Core Viewpoint - The document outlines the regulations and procedures for Jiangsu Zhuosheng Microelectronics Co., Ltd. regarding securities investment, futures, and derivatives trading to mitigate investment risks and protect the interests of the company and its shareholders [1][2]. Group 1: General Principles - The company must adhere to legal, prudent, safe, and effective principles in its securities investment and trading activities, establishing a robust internal control system to manage investment risks and ensure investment efficiency [5][6]. - The company is prohibited from using raised funds for high-risk investments such as securities investment, futures, and derivatives trading [5][6]. - The company must ensure that all trading activities are conducted in its name and not through third-party accounts [3][6]. Group 2: Approval Authority - Securities investment exceeding 50% of the company's latest audited net assets or over 50 million RMB requires board approval and shareholder meeting approval [5]. - For futures and derivatives trading, a feasibility analysis report must be submitted to the board for approval, especially if the transaction exceeds 50% of the latest audited net profit or 5 million RMB [6][7]. Group 3: Risk Management - The company must implement strict separation of duties among trading, finance, audit, and risk control personnel to enhance risk management [8][9]. - A risk assessment must be conducted before engaging in futures and derivatives trading, considering political, economic, and legal risks associated with international transactions [9][10]. Group 4: Internal Audit and Supervision - The internal audit department is responsible for conducting periodic audits of securities investment and trading activities, reporting any deviations from expected outcomes to the board [10][11]. - The audit committee has the authority to supervise and propose external audits if irregularities are found in trading activities [11][12]. Group 5: Information Disclosure - The company must disclose significant losses or gains from trading activities that exceed 10% of the latest audited net profit or 1 million RMB [13][14]. - When engaging in hedging activities, the company must clearly outline the relationship between hedging instruments and the underlying risks being managed [14][15].

Core Viewpoint - The company plans to implement a financial derivatives trading plan for 2025 to enhance its ability to manage price and exchange rate fluctuations, thereby improving financial stability [1][2][3] Summary by Sections Trading Purpose - The objective is to improve the company's capability to respond to price and exchange rate volatility, better hedge against risks, and enhance financial robustness [2][3] - The steel market has experienced significant price fluctuations, with historical price ranges between 500-1300 RMB per ton, posing challenges for sales and inventory management [2] Trading Instruments and Scale - The trading instruments include iron ore futures, hot-rolled coil futures, forward foreign exchange contracts, and currency swaps [1][2] - The planned trading scale is capped at 200,000 tons for iron ore futures, 100,000 tons for hot-rolled coil futures, up to 200 million USD for forward foreign exchange contracts, and 50 million USD for currency swaps [1][3] Funding Sources - The funding for the derivatives trading will come from the company's own funds, without involving raised capital or bank credit [4] Trading Feasibility - The company has established management guidelines and internal control processes to ensure the feasibility and necessity of the derivatives trading, aligning with its overall interests and long-term development [4][5] Risk Management - The company has identified potential risks associated with derivatives trading and has implemented measures to mitigate these risks, including internal training and adherence to established management protocols [5][6] - The trading will focus on hedging against exchange rate and price risks, avoiding speculative trading [6] Impact on the Company - Engaging in financial derivatives trading is expected to partially offset the impact of exchange rate fluctuations on profits and shareholder equity, thereby enhancing the company's financial stability [6][7]

Group 1 - The event "2025 Futures Empowering Green Finance Development" was held in Guangzhou, focusing on how the futures market can support the renewable energy sector [1] - Prior to the introduction of futures products like lithium carbonate, industrial silicon, and polysilicon, the renewable energy industry lacked effective hedging tools, exposing companies to significant market volatility [1] - The introduction of futures tools allows companies to hedge against spot price fluctuations, lock in operating profits, reduce spot holding costs, and improve capital efficiency [1] Group 2 - Companies in the renewable energy sector should focus on developing professional teams and establishing robust systems to enhance hedging capabilities and avoid speculative risks [2] - Training programs provided by the Guangzhou Futures Exchange can strengthen the hedging abilities of enterprises, and there is a call for increased training efforts to support industry clients [2] - The collaboration between enterprises and the futures market is essential for building international pricing power and promoting high-quality development in the renewable energy industry [2]

