel involved in hedging must adhere to confidentiality protocols regarding the company's hedging plans and financial statuses [14]. Information Disclosure - The company must comply with disclosure obligations as per regulations, especially when losses exceed 10% of the latest audited net profit [16].