Group 1 - The company, Jintian Co., stated that its raw material inventory is maintained to meet normal production and operational needs, utilizing hedging tools to effectively reduce the impact of raw material price fluctuations on its operations [2] - Investors are encouraged to pay attention to the company's periodic reports for more detailed information [2]

Core Insights - The volatility of the "pig cycle" has become increasingly unpredictable, prompting pig farming companies to adopt a multifaceted approach to ensure profitability, including extending the industrial chain, enhancing digital management, and utilizing pig futures as a financial tool [1][2] Group 1: Industry Overview - The pig price has experienced significant downward pressure due to supply and demand imbalances, with the average price dropping below 11 yuan/kg in mid-October 2025, and the main pig futures contracts seeing a cumulative decline of 15.31% in the third and fourth quarters [2] - The number of live pigs in China reached 43.68 million by the end of the third quarter of 2025, a year-on-year increase of 2.3%, while the output volume for the first three quarters was 52.99 million, up 1.8% year-on-year [2] - The pig industry has faced multiple challenges over the past five years, including the recovery of production capacity post-African swine fever, high feed costs, and changing consumer demand, leading to a more extended downward cycle and shorter upward cycles [2] Group 2: Financial Tools and Risk Management - The introduction of pig futures has allowed companies to hedge against price volatility, with firms able to lock in future sales prices by selling futures contracts in advance [4][5] - Companies like DeKang Group have successfully utilized futures to offset losses in the spot market, achieving over 1,000 yuan profit per head through effective hedging strategies [5] - The futures market has evolved to become a critical tool for risk management, with companies increasingly relying on futures prices to guide production and sales decisions [5][9] Group 3: Operational Strategies - Companies are focusing on cost reduction and efficiency improvements through various strategies, including optimizing feed formulas, breeding technologies, and digital management [3][4] - The integration of the supply chain, from feed production to meat sales, has been emphasized to ensure stable supply and controllable costs, enhancing profitability during price fluctuations [3] - Collaboration between different departments within companies is essential for effective hedging, as misalignment can hinder the execution of risk management strategies [6][7] Group 4: Market Development and Future Expectations - The Dalian Commodity Exchange has made several adjustments to the pig futures contract rules to better align with market needs, including changes to delivery quality standards and the establishment of additional delivery warehouses [8][9] - The trading volume of pig futures has significantly increased, with total transactions reaching 17.993 million contracts in 2025, indicating a growing acceptance and utilization of these financial instruments within the industry [9] - The industry anticipates further expansion of the pig futures market to better meet the risk management needs of upstream and downstream enterprises [9]

Core Viewpoint - The company, Duo Fluoride, announced plans to engage in commodity futures hedging for lithium carbonate in 2026, with specific financial limits set for trading activities [1] Group 1: Commodity Futures Hedging - The board of directors approved a plan for commodity futures hedging on lithium carbonate, with a maximum trading margin and premium not exceeding 100 million yuan [1] - The maximum contract value for any single trading day is capped at 800 million yuan [1] Group 2: Foreign Exchange Hedging - The company will also conduct foreign exchange hedging, with a maximum contract value for any single trading day not exceeding 5 million USD [1] - The hedging activities for both commodities and foreign exchange will be valid for a period of 12 months from the date of board approval [1] Group 3: Funding Sources - All funds for these hedging activities will come from the company's own resources and self-raised funds [1]

