Production and Financial Performance - The company produced 21,700 tons of copper concentrate and 137,000 tons of electrolytic copper in the first half of 2025 [2] - The planned production for the second half of 2025 includes 42,000 tons of copper concentrate, 300,000 tons of cathode copper, 880,000 tons of sulfuric acid, 6 tons of gold ingots, and 60 tons of silver ingots [6] Resource and Mining Plans - The newly identified copper metal amount at the Copper Mine Yu Mine is 869,600 tons, which will be mined after the current mining rights are fully exploited [3] - The company is currently focused on completing existing mining operations before accessing new reserves [3] Financing and Investment Strategy - The current financing structure includes short-term and long-term bank loans, import letters of credit, import advances, and project loans, which meet operational and project needs [3] - A shareholder return plan for 2023-2025 has been approved, aiming to establish a stable and scientific profit distribution mechanism [4] Market Analysis and Pricing Impact - Short-term sulfuric acid prices are expected to remain stable with a slight upward trend, positively impacting the company's performance [5] - The company anticipates that copper prices will remain high due to various market factors, and it will implement cost control measures and financial tools to mitigate price risks [7] Product Profitability Challenges - The gross margin for copper strip and rolled copper foil products is currently at -8%, attributed to customer certification cycles and market development challenges [7] - The company aims to improve production efficiency and cost control to enhance gross margins moving forward [7]

Core Viewpoint - The company intends to conduct forward foreign exchange trading to mitigate the risks associated with currency fluctuations that could adversely affect its operating performance [1][2]. Group 1: Overview of Forward Foreign Exchange Trading - The company has overseas procurement and sales, primarily using USD and JPY for settlements, and aims to stabilize foreign earnings and reduce financial costs through forward foreign exchange trading [1]. - The proposed foreign exchange trading will be limited to the currencies used in the company's production and operations [2]. Group 2: Business Scale and Feasibility Analysis - The trading amount will not exceed USD 80 million and will be within 50% of the company's audited net assets from the previous year, with a duration of 12 months from the board's approval [2]. - Engaging in forward foreign exchange trading is deemed feasible as it helps lock in exchange rates, thereby reducing the impact of currency fluctuations on the company's profitability [2]. Group 3: Risk and Control Measures - The company acknowledges the risks associated with forward foreign exchange trading, including potential losses if the exchange rate is unfavorable compared to customer quotes [3]. - A comprehensive internal control system has been established to manage risks effectively, ensuring that the trading activities align with the company's operational needs [3][4]. Group 4: Accounting Policies - The company will adhere to relevant accounting standards for financial instruments and hedge accounting to accurately reflect the impact of forward foreign exchange transactions on its financial statements [5][6]. Group 5: Board and Sponsor Opinions - The board approved the forward foreign exchange trading proposal on August 22, 2025, confirming that the process complied with legal and regulatory requirements [6]. - The sponsor believes that the trading activities will help mitigate foreign exchange market risks and that the company is only engaging in low-risk transactions, ensuring that risks remain manageable [6].

Core Viewpoint - The training program aims to enhance the understanding of futures markets among government officials to better support the real economy and improve risk management practices [1][4]. Group 1: Importance of Futures Market - The futures market plays a crucial role in risk management for enterprises, stabilizing operations and enhancing pricing transparency in the commodity trade [3][4]. - Futures prices have become an important reference for spot trade, improving market fairness and transparency, and increasing China's pricing influence in international markets [3]. - The futures market acts as a "shock absorber" for enterprises, especially during periods of significant commodity price fluctuations, thereby stabilizing production management expectations [3]. Group 2: Development in Shandong Province - Shandong, as a major industrial and agricultural province, has a solid foundation for futures market development, supported by various government departments [3][4]. - The futures market in Shandong is experiencing steady growth, effectively serving the real economy [3]. Group 3: Regulatory Challenges - The complexity of futures market mechanisms, such as margin requirements and settlement processes, poses higher demands on regulatory bodies [3][4]. - Regulatory agencies need to monitor transactions in real-time and address any violations promptly, while various departments are involved in different aspects of risk management and compliance [3][4]. Group 4: Training Objectives and Outcomes - The training aims to deepen the understanding of futures tools among government officials and promote inter-departmental learning and collaboration [4][6]. - The program provides a platform for discussing compliance issues related to the use of futures tools, helping participants clarify the internal logic of how futures markets serve the real economy [6][7]. - Participants expressed a commitment to leverage this training to assist more enterprises in effectively using futures and derivatives for risk management, contributing to high-quality economic development in Shandong [7].

