Core Viewpoint - The article highlights how Zhengda Glass has successfully transformed its traditional manufacturing model by integrating futures trading, allowing the company to navigate market uncertainties and enhance its operational efficiency [1][5][14]. Group 1: Historical Development - Zhengda Glass was established in 1980 and has evolved from a small glass factory to a significant player in the national glass industry, leveraging advanced production techniques and a focus on quality [2][4]. - The company faced severe challenges during the 2007-2008 glass price crash, leading to significant inventory issues and financial strain [3][2]. - In response to the crisis, Zhengda Glass adopted unconventional measures, such as recycling unsold glass, to manage costs and reduce inventory [3][4]. Group 2: Adoption of Futures Market - Zhengda Glass began exploring the futures market in 2012, initially viewing it as a high-risk tool, but shifted to actively participating by 2014 when it became a delivery warehouse for glass futures [5][6]. - The decision to engage with the futures market was driven by the need to improve inventory management and enhance the efficiency of glass trade [5][6]. - The company developed a unique "three-dimensional integration" model that combines futures trading with its production and sales processes, allowing for better risk management and resource allocation [6][9]. Group 3: Strategic Implementation - In 2023, Zhengda Glass utilized its futures trading strategies to navigate market fluctuations, successfully locking in profits and managing costs during periods of price volatility [7][9]. - The company demonstrated its ability to adapt by selling glass futures to hedge against price drops while simultaneously managing raw material costs through futures contracts [7][8]. - Zhengda Glass's operational efficiency improved significantly, with quarterly profit margin fluctuations reduced from ±15% to ±5%, and inventory turnover rates increased from 6.3 times in 2019 to 9.8 times in 2024 [15]. Group 4: Future Outlook and Innovations - Zhengda Glass established a specialized trading subsidiary in 2023, integrating its operations with futures trading to enhance its service offerings and create new revenue streams [16][17]. - The company is actively promoting a "cooperative hedging" model among small and medium-sized glass processing enterprises, fostering collaboration and shared risk management [17]. - Looking ahead, Zhengda Glass aims to deepen its engagement with the futures market, leveraging data analysis for strategic planning and operational efficiency [17].

Core Viewpoint - The Dalian Commodity Exchange announced that pure benzene futures and options will officially start trading on July 8, which has garnered significant attention from the industry, with multiple companies expressing their intent to actively participate in the initial trading [1]. Industry Challenges - Companies in the pure benzene industry are currently facing multiple operational pressures, with price volatility being the primary challenge. The prices of pure benzene and its downstream derivatives are influenced by various factors including crude oil prices, import arbitrage, and new production capacity [3]. - The frequent occurrence of wide price fluctuations creates uncertainty for companies, necessitating more effective risk management tools to improve their operational stability [3]. - Domestic companies lack sufficient pricing power in the pure benzene market, as the liquidity of spot transactions primarily relies on imported goods, which are priced based on the Platts Korea offshore price model. This limits domestic companies' ability to control absolute pricing [3]. Corporate Preparations for Trading - Industry companies have shown strong interest in the launch of pure benzene futures and options, with many already participating in preliminary contract research and familiarizing themselves with relevant rules [4]. - The core application area of these derivative tools for companies is the hedging function, allowing them to conduct prudent hedging operations based on their spot exposure and risk preferences, thereby better managing price risks [4]. - Companies are also considering point pricing transactions, which would provide a more transparent pricing benchmark and reduce information asymmetry in trading [4]. - Participation in the delivery process is another important consideration for companies, as it would facilitate regional circulation of pure benzene resources and optimize resource allocation within the industry [4].

