Core Viewpoint - The stability of soybean and corn supply in Northeast China is crucial for food security, with key variables affecting farmers' planting benefits being land rent, yield, subsidies, and prices. While land rent and yield have improved, price fluctuations remain a significant concern for local farmers [4][5]. Group 1: Agricultural Economics - The decline in corn prices has led to reduced planting enthusiasm among farmers, impacting the overall planting area. In 2023, corn purchase prices fell from 0.89 yuan per jin to 0.82 yuan, and in 2024, from 0.79 yuan to 0.73 yuan, indicating a continuous downward trend over three years [6][7]. - Major agricultural companies are exploring the use of futures tools to stabilize planting income through order agriculture, where fixed purchase prices are agreed upon in advance to mitigate price volatility risks [6][7]. Group 2: Futures Market Utilization - The "惠民保价" project initiated by agricultural companies allows farmers to lock in prices for their crops, with examples showing increased income for farmers who participated. For instance, a farmer secured a price of 0.93 yuan per jin, resulting in an additional income of 200,000 yuan [7]. - The "夏季一口价" model, combined with the "增收宝" product, enables farmers to benefit from price increases while ensuring a minimum price for their crops, enhancing their income stability [7]. Group 3: Risk Management for Processing Enterprises - Downstream processing companies, such as维维股份, are also exposed to price volatility and are utilizing futures markets to lock in raw material costs. The company has been involved in futures since 2014 to stabilize procurement costs and manage inventory effectively [8][10]. -维维股份 reported that raw material costs, particularly for soybeans, account for over 40% of their production costs, making effective cost management essential for maintaining profit margins [9][10]. Group 4: Comprehensive Financial Support - The "银期保" project launched in 2023 aims to provide comprehensive financial support to farmers, addressing challenges such as financing difficulties and unstable sales channels. This project involves collaboration between planting entities, futures companies, insurance firms, grain purchasing companies, and banks [11][12]. - The project allows farmers to secure their income through insurance and futures contracts, with one cooperative increasing its planting area significantly after participating in the program, demonstrating its effectiveness in risk management [12].

国投中鲁（600962.SH）7月29日在投资者互动平台表示，公司出口业务占比较高，主要采用美元结 算。在套期保值方面，公司开展远期结售汇以应对汇率波动风险。公司目前未涉及商品期货业务。 （文章来源：每日经济新闻） 每经AI快讯，有投资者在投资者互动平台提问：你好，想咨询下贵司目前参与了哪些品种来进行套期 保值，近期期货价格大幅波动对贵司套期保值业务有无影响？ ...

Report Industry Investment Ratings - PX: Unilateral trend is weakening, rated as "Weak" [1][8] - PTA: Weak, with basis reverse arbitrage and monthly spread positive arbitrage opportunities, rated as "Weak" [1][8] - MEG: Trend turns weak, with monthly spread reverse arbitrage, rated as "Weak" [1][8] Core Viewpoints - PX's price decline is a correction after the sharp rise on July 25, and future Asian supply will gradually increase; PTA's spot supply pressure increases, and attention should be paid to basis and monthly spread arbitrage; MEG is short - term bearish due to supply pressure and other factors [3][9][10] Market Overview PX - End - of - day naphtha price declined, and today's PX price dropped significantly. Two September Asian spot deals were at 855 and 854, and one October deal was at 848. The decline is seen as a correction after the July 25 surge, driven by China's discussion on curbing industrial over - capacity. Crude oil's afternoon weakness added downward pressure, but its potential rebound may support PX [3][5] PTA - PTA spot price fell to 4800 yuan/ton, with a mainstream basis of 09 - 7 [5] MEG - East China main port MEG inventory is about 52.1 tons, down 1.2 tons from the previous period. Different ports have different inventory changes [6] Polyester - A 300,000 - ton polyester new device in Anhui will be put into production tomorrow. Jiangsu and Zhejiang polyester yarn sales are light, with an average sales rate of less than 30% as of 3:30 pm. Direct - spinning polyester staple fiber sales are average, with an average sales rate of 48% as of 3:00 pm [6][7] Trend Intensity - PX, PTA, and MEG trend intensities are all - 1, indicating a weak trend [8] Views and Suggestions PX - Unilateral trend turns weak, hedge on rallies. Go long PX and short PTA01 contract, short PXN on rallies. China's PX开工率 is 79.9% (1.2%), and Asia's is 72.9% (- 0.7%). Future Asian supply will gradually increase [9] PTA - Unilateral turns weak, industries can hedge on rallies. Pay attention to going long PX and short PTA on 01 contract. Basis is in reverse arbitrage, and 9 - 1 monthly spread positive arbitrage can be considered. PTA装置开工率 remains at 79.7%. Pay attention to high - valuation PTA processing fee compression positions [9][10] MEG - Short - term bearish. Pay attention to supply pressure from non - mainstream warehouse receipts. Consider shorting ethylene glycol and going long L arbitrage. Import volume will change in different months, and domestic supply is relatively loose [10][11]