外部环境不确定因素越多，期货市场独特作用越发凸显。今年以来，在全球经济复苏乏力、地缘冲突加 剧的复杂形势下，大宗商品价格剧烈波动。面对挑战，我国期货市场主动作为，充分发挥价格发现和风 险管理功能。 "为助力实体经济稳健运行、更好应对外部风险挑战，期货市场各项工作有序推进、成效显著，市场发 展质量再上新台阶。"中国证监会期货监管司副司长王颖近日在2025中国(郑州)国际期货论坛上表示， 在当前不确定因素显著增多的市场环境下，期货市场为制造业相关市场主体稳定经营、提升产业链供应 链安全性提供了坚实保障。 期货市场服务能力不断增强 目前，国内期货市场已构建起覆盖能化、金属、农产品、金融等关键领域的多层次期货品种体系，成为 实体经济和产业链相关企业抵御价格波动风险、优化资源配置的重要工具。 在王颖看来，近年来我国期货市场服务能力不断增强。一方面，品种工具体系日益丰富。截至目前，我 国已上市商品期货和期权品种131个，可服务和辐射的国民经济领域更加广阔。另一方面，产业客户参 与度持续提升。2024年全市场产业客户日均成交量同比增长12.2%，参与套期保值的上市公司数量连续 11年保持增长。 多维度推动期货市场高质量发展 ...

Core Viewpoint - The article discusses the challenges faced by companies in the steel and coal industries due to price volatility of raw materials and highlights the shift towards using futures and derivatives for risk management [2][4][9]. Group 1: Industry Challenges - Companies in the steel production sector, such as He Fang Industrial and Shandong Hui Lian Group, are struggling with significant price fluctuations in key raw materials like iron ore and coking coal, which directly impact production costs and profits [1][2]. - The volatility in prices has been exacerbated by changes in international trade environments, supply-demand adjustments, and the COVID-19 pandemic, leading to increased operational risks for trading companies [2][8]. Group 2: Adoption of Futures Trading - Shandong Hui Lian Group and Shandong Tai Feng Commercial Group have begun to explore futures trading as a means to manage risks associated with price fluctuations, transitioning from a passive to an active risk management approach [3][4][7]. - The companies initially faced challenges due to a lack of understanding and experience with futures trading, but training and support from futures exchanges have helped them recognize the benefits of hedging [3][4][8]. Group 3: Successful Implementation of Risk Management Strategies - In 2022, Shandong Tai Feng successfully implemented a hedging strategy using futures contracts, which resulted in a partial offset of losses from declining prices, demonstrating the effectiveness of risk management tools [4][6]. - Shandong Hui Lian Group also engaged in futures trading to lock in procurement prices and manage inventory value, achieving a risk management gain of approximately 150,000 yuan [5][6]. Group 4: Future Outlook - The "Enterprise Wind Plan" has facilitated the entry of over 700 companies into the futures market, enhancing their risk management capabilities and promoting the use of futures as a stabilizing tool in business operations [9][10]. - Companies are expected to continue deepening their participation in the futures market, exploring more complex hedging strategies and expanding their risk management frameworks to adapt to market changes [9][10].

法兰泰克重工股份有限公司 二零二五年八月 法兰泰克重工股份有限公司 期货和衍生品交易管理制度 第一章 总则 第二章 交易品种与类型 第五条 公司从事套期保值业务的期货和衍生品品种应当仅限于与公司生产 经营相关的产品、原材料和外汇等，且原则上应当控制期货和衍生品在种类、规 模及期限上与需管理的风险敞口相匹配。用于套期保值的期货和衍生品与需管理 的相关风险敞口应当存在相互风险对冲的经济关系，使得期货和衍生品与相关风 险敞口的价值因面临相同的风险因素而发生方向相反的变动。 法兰泰克重工股份有限公司 期货和衍生品交易管理制度 第六条 本制度所述套期保值业务主要包括以下类型的交易活动： 第一条 为规范法兰泰克重工股份有限公司（以下简称"公司"）期货和衍 生品交易行为，加强对期货和衍生品交易的管理，有效防范和控制风险，确保公 司资产安全，维护公司及股东利益，根据《中华人民共和国公司法》《中华人民 共和国证券法》 《上海证券交易所股票上市规则》 《上海证券交易所上市公司自律 监管指引第 5 号——交易与关联交易》等有关法律法规、规范性文件和《公司章 程》的有关规定，结合公司实际情况，制定本制度。 第二条 本制度所称期货交易 ...