Core Viewpoint - The launch of pure benzene futures and options on July 8 by Dalian Commodity Exchange is expected to provide effective risk management tools for the pure benzene industry, with companies eager to participate in initial trading [1][4]. Industry Overview - Pure benzene is a key organic chemical raw material with downstream applications in various sectors including electrical appliances, construction materials, packaging, and fiber materials. China is the largest producer and consumer of pure benzene globally [2][3]. - The rapid changes in the supply and demand structure of the spot market have increased uncertainty for companies in the pure benzene industry, highlighting the urgent need for suitable risk management tools [2]. Challenges Faced by Companies - Companies face several operational challenges, including a lack of pricing power in the domestic pure benzene market, increased market credit risks due to price volatility, and mismatched product liquidity between pure benzene and its downstream derivatives [3]. - The reliance on traditional methods such as long-term contracts and inventory adjustments for risk management is insufficient, especially during extreme market fluctuations [2][3]. Expectations from Futures and Options - The introduction of pure benzene futures and options is anticipated to enhance market trading methods, improve hedging mechanisms, and provide a reliable trading platform for industry participants [3][4]. - Companies plan to actively engage in the futures and options market to utilize hedging and price discovery functions, thereby supporting domestic resource circulation and industry chain transfer [4][5]. Contract Details - The first batch of pure benzene futures contracts includes four contracts with a trading unit of 30 tons per lot and a delivery method of physical delivery. The initial price fluctuation limit is set at 7% of the previous day's settlement price [4][5]. Future Market Development - Industry participants hope that the futures market will enhance liquidity, optimize the structure of market participants, and attract more industry clients and financial institutions. Continuous optimization of rules by the exchange is also desired to ensure alignment with industry changes [5].

Summary of BoHui Co., Ltd. Conference Call Company Overview - BoHui Co., Ltd. is located in Ningbo Zhenhai, with its production base in the Ningbo Chemical Park, a national first-class chemical park. The company specializes in deep processing of fuel oil and specialty oils, including transformer oil, lubricating base oil, heat transfer oil, and furnace fuel oil. The company operates in various sectors such as rubber processing, asphalt processing, and photovoltaic new materials. It is listed on the Shenzhen Stock Exchange [2][3]. Key Points and Arguments Profit Improvement in Q1 2025 - The profit improvement in Q1 2025 is attributed to several factors: - Shift in business model from domestic sales to international trade, leveraging the export advantages of the Zhoushan Free Trade Zone [2][3]. - Product structure optimization, including the development of transformer oil and positioning for the cooling needs of computing servers [2][3]. - Technical upgrades to enhance raw material stability and product added value, leading to improved capacity utilization [2][4]. - Internal management cost optimization, including reduced management costs and streamlined processes [2][4]. Product Performance - High-sulfur fuel oil and fuel oils numbered 5-7 performed well, with an increasing export ratio. White oil and base oil remained stable, while asphalt production may be paused due to poor initial demonstration performance, with flexibility to adjust production based on market demand [2][5]. Raw Material Price Volatility Management - BoHui Co., Ltd. manages raw material price volatility through inventory adjustments and hedging strategies. If import prices are too high, the company may reduce purchase volumes. A dedicated team is established for futures trading to mitigate price risks during the procurement to sales cycle [2][6][7]. Competitive Advantages - The company has several competitive advantages: - Advanced technology using the Dutch jump process, leading to high technical content and a shorter establishment time for the second plant [2][8]. - Significant investment in safety and environmental protection, reducing regulatory risks [2][8]. - International presence with branches in Singapore and a trading company in Beijing, enhancing procurement and market intelligence [2][8]. - Strong product R&D and quality control capabilities, ensuring stable product performance [2][8]. - A cash-on-delivery sales model that accelerates cash flow [2][9]. Impact of State-Owned Shareholder Change - The change of the controlling shareholder to a state-owned platform is expected to enhance the company's stability, increase funding availability, deepen business channels, improve employee welfare, and adjust strategic layouts for quality and scale enhancement [2][9][10]. Digital Transformation - BoHui Co., Ltd. has made significant investments in digitalization, achieving recognition as a future factory in Zhejiang Province and a national-level intelligent manufacturing demonstration factory. However, due to poor performance in 2025, future digital investment plans remain uncertain [2][18]. Market and Tax Policy Impacts - The change in the consumption tax policy for refined oil from amount-based to production-based has impacted the company's overall capacity [2][13]. The company plans to adjust production structures in response to the underperformance of asphalt products and aims to enhance the yield of high-value white oil products through technical upgrades [2][14][15]. Future Plans - Currently, BoHui Co., Ltd. does not have plans to expand into overseas markets but aims to establish more international cooperation for raw material procurement, focusing on direct sourcing from suppliers in the Middle East and Singapore [2][20][21]. Other Important Information - The BoYue New Materials project was closed due to funding constraints and potential policy adjustments, with the government refunding the land costs [2][11]. The company is focusing on stabilizing existing business segments before expanding [2][11]. This summary encapsulates the key insights from the conference call, highlighting the company's strategic adjustments, product performance, competitive advantages, and future outlook.