Summary of Western Mining's Conference Call Company Overview - **Company**: Western Mining - **Date**: July 28, 2025 Key Industry and Company Insights Production and Financial Performance - In the first half of 2025, Western Mining produced: - Copper: 91,700 tons, up 7.6% YoY [2][3] - Zinc: 62,900 tons, up 18.61% YoY [2][3] - Lead: 35,100 tons, up 24.63% YoY [2][3] - Molybdenum: 2,525 tons, up 31.1% YoY [2][3] - Iron concentrate: 719,000 tons, up 11.93% YoY [2][3] - Revenue reached 31.6 billion yuan, a 27% increase YoY [3] - Total profit was 3.88 billion yuan, up 23% YoY [3] - Net profit attributable to shareholders was 1.87 billion yuan, up 15% YoY [3] Raw Material Sourcing and Costs - Copper smelting relies heavily on purchased anode plates and copper concentrates, with some sourced from Yulong Copper Mine [2][5] - The cost of processing anode plates is approximately 500 to 600 yuan per ton, leading to losses in this segment [6] - The complete cost of copper concentrate is around 4,800 to 4,900 yuan per ton [9] Project Developments - The Yulong Project Phase III is expected to be completed by the end of 2026, with an estimated investment of 4.8 billion yuan [2][10] - The project will increase copper concentrate production to 180,000 to 200,000 tons, but costs will rise to 35,000 to 36,000 yuan per ton [10] Profitability and Challenges - The company reported a profit of 5.8 million yuan from Xianghe Nonferrous, while Xigu Precious Metals incurred a loss of 140 million yuan [2][12] - Zinc smelting is profitable, but lead smelting in Qinghai is currently unprofitable due to high processing costs [13] Asset Impairment and Future Risks - An asset impairment of over 100 million yuan was recorded due to significant price declines in vanadium and hydrofluoric acid [14] - Future impairments may occur if product prices continue to fluctuate [14] Research and Development - R&D expenses increased by nearly 300 million yuan due to initial production challenges at new smelting plants and investments in the Xigui project [20] - The company plans to invest 2.9 billion yuan in equipment upgrades, with over 600 million yuan allocated for modernization [23] Strategic Initiatives - A new resource expansion department was established in Tibet and Qinghai to enhance exploration and acquisition efforts [4][16] - The company aims to improve recovery rates through technological advancements, although there are limits based on ore quality [22] Debt Management and Shareholder Returns - The company has a significant debt load but maintains a low cost of debt, with long-term borrowing rates between 1.1% and 3% [32] - The dividend policy for 2025 remains under consideration, with a focus on balancing shareholder returns and investment needs [26][27] Market Outlook - Western Mining does not plan to reduce production despite market pressures, as it has social responsibilities as a state-owned enterprise [31] - Future production increases are expected, but growth will be limited post-Phase III completion [19] Conclusion - Western Mining is positioned for growth with ongoing projects and strategic initiatives, but faces challenges in raw material costs and market fluctuations. The focus on R&D and resource expansion indicates a proactive approach to maintaining competitiveness in the mining sector.

