Core Insights - The article highlights how Tongzhou International Trade Group has effectively utilized financial tools to stabilize operations amidst commodity market volatility, serving as a model for financial empowerment in the cotton industry [1][2]. Group 1: Company Strategies - Tongzhou Group has implemented innovative models such as "right-trade" to enhance risk management capabilities for nearly 400 industry chain enterprises [1][2]. - The company has achieved a trading volume of over 200,000 tons in basis trade and nearly 80,000 tons in options operations from January to November 2024, demonstrating robust operational performance [2]. - The "right-trade" model has become a focal point for many industry clients, showcasing its effectiveness in real trade scenarios [2][3]. Group 2: Case Studies - In a case study, a cotton processing factory signed a basis purchase agreement for 1,000 tons, incorporating a call option with an execution price of 16,000 yuan/ton, which allowed the client to secure profits while managing price risks [3][4]. - Another case involved a yarn factory that utilized a put option with a strike price of 15,200 yuan/ton, effectively locking in procurement costs and avoiding a potential loss of 740,000 yuan when prices fell [4]. Group 3: Industry Impact - Tongzhou Group has taken the initiative to share its successful experiences and models with over 10 textile enterprises in Henan province, aiming to enhance the risk resilience of the entire industry chain [5]. - The company actively promotes the use of cotton futures and options tools across various regions, including Xinjiang and Guangdong, to educate industry partners on risk management [5]. - Moving forward, Tongzhou Group plans to deepen its application of futures and options tools while continuing to innovate its business models to better serve clients in the industry chain [5].

Core Insights - The article emphasizes the transformative impact of financial innovation on the industrial ecosystem, focusing on the concepts of "strong chain, stable chain, and solid chain" as key to enhancing industry resilience and competitiveness [1] Group 1: Strong Chain - The resilience of an industrial ecosystem largely depends on the strength of its "chain leader" companies, such as Company A, which is targeted by COFCO Futures for empowerment [2] - The "Point Pricing" model developed by COFCO Futures helps Company A transition from price competition to service competition, enhancing its core capabilities and creating a strong competitive advantage [2] - By providing comprehensive value-added services, Company A can attract and retain high-quality upstream resources, establishing a robust "moat" in a highly competitive market [2] Group 2: Stable Chain - A healthy industrial ecosystem is built on trust, stable cooperation, and innovative concepts, which the "Point Pricing" model aims to achieve by restructuring traditional relationships within the supply chain [3] - The new "iron triangle" model binds the interests of COFCO Futures, Company A, and upstream ginning factories more closely, enhancing collaboration and efficiency [3] - This shift from transactional relationships to long-term partnerships fosters trust and stability, allowing for better risk management and profit maximization [3] Group 3: Solid Chain - Successful transformation requires both top-level design and strong internal capabilities to ensure sustainability and replicability of results [4] - The deep understanding of the industry by the team at COFCO Futures enables precise financial tool combinations that address specific challenges [4] - A culture of innovation and a supportive organizational environment are crucial for fostering continuous improvement and maintaining competitive advantages in operational models [5] Conclusion - The financial innovation by COFCO Futures not only introduces sophisticated financial products but also catalyzes positive ecological changes in the industry, aligning with the broader goal of serving the real economy [6] - This approach exemplifies COFCO Capital's commitment to integrating finance with industry, contributing to high-quality development and expanding the potential for replicating successful experiences across various sectors [6]