Core Viewpoint - The Guizhou provincial government is promoting the development of the futures market to enhance risk management efficiency and reduce trading costs for enterprises, as outlined in the "Implementation Plan for Promoting High-Quality Development of Capital Markets in Guizhou Province" [1] Group 1: Government Initiatives - The Guizhou provincial government has launched training programs for officials in various sectors to improve understanding of the futures market and its benefits [1] - The Zhengzhou Commodity Exchange (ZCE) and Guizhou Securities Regulatory Bureau are collaborating with other organizations to provide comprehensive training for state-owned enterprises and listed companies [1][2] Group 2: Importance of Futures Market - The futures market is recognized as a crucial component of China's financial system, playing a significant role in price discovery, risk management, and resource allocation [1][2] - The rapid development of the futures market has positioned it to effectively serve the real economy and support high-quality economic growth [2] Group 3: Risk Management Strategies - Enterprises are encouraged to adopt a systematic and refined approach to risk management, particularly in the context of using futures and derivatives [3][4] - A modular approach to establishing hedging systems is recommended, including tiered approval processes and comprehensive risk control frameworks [4] Group 4: Training and Support - Recent training sessions have focused on the financial handling and compliance aspects of futures trading, emphasizing the importance of regulatory adherence [5] - The ZCE has been actively enhancing its services to support enterprises in utilizing futures tools for stable operations, including collaborative training with local regulatory bodies [5][6] Group 5: Practical Applications - Specific examples of hedging strategies, such as using urea futures, were discussed, highlighting the importance of selecting appropriate contracts and adjusting strategies based on market conditions [4] - The training programs aim to foster a better understanding of the futures market among participants, thereby improving the regulatory environment for enterprise hedging activities [6]

Core Viewpoint - The company, Nanya New Materials Technology Co., Ltd., is undertaking forward foreign exchange trading to hedge against currency fluctuations and stabilize profit levels, ensuring that trading is based on actual business needs rather than speculative motives [1][4]. Summary by Sections Purpose of Forward Foreign Exchange Trading - The primary aim of the forward foreign exchange trading is to utilize its hedging function to mitigate the impact of exchange rate volatility on the company's operational performance [1]. Types of Forward Foreign Exchange Trading - The company and its subsidiaries will only engage in forward foreign exchange trading related to the currencies used in their operations, ensuring that the transaction amounts match the predicted receipts and payments [1]. Business Period and Trading Limits - The planned trading limit for the forward foreign exchange transactions is set at a maximum of 80 million USD, with a validity period of 12 months from the board's approval [2]. Risk Analysis - Potential risks include unfavorable exchange rates leading to losses, operational errors, and discrepancies in payment forecasts that could result in delayed settlements [2][3]. Risk Control Measures - The company will implement strict trading protocols based on accurate forecasts of receipts and payments, ensuring all transactions have a legitimate business background [3]. Feasibility Analysis - The forward foreign exchange trading is deemed feasible as it aligns with the company's operational needs and serves as a protective measure against currency risk [3][4]. Approval Procedures and Opinions - The board and supervisory committee have approved the forward foreign exchange trading, confirming that it is based on normal operations and complies with legal regulations, thus protecting the interests of the company and its shareholders [4][5]. Sponsor Institution's Review Opinion - The sponsor institution has no objections to the company's forward foreign exchange trading activities, affirming that they are within the approved limits and align with the company's operational requirements [5].

Core Viewpoint - The Ministry of Finance's Accounting Department has provided clear accounting treatment guidelines for standard warehouse receipt transactions, which helps to standardize financial operations and information disclosure for enterprises engaged in financial activities [1][2][4]. Group 1: Accounting Treatment Guidelines - The new guidelines classify contracts for buying and selling standard warehouse receipts as financial instruments under the Accounting Standards for Enterprises No. 22, which applies to contracts that can be settled in cash or other financial instruments [2][3]. - Enterprises that frequently buy and sell standard warehouse receipts for short-term profit without physical delivery should recognize the difference between the received consideration and the book value of the sold receipts as investment income, rather than sales revenue [3][4]. - The distinction between hedging against price fluctuations and speculative trading is crucial for accurate accounting treatment and compliance, as it affects how transactions are reported in financial statements [3][4]. Group 2: Impact on Enterprises - The clarification of accounting treatment is expected to curb speculative trading and false trading behaviors, guiding enterprises to focus on activities related to the real economy [6][7]. - Companies are advised to clearly differentiate between speculative transactions and those involving physical delivery, ensuring that accounting practices reflect the true nature of their business activities [6][7]. - The new requirements are seen as a supportive measure for the stable development of the futures market, enhancing the management of enterprises' futures-related activities and improving the market's service to the real economy [7][8].

