HNA Technology(SH:600751) Shang Hai Zheng Quan Bao·2025-09-29 21:08Core Viewpoint - HNA Technology Co., Ltd. has announced the approval of financial derivative business, specifically forward freight agreements (FFA), to mitigate market risks associated with its shipping operations [1][2]. Group 1: Transaction Overview - The company owns 10 bulk carriers with a total capacity of approximately 930,000 deadweight tons and has added 4 chartered vessels, increasing capacity by about 240,000 deadweight tons [2]. - The purpose of engaging in FFA transactions is to hedge against market fluctuations and reduce adverse impacts on the company's operations [2][3]. - The maximum margin for these transactions will not exceed $3 million, and the highest contract value held on any trading day will not exceed $30 million [3][27]. Group 2: Approval Process - The board of directors approved the proposal for FFA transactions during its fourth meeting on September 29, 2025, with a unanimous vote of 7 in favor [6][19]. - The proposal was reviewed by the audit committee prior to the board meeting and does not require shareholder approval as it does not constitute a related party transaction [6][19]. Group 3: Risk Analysis and Control Measures - The company acknowledges various risks associated with the FFA transactions, including market risk, liquidity risk, performance risk, and legal risk [7][9]. - Control measures include strict adherence to internal management procedures, careful selection of trading partners, and the establishment of a dedicated team for risk assessment and management [10][20]. Group 4: Impact on the Company - Engaging in FFA transactions is expected to enhance the company's ability to withstand market volatility and will not negatively impact its core business operations [11][25].