Core Viewpoint - Lito Electronics (603629) is actively managing its financial strategies, including issuing medium-term notes and short-term financing bonds, while also increasing its hedging business to mitigate risks from raw material price and exchange rate fluctuations [1][4][5]. Trading Information Summary - On July 11, 2025, Lito Electronics closed at 23.58 yuan, down 1.17%, with a turnover rate of 4.01%, a trading volume of 102,900 shares, and a transaction amount of 242 million yuan [1]. - The fund flow on the same day showed a net outflow of 19.64 million yuan from main funds (8.12% of total transaction amount), a net outflow of 27.02 million yuan from speculative funds (11.17%), and a net inflow of 46.66 million yuan from retail investors (19.28%) [1][3]. Company Announcements Summary - The second independent director meeting of the third board of Lito Electronics on July 7, 2025, approved three proposals: 1. Estimated daily related transactions for 2025, which are based on operational needs and market prices, ensuring no harm to the company or minority shareholders [1][2]. 2. Proposed registration for issuing medium-term notes and short-term financing bonds, which is not expected to significantly impact normal operations or shareholder rights [1][2]. 3. Increase in hedging business varieties to mitigate adverse effects from raw material price and exchange rate fluctuations, benefiting stable operations [1][2][4]. - The first temporary shareholders' meeting of 2025 is scheduled for July 28, 2025, to review the estimated daily related transactions, the proposed issuance of medium-term notes and short-term financing bonds, and the increase in hedging business varieties [3][4]. - The estimated amount for daily related transactions in 2025 is not to exceed 350.3 million yuan, involving Lihang Intelligent Technology and Shanghai Hanrong Microelectronics [3][4]. - The company plans to register for issuing up to 500 million yuan in medium-term notes and 500 million yuan in short-term financing bonds to optimize its debt structure and meet funding needs [3][5]. - The company has also announced an increase in hedging business varieties, with a maximum margin requirement of 10 million yuan and foreign exchange hedging transactions not exceeding 5 million USD [4][5]. - Director Shi Ji has reduced his holdings by 50,000 shares, totaling 1.185 million yuan, while other directors and supervisors have not made any reductions [3][5].

Group 1 - The company will hold its first extraordinary general meeting of shareholders in 2025 to discuss key proposals [1][2] - The meeting will include voting on three main proposals: expected daily related transactions for 2025, registration for issuing medium-term notes and ultra-short-term financing bonds, and increasing hedging business varieties [1][12][16] Group 2 - The expected daily related transactions for 2025 are estimated to not exceed 350.3 million yuan, involving related parties such as Lihang Intelligent Technology (Wuhan) Co., Ltd. and Shanghai Hanrong Microelectronics Co., Ltd. [6][7] - The company has established that these transactions are necessary for daily operations and will be conducted at market prices to protect the interests of the company and minority shareholders [7][11] Group 3 - The company plans to register for issuing medium-term notes and ultra-short-term financing bonds with a total amount not exceeding 500 million yuan each, aimed at optimizing its debt structure and financing channels [12][13] - The issuance will be conducted in accordance with market conditions and regulatory requirements, with funds used for debt repayment, working capital, and project investments [14][15] Group 4 - The company intends to expand its hedging business to mitigate risks from raw material price fluctuations and exchange rate volatility, with a maximum margin of 10 million yuan for futures and options hedging [16][18] - The hedging activities will focus on related products and materials necessary for production, ensuring that the company's operations remain stable and sustainable [19][22]

Group 1 - The core stock price of Jiahua Co., Ltd. (603182) closed at 13.81 yuan on July 11, 2025, reflecting a 2.37% increase from the previous week's closing price of 13.49 yuan [1] - The stock reached a nearly one-year high of 13.95 yuan during intraday trading on July 11, with a low of 13.39 yuan on July 7 [1] - The current total market capitalization of Jiahua Co., Ltd. is 2.272 billion yuan, ranking 21st out of 22 in the agricultural product processing sector and 4851st out of 5149 in the A-share market [1] Group 2 - Jiahua Co., Ltd. plans to use up to 50 million yuan of its own funds for hedging activities related to raw material soybeans [1] - The company will employ various financial instruments, including but not limited to futures, options, forwards, swaps, and combinations thereof, for this hedging strategy [1] - The board of directors has approved this plan, which does not require shareholder meeting approval, and the trading period is set for 12 months from the date of board approval [1]

