Core Viewpoint - The company, Shenzhen Kingsino Technology Co., Ltd., has approved several proposals during its 18th temporary board meeting, including plans for futures and derivatives hedging, investment activities, and expected guarantees for 2026, which will be submitted for shareholder approval [1][2][3][4][5][6]. Group 1: Futures and Derivatives Hedging - The company plans to engage in futures and derivatives hedging activities in 2026, with a maximum trading margin and rights amounting to 100 million yuan, valid from January 1, 2026, to December 31, 2026 [2][25]. - The hedging aims to manage price volatility risks associated with raw materials and products, particularly in the pig farming and feed production sectors [25][26]. Group 2: Futures and Derivatives Investment - The company intends to conduct futures and derivatives investment activities in 2026, with a maximum trading margin and rights amounting to 60 million yuan, also valid for the same period [2][39]. - This investment is aimed at effectively utilizing idle funds and obtaining investment returns while controlling risks [39][40]. Group 3: Expected Guarantees - The company plans to provide guarantees for cooperative farmers to secure bank financing, with a total guarantee amount not exceeding 100 million yuan [4][12]. - Additionally, the company will provide guarantees for its wholly-owned or controlled subsidiaries for various financing activities, with a total guarantee amount not exceeding 2.9 billion yuan [4][12][20]. Group 4: Comprehensive Credit Financing - The company aims to apply for a comprehensive credit financing limit of up to 5 billion yuan from banks and leasing institutions for 2026, with the actual financing amount determined by operational needs [5][64]. - This financing is expected to support the company's operational development without harming the interests of shareholders [68]. Group 5: Related Transactions - The company anticipates engaging in related transactions with its indirect controlling shareholder's subsidiaries, estimating sales of live pigs not exceeding 10 million yuan with one subsidiary and 20 million yuan with another [3][54][55]. - These transactions are considered normal business operations and are expected to contribute positively to the company's business development [59][60].

Core Viewpoint - Shenzhen Jinxinnong Technology Co., Ltd. plans to engage in futures and derivatives investment business in 2026, with a maximum trading margin and premium not exceeding 60 million yuan, subject to shareholder approval [1][2]. Group 1: Investment Business Overview - The investment business will focus on the domestic compliant market, utilizing trading venues such as Dalian Commodity Exchange and Zhengzhou Commodity Exchange, and will not involve overseas trading [2]. - The trading tools will include futures, options, and forwards, with some off-exchange trading to leverage customization advantages [2]. - Funding will come from the company's own funds and financial institution derivatives trading credit, without involving raised funds [2]. Group 2: Approval Process - The proposal has been approved by the company's board of directors and will be submitted for final approval at the 2025 annual shareholder meeting [2]. - The board's approval process included reviews by the strategic committee and a temporary meeting, and no related party transaction review is required [2]. Group 3: Risk Management - The company has identified six major risks associated with the investment business and has developed corresponding control measures [3]. - A mechanism for market risk management will be established, including pre-analysis, real-time monitoring, and post-review [3]. - Liquidity risk will be managed by setting stop-loss limits and ensuring that trading amounts do not exceed approved limits [3]. - Credit risk will be mitigated by selecting financial institutions with good credit and risk control capabilities as trading partners [3]. - Technical and operational risks will be addressed through improved trading systems and compliance with internal control requirements [3]. Group 4: Market Impact - The company's entry into the futures and derivatives market aims to enhance returns through diversified capital allocation [4]. - The announcement highlights potential deviations in market price trends due to economic policies and interest rate fluctuations [4]. - The company emphasizes the need to monitor its specific trading strategies and risk exposure management capabilities [4]. - Following shareholder approval, the company will gradually initiate related business based on market conditions and will fulfill information disclosure obligations [4].