Core Viewpoint - The company emphasizes its role in supporting the real economy through financial services, focusing on compliance, integrity, professionalism, and stability while enhancing risk management for agricultural and small enterprises [1][2]. Group 1: Promoting Inclusive Finance - The company has effectively implemented inclusive finance initiatives, particularly in supporting agriculture and small enterprises, aligning with national financial strategies [2]. - Since 2021, the company has launched "insurance + futures" projects for various agricultural products, providing risk protection for thousands of farmers and acres of farmland, with a total risk guarantee of approximately 930 million yuan for 728,000 pigs [2]. - The company's projects have received recognition, including being selected as an excellent case by the China Futures Association and winning awards for risk management excellence [2]. Group 2: Deepening Industry Chain Services - The company actively contributes to major strategic initiatives such as the Chengdu-Chongqing economic circle and the construction of modern manufacturing clusters in Chongqing [3]. - It customizes risk management solutions for state-owned logistics, warehousing, and bulk commodity trading enterprises, helping them hedge against price fluctuations in commodities [3]. - The company also focuses on emerging industries, particularly the new energy vehicle supply chain, providing specialized risk management services for key raw materials like lithium, nickel, and silicon [3]. - Future plans include leveraging political guidance to enhance business development while maintaining compliance and integrity in operations [3].

Core Insights - The 20th National Congress of the Communist Party of China presents new opportunities and challenges for the futures industry, emphasizing comprehensive reform, industry culture construction, and risk management [1] Group 1: Compliance and Risk Management - Futures companies must ensure compliance as a key to market stability and customer interests, integrating compliance culture into daily operations and decision-making [2] - A systematic risk management framework should be established, focusing on risk identification, assessment, control, and reporting, while enhancing internal controls to mitigate internal risks [3] Group 2: Talent Development - Strengthening talent development is crucial for enhancing core competitiveness, requiring optimization of talent structure and