Luoniushan (SZ:000735) Xin Lang Cai Jing·2025-11-24 15:36Core Viewpoint - The company, Luo Niu Shan Co., Ltd., has announced the initiation of commodity futures hedging business to mitigate the impact of price fluctuations in live pigs and feed raw materials on its operations [1][2]. Group 1: Business Focus and Objectives - The primary aim of the hedging business is to use futures tools to hedge against price volatility of live pigs and key raw materials such as corn and soybean meal, thereby reducing the uncertainty of market prices on operational results [2]. - The company will engage in commodity futures trading closely related to its production operations, including live pigs, corn, and soybean meal, ensuring that all required funds come from its own resources [2]. Group 2: Business Scope and Duration - The maximum margin and premium for the hedging business will not exceed 50 million yuan, and this amount can be recycled within a 12-month period starting from the board's approval date [3]. - The business will be effective from November 24, 2025, to November 23, 2026, and the board has authorized a dedicated futures decision-making team to manage the implementation of this business [3]. Group 3: Risk Management and Control Measures - The company has identified four potential risks associated with the hedging business, including price abnormal fluctuations, funding risks, technical risks, and policy risks [4]. - To address these risks, the company has established five control measures, including institutional safeguards, scale control, fund management, personnel and system management, and continuous monitoring [4]. Group 4: Financial Treatment and Information Disclosure - The company will follow relevant accounting standards for financial treatment and will disclose the status of the hedging business in its periodic reports to ensure transparency [5]. - Industry analysis suggests that the cyclical volatility of live pig and feed raw material prices makes this hedging initiative a standard practice for stabilizing operational risks and enhancing performance stability [5].