Core Viewpoint - The company expects a revenue and net profit decline of 17.5% and 9.0% respectively for FY25, primarily due to high gold prices suppressing end demand, with a narrowing decline in FY25H2 [1][2] Revenue and Profit Performance - FY25 revenue reached HKD 896.6 billion, down 17.5%, with operating profit at HKD 147.5 billion, up 9.8%, and net profit at HKD 59.2 billion, down 9.0% [1][2] - Revenue for FY25H1 and FY25H2 was HKD 394.1 billion (-20.4%) and HKD 502.5 billion (-15.1%) respectively, while net profit for the same periods was HKD 25.3 billion (-44.4%) and HKD 33.9 billion (+73.8%) [2] Regional Performance - Revenue in mainland China for FY25 was HKD 745.6 billion, down 16.9%, with retail and wholesale channel revenues at HKD 323.6 billion (-16.1%) and HKD 422.0 billion (-17.5%) respectively [2] - Same-store sales in mainland China declined by 19.4%, with quarterly declines improving from -26.4% in Q1 to -13.2% in Q4 [2] Product Performance - The share of fixed-price gold and gold-inlaid products increased significantly, with revenue from fixed-price gold jewelry reaching HKD 127.8 billion, up 104.5%, accounting for 14.6% of retail sales [3] - Revenue from weight-based gold jewelry products fell to HKD 579.6 billion, down 29.4%, while diamond-inlaid products generated HKD 125.2 billion, down 13.3% [3] Store Optimization - The company optimized its store network, ending FY25 with 6,644 stores, a net decrease of 842 stores, while opening high-quality and image stores [4] - The company plans to open 20 new image stores in FY26 across mainland China, Hong Kong, and other international markets [4] Margin and Profitability - The gross margin improved to 29.5%, up 5.5 percentage points, driven by rising gold prices and an increased share of fixed-price products [5] - The company incurred a loss of HKD 61.8 billion from gold lending hedging, which accounted for 6.9% of revenue, impacting the net margin, which was 6.7%, up 0.6 percentage points [5] Future Outlook - Retail value decline is expected to narrow to low single digits in April-May 2025, with a potential improvement in terminal demand [7] - Revenue forecasts for FY26-28 are HKD 937.9 billion, HKD 986.9 billion, and HKD 1,049.5 billion, with net profits of HKD 78.3 billion, HKD 86.2 billion, and HKD 95.4 billion respectively [8]

Group 1 - The Shanghai Futures Exchange has established a globally recognized system for non-ferrous metal futures and options, contributing to the rapid development of China's non-ferrous metal industry and deepening cooperation with global markets [1] - Jiangxi Copper Co., Ltd. has actively embraced the capital market, achieving significant growth and becoming a leader in the copper industry, reflecting the rise of both the copper industry and China's futures market [3][5] - Jiangxi Copper's journey in the futures market began in the 1990s, where it became one of the first companies to engage in futures trading, utilizing the Shanghai Futures Exchange's copper futures to strengthen its market position [5][6] Group 2 - Jiangxi Copper faced financial risks in the late 1990s due to domestic debt issues but successfully used the futures market to balance production and sales, ensuring 100% recovery of receivables through delivery [5][7] - The company established a futures department in 1998 and created a professional futures company, Jinrui Futures, which became an excellent member of the Shanghai Futures Exchange [6] - Jiangxi Copper's hedging journey has not been without challenges, as it faced significant losses during the 2008 financial crisis but chose to continue its hedging strategy, optimizing its operations and establishing a comprehensive risk management system [7][11] Group 3 - The company expanded its hedging practices beyond copper to include by-products such as gold, silver, and lead-zinc, evolving from simple hedging to a more integrated approach with futures market participation [8][14] - Jiangxi Copper has developed a robust hedging management system, including a decision-making committee and a risk control leadership group, to ensure effective and stable hedging operations [11][12] - The integration of futures trading into Jiangxi Copper's operations has significantly enhanced its competitiveness, allowing it to leverage market information and opportunities for better decision-making and service to partners [14][16]

Group 1 - The first contract for log futures, LG2507, is approaching physical delivery, with market participants showing increased understanding and preparation for the delivery process [1] - Multiple enterprises have expressed willingness to participate in the LG2507 contract delivery, despite a seasonal downturn in the downstream real estate market and stable supply from New Zealand [2][3] - The Dalian Commodity Exchange has organized eight simulation deliveries in key regions to ensure a smooth delivery process, enhancing delivery resources and quality inspection capabilities [2] Group 2 - Companies are actively engaging in training for log delivery processes, with events held in major log distribution ports to educate industry clients on delivery rules and procedures [3] - The introduction of national standards for log measurement has improved understanding and acceptance among downstream clients, leading to increased willingness to adopt standardized pricing [4][5] - The log futures market is fostering a clearer understanding of price differences between futures and spot markets, promoting a unified national market for logs [6] Group 3 - The log futures market is seen as a significant opportunity for the industry, providing tools for proactive price risk management and enhancing quality consistency across the sector [6][7] - There is a call for more timber companies to engage with the log futures market to drive better integration between futures and spot markets, promoting high-quality market development [7]