格林大华期货研究院专题报告 期货研究院 能源化工 2025年7月2日 能源化工研究员： 吴志桥 从业资格证号： F3085283 交易咨询证号： Z0019267 联系方式： wuzhiqiao@greendh .com 摘要： 格林大华期货研究院专题报告 期货研究院 证监许可【2011】1288号 成文时间：2025年7月2日星期三 更多精彩内容请关注格林大华期货官方微信 纯苯期货上市前瞻 格林大华期货交易咨询业务资格： 6月27日，中国证监会已同意大连商品交易所纯苯期货和期权注册 ，纯苯期货自2025年7月8日（星期二）上市交易，纯苯期货开展夜盘 交易。首批上市交易合约为BZ2603、BZ2604、BZ2605、BZ2606。 按照目前的供求关系，国内纯苯供减需增，但供应压力仍在于进 口维持高位水平（预计月均进口45万吨水平），静态基本面略好转。 下游五大需求（苯乙烯，己内酰胺，己二酸，苯胺和苯酚）中苯乙烯 和己内酰胺检修结束后产量恢复，将支撑纯苯价格；预计7-8月纯苯基 本面阶段性好转，库存去化但受制于高进口，去库斜率可能偏缓慢。 中长期看，芳烃调油驱动有限，原油消费旺季结束后或面临下行风险 ，纯苯基本 ...

Core Viewpoint - The aluminum processing industry in Baise, Guangxi, is facing significant challenges due to a lack of pricing power and rising processing costs, leading to many companies operating at a loss and urgently needing risk management tools and pricing autonomy [2][3][4]. Industry Challenges - Baise's aluminum processing fees have fallen below the cost line for several months, with processing fees historically between 200-300 RMB/ton, while the breakeven point is 360 RMB/ton [2]. - Local aluminum processing companies rely on external market prices, specifically the Foshan South Storage price, which limits their ability to negotiate and manage price volatility [2][3]. - Many companies have reported continuous losses, with a 37 percentage point decline in profit margins year-on-year for those using traditional pricing models [2][3]. Risk Management Issues - The majority of local aluminum processing firms lack professional futures hedging teams, making it difficult to manage risks associated with price fluctuations [3]. - There is a shortage of skilled professionals in small and medium-sized enterprises, hindering their ability to effectively utilize futures markets for risk management [3]. - The scarcity of regional delivery warehouses limits the ability of companies to engage in physical delivery and risk control through futures markets [3]. Industry Development Initiatives - Baise is actively constructing a cross-border industrial chain that includes importing bauxite, alumina, aluminum processing, and exporting aluminum products [4]. - The establishment of the Guangxi Aluminum Products Storage and Trading Center aims to enhance competitiveness in the China-ASEAN aluminum industry [4]. - Companies like Jili Baikuang Group are focusing on financial tools to hedge risks and manage procurement costs, including developing dynamic pricing models [5][6]. Financial Innovations - The introduction of financial products such as "Hedging Loans" by local banks is helping small and medium enterprises manage risks more effectively [7]. - The development of an "in-transit warehouse" system is expected to reduce logistics costs significantly, enhancing the efficiency of the aluminum supply chain [8]. - The establishment of a regional pricing benchmark for aluminum products is underway, which will help stabilize pricing and improve market transparency [8]. Green Transformation Opportunities - The aluminum industry in Guangxi is transitioning towards high-end, intelligent, and green development, focusing on recycled aluminum and new metallurgical materials [9]. - The upcoming launch of futures and options for casting aluminum alloy is anticipated to provide financial innovation and support for the recycling aluminum sector [9][10]. - Companies are optimistic about future growth due to national policy support and the long-term development prospects of the industry [10][11].

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]