CMST(SH:600787) Xin Lang Cai Jing·2025-12-26 13:35Core Viewpoint - China Storage Development Co., Ltd. plans to initiate commodity futures hedging business in 2026 to mitigate risks associated with commodity price fluctuations, with a maximum margin usage of 200 million RMB [1][2]. Group 1: Business Overview - The core objective of the hedging business is to effectively prevent or avoid market price volatility risks and promote spot trading while locking in price differentials [2]. - The business will cover standardized futures contracts on the Shanghai Futures Exchange and Zhengzhou Commodity Exchange, including eight industrial metal varieties such as copper, aluminum, zinc, lead, nickel, tin, silicon iron, and ferrosilicon [2]. - The 200 million RMB margin is the maximum amount that can be utilized at any given time and can be rolled over during the usage period, excluding physical delivery payments for futures [2]. Group 2: Risk Management - The company has identified five major risks associated with the hedging business: market risk, funding risk, internal control risk, technical risk, and policy risk [3]. - Specific risk control measures include a trading matching mechanism, dynamic monitoring of margin usage, a structured operational system, a professional team for operations, and compliance management to track regulatory changes [3]. Group 3: Decision Process and Accounting Treatment - The decision to proceed with the hedging business was approved by the company's board on December 26, 2025, and does not require shareholder approval [4]. - The accounting treatment will follow relevant financial instrument standards and will not apply hedge accounting standards [4]. - The initiative aims to utilize the futures market to hedge against commodity price volatility, ensuring stable operations for the main business, which aligns with the long-term interests of the company and its shareholders [4].