TongDa Cable(SZ:002560) Qi Huo Ri Bao Wang·2025-09-02 16:58Core Viewpoint - A profound transformation is occurring in Henan, focusing on the construction of a modern industrial system, where companies like Tongda Cable Co., Ltd. are leveraging the futures market to manage risks and seize opportunities amid commodity price fluctuations [2][3]. Company Overview - Tongda Cable, founded in 1987 and listed in 2011, has been a leader in the cable industry for nearly 40 years, specializing in the production and sales of cables, precision processing of aircraft components, and aluminum-based composite materials [3]. - The company has an annual production capacity of over 100,000 tons for ultra-high voltage cables and 50,000 kilometers for power and high-end cables, contributing to major projects like the 1000kV transmission line [3]. Challenges Faced - The company faces significant challenges due to raw material costs, with electrolytic aluminum and cathode copper accounting for over 70% of production costs [4]. - Price volatility of these metals, influenced by supply-demand dynamics and macroeconomic factors, has led to substantial risks, particularly when contracts are won based on current prices but delivered months later [4]. Risk Management Strategy - Since 2007, Tongda Cable has utilized futures tools, starting with aluminum and later expanding to copper, to hedge against price fluctuations [6]. - The company has developed a comprehensive risk management framework, including a specialized internal control system, a professional team, and strict risk management protocols [8]. Recent Developments - In response to rising aluminum prices in late 2024, the company quickly implemented a hedging strategy by purchasing call options, resulting in a profit of 44,440 yuan, effectively mitigating the impact of rising raw material costs [7]. - Tongda Cable has been recognized as a best practice case for risk management in futures by the China Listed Companies Association and has been approved as a service base for integrating finance and industry [6][11]. Industry Collaboration - The company emphasizes collaboration within the supply chain, moving from a focus on price to technology and service, enhancing customer engagement from the design phase of projects [10]. - Tongda Cable is also establishing a strategic supplier evaluation system to strengthen partnerships and improve communication regarding hedging tools and market analysis [11]. Conclusion - Tongda Cable's experience exemplifies how companies in Henan are effectively utilizing futures and derivative tools to manage price risks, stabilize operations, and achieve high-quality development in line with national industrial goals [11].