Core Points - The document outlines the futures and derivatives trading management system of Ruimaotong Supply Chain Management Co., Ltd, aiming to establish a comprehensive decision-making system for trading and risk prevention [1] - The system applies to the company and its wholly-owned and controlling subsidiaries, ensuring compliance with national laws and internal regulations [2][3] - The company emphasizes legal, prudent, safe, and effective principles in its trading activities, focusing on hedging to manage specific risks [5][6] Group 1: Trading Definitions and Scope - Futures trading refers to transactions involving standardized futures contracts or options, while derivatives trading includes swaps, forwards, and non-standardized options [2] - The trading activities are limited to those related to the company's production and operations, ensuring that the types, scale, and duration of trades align with the risks being managed [3][4] Group 2: Trading Principles and Risk Management - The company must maintain sufficient funds to match the margin requirements for futures and derivatives trading, prohibiting the use of raised funds for such activities [5] - A risk management department is responsible for legal compliance and risk assessment related to trading activities [7] Group 3: Decision-Making and Approval Process - The board of directors and shareholders' meeting serve as the approval bodies for trading activities, requiring feasibility reports that include risk analysis and control measures [13][14] - The trading activities must adhere to approved plans, and any deviations require additional approvals [16][18] Group 4: Internal Operations and Responsibilities - An investment decision-making committee is established to oversee trading activities, including setting investment limits and emergency response plans [19][20] - Various departments, including finance and risk management, have specific responsibilities in managing and monitoring trading activities [21][22] Group 5: Risk Control and Emergency Measures - The company must implement a robust management mechanism to record and transmit trading information, preventing unauthorized operations [25][26] - Emergency response mechanisms are activated in cases of significant market changes or operational violations [27][28] Group 6: Compliance and Amendments - Violations of laws or internal regulations in trading activities will result in accountability measures [29] - The document is subject to amendments based on new national laws and regulations, with the board of directors responsible for interpretation [30][31]

Core Points - The company is preparing for its third extraordinary general meeting of shareholders in 2025, scheduled for September 11, 2025, at 14:00 [1][2] - The meeting will include various agenda items such as the appointment of auditors, discussions on foreign exchange derivatives trading, and amendments to the company's articles of association [4][6][10] Group 1: Meeting Procedures - A secretariat will be established to manage the meeting procedures [1] - Shareholders must register to speak and are limited to a total speaking time of 30 minutes [1][2] - The board will ensure the protection of shareholders' rights and maintain order during the meeting [1][2] Group 2: Agenda Items - The first agenda item involves the reappointment of Tianjian Accounting Firm as the financial and internal control auditor for the year 2025 [5] - The second agenda item proposes the initiation of foreign exchange derivatives trading to hedge against currency fluctuations, with a maximum trading amount of up to 300 million USD [6][7] - The third agenda item includes amendments to the company's articles of association, notably the removal of the supervisory board and the transfer of its powers to the audit committee [10][11]

Group 1 - The company plans to conduct futures, options, and foreign exchange hedging business in accordance with relevant accounting standards and guidelines [1] - The supervisory board believes that the hedging activities are aimed at mitigating risks from raw material price and foreign exchange market fluctuations, aligning with the company's business development needs [2][3] - The company has established effective management systems and risk control frameworks for these hedging activities, ensuring compliance with legal regulations [2][4] Group 2 - The sponsor has verified that the proposed hedging activities are necessary for the company's operations and that appropriate risk response measures are in place [4][5] - The board of directors and supervisory board have approved the hedging activities, fulfilling necessary review procedures [4][5] Group 3 - The company announced a provision for asset impairment totaling 18.51 million yuan, with 6.05 million yuan attributed to credit impairment losses and 12.49 million yuan to inventory impairment losses [7][12] - The impairment provision reflects a realistic assessment of the company's asset values, ensuring compliance with accounting standards [12][13] - The audit committee supports the impairment provision, stating it accurately reflects the company's financial condition and operational results [14]