Core Insights - The Dalian Commodity Exchange's soybean oil futures have been operating steadily for 20 years, with significant increases in trading volume and open interest, indicating enhanced liquidity and risk-bearing capacity [1] - Over 90% of medium and large soybean crushing enterprises in China utilize soybean oil futures for hedging, establishing the futures price as a key benchmark for domestic soybean oil spot trading [4] - The ability of soybean oil futures to serve the global oilseed industry has improved, with recent initiatives allowing foreign investors to trade these futures, thereby enhancing the international influence of China's soybean oil pricing and quality [5] Group 1: Market Performance - Daily trading volume of soybean oil futures increased from 43,100 contracts in 2006 to 445,000 contracts in 2025, while daily open interest rose from 24,200 contracts to 844,400 contracts [1] - The distribution of over 30 delivery warehouses across seven provinces ensures sufficient delivery capacity, supporting industry participation in the futures market [1] Group 2: Industry Adoption - More than 90% of large soybean crushing enterprises use the "Dalian Commodity Exchange futures price + basis" pricing model for soybean oil sales, indicating widespread acceptance of futures in the industry [4] - By the end of 2025, the proportion of industry clients holding soybean oil futures positions is expected to reach 52% [4] Group 3: Global Integration - In 2022, soybean futures were included in the list of tradable products for qualified foreign institutional investors, facilitating international trading [5] - The introduction of the FSOY contract on the Malaysian Derivatives Exchange based on soybean oil futures settlement prices reflects the growing global integration of these futures [5] Group 4: Risk Management and Pricing - The use of soybean oil futures has evolved from cautious experimentation to a critical tool for daily risk management and operational decision-making within the industry [5] - The adoption of basis pricing for other edible oils, such as cottonseed oil, demonstrates the broader acceptance and application of soybean oil futures pricing mechanisms [6]

1月9日，大连商品交易所豆油期货迎来上市二十周年。 业内人士认为，这些举措回应了境内外产业主体对豆油期货对外开放的呼声，为全球大豆产业链提供了丰富高效的定价和风险管理工具。同时，也有利于及 时全面向全球传递我国作为豆油主产区、主销区的市场信息，提升豆油品种"中国价格"和"中国品质"的国际影响力。 上市以来，豆油期货持续稳健运行—— 看市场容量，日均成交量由2006年的4.31万手增至2025年的44.50万手，日均持仓量由2.42万手增至84.44万手，流动性持续提升，风险承载力显著增强； 看交割布局，超30家豆油期货交割库分布于天津、河北、山东、江苏、浙江、广东、广西等7个省区市，覆盖范围广，交割能力充足，为产业企业参与期货 市场提供了坚实保障…… 随着功能发挥水平、市场认可度和产业参与度持续提升，豆油期货正有效服务相关产业企业应对价格风险、实现高质量发展。 大商所官网截图 当前，油脂行业企业"拥抱"豆油期货已是普遍现象。国内90%以上大中型大豆压榨企业运用豆油期货进行套期保值，国内大型大豆压榨企业90%以上的豆油 销售采用"大商所期货价格+升贴水"的定价模式，豆油期货价格已经成为境内豆油现货贸易的重要定价 ...

Core Viewpoint - The company has approved the addition of options hedging business to enhance its risk management capabilities and financial stability, primarily to mitigate the impact of raw material price fluctuations on its operations [1][10]. Group 1: Transaction Overview - The company previously approved futures hedging business on March 14, 2025, allowing the use of self-owned funds for hedging activities, with a maximum margin of RMB 50 million and a maximum contract value of RMB 200 million per trading day [2][6]. - The newly added options hedging business will include both on-exchange and off-exchange copper futures and options contracts, tailored to the company's operational needs [3][8]. Group 2: Purpose and Impact of the Transaction - The purpose of the hedging business is to reduce the impact of raw material price volatility, particularly for copper, which is a key input for the company's products [5][16]. - The hedging activities are expected to enhance the company's financial stability and overall risk management capabilities, thereby improving its competitive edge and sustained profitability [16]. Group 3: Approval Process - The board of directors and the audit committee approved the proposal for the options hedging business on January 8, 2026, confirming that it aligns with the company's operational needs and complies with relevant regulations [10][11]. Group 4: Transaction Details - The hedging business will be effective from January 8, 2026, to March 30, 2026, with the ability to roll over the authorized limits within the specified timeframe [9][12]. - The company will utilize its own or self-raised funds for the hedging activities, explicitly prohibiting speculative trading [7][8]. Group 5: Risk Management Measures - The company has established a comprehensive risk management framework to address potential risks associated with the hedging activities, including market, funding, internal control, technical, and policy risks [13][14]. - Regular audits and checks will be conducted to ensure compliance with risk management protocols and to mitigate operational risks [14]. Group 6: Accounting Treatment - The company will follow relevant accounting standards for the recognition and measurement of financial instruments related to the hedging activities [16].