Group 1 - The event focused on preventing illegal securities activities and the practical application of apple futures in enterprise risk management [1][2] - Professor He Shaoqi emphasized that illegal futures trading is essentially fraudulent, harming inexperienced investors and disrupting financial order [1] - A comprehensive legal framework has been established in China to combat illegal futures activities, involving a collaborative mechanism among four departments for accountability [1] Group 2 - Manager Wang Zhixin discussed key delivery elements of apple futures contracts, including grade standards, location settings, process arrangements, and default handling [2] - Enterprises can effectively manage market risks through hedging, diversified operations, and financial management, with a focus on the "insurance + futures" innovative model [2] - The event had a total of 550 page views and 291 unique viewers, indicating a successful outreach in investor education [2]

Core Insights - The demand for efficient and convenient foreign exchange risk management tools among domestic enterprises is unprecedented due to the increasingly complex global economic environment and growing cross-border trade and investment activities [1][2]. Group 1: Market Trends - As of January to July 2025, 1,114 listed companies in China have engaged in futures and derivatives business, with over 80% (902 companies) involved in foreign exchange hedging, indicating a rapid increase in demand for foreign exchange risk management as China's economy becomes more globalized [1][2]. - Approximately 33% (364 companies) of companies have engaged in commodity futures hedging, and about 15% (162 companies) are involved in both commodity futures and foreign exchange derivatives, with manufacturing companies being the main force in hedging activities [2]. Group 2: Risk Management Evolution - Risk management capabilities have shifted from being a "bonus" to a "survival" necessity for enterprises, highlighting the importance of managing various risks during development [3]. - The use of futures and derivatives has become essential for modern enterprises to manage risks and achieve stable operations, reflecting a qualitative leap in risk management awareness among Chinese companies [3]. Group 3: Need for Comprehensive Risk Management - Companies are encouraged to integrate foreign exchange risk management into a comprehensive risk management system, moving away from conservative attitudes and avoiding reckless speculation [5]. - The cultivation of specialized talent in derivative risk management is crucial, as it requires a combination of knowledge in spot trading, financial theory, and risk control experience [5]. Group 4: Product Development and Market Growth - The introduction of foreign exchange futures products is expected to provide more options, improve the efficiency and transparency of foreign exchange risk management, and reduce hedging costs for enterprises [4]. - As of July 2025, the total capital in the futures market is approximately 1.82 trillion yuan, reflecting an 11.6% increase from the end of 2024, indicating a growing market and increasing demand from enterprises [6].

Core Insights - The 2025 China (Zhengzhou) International Futures Forum focused on risk management in the oilseed and oil market, highlighting the importance of canola oil and peanuts in China's agricultural landscape [1][2] - The Zhengzhou Commodity Exchange (ZCE) has opened its canola oil, canola meal, and peanut futures and options to foreign traders, with significant participation from international grain merchants [1] - The oilseed and oil futures have become essential risk management tools for industry chain enterprises, contributing to food security in China [1][2] Group 1 - Canola oil is the second-largest plant oil in terms of production and consumption in China, while peanuts have the highest self-sufficiency rate among major oilseed crops [1] - In the first seven months of 2023, the Dalian Commodity Exchange reported an average daily trading volume of 4.69 million contracts for oilseed and oil futures and options, a 21% increase year-on-year [1] - The average daily open interest reached 8.09 million contracts, reflecting a 33% year-on-year growth, with institutional clients accounting for nearly 70% of the positions [1] Group 2 - The oilseed and oil futures market has evolved beyond being a mere "safe haven" to becoming a stabilizing force for numerous enterprises in China [2] - Industry leaders suggest that in the face of increasing international policy and market uncertainties, enterprises should utilize hedging and financial tools to enhance operational resilience [2] - Risk management in the oilseed sector should closely monitor global production, import-export dynamics, tariff policy adjustments, and biodiesel industry policies [2]

Group 1 - The core viewpoint emphasizes the increasing importance of the futures market as a professional risk management platform amid profound adjustments in the international economic order and rising uncertainties in the global economy [1] - The futures market's service capabilities have been continuously enhanced, with a rich variety of products and tools introduced, including new futures contracts for polysilicon, casting aluminum alloy, pure benzene, and propylene, bringing the total number of listed commodity futures and options to 131 [1] - The participation of industrial clients in the futures market has significantly increased, with a year-on-year growth of 12.2% in average daily trading volume for industrial clients in 2024, and the total position of industrial clients in 48 major products equivalent to over 200 million tons in the spot market [1] Group 2 - The influence of futures prices has been continuously rising, with domestic application scenarios expanding, and various forms such as hedging, arbitrage, and rights trading being widely adopted [2] - The futures market is increasingly integrated into the national development agenda, supporting rural revitalization and ensuring food security through innovative models like "insurance + futures," while also serving the high-quality development of the manufacturing industry [2] - Among the listed commodity futures and options, 84 are industrial products, accounting for 64%, providing solid support for market participants in stabilizing operations and enhancing supply chain security amid increasing uncertainties [2]