Core Insights - The article discusses the challenges faced by a leading air pollution control company in China due to the global inflation wave from 2020 to 2021, which led to significant cost control issues and a loss of 40 million yuan in 2021 due to soaring steel prices [1] - The company, which has national-level environmental technology qualifications, relies heavily on competitive bidding for project orders, making it vulnerable to raw material price fluctuations [1] - In the second half of 2022, the company faced a decision-making dilemma regarding how to secure raw material costs amidst falling steel prices while holding a procurement order for 20,000 tons of steel [2] Group 1: Company Challenges - The company experienced a loss of 40 million yuan in 2021 due to a surge in steel prices, highlighting the impact of raw material price volatility on its operations [1] - The bidding process requires precise cost calculations based on fluctuating steel prices, creating a risk of losses if prices rise after winning a bid [1] - The company’s operational model is heavily reliant on market conditions, necessitating improved risk management strategies [1] Group 2: Strategic Response - The company partnered with Guojin Futures to develop a comprehensive risk management strategy, which included customized hedging solutions and training for staff [2][3] - A "staggered purchasing" strategy was implemented, allowing the company to buy 20,000 tons of futures contracts in batches, aligning with market trends while securing costs [3] - The successful execution of this strategy resulted in a reduction of procurement costs by 16 million yuan and an additional profit of 4 million yuan from futures trading [3][4] Group 3: Financial Outcomes - The company achieved a dual benefit by avoiding raw material price increases and gaining an additional 20 million yuan in comprehensive profits through effective market trend analysis [4] - The integrated service model provided by Guojin Futures demonstrated the potential for financial services to support real economy enterprises in navigating price volatility [4]