Zheng Quan Zhi Xing·2025-08-29 17:12Core Viewpoint - The company, SANY Energy Co., Ltd., is increasing its futures hedging business limit to enhance its risk management capabilities against raw material price fluctuations [1][4]. Group 1: Transaction Overview - The company plans to raise the maximum balance of margin and premium from RMB 100 million to RMB 150 million and the maximum contract value held on any trading day from RMB 100 million to RMB 300 million [1][2]. - The purpose of this increase is to mitigate the adverse effects of significant raw material price volatility on the company's operations while ensuring normal production [1][2]. - The funding for this business will come from the company's own funds and will not involve raised capital [2]. Group 2: Approval Process - The company’s board and supervisory board approved the increase in futures hedging business limits during meetings held on August 28, 2025 [1][2]. - This matter does not involve related party transactions and does not exceed the board's authority, thus it does not require submission to the shareholders' meeting [1][2]. Group 3: Risk Analysis and Control Measures - The primary risk associated with the futures hedging business is the potential for incorrect price predictions, which could lead to losses [3][4]. - The company has established clear approval and execution procedures for the hedging business, which comply with regulatory requirements and aim to minimize market liquidity risks [4]. Group 4: Impact on the Company - The futures hedging business is expected to stabilize the company's operations by mitigating the negative impacts of raw material price fluctuations, thus supporting sustainable production [4]. - The company will adhere to relevant accounting standards for financial instruments and hedging accounting in its financial reporting [4]. Group 5: Sponsor's Review Opinion - The sponsor, CITIC Securities, believes that the increase in the hedging business limit will effectively reduce risks associated with raw material price volatility and will not harm the interests of the company or its shareholders [5].