LIUSTEELCO(SH:601003) Zheng Quan Zhi Xing·2025-08-26 16:40Core Viewpoint - The company plans to continue its hedging activities in 2025 to mitigate risks associated with price fluctuations of raw materials and products, thereby enhancing operational stability [1][4]. Summary by Sections Transaction Overview - The purpose of the hedging activities is to avoid risks from significant price fluctuations in raw materials and products, ensuring stable operations [2][3]. - The hedging business will involve various products including steel, iron ore, coking coal, coke, silicon manganese, silicon iron, copper, zinc, and nickel, which are all related to the steel industry [2][3]. - The trading tools will consist of domestic futures, with transactions taking place on domestic futures exchanges [2][3]. - The maximum amount for hedging transactions, including margin and premiums, will not exceed 300 million RMB, and this amount can be used cyclically [2][3]. - The company has established dedicated positions for hedging activities, staffed by qualified personnel with strong market analysis and risk control capabilities [2][3]. Approval Process - The company held a board meeting on August 25, 2025, where the proposal for hedging activities was approved with unanimous support [2][3]. Risk Analysis and Control Measures - The company acknowledges potential risks associated with hedging, including market volatility and operational issues, and has implemented measures to manage these risks effectively [4]. - A dedicated futures business leadership team has been established to oversee the hedging activities and ensure compliance with risk management protocols [4]. Impact on the Company - The hedging activities are intended solely for managing risks related to price fluctuations in the commodity market, without engaging in speculative trading, thus safeguarding the company's core business operations [4][5]. - The company has developed a management system and risk control measures for the hedging business, ensuring that operations are legal, compliant, and in the best interest of all shareholders [5].