Core Viewpoint - The company, Zhongfu Industrial Co., Ltd., announced its plan to continue commodity hedging activities in 2026 to mitigate price volatility risks associated with aluminum and related products, with a maximum margin amount not exceeding 400 million RMB or equivalent foreign currency [1][2]. Group 1: Hedging Business Overview - The hedging business focuses on core products in the aluminum industry chain, aiming to reduce price volatility risks and enhance performance stability [2]. - The trading instruments include standardized futures contracts and options traded on approved domestic exchanges [2]. - The funding source for the hedging activities will be the company's own funds, with a trading period set from January 1, 2026, to December 31, 2026 [2]. Group 2: Risk Management Measures - The company has identified five major categories of risks associated with the hedging activities, including market risk, operational risk, liquidity risk, internal control deficiencies, and technical system failures [2]. - Six risk control measures have been established, including strengthening internal audit supervision and regularly reviewing the execution of trading plans [2][4]. Group 3: Business Stability and Market Context - As a veteran in the aluminum industry, the company aims to address the challenges posed by price fluctuations in alumina and electrolytic aluminum, which have been affected by supply-demand dynamics and energy costs since 2025 [3]. - By locking in raw material procurement costs and product sales prices, the company expects to smooth out performance volatility [3]. - The company emphasizes adherence to the principle of "hedging aligned with core business" and will not engage in derivative trading unrelated to its production operations [3].

Core 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].

Core Viewpoint - The company aims to mitigate operational risks associated with aluminum ingot price fluctuations by engaging in futures hedging activities, which are deemed necessary for stabilizing its business operations [1][4]. Group 1: Necessity of Hedging Business - The company faces significant operational risks due to volatile aluminum ingot prices, which can greatly impact profitability [1]. - The proposed hedging strategy involves using futures contracts to lock in costs and profits, thereby ensuring stable operations [1]. Group 2: Overview of Hedging Business - The hedging will focus on aluminum ingots as the trading commodity [1]. - The maximum margin for trading is set at 4.8 million RMB, which will be used on a rolling basis throughout the hedging period [1]. - The trading will occur on the Shanghai Futures Exchange, utilizing entirely self-owned funds for margin [1]. - The authorization for this hedging business is valid until December 31, 2025 [1]. Group 3: Risk Analysis of Hedging Business - Market risk arises from asymmetric price movements between futures and spot markets, potentially leading to simultaneous losses [2]. - Operational risk may occur if trading procedures are not followed or if personnel lack sufficient understanding of derivatives [2]. - Liquidity risk could arise from insufficient market activity, making it difficult to execute trades [2]. - Internal control risks may stem from an inadequate internal control system [2]. - Technical risks could result from incomplete computer systems [2]. Group 4: Risk Control Measures - The company will align hedging activities with its production needs, ensuring that futures contracts match the timing of physical hedging requirements [3]. - Strict internal controls will be implemented to manage funds used for hedging, adhering to the approved margin limits [3]. - The company will monitor futures trading closely and select contracts with adequate liquidity [3]. - Professional personnel will be employed, and a robust reporting and internal audit mechanism will be established to manage risks effectively [3][4]. - Any trading plans exceeding board authorization must be reported for approval [4]. Group 5: Feasibility Analysis Conclusion - The company has established internal control systems and risk prevention measures, making the proposed aluminum ingot hedging business feasible and necessary [4]. - The hedging strategy is designed to prevent price fluctuation risks while adhering to hedging principles, thus enhancing profit stability and reducing adverse impacts on financial performance [4].