Core Insights - The Chinese futures market showed significant growth in December, with a trading volume of 9.51 billion contracts and a turnover of 90.81 trillion yuan, marking year-on-year increases of 45.17% and 58.55% respectively [1] - By the end of 2025, the cumulative trading volume is projected to reach 90.74 billion contracts and a turnover of 766.25 trillion yuan, reflecting year-on-year growth of 17.4% and 23.74% [1] Trading Volume and Turnover by Exchange - The Shanghai Futures Exchange (SHFE) is expected to have a trading volume of approximately 23.35 billion contracts and a turnover of about 259 trillion yuan by 2025, with year-on-year growth of 3.31% and 27.86% [1] - The Zhengzhou Commodity Exchange (ZCE) is projected to achieve a trading volume of around 31.38 billion contracts and a turnover of approximately 88.96 trillion yuan, with year-on-year increases of 20.26% and 4.47% [1] - The Dalian Commodity Exchange (DCE) is anticipated to have a trading volume of about 26.07 billion contracts and a turnover of around 102.77 trillion yuan, with year-on-year growth of 14.94% and 4.49% [1] - The China Financial Futures Exchange (CFFEX) is expected to reach a trading volume of approximately 3.04 billion contracts and a turnover of about 255.19 trillion yuan, with year-on-year increases of 19.94% and 33.66% [1] - The Guangzhou Futures Exchange (GFE) is projected to have a trading volume of around 5.34 billion contracts and a turnover of approximately 31.60 trillion yuan, with year-on-year growth of 171.62% and 190.27% [1] Leading Products by Trading Volume and Turnover - In December, the top three products by turnover at SHFE were silver futures, gold futures, and copper futures [2] - The leading products by turnover at ZCE included PTA futures, caustic soda futures, and glass futures [2] - The DCE's top products by turnover were coking coal futures, palm oil futures, and soybean meal futures [2] - GFE's leading products by turnover included lithium carbonate futures, polysilicon futures, and platinum futures [2] - CFFEX's top products by turnover were CSI 1000 index futures, CSI 500 index futures, and 30-year treasury bond futures [2] Market Drivers and Trends - The growth in the futures market is attributed to increased hedging demand from industrial enterprises due to factors such as fluctuating U.S. tariffs, a loose global monetary policy environment, rising geopolitical risks, and domestic economic adjustments [3] - The influx of long-term capital into the capital market, particularly from insurance funds, has also contributed to the increased hedging demand [3] - The recovery of operational conditions in the real economy, especially in new sectors like renewable energy and AI, has boosted optimism regarding the demand for new energy materials [3] - The introduction of 18 new futures and options products covering various sectors has enhanced the product system of the market [3] Performance of Commodity Markets - The commodity market experienced more declines than increases last year, with precious metals continuing to rise for the fourth consecutive year; gold and silver prices increased by 55.77% and 124.62% respectively [4] - The non-ferrous metals sector also performed strongly, with copper and tin prices rising by 33.18% and 29.01% respectively [4] - The energy and chemical sector, however, faced challenges, with crude oil prices declining by 10.98% [4] Future Outlook - The futures market is expected to continue its high-quality development, with anticipated growth in trading volume and turnover of 10% to 15% this year [4] - New products like coking coal options are expected to be launched, further expanding the market's service scope [4] - The demand for hedging from real enterprises is projected to increase due to ongoing global commodity price volatility and geopolitical risks [4]

Core Viewpoint - The company aims to effectively hedge against price fluctuations of commodities and raw materials, as well as foreign exchange risks, through its hedging business [2] Group 1: Hedging Business - The company's hedging activities have successfully achieved the goal of stable operations, effectively avoiding and controlling operational risks [2] - The company enhances its ability to withstand market risks through its hedging strategies [2] - Investors are encouraged to monitor the company's announcements regarding the impact of its hedging business on performance for the fiscal year 2025 [2]