Group 1 - The company aims to conduct derivative hedging business to lock in costs, reduce or avoid exchange rate risks, and enhance financial stability [1][2] - The board of directors approved the hedging proposal on July 17, 2025, allowing the company and its subsidiaries to engage in this business for a period of 12 months [1][3] - The hedging strategy will utilize forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, and interest rate swaps to mitigate risks associated with foreign currency transactions [2][3] Group 2 - The maximum limit for the hedging transactions is set at RMB 5 million, with a maximum contract value of RMB 200 million on any trading day [2][3] - The company will engage with reputable financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China for these transactions [2][3] - The necessity of this hedging business is underscored by the company's significant import and export activities, which are closely tied to foreign exchange fluctuations [3][4] Group 3 - The company has established risk control measures, including careful selection of trading partners and strict management of transaction scales [4] - The company will adhere to relevant accounting standards for financial instruments and hedge accounting to ensure proper financial reporting [4][5] - The overall conclusion is that the derivative hedging business is both necessary and feasible for the company to mitigate foreign exchange risks and enhance operational efficiency [5]

Core Viewpoint - The document outlines the financial derivatives trading management system of Shenzhen Zhihua Precision Technology Co., Ltd., emphasizing risk prevention and internal management in derivatives trading activities [1][2]. Group 1: General Principles - The system aims to regulate the financial derivatives trading behavior of the company and its subsidiaries, focusing on preventing foreign exchange and interest rate risks [1][2]. - Financial derivatives include but are not limited to forward foreign exchange contracts, foreign exchange swaps, foreign exchange options, and interest rate swaps [1][2]. Group 2: Trading Operations - The company and its subsidiaries are prohibited from engaging in speculative trading; all derivatives transactions must be based on actual business operations to mitigate risks [2][3]. - Derivatives trading must only be conducted with qualified financial institutions approved by regulatory bodies [3][4]. Group 3: Approval Authority - The company's board of directors and shareholders' meeting serve as the decision-making bodies for derivatives trading, with specific approval processes outlined for different transaction scenarios [4][5]. - Transactions that exceed certain thresholds must be submitted for additional approval from the shareholders' meeting [4][5]. Group 4: Management and Internal Processes - The finance center is responsible for managing derivatives trading, including planning, operations, and financial accounting [5][6]. - A strict separation of duties and responsibilities is required to ensure independent operations within the derivatives trading process [5][6]. Group 5: Risk Management - The company must implement proactive risk control measures to identify and mitigate credit, market, operational, and legal risks associated with derivatives trading [7][8]. - In case of significant anomalies in trading activities, the finance department must report and propose solutions to the management [8][9]. Group 6: Information Disclosure - The company is required to disclose information regarding its derivatives trading activities in accordance with regulations from the China Securities Regulatory Commission and the Shenzhen Stock Exchange [9][10]. - Any significant losses or risks must be reported promptly through temporary announcements [9][10].

