LNCD(SH:600739) Zheng Quan Zhi Xing·2025-08-29 15:12Core Viewpoint - The company has established a comprehensive management system for futures and derivatives trading to mitigate investment risks, enhance risk control, and safeguard the interests of the company and its shareholders [1]. Group 1: General Principles - The trading of futures and derivatives must adhere to principles of legality, prudence, safety, and effectiveness, with a robust internal control system to manage investment risks [3]. - The company is prohibited from using raised funds for futures and derivatives trading and should not engage in speculative trading [3]. - The types of futures and derivatives for hedging should be limited to those related to the company's production and operations, ensuring alignment with the risks being managed [3]. Group 2: Hedging Activities - Hedging activities include selling existing inventory, hedging fixed-price contracts, hedging floating-price contracts, and hedging anticipated purchases or production based on operational plans [2]. - The company must ensure that the hedging instruments have an economic relationship with the risks being managed, allowing for opposite value changes due to the same risk factors [3]. Group 3: Decision-Making and Approval Procedures - A feasibility analysis report must be prepared and submitted to the board of directors for approval before engaging in futures and derivatives trading [4]. - Certain trading scenarios require shareholder approval if they exceed specified thresholds related to net profit and net assets [4]. Group 4: Risk Management and Control - The board of directors and shareholders are the primary decision-making bodies for futures and derivatives trading, with management responsible for implementation within authorized limits [5]. - The company must establish emergency response plans for significant unexpected events during trading and set appropriate stop-loss limits [5]. Group 5: Information Management and Disclosure - The company must comply with relevant regulations regarding information disclosure and reporting for futures and derivatives trading [6]. - Insider information must be kept confidential, and any breaches may result in disciplinary actions [6]. Group 6: Performance Evaluation and Reporting - The company must track the effectiveness of hedging activities and disclose any significant losses that meet specified thresholds [9]. - If hedging activities do not meet accounting standards, the company must still demonstrate how risk management objectives were achieved [9].