Core Viewpoint - The traditional trading model of buying low and selling high is evolving due to compressed profits and intensified competition in the methanol industry. Jiangyin Jinqiao Chemical Co., Ltd. is pioneering a sustainable development path through "financial empowerment of the real economy and transformation driven by futures and spot markets" [1] Group 1: Industry Challenges - The profit margins for upstream and downstream in the industry are low, squeezing the profit space for intermediaries, making it difficult for them to profit directly from trading [2] - The transparency of market information has diminished the advantages of information asymmetry that traders previously relied on, necessitating a shift in trading models and the search for better tools [2] Group 2: Company Strategy - Jinqiao Chemical began exploring the integration of futures and spot markets since the launch of methanol futures, implementing hedging strategies to stabilize sales and reduce costs [2][3] - The company has seen a significant increase in methanol trade volume, with imports reaching 1.762 million tons and domestic trade at 3.676 million tons in 2024, up from 504,000 tons and 2.116 million tons in 2022, respectively [2] Group 3: Risk Management and Financial Tools - The company utilizes various financial instruments, including futures, options, and swaps, to hedge against price fluctuations and stabilize operational costs [3] - Jinqiao Chemical has developed a comprehensive risk management system and a professional team to implement a "hedging + arbitrage + basis trading" framework, transitioning from a traditional trader to a risk management service provider [6] Group 4: Innovative Trading Models - The company promotes innovative trading models, such as point pricing, to minimize friction losses and ensure stable procurement and sales for upstream and downstream partners [5] - Jinqiao Chemical is actively pushing the methanol industry from passive risk avoidance to proactive risk management, aiming to establish dual advantages of "price resilience + technological barriers" in the context of energy transition and global competition [6]

Group 1 - The company plans to distribute a cash dividend of 2.00 yuan per 10 shares (including tax) to all shareholders, without issuing bonus shares or increasing capital from reserves [16][19][20] - The total cash dividend amount is expected to be 332.7372 million yuan, accounting for 12.61% of the net profit attributable to shareholders in the first half of 2025 [19][20] - The profit distribution plan is subject to approval by the shareholders' meeting, and there is uncertainty regarding its implementation [21] Group 2 - The company has proposed to renew the appointment of the accounting firm, Crowe Horwath, for the 2025 annual audit, which requires approval from the shareholders' meeting [24][26] - The accounting firm has a strong track record, with nearly 6,000 employees and a significant number of registered accountants, indicating its capability to handle the company's audit needs [27][28] - The firm has purchased professional liability insurance with a cumulative compensation limit of 900 million yuan, ensuring investor protection [28] Group 3 - The company intends to use up to 10 billion yuan of idle funds for entrusted wealth management, focusing on low to medium-risk products with high safety and liquidity [39][40] - This strategy aims to improve fund utilization efficiency and generate additional returns for the company and its shareholders [50] - The entrusted wealth management plan is also subject to approval by the shareholders' meeting [39] Group 4 - The company has approved a plan to conduct hedging activities, including commodity and foreign exchange hedging, with a maximum margin of 4 billion yuan for commodity hedging and 4.7 billion yuan for foreign exchange hedging [55][60] - The hedging activities are designed to mitigate risks associated with price fluctuations in raw materials and foreign exchange rates, which are critical for the company's operations [55][56] - The hedging plan will also require approval from the shareholders' meeting [63] Group 5 - The company will hold its third extraordinary shareholders' meeting on August 14, 2025, to discuss the aforementioned proposals and other relevant matters [72][73] - The meeting will be conducted in accordance with applicable laws and regulations, ensuring transparency and compliance [73][81] - Shareholders will have the opportunity to vote on the proposed resolutions during the meeting [81][84]

Group 1 - The commodity futures market experienced a sudden downturn, with popular varieties like coking coal and lithium carbonate hitting their daily limit down [1] - The market cooling has prompted investors to return to a more rational mindset after a period of excessive enthusiasm [1] - The series of risk control measures implemented by futures exchanges is the primary reason for the recent price corrections, effectively curbing overheated market trading [1] Group 2 - The "anti-involution" policy expectations have led to high market anticipation for the rise in industrial products, but simplistic comparisons to past reforms may be misleading [1][2] - The "anti-involution" focus is primarily on mid- and downstream industries, addressing disordered price wars that have resulted in profit and quality declines [2] - While the "anti-involution" initiative may benefit certain futures varieties in the medium to long term, short-term price increases have already exceeded fundamental influences [2]