Report Summary 1. Industry Investment Rating - No industry investment rating is provided in the report. 2. Core View - Fundamentally, the near - term pure benzene surplus pattern remains unchanged, but downstream new production news strengthens the expectation of improved future demand. Styrene ports have significantly accumulated inventory, with large traders starting to sell near - month goods this week, causing the near - month basis to weaken rapidly. Also, there have been frequent news of styrene plant overhauls this week, disturbing market sentiment. Against the backdrop of weakening crude oil, both pure benzene and styrene futures show a weakening and oscillating trend [4]. 3. Summaries by Related Catalogs 3.1 Price Forecast and Hedging Strategies - **Price Forecast**: The monthly price forecast for pure benzene is 5800 - 6400 yuan/ton, and for styrene is 6900 - 7500 yuan/ton. The current 20 - day rolling volatility of styrene is 29.40%, and its historical percentile over 3 years is 85.8% [3]. - **Hedging Strategies**: - **Inventory Management**: For high finished - product inventory and concerns about styrene price decline, it is recommended to short styrene futures (EB2509) with a 25% hedging ratio at an entry range of 7250 - 7350 yuan/ton and sell call options (EB2509C7500) with a 50% ratio at 60 - 90 yuan [3]. - **Procurement Management**: For low procurement standing inventory, to prevent cost increases from styrene price hikes, it is recommended to buy styrene futures (EB2509) with a 50% hedging ratio at an entry range of 7050 - 7150 yuan/ton and sell put options (EB2509P7100) with a 75% ratio at 90 - 120 yuan [3]. 3.2 Market News and Influencing Factors - **Positive Factors**: There were market rumors yesterday that the POSM unit of Zhejiang Petrochemical had a malfunction, resulting in a loss of 10,000 tons of styrene production. Jieyang Petrochemical's styrene plant will start an overhaul at the end of August, expected to last for half a month [5]. - **Negative Factors**: As of July 14, 2025, the styrene inventory at Jiangsu ports was 138,500 tons, an increase of 27,000 tons or 24.22% from the previous period. This week, styrene inventory has significantly increased, and large industrial traders have started to sell near - month goods, improving near - end liquidity. Crude oil prices have been oscillating weakly this week, weakening cost support. The latest production schedules of three major white - goods have been significantly revised down compared to the previous period, and the terminal consumption demand for styrene in the third quarter is pessimistically expected [6][8]. 3.3 Basis and Spread Changes - **Pure Benzene Basis**: On July 17, 2025, the basis of East China - BZ03 was - 202 yuan/ton (up 4 yuan from the previous day), East China - BZ04 was - 188 yuan/ton (up 19 yuan), East China - BZ05 was - 200 yuan/ton (down 5 yuan), and East China - BZ06 was - 195 yuan/ton [9]. - **Styrene Basis**: On July 17, 2025, the basis of East China - EB07 was 260 yuan/ton (unchanged from the previous day), East China - EB08 was 236 yuan/ton (up 59 yuan), East China - EB09 was 299 yuan/ton (up 42 yuan), and East China - EB10 was 353 yuan/ton [9]. - **Industry Chain Spreads**: Various spreads in the pure benzene - styrene industry chain have changed. For example, the styrene spot - pure benzene spot spread decreased by 85 yuan/ton to 1450 yuan/ton [9]. 3.4 Industry Chain Price Changes - **Crude Oil and Related Products**: On July 17, 2025, the price of Brent crude oil was 68.71 US dollars/barrel, unchanged from the previous day. The prices of some related products such as naphtha CFR Japan, ethylene CFR Northeast Asia, etc., also showed different degrees of change [10]. - **Pure Benzene and Styrene**: The prices of pure benzene and styrene in different markets and futures contracts have generally declined. For example, the pure benzene East China market price dropped by 40 yuan/ton to 5920 yuan/ton, and the styrene East China price dropped by 120 yuan/ton to 7400 yuan/ton [11]. - **Downstream Products**: The prices and profits of downstream products such as caprolactam, phenol, aniline, etc., also showed different trends. For example, the EPS profit in East China increased by 110.4 yuan/ton to 429 yuan/ton [11].

Revenue Distribution - The automotive and engineering machinery sectors account for approximately 80% of the company's total revenue, with the automotive sector showing continuous growth and surpassing the engineering machinery sector in revenue contribution [2] - The top five customers contributed 18.49% to the company's revenue in 2024, indicating a diversified customer base without reliance on a single client [2] Capacity Utilization - The company's current capacity utilization is at a normal level, with sufficient flexibility to meet the growing demands in the automotive and robotics sectors [2] Competitive Landscape - The company positions itself in the mid-to-high-end market, facing competition from major players such as Saint-Gobain, GGB, and DaTong, while maintaining a comprehensive product system and superior product quality [3] Risk Management - The company does not engage in hedging strategies for raw material price fluctuations but has implemented a pricing mechanism that links product sales prices to raw material costs to mitigate price volatility [3] - Plans to enhance core technological innovation capabilities through increased R&D investment and optimization of product structure are in place to improve profitability [3] Product Advantages in Robotics - The company specializes in self-lubricating bearings, with products designed to meet the demands of impact resistance, maintenance-free operation, lightweight, low cost, low noise, and long lifespan, primarily used in robot joints, wrists, and ankles [3]