Group 1: Company Performance and Financials - The company achieved a net profit of approximately 245 million CNY in 2024, representing a year-on-year growth of 39.16% [6] - In 2024, the company produced 228 tons of silver, with 158.82 tons from Yinman Mining and 46.07 tons from Qianjinda [10] - The company aims to optimize its operational strategies to enhance profitability and increase market value [4] Group 2: Future Plans and Projects - The company is actively advancing the Yinman Phase II and Yubang Mining expansion projects, with a production capacity target of 8.25 million tons per year [15] - The completion of the Yinman Phase II project is expected to take 1-2 years [5] - The company plans to maintain a focus on silver and tin resources while moderately investing in copper and gold [8] Group 3: Market and Investor Relations - The company has not yet engaged in hedging transactions despite the rapid increase in silver prices [2] - There are no current plans for stock buybacks using loans, although the company is open to future considerations [5] - The company is committed to enhancing communication with shareholders and the capital market to improve market activity and brand image [4] Group 4: Strategic Partnerships and Collaborations - The company is exploring potential collaborations with top-tier global mining service companies to improve construction speed and safety [3] - The company has signed a strategic cooperation framework agreement with China Railway Tunnel Bureau for future TBM excavation operations [2]

Group 1: Company Overview - North Copper Industry Co., Ltd. specializes in the mining, beneficiation, smelting, and rolling processing of copper metals, covering the entire copper production chain [3] - Main products include cathode copper, gold ingots, silver ingots, copper alloy strips, and rolled copper foil, with a cathode copper production capacity of 320,000 tons/year and sulfuric acid production capacity of 1.22 million tons/year [3] - In 2024, the company reported a revenue of CNY 24.107 billion and a net profit of CNY 613 million, while in Q1 2025, revenue was CNY 6.838 billion with a net profit of CNY 371 million [3] Group 2: Project and Production Capacity - The Houma North Copper project has achieved its designed capacity of processing 800,000 tons of copper concentrate annually, with stable system operations [3] - As of the end of 2024, the copper mine in the mining rights area holds 213 million tons of copper ore resources, with a metal content of 1.2987 million tons [3] - The company’s controlled shareholder, Zhongtiao Mountain Nonferrous Metals Group, has two mines producing 7,000-8,000 tons of copper concentrate annually, but cannot inject these into the listed company due to incomplete mining rights [3] Group 3: Market and Pricing - Sulfuric acid prices have significantly increased this year, positively impacting the company's performance due to market opportunities [3] - The copper smelting processing fee remains low, creating operational pressure for the company, which maintains stable long-term relationships with suppliers to secure supply [4] Group 4: Risk Management - The company implements hedging strategies based on the source of raw materials, determining hedging prices and contracts according to various factors such as purchase timing and production costs [4]

Core Viewpoint - Yantai Zhongchong Food Co., Ltd. has established an internal control system for financial derivatives trading to regulate trading behavior and mitigate associated risks, ensuring compliance with relevant laws and regulations [2][3][4]. Group 1: Regulatory Framework - The internal control system is based on the Company Law, Securities Law, and relevant regulations from the Shenzhen Stock Exchange, aiming to standardize financial derivatives trading within the company and its subsidiaries [2][3]. - Financial derivatives include products such as forwards, swaps, and options, which can be traded on-exchange or over-the-counter, and may involve various underlying assets [2][3]. Group 2: Trading Principles - The company and its subsidiaries are prohibited from engaging in purely profit-driven financial derivatives trading; all transactions must be grounded in normal business operations and aimed at hedging against currency and interest rate risks [3][4]. - Transactions must only be conducted with qualified financial institutions approved by regulatory authorities, ensuring compliance with national laws and internal regulations [4][5]. Group 3: Approval and Management - The Board of Directors or the Shareholders' Meeting is responsible for approving financial derivatives trading activities, with specific limits set based on the company's audited net assets [4][5]. - The financial department is tasked with proposing trading plans based on market analysis, while the audit department oversees compliance and the securities department handles necessary disclosures [6][7]. Group 4: Risk Management - The financial department must monitor market prices and assess risk exposure, ensuring timely delivery and managing counterparty credit risks [8][9]. - A risk analysis report is required monthly, detailing trading activities, risk assessments, and compliance with stop-loss limits [9]. Group 5: Information Disclosure - The company is obligated to disclose information regarding financial derivatives trading in accordance with regulatory requirements, particularly when losses exceed a certain threshold [9][10]. - Any significant risks or losses must be reported to the stock exchange within two trading days if they meet specified criteria [9][10].