Group 1 - The first contract for log futures, LG2507, is approaching physical delivery, with market participants showing increased understanding and preparation for the delivery process [1] - Multiple enterprises have expressed willingness to participate in the LG2507 contract delivery, despite a seasonal downturn in the real estate market affecting demand [2][3] - The Dalian Commodity Exchange has organized several mock deliveries in key log delivery regions to ensure a smooth delivery process, increasing the maximum delivery capacity and enhancing inspection capabilities [3] Group 2 - Companies like Shandong Longsheng Import and Export Co., Ltd. have actively engaged in mock deliveries to familiarize themselves with the delivery process and ensure readiness for the upcoming physical delivery [4] - Training sessions for industry clients on log delivery rules and processes have been conducted, indicating a proactive approach to educating market participants [5] - The introduction of standardized measurement methods for logs, such as the "national standard measurement," is gaining acceptance among downstream processing enterprises, promoting transparency and reducing transaction friction [8][9] Group 3 - The log futures market is seen as a tool for risk management, with companies increasingly adopting hedging strategies to mitigate price volatility [11] - The integration of futures and spot markets is viewed as a future direction for the industry, with calls for companies to embrace futures trading and enhance their understanding of risk management tools [12] - The overall sentiment in the industry is positive, with expectations that log futures will contribute to the healthy development of the log industry and improve operational efficiency [10][11]

Core Viewpoint - The high gold prices have led to a decline in consumer demand for gold jewelry, creating challenges for the industry, while gold derivatives are emerging as a crucial tool for risk management and stabilizing operations in the gold market [1][3][6]. Industry Challenges - The gold jewelry market is experiencing a downturn, particularly in major trading hubs like Shenzhen and Shandong, due to elevated gold prices, which have caused consumers to hesitate in making purchases [2][3]. - Data from the China Gold Association indicates a 5.96% year-on-year decline in gold consumption in Q1, with gold jewelry consumption dropping by 26.85% [3]. Risk Management Strategies - Gold retail businesses are increasingly focusing on inventory management and risk mitigation strategies, utilizing futures and options to hedge against price fluctuations [3][4][7]. - The introduction of gold futures and options has provided effective tools for price discovery and risk management, allowing companies to lock in profits and reduce the impact of price volatility [7][8]. Market Development - The Chinese gold futures market has seen significant growth, with trading volume and capital inflow increasing, indicating a rising importance in the global gold market [8][10]. - The Shanghai Futures Exchange has become a key player, with its daily trading volume reaching $90.8 billion, accounting for 22% of the global market during a recent price surge [10]. Internationalization Efforts - There is a strong industry call for the acceleration of the internationalization of China's gold futures market, including the introduction of RMB-denominated contracts and improved access for foreign investors [11]. - Enhancing the international competitiveness of China's gold market is seen as essential for increasing its influence in global gold pricing [11].

Group 1 - The core viewpoint of the announcement is that the company has approved the initiation of hedging activities for raw materials, specifically tin, to mitigate the adverse effects of price fluctuations on its operations [1][2] - The meeting of the supervisory board was held on June 26, 2025, with all three participating supervisors voting in favor of the proposal, resulting in a unanimous decision [1][2] - The company has established a robust approval process and risk control system for the hedging activities, ensuring compliance with relevant regulations and protecting the interests of the company and its shareholders [1]

Core Viewpoint - The company, Hangzhou Huaguang Welding New Materials Co., Ltd., plans to initiate a hedging business for raw material tin with a contract value not exceeding RMB 20 million and a maximum margin balance of RMB 5 million, aimed at mitigating the adverse effects of price fluctuations on its operations [1][2]. Group 1: Hedging Business Overview - The hedging business will be limited to raw material tin related to the company's production operations [2]. - The funding for the hedging business will come from the company's own funds and will not involve raised capital [2]. - The authorization for decision-making and signing relevant legal documents will be granted to the chairman of the board within the specified limits and duration [2]. Group 2: Necessity and Risk Management - The necessity for the hedging business arises from the continuous growth of the company's microelectronic welding tin-based solder business, leading to increased procurement of raw material tin [1]. - The company aims to avoid speculative trading and will focus on normal production operations to reduce the impact of raw material price volatility [1][2]. - The company has established a risk management framework to ensure compliance with relevant accounting standards and to mitigate potential risks associated with the hedging operations [2][4]. Group 3: Previous Hedging Business Situation - In a prior meeting on April 2, 2025, the company approved a hedging business plan with a total contract value not exceeding RMB 200 million and a maximum margin balance of RMB 50 million, covering copper and silver in addition to tin [5]. - The cumulative planned hedging business value is now up to RMB 220 million, with a maximum margin balance of RMB 55 million, covering tin, copper, and silver [5].