Group 1: Investment Rating - No investment rating information is provided in the report. Group 2: Core Viewpoints - After the New Year's Day, the upward trend of traditional non - ferrous metals has become steeper, with aluminum and copper leading the gains, and the aluminum price has rapidly approached the historical peak. The current spot market for aluminum is weak, but it may have reached the worst state, and the basis spread is expected to bottom out [1]. - In the mid - 2026 supply - demand situation with supply constraints, diversified demand, tight balance, and low inventory - consumption ratio, the market environment can support the upward movement of the aluminum price center. The systematic capital linkage allocation in the sector also helps increase price elasticity, and this bull - market capital layout is earlier and faster. If the equity market starts the spring rally in the first quarter, the upward space of aluminum metal is still worth looking forward to [1]. - The importance of position management is increasing as the price volatility of aluminum at high levels is likely to expand. It is necessary to use options and other tools for risk hedging while keeping a futures bottom - position [1]. - Future risk points for a potential peak include the performance of overseas Al - related equity assets and downstream processing profit indicators [1]. Group 3: Option - related Suggestions - For investors with a long - position in futures, it is recommended to consider buying put options with a moderate period and moderate out - of - the - money degree to protect against the callback risk of long positions, or replace long futures positions with in - the - money call options to control the callback risk [4]

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].