Henan Jindan Lactic Acid Technology (SZ:300829) Xin Lang Cai Jing·2025-10-27 09:54Core Viewpoint - Henan Jindan Lactic Acid Technology Co., Ltd. has approved a proposal to engage in commodity hedging to mitigate risks associated with price fluctuations of raw materials, products, and shipping costs [1][2]. Group 1: Hedging Business Overview - The primary objective of the hedging business is to address multiple price fluctuation pressures in production and operations, particularly due to the high cost share of key raw materials like corn and coal [2]. - The company plans to hedge against price volatility in various commodities, including corn, starch, wheat, soybean meal, soybeans, thermal coal, coking coal, PTA, and shipping costs [2]. Group 2: Financial and Operational Details - The maximum investment in the hedging business will not exceed 15 million yuan, with a cap of 50 million yuan on the value of contracts held on any trading day [3]. - The funding for this hedging initiative will come from the company's own and self-raised funds, excluding any fundraising or bank credit [3]. Group 3: Risk Management and Compliance - A comprehensive risk management system has been established, including an internal audit department to monitor compliance and ensure that the hedging activities align with operational needs [4]. - The company has received validation from Guojin Securities, which recognizes the necessity of the hedging business to mitigate price volatility impacts and enhance overall risk resilience [4]. Group 4: Approval Process and Strategic Intent - The proposal for the hedging business has been approved by the company's board and supervisory committee, eliminating the need for a shareholder meeting [5]. - The initiative is aimed at strengthening financial stability and supporting long-term development without adversely affecting the main business operations or funding arrangements [5].