Core Insights - The training program aims to enhance risk management capabilities of enterprises in Inner Mongolia, particularly in coal chemical and soft commodity industries, by utilizing the futures market [1] - The participation rate of listed companies in hedging activities has steadily increased, with 1,503 companies announcing hedging plans in 2024, representing a participation rate of 28.6% [1][2] - The volatility in commodity prices and intense industry competition are driving companies to improve their risk management strategies [2] Group 1: Training and Participation - The training session was attended by nearly a hundred representatives from state-owned enterprises and listed companies in Inner Mongolia, focusing on practical paths for utilizing the futures market for risk management [1] - Companies like Huayou Cobalt, Yuntianhua, and COFCO have integrated futures tools into their overall development strategies, establishing mature risk management models [1][2] - The number of industry clients participating in trading specific commodities, such as soybean meal and glass, has increased by over 20% in 2024 [1] Group 2: Industry Challenges and Solutions - Companies in sectors like chemicals, grain and oil, and livestock often operate near breakeven points, making raw material cost management critical for survival [2] - Sichuan Agricultural Fertilizer Co. has successfully implemented hedging strategies, achieving a profit of 50 yuan per ton through futures contracts [2] - The "five-in-one" methodology for integrating business and finance in hedging practices was proposed to address challenges in applying hedge accounting [3] Group 3: Market and Regulatory Environment - The futures market is recognized as a professional platform for risk management, with a comprehensive system of commodity futures and options covering key sectors of the economy [4] - Inner Mongolia has 29 listed companies with a total market capitalization of 786.88 billion yuan, but only 6 companies, or 20.69%, are engaged in hedging activities, which is below the national average [4] - Local regulatory bodies are working with exchanges to enhance the utilization of futures tools among enterprises to promote high-quality development of the capital market [4] Group 4: Feedback and Future Directions - Attendees expressed that the training deepened their understanding of the futures market's functions and they plan to explore hedging models tailored to their business needs [5]

Core Viewpoint - Shanghai NAR Industrial Co., Ltd. reported a revenue of 972.18 million yuan for the first half of 2025, reflecting a 4.10% increase compared to the same period last year, while net profit surged by 79.15% to 114.20 million yuan, driven by strategic overseas expansion and effective risk management measures [6][12]. Group 1: Risk Management - The company is addressing geopolitical instability risks, particularly from the US-China trade war, by enhancing supply chain integration and expanding into markets in South America, the Middle East, and Africa [1]. - To mitigate the impact of domestic and international economic fluctuations, the company has established overseas subsidiaries to counteract anti-dumping policies and has improved logistics and delivery channels in response to conflicts like the Russia-Ukraine war [1]. - The company employs a pricing adjustment mechanism and hedging tools to manage foreign exchange risks, thereby stabilizing its financial performance [2]. Group 2: Financial Performance - The company achieved a net profit of 74.20 million yuan, up 17.60% from the previous year, with basic earnings per share increasing by 78.95% to 0.34 yuan [6][12]. - Total assets rose by 6.09% to 2.71 billion yuan, while net assets attributable to shareholders increased significantly [6][12]. - The company reported a significant increase in research and development expenses, which rose by 34.31% to 58.20 million yuan, reflecting its commitment to innovation [12][13]. Group 3: Business Overview - The company specializes in precision coating materials, digital printing materials, automotive protective films, and electronic functional films, with a focus on expanding into hydrogen energy materials [12]. - The sales strategy includes both direct sales and ODM (Original Design Manufacturer), with a strong emphasis on brand development and marketing networks across China and internationally [9][10]. - The automotive protective film segment is experiencing rapid growth, driven by increasing demand from both the aftermarket and original equipment manufacturers (OEMs) [12][10]. Group 4: Competitive Advantages - The company has established a robust quality control system certified by multiple international standards, enhancing its product competitiveness [8]. - It has developed a comprehensive marketing network with over 200 brand agents in China and exports to over 90 countries, ensuring a stable market presence [9]. - The company is investing in digital transformation and smart manufacturing to improve operational efficiency and reduce costs [11].

Core Points - The company is holding its third extraordinary general meeting of shareholders in 2025 to discuss important matters related to its operations and financial strategies [1][2][3] Meeting Procedures - Shareholders must sign in upon arrival and present valid identification and authorization documents if attending on behalf of others [1][2] - Late arrivals will not be counted in the voting unless approved by the meeting's working group [2] - All attendees have the right to speak, consult, and vote, and must respect the meeting's order and the rights of other shareholders [2][3] - Voting will be conducted through a combination of on-site and online methods, with specific rules regarding the validity of votes [3] Agenda Items - The meeting will review three proposals, including: 1. A proposal to provide guarantees for subsidiaries with a total amount not exceeding 2.37 billion yuan [6][7] 2. A proposal for conducting hedging activities in 2025, with a total margin and premium not exceeding 485.6 million yuan [8][9] 3. A proposal to terminate the construction project in Luntai County due to operational feasibility concerns [9][10] Legal and Organizational Aspects - The company has appointed a law firm to witness the meeting and provide legal opinions [3] - The company reserves the right to refuse entry to unauthorized individuals and to maintain order during the meeting [4][6]