CSI Solar(SH:688472) Shang Hai Zheng Quan Bao·2026-01-12 18:09Core Viewpoint - The company, Arctech Solar Power Group Co., Ltd., has announced adjustments to its commodity futures and derivatives, as well as foreign exchange hedging business, to effectively mitigate the impact of raw material price fluctuations on its operations and ensure timely product delivery and cost control [1][17]. Group 1: Announcement Details - The company has set a maximum contract value of $2 billion for any trading day related to commodity and foreign exchange hedging, with a total expected margin and premium cap of 935 million RMB and 763 million USD [2]. - The board of directors approved the adjustment to include commodity futures and derivatives, such as polysilicon, lithium carbonate, copper, aluminum, tin, and silver, which will share the same limit as foreign exchange hedging [3][11]. Group 2: Trading Objectives and Amounts - The trading objective is to reduce the impact of raw material price volatility on production and ensure project profitability, utilizing futures market hedging capabilities [5]. - The adjusted maximum contract value for commodity futures and derivatives is set at 2 billion RMB per day, with a margin and premium cap of 700 million RMB [6]. Group 3: Funding Sources and Trading Methods - Funding for the commodity futures and derivatives hedging will come from the company's own funds and customer payments for hedging, while foreign exchange hedging will utilize self-funds or bank credit [7]. - The trading methods will include futures, options, and derivatives, focusing on raw materials relevant to production, with foreign exchange hedging limited to currencies used in operations [8]. Group 4: Trading Duration - The foreign exchange hedging business will be valid for 12 months from the approval date of the 2024 annual shareholders' meeting, while the commodity futures and derivatives hedging will be valid for 12 months from the board's approval date [10]. Group 5: Risk Management and Control Measures - The company will adhere to legal, prudent, and effective principles in its hedging operations, avoiding speculative trading [4]. - Risk control measures include matching hedging activities with production needs, managing liquidity risks, and ensuring compliance with internal control systems [14][15]. Group 6: Impact on Company Operations - Engaging in futures and derivatives hedging will help stabilize profit levels and enhance the company's risk defense capabilities, without affecting normal operations [16]. - The company will follow relevant accounting standards for the hedging activities to ensure proper financial reporting [16]. Group 7: Intermediary Opinions - The sponsoring institution supports the adjustments made by the company, stating that they are necessary for managing raw material price volatility and ensuring operational efficiency [17].