Core Viewpoint - The company has approved a hedging business to mitigate risks associated with price fluctuations of raw materials and related products, using its own funds not exceeding 46 million yuan [1][2][3] Group 1: Hedging Business Details - The hedging business will focus on futures related to cottonseed and its products, including cotton oil and cotton meal/protein, as well as soybean meal futures [2] - The investment amount is capped at 46 million yuan, which includes margin and risk funds, with a maximum contract value of 650 million yuan on any trading day [2] - The trading will occur on legally operating futures exchanges within China, using self-owned funds without involving raised capital [2] Group 2: Risk Management and Oversight - The hedging business is intended solely to reduce risks from price fluctuations and not for profit-making purposes [2] - The company has established a risk management system to control market, technical, and policy risks, including regular audits by the audit department and oversight by the audit committee [2][3] - The supervisory board supports the hedging initiative, affirming that it aligns with legal and regulatory requirements and does not harm the interests of shareholders, particularly minority shareholders [3]

Group 1 - The company has approved a plan to conduct commodity hedging business, with a trading margin and premium cap of up to RMB 10 million initially, which can be rolled over within the effective period [1] - The cap for the trading margin and premium was later increased to RMB 20 million, reflecting the company's ongoing strategy to manage commodity price risks [2] - As of August 18, 2025, the company reported a total investment loss of RMB 11.63 million from its hedging activities, with unrealized losses from open positions amounting to RMB 11.44 million [2] Group 2 - The company's hedging activities are not expected to impact its daily operations, and the overall profit impact will be determined by actual gains or losses [3] - The company plans to enhance its market monitoring and risk management strategies to mitigate risks associated with its hedging activities [3]

Core Viewpoint - The company aims to enhance its risk management capabilities by increasing the margin for its commodity hedging business, specifically in lithium carbonate, to mitigate the adverse effects of price volatility on its operations [1][2][6] Group 1: Background and Necessity - The company, through its subsidiary Sichuan Huati Lithium Energy Co., Ltd., is engaged in lithium carbonate-related products, which have experienced significant price fluctuations in recent years [1] - To reduce the negative impact of these price fluctuations on its operations, the company has decided to conduct commodity futures and derivatives trading for hedging purposes [1][2] Group 2: Feasibility Analysis - The increase in the margin for the hedging business is necessary due to the rising volume of lithium carbonate business and heightened market volatility [1][3] - The company has established a hedging policy and formed a leadership team to oversee the operations, ensuring compliance with risk management protocols [2][3] Group 3: Trading Details - The trading activities will focus solely on lithium carbonate futures and derivatives that are directly related to the company's operations, conducted on legally operating domestic exchanges [2][3] - The maximum margin and premium for these trading activities will not exceed RMB 30 million, which can be recycled within the effective period [3] Group 4: Risk Management - The company acknowledges the inherent risks associated with hedging, including potential losses from price discrepancies and market volatility [4][5] - To mitigate these risks, the company has implemented strict approval processes, operational guidelines, and risk control measures [5][6] Group 5: Accounting Principles - The company will adhere to relevant accounting standards for financial instruments and hedging activities, ensuring accurate reporting in financial statements [5][6] Group 6: Conclusion - The decision to engage in hedging activities and increase the margin is deemed practical and aligned with the company's operational needs, supported by a robust internal control framework [6]

Core Viewpoint - The company has decided to increase the margin limit for its commodity hedging business from RMB 20 million to RMB 30 million to better manage the risks associated with the volatility in lithium carbonate prices [2][3][4] Summary by Sections 1. Announcement of Margin Increase - The board of directors approved the increase in the margin limit for commodity hedging activities to RMB 30 million, which can be used on a rolling basis within the effective period [2][3] 2. Purpose of Trading - The company aims to mitigate the adverse effects of price fluctuations on its operations by utilizing futures and derivatives trading tools to enhance its overall risk resistance [2][3] 3. Trading Specifications - The hedging activities will focus solely on lithium carbonate futures and derivatives that are directly related to the company's operations, conducted on legally operating domestic futures exchanges [2][3] 4. Financial Details - The new margin limit includes the value of collateral provided for trading, expected credit limits from financial institutions, and emergency reserve margins, excluding physical delivery payments [3][4] 5. Authorization Period - The authorization for the increased margin limit is valid for 12 months from the date of board approval, with automatic extensions for any trades that exceed this period [3] 6. Funding Source - The company will utilize its own funds for the commodity hedging activities [3] 7. Risk Management Measures - The company has established a hedging policy to manage risks associated with trading, including market, price, policy, liquidity, operational, technical, credit, and funding risks [5][6][7] 8. Accounting Principles - The company will adhere to relevant accounting standards for the financial reporting of its hedging activities [7][8]