Core Viewpoint - The company aims to mitigate the adverse effects of raw material price fluctuations and exchange rate volatility on its operational performance by engaging in commodity futures and foreign exchange hedging activities [1][4]. Group 1: Commodity Futures Hedging Business - The maximum trading margin and premium for the commodity futures hedging business will not exceed RMB 10 million, with the highest contract value held on any trading day not exceeding RMB 100 million [2]. - The funding for this business will come from the company's own funds, and it will select approved domestic futures trading venues to conduct hedging related to raw materials such as hot-rolled coils, copper, and aluminum [2]. - The validity period for the usage of the approved limits is 12 months from the date of the board's approval, and the funds can be rolled over within this period [2]. Group 2: Foreign Exchange Hedging Business - The total amount for the foreign exchange hedging business will not exceed USD 2 million or its equivalent in other foreign currencies, also funded from the company's own resources [2]. - The trading instruments will include forward foreign exchange contracts, foreign exchange swaps, and other derivative products, with transactions conducted with qualified financial institutions approved by the State Administration of Foreign Exchange and the People's Bank of China [2]. - Similar to the commodity futures business, the validity period for the foreign exchange hedging business is also 12 months from the board's approval, with the funds available for rolling over during this period [2]. Group 3: Risk Analysis and Control - The company has identified risks associated with the commodity futures hedging business, including price fluctuation risk, liquidity risk, internal control risk, and technical risk [3]. - To manage these risks, the company has established a comprehensive risk management system, including a trading management policy, risk assessment systems, and regular internal audits [3]. - For the foreign exchange hedging business, risks include exchange rate fluctuation risk, operational risk, and performance risk, with measures in place to mitigate these risks through strict adherence to trading policies and collaboration with reputable financial institutions [3]. Group 4: Impact on the Company and Opinions - Engaging in commodity futures and foreign exchange hedging is expected to reduce the negative impact of raw material price and exchange rate fluctuations on the company's operational performance and profitability, thereby enhancing its financial stability [4]. - The supervisory board has expressed that the hedging activities align with the company's business development needs and that the decision-making process was lawful and compliant, posing no harm to the interests of the company and its shareholders [4]. - The sponsor has also affirmed that the hedging activities are necessary for the company, and that appropriate risk management measures have been established [4].

Core Viewpoint - The company has made significant strategic investments and operational adjustments during the reporting period, including the establishment of a wholly-owned subsidiary and capital increases to support ongoing projects and subsidiaries [6][7][8]. Company Overview - The company has established a wholly-owned subsidiary, Shenzhen Lianyu Import and Export Co., Ltd., with an investment of RMB 1 million in June 2025 [6]. - The company has increased capital in Lianyu Intelligent by approximately RMB 2.3683 million to support project implementation [7]. - The company has also allocated RMB 182.4396 million of remaining and excess fundraising to the construction of a smart lighting production base in Vietnam [8]. Important Matters Investment Activities - The company has made investments in subsidiaries to enhance operational efficiency and resource allocation [6][9]. - The company has completed the deregistration of its subsidiary, Shenzhen Lianyu Optoelectronics Co., Ltd. Guangming Branch, to optimize resource allocation [9]. - The company is in the process of deregistering Dongguan Haibo New Energy Technology Co., Ltd. due to the disposal of underperforming assets [11]. Profit Distribution - The company has approved a profit distribution plan for the year 2024, proposing a cash dividend of RMB 2.80 per 10 shares, totaling RMB 20.496 million [12]. Financial Support and Guarantees - The company plans to apply for a total of RMB 240 million in comprehensive credit facilities from financial institutions to meet operational needs [102]. - The company intends to provide guarantees of up to RMB 180 million for its subsidiaries, with specific allocations based on their financial health [101][103]. Corporate Governance - The company has proposed changes to its registered address and governance structure, including the abolition of the supervisory board, with responsibilities transferred to the audit committee [28]. - The company has revised several internal management systems to align with regulatory requirements and improve operational efficiency [34]. Shareholder Meetings - The company has scheduled its first extraordinary general meeting of 2025 for September 16, 2025, to discuss various proposals [74].

Section 1: Important Notices - The semi-annual report summary is derived from the full semi-annual report, and investors should read the full report for a comprehensive understanding of the company's operational results, financial status, and future development plans [1] - The board of directors, supervisory board, and senior management guarantee the authenticity, accuracy, and completeness of the semi-annual report content, and there are no false records, misleading statements, or significant omissions [1] - The semi-annual report has not been audited [1] Section 2: Company Overview - The company is identified as Pingdingshan Tianan Coal Industry Co., Ltd. with the stock code 601666 [2] - The report includes major financial data, but specific figures are not provided in the summary [1] - The company does not have any changes in controlling shareholders or actual controllers during the reporting period [1] Section 3: Important Events - The company will hold the 2025 Third Extraordinary General Meeting on September 16, 2025, at 9:30 AM at Ping'an Building, No. 2 Minzhu Road, Pingdingshan City, Henan Province [3][6] - Voting will be conducted through a combination of on-site and online methods, with online voting available on the Shanghai Stock Exchange's network voting system [4][5] Section 4: Meeting Agenda - The meeting will review several proposals, including the approval of the semi-annual report and the election of board members [7][24] - The proposals have been disclosed previously and will be voted on by shareholders [7] Section 5: Company Actions - The company plans to establish a subsidiary named Pingdingshan Tianan Coal Industry Co., Ltd. Tianhong Coal Washing Plant to enhance management efficiency and leverage its coal washing facilities [33][34] - The company will provide a guarantee for its subsidiary, Henan Chaolan Energy Technology Co., Ltd., for a project loan not exceeding 900 million RMB [38][39] - The company intends to engage in coal futures hedging to mitigate market risks associated with coal price fluctuations, with a maximum margin and premium of 15 million RMB [46][48] Section 6: Governance Changes - The company plans to abolish the supervisory board and allow the audit committee of the board to assume the supervisory functions as per the new Company Law [59]