Market Performance - The Dalian Commodity Exchange's soybean oil futures have shown steady operation over the past 20 years, with daily trading volume increasing from 43,100 contracts in 2006 to 445,000 contracts in 2025, and daily open interest rising from 24,200 contracts to 844,400 contracts, indicating enhanced liquidity and risk-bearing capacity [1] - By the end of 2025, there will be 33 delivery warehouses for soybean oil futures, including 8 warehouses and 25 factory warehouses, distributed across 7 provinces, ensuring sufficient delivery capacity for industry participants [1] Delivery System Optimization - The delivery area has been expanded to adapt to industry changes, with the introduction of a dynamic premium and discount system in 2018 and the addition of Guangxi as a delivery area in 2021, enhancing delivery flexibility [2] - The validity period of soybean oil futures warehouse receipts was shortened from 12 months to 4 months in 2022 to improve the quality and turnover speed of delivered soybean oil, thus increasing the efficiency of delivery warehouses [2] Industry Participation - Over 90% of medium and large soybean crushing enterprises in China utilize soybean oil futures for hedging, with over 90% of sales from large enterprises adopting a pricing model based on Dalian Commodity Exchange futures prices plus premiums [3] - By the end of 2025, the proportion of industry client positions in soybean oil futures is expected to reach 52%, indicating strong industry engagement [3] Internationalization and Global Impact - Soybean oil futures have achieved full-path openness, with inclusion in the Qualified Foreign Institutional Investor (QFII) trading scope in 2022, and the launch of the FSOY contract on the Malaysian Derivatives Exchange in 2024, enhancing global pricing and risk management capabilities [4] - China is projected to produce approximately 18.71 million tons and consume about 18.61 million tons of soybean oil in 2025, both accounting for around 30% of global totals, reflecting China's significant role in the global soybean oil market [4] Future Development - The Dalian Commodity Exchange aims to further optimize soybean oil futures, enhance market cultivation, and increase industry client participation to support the high-quality development of China's oilseed industry [5]

Core Viewpoint - The Dalian Commodity Exchange's soybean oil futures have successfully operated for twenty years, enhancing market recognition and participation, effectively serving related industries in managing price risks and achieving high-quality development [1]. Market Capacity - Since its launch, the average daily trading volume of soybean oil futures has increased from 43,100 contracts in 2006 to 445,000 contracts in 2025, while the average daily open interest has risen from 24,200 contracts to 844,400 contracts, indicating improved liquidity and risk-bearing capacity [1]. Delivery Layout - As of the end of 2025, there are 33 delivery warehouses for soybean oil futures, including 8 warehouses and 25 factory warehouses, distributed across seven provinces and regions, ensuring sufficient delivery capacity for industry participants [1]. Contract Rule Optimization - The Dalian Commodity Exchange has implemented various measures to optimize contract rules, adapting to industry trends and changes in the spot market, ensuring that soybean oil futures closely align with the spot market and support industry development [2]. Industry Participation - Over 90% of medium and large soybean crushing enterprises in China utilize soybean oil futures for hedging, with over 90% of sales using the pricing model of "Dalian Commodity Exchange futures price + basis," establishing soybean oil futures as a key pricing benchmark in domestic spot trade [3]. External Opening - Soybean oil futures have achieved full-path external opening, enhancing service capabilities for the global oilseed industry. In 2022, soybean oil futures were included in the list of tradable products for Qualified Foreign Institutional Investors (QFIIs), and a related contract was launched on the Malaysian Derivatives Exchange in 2024 [4]. Production and Consumption - China has become the world's largest producer and consumer of soybean oil, with an estimated production of 18.71 million tons and consumption of 18.61 million tons in 2025, each accounting for approximately 30% of global totals [5]. Future Development - The Dalian Commodity Exchange plans to further optimize soybean oil futures, ensuring stable operation and close alignment with the spot market, while enhancing market cultivation and increasing industry client participation to contribute to the high-quality development of China's oilseed industry [5].