Core Viewpoint - Ningxia Yinglite Chemical Co., Ltd. has approved a proposal to conduct PVC futures hedging business for the year 2025, aiming to mitigate risks associated with commodity price fluctuations and enhance financial stability [1]. Summary by Sections Independent Directors Meeting - The ninth session of the independent directors' special meeting was held on July 29, 2025, with all three independent directors present [1]. - The meeting reviewed and approved the proposal for conducting PVC futures hedging business [1]. Hedging Business Management - The company has established a comprehensive hedging management system, including clear operational and approval processes, reporting, and confidentiality regulations [1]. - The use of self-owned funds for the PVC futures hedging business complies with national laws and the company's articles of association [1]. Risk Mitigation and Financial Efficiency - Engaging in the hedging business is expected to reduce the risks associated with commodity price volatility, thereby preventing adverse impacts on the company [1]. - This strategy is also anticipated to improve the efficiency of operating capital utilization and enhance financial robustness [1].

Core Viewpoint - The management system for commodity hedging at Guangdong Dongjian Automotive Technology Co., Ltd. aims to standardize hedging operations to mitigate price risks and secure profits, adhering to relevant trading rules and regulations [1][2]. Group 1: General Principles - The hedging activities are limited to raw materials necessary for the company's production and operations, and speculative trading is prohibited [1][2]. - Hedging operations must align with the company's actual procurement, inventory, and sales volumes, ensuring that the hedging volume does not exceed actual procurement [2][3]. - The company must establish hedging accounts in its name and cannot use third-party accounts for hedging activities [2][3]. Group 2: Organizational Structure - The Board of Directors' Audit Committee is responsible for reviewing the necessity, feasibility, and risk control of commodity futures and derivatives trading, and may hire professionals for feasibility analysis [2][3]. - A leadership group for commodity hedging is established, consisting of key management personnel, including the General Manager and heads of various departments [4][5]. Group 3: Risk Management - Risk management is integrated throughout the hedging process, focusing on market, price, funding, operational, credit, and basis risks [9][10]. - The company must maintain a risk measurement system to assess potential funding risks and price fluctuation impacts on hedging positions [11][12]. Group 4: Financial Accounting - The company is required to conduct daily accounting for its hedging activities in accordance with relevant accounting standards [13][14]. Group 5: Information Disclosure - The company must disclose details regarding its hedging activities, including purposes, types of transactions, expected margins, and risk management measures [15][16]. - Any significant losses from hedging activities must be reported promptly, especially if they exceed 10% of the company's most recent audited net profit [17].

Core Viewpoint - The company, Anhui Xinbo Aluminum Industry Co., Ltd., continues to engage in commodity hedging activities to mitigate the impact of raw material price fluctuations on its operations [1][2][3] Group 1: Business Overview - The main products of the company and its subsidiaries include new energy photovoltaic, automotive lightweight materials, and other aluminum profiles [1] - The company has a long-standing practice of organizing production based on customer orders and follows a pricing principle of "aluminum ingot price + processing fee" [1][2] - The market price for aluminum ingots is determined by the Shanghai Nonferrous Metals Network [1][2] Group 2: Hedging Activities - The company will limit its hedging activities to aluminum rods, with a maximum trading margin and premium balance not exceeding RMB 80 million [2][4] - The hedging period will not exceed 12 months from the date of board approval [2] - The hedging tools will include futures and derivatives, with a focus on ensuring liquidity and proper settlement arrangements [2][4] Group 3: Risk Assessment - The company acknowledges various risks associated with hedging, including price volatility, funding, internal control, technical, operational, and customer default risks [3][4] - The maximum margin and premium for hedging represent approximately 0.79% of total assets and 2.65% of net assets attributable to shareholders as of December 31, 2024 [4] Group 4: Impact on Financials - The company will adhere to relevant accounting standards for hedging activities, which will reflect in the balance sheet and income statement [5] - The company aims to mitigate the impact of raw material price fluctuations through its hedging activities [5] Group 5: Approval Process - The proposal to continue hedging activities was approved by the company's board of directors and independent directors, confirming that it aligns with the company's operational needs and does not harm shareholder interests [6][7]