Group 1 - The conference held by Galaxy Futures in Qingdao focused on the opportunities and challenges in the coking coal market under the new circumstances, with industry experts discussing how futures tools can aid in risk management and innovative business models for upstream and downstream enterprises [1] - Domestic coking coal supply has been affected by multiple factors this year, including a notice from the National Energy Administration that impacted coal mine production, along with safety and weather issues leading to low capacity utilization and slow recovery in production [1][2] - The chief analyst from Zhejiang Material Environmental Energy Co., Ltd. noted that with improved safety regulations and a decline in coal prices, the overproduction situation in coal mines is decreasing, but further checks and strict penalties on overproduction could lead to a contraction in coal supply [2] Group 2 - An Inner Mongolia washing plant faced challenges due to continuous declines in spot market prices, leading to a decrease in inventory value and increased operational risks [2] - To mitigate risks, the plant decided to use coking coal futures for inventory hedging, selling futures contracts at relatively high prices in early April, which resulted in significant profits despite losses in the spot market as prices continued to fall [3] - The successful hedging highlighted the positive role of coking coal futures in providing a channel for price risk avoidance, stabilizing operations, and ensuring normal cash flow, while also aiding in production and procurement decision-making [3]

Core Viewpoint - Funi Futures, as the only futures company under the Fujian state-owned asset system, focuses on serving the real economy and promoting green development and high-end materials, aligning with national strategies and group planning [1][2]. Group 1: Company Strategy and Development - Funi Futures aims to enhance the capabilities of new energy enterprises in utilizing financial derivatives, providing customized training and support for risk management [2]. - The company is actively collaborating with its parent group to strengthen its presence in the green finance sector, facilitating the green transition of enterprises [2][3]. - Funi Futures has successfully established a delivery warehouse for polypropylene in Fujian, enabling local enterprises to participate more conveniently in futures trading [3][4]. Group 2: Market Expansion and Product Offering - The company is preparing for the launch of new energy futures products, such as electricity futures and carbon emission rights, to expand its service boundaries in the new energy sector [3]. - Funi Futures has approved a total of 21 delivery warehouses and brands across various industries, enhancing the trading infrastructure for local enterprises [4]. - The company provides comprehensive services for enterprises, including risk management training, market analysis, and solutions for warehouse receipt transfers and delivery [4]. Group 3: Support for SMEs - Funi Futures recognizes the challenges faced by small and medium-sized enterprises in accessing futures tools and advocates for continued support measures from exchanges to enhance their participation in the futures market [5]. - The company plans to strengthen collaboration with banks and securities firms to offer additional value-added services to enterprises [5].

Group 1 - The focus of the recent "Coking Coal Industry Chain Risk Management Exchange Conference" held by Galaxy Futures in Qingdao was on the opportunities and challenges in the coking coal market under the new circumstances, with discussions on how futures tools can be utilized for risk management and innovative business models [1] - Domestic coking coal supply has been affected by multiple factors this year, including a notice from the National Energy Administration regarding coal mine production checks, which has impacted production, along with safety and weather-related issues leading to low capacity utilization and slow recovery in coking coal production [1][2] - The chief analyst of Zhejiang Material Environmental Energy Co., Ltd. noted that with improved safety regulations and a decline in coal prices in the first half of the year, the situation of overproduction in coal mines is decreasing, but some mines still exceed production limits [2] Group 2 - The coal supply is expected to face contraction if further checks and strict penalties on overproduction are implemented, leading to fluctuations in supply and providing support for coking coal prices, although significant price increases are unlikely due to the current profitability of coal mines [2] - An Inner Mongolia washing plant faced challenges due to continuous declines in spot market prices, resulting in reduced inventory value and increased operational risks [2] - A successful hedging strategy using coking coal futures was implemented by a company to stabilize operations and ensure normal cash flow, highlighting the positive role of coking coal futures in providing a channel for price risk avoidance [3]

Group 1 - The company aims to conduct foreign exchange derivative business, including forward foreign exchange settlement and sales, to mitigate the impact of exchange rate fluctuations on its operating performance [1][2] - The total amount for the foreign exchange derivative transactions planned for 2025 is not to exceed the equivalent of 500 million RMB or other equivalent foreign currencies [2][3] - The funding for these transactions will primarily come from the company's own funds and will not involve the use of raised funds [2][3] Group 2 - The effective period for the foreign exchange derivative business is twelve months from the approval date by the board of directors, with the ability to roll over the transaction limits within this period [3] - The company has established a comprehensive internal control system and risk response measures to effectively manage the risks associated with foreign exchange derivative transactions [4][5] - The company will account for and disclose the foreign exchange derivative business in accordance with relevant accounting standards [4] Group 3 - The company has received approval from its board of directors for the foreign exchange derivative business, which does not involve related party transactions and does not require shareholder approval [4] - The sponsor institution has no objections to the company's plan to conduct foreign exchange derivative transactions, affirming that it aligns with legal regulations and the company's operational needs [5]