Group 1: Company Overview and R&D - The company’s R&D expenses for 2024 are expected to increase by 10% year-on-year, focusing on the development of raw materials and formulations, as well as process optimization and technological innovation for mature products like vitamins [1] - The company has officially started selling para-hydroxyphenol in the PEEK field and is actively promoting its products, having completed sample submissions to major domestic PEEK manufacturers, currently in various validation stages [1] Group 2: Product Registration and Market Activities - The company holds registration certificates for two products: Fumaric Acid Bisoprolol Tablets and Lacosamide Injection, with the former having commenced market promotion and industrialization in 2024 [1] - There are currently no plans for stock incentive programs or share buybacks, although the company previously repurchased shares in 2019 and conducted a restricted stock incentive plan in 2015, along with the first employee stock ownership plan launched in 2021 [2] Group 3: Inventory and Capital Expenditure - The company’s large ending inventory balance is attributed to its diverse business segments, including vitamins, flavors, raw materials, leather chemicals, and chromium salts, consisting mainly of raw materials, work-in-progress, and finished products to meet varying customer demands [2] - Future capital expenditures will primarily focus on new project construction, such as a 600-ton iodinated contrast agent raw material project, and technological upgrades to existing projects aimed at cost reduction, efficiency enhancement, and improved safety and environmental control [2] Group 4: Risk Management - The company has not engaged in hedging activities and currently sees no demand for such services [2]

Core Viewpoint - The company is preparing for its second extraordinary general meeting of shareholders in 2025, focusing on maintaining order and efficiency during the meeting while ensuring the rights of all shareholders are protected [1][2][4]. Meeting Procedures - The meeting will follow a specific agenda, allowing shareholders and their representatives to exercise their rights to speak, inquire, and vote [2][3]. - Shareholders must register to speak one day prior to the meeting, and speaking time is limited to five minutes per shareholder [2][3]. - Voting will be conducted through both on-site and online methods, with results announced by the meeting host [10][11]. Financial Derivatives Trading Proposal - The company plans to use its own funds to engage in financial derivatives trading, specifically silver futures and options, to hedge against price volatility of silver, which is a key raw material [7][9]. - The maximum trading margin and premium for this activity is capped at 400 million RMB, with a maximum contract value of 2.5 billion RMB on any trading day [7][9]. - The trading activities are intended to stabilize operational performance and enhance financial resilience [11][12]. Risk Management - The company has outlined potential risks associated with financial derivatives trading, including market volatility and operational risks, and has established strict risk control measures [9][10]. - The company will not engage in speculative trading and will ensure that trading activities align with its actual business needs [10]. - Internal audits and oversight mechanisms are in place to monitor compliance and risk management related to derivatives trading [10]. Impact on Company - Engaging in financial derivatives trading is deemed necessary for the company to mitigate risks associated with raw material price fluctuations, thereby enhancing its competitive edge [11][12]. - The company has developed specific operational procedures and internal controls to ensure compliance with relevant regulations and effective risk management [11][12].

Core Viewpoint - The training on futures derivatives market aims to enhance the risk management capabilities of private enterprises in Guangzhou, contributing to the high-quality development of the local economy [1][2][7]. Group 1: Training and Participation - The training event, held on July 15, attracted over 100 representatives from local private enterprises and government agencies [1]. - The event was organized under the guidance of the Guangdong Securities Regulatory Bureau and the Guangzhou Municipal Bureau of Industry and Information Technology [1]. Group 2: Economic Contribution of Private Enterprises - Private enterprises account for over 95% of market entities in Guangzhou, contributing to over 80% of new employment, 70% of innovation outcomes, and approximately 50% of imports and exports [1]. - In the first quarter of this year, the added value of Guangzhou's private economy reached 327.94 billion yuan, a year-on-year increase of 4.6%, representing 43.5% of the city's GDP, marking a five-year high [1]. Group 3: Importance of Futures Market - The futures derivatives market plays a crucial role in price discovery, risk management, and resource allocation [2]. - Utilizing futures tools can help private enterprises lock in costs, hedge risks, and stabilize operations, transitioning from passive to proactive risk management [2][3]. Group 4: Challenges Faced by Enterprises - Despite strong growth, private enterprises in Guangzhou face challenges such as cost fluctuations, exchange rate risks, and insufficient resilience in supply chains [1][3]. Group 5: Practical Applications and Strategies - The training emphasized the importance of understanding and utilizing derivatives for effective risk management, with a focus on inventory, capacity, and order risk management [4]. - Companies are encouraged to establish systematic hedging mechanisms and utilize a professional team for effective risk management [6]. Group 6: Future Outlook - The Dalian Commodity Exchange aims to build a world-class trading platform, enhancing services and supporting private enterprises in Guangzhou with better risk management tools [6]. - The collaboration between government and enterprises is expected to facilitate the integration of finance and the real economy, promoting the widespread use of futures derivatives among private enterprises [8].