Core Viewpoint - The company has established a set of regulations for forward foreign exchange settlement and sales to manage exchange rate risks in international trade, ensuring compliance with relevant laws and internal policies [1][2]. Group 1: General Principles - The company defines "forward foreign exchange settlement" as agreements with banks to handle future foreign exchange transactions based on predetermined terms [1]. - The company will not engage in foreign exchange trading solely for profit but will use it as a hedging tool to mitigate exchange rate risks [1][2]. Group 2: Operational Guidelines - Transactions are only permitted with approved financial institutions that have the qualifications for forward foreign exchange business [2]. - The total amount of forward foreign exchange contracts must not exceed the total foreign exchange income from signed but unpaid export orders [2][3]. - The company must establish its own forward foreign exchange trading accounts and cannot use third-party accounts [2]. Group 3: Organizational Structure and Responsibilities - The board of directors authorizes a forward foreign exchange leadership group to oversee daily management and analysis of forward foreign exchange activities [3]. - The leadership group is responsible for supervising the business, developing annual plans, and submitting reports to the board [3][4]. Group 4: Approval Authority - Approval for forward foreign exchange transactions is tiered based on the amount of unfulfilled contracts relative to export orders, with different thresholds requiring different levels of approval [4][5]. - All decision-making bodies must operate within their authorized limits and approved plans [5]. Group 5: Business Process - The marketing center uses daily bank rates to quote prices to customers and forecasts foreign currency receipts based on customer orders [5]. - The financial center analyzes proposed transactions and submits plans for approval by the leadership group [5][6]. Group 6: Risk Management - The financial center must settle transactions according to the terms of the forward contracts and report any significant risks to the leadership group or board [6]. - If potential losses exceed 2% of the total forward exchange amount, the financial center must submit an analysis and solution for decision-making [6]. Group 7: Confidentiality Measures - All personnel involved in forward foreign exchange activities must adhere to confidentiality protocols regarding transaction details and financial status [7]. - The audit department supervises the independence of operational processes and personnel involved in these transactions [7]. Group 8: Miscellaneous Provisions - Documentation related to foreign exchange transactions must be archived for at least 15 years [8]. - Any matters not covered by these regulations will be governed by relevant national laws and regulations [8].

Group 1 - The launch of propylene futures and options on July 22 aims to enhance the chemical derivatives chain and provide effective inventory hedging tools for upstream and downstream enterprises in the propylene industry [1][2] - The introduction of propylene futures and options is expected to improve market liquidity and support sustainable development for upstream and downstream companies [2][3] - The propylene futures market will fill a critical gap in the "LPG-propylene-polypropylene" chain and create a pricing benchmark for "Chinese propylene," enhancing international trade pricing power [3] Group 2 - The propylene industry has been facing supply-demand imbalances and high price volatility, making the introduction of futures and options beneficial for stable operations and high-quality industry development [3] - Companies can utilize futures and options to lock in procurement or sales prices, effectively mitigating risks associated with spot market fluctuations [2][3] - The new product launch presents both challenges and opportunities for futures companies to expand their services to the real economy [2][3]

Core Viewpoint - The company aims to utilize futures and derivatives trading to hedge against significant fluctuations in raw material prices, specifically soybeans, to ensure stable operations and development [1][2][3]. Group 1: Trading Purpose and Instruments - The primary purpose of the trading is to leverage the hedging functions of the futures market to mitigate adverse impacts from raw material price volatility on the company's operations [1][2]. - The trading instruments include futures, options, forwards, swaps, and combinations of these financial tools [1][4]. - The company plans to use its idle self-owned funds for the hedging activities, with a maximum investment of RMB 50 million [2][3]. Group 2: Trading Amount and Sources - The expected maximum balance for margin and premiums related to futures and derivatives trading is set at RMB 50 million, which can be used cyclically within the approval period [2][3]. - The funding for these trading activities will come from the company's own funds, without involving raised capital [3][4]. Group 3: Trading Procedures and Risk Management - The board of directors approved the adjustment of the hedging business on July 10, 2025, which does not require shareholder approval [2][4]. - The company will engage in trading at recognized domestic and foreign exchanges, including the Shanghai Futures Exchange and Dalian Commodity Exchange [3][4]. - A comprehensive risk management system is in place to address potential market, liquidity, operational, and credit risks associated with the trading activities [5][6]. Group 4: Impact on Company Operations - The trading activities are expected to enhance the company's ability to manage raw material price risks effectively, thereby supporting stable operational performance [5][6]. - The accounting treatment for the futures and derivatives trading will comply with relevant financial reporting standards [6].

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core View - The intraday trend of Shanghai nickel was oscillating strongly, basically recovering recent losses, with its fluctuations affected by the non - ferrous market. On the fundamental side, the increase in the shipment volume of mines from the Philippines led to a certain decline in prices, but the subsequent downward space of ore prices was limited due to the disturbance of nickel ore quotas. The intraday transaction price of ferronickel stabilized, mainly affected by weak downstream demand, and was currently close to the conversion spread of high - grade nickel matte. The intraday trend of stainless steel was strong, but the spot reaction was limited, and there was no obvious improvement in the fundamentals. Currently, the tariff game between Indonesia and the United States increased the sentiment disturbance in the downstream of the nickel industry chain. The new energy link still maintained a production - based - on - sales situation. The subsequent focus should be on the impact of macro - tariffs and the trend of the non - ferrous market [3]. 3. Key Points by Category 3.1 Price and Volatility - The predicted price range of Shanghai nickel is 117,000 - 126,000 yuan/ton, with a current 20 - day rolling volatility of 15.17% and a historical percentile of 3.2% [2]. 3.2 Management Strategies - **Inventory Management**: When the product sales price drops and there is a risk of inventory devaluation, sell Shanghai nickel futures according to the inventory level to lock in profits and hedge against the risk of spot price decline (sell 60% of Shanghai nickel main contracts), and sell call options (50% of over - the - counter/on - exchange options) [2]. - **Procurement Management**: If the company has future production procurement needs and is worried about rising raw material prices, buy Shanghai nickel forward contracts according to the production plan to lock in production costs in advance, and sell put options and buy out - of - the - money call options according to the procurement plan [2]. 3.3 Market Influencing Factors - **Positive Factors**: The cobalt mine ban in Congo continues; Tsingshan plans to cut stainless steel production by 250,000 tons; Indonesia shortens the nickel ore quota license period from three years to one year; The tariff negotiation between Indonesia and the United States may involve the subsequent trend of the nickel industry chain [4]. - **Negative Factors**: Stainless steel enters the traditional off - season of demand, and inventory reduction is slow; The contradiction in the ferronickel industry chain deepens, and the oversupply situation remains unchanged [4]. 3.4 Market Data - **Nickel Disk Daily Data**: The latest price of the Shanghai nickel main contract is 121,140 yuan/ton, a 2% increase; trading volume decreased by 8.02% to 102,155 lots; open interest decreased by 9.74% to 65,815 lots; the number of warehouse receipts decreased by 0.35% to 20,605 tons; the basis of the main contract was - 860 yuan/ton, a - 31.8% change [5]. - **Stainless Steel Disk Daily Data**: The latest price of the stainless steel main contract is 12,865 yuan/ton, a 1% increase; trading volume increased by 2.43% to 101,032 lots; open interest decreased by 2.76% to 85,345 lots; the number of warehouse receipts remained unchanged at 111,290 tons; the basis of the main contract was 300 yuan/ton, a - 18.92% change [6]. - **Nickel Industry Inventory**: Domestic social inventory of nickel was 38,029 tons, an increase of 186 tons; LME nickel inventory was 204,738 tons, an increase of 1,176 tons; stainless steel social inventory was 978 tons, a decrease of 14.1 tons; ferronickel inventory was 37,534 tons, an increase of 2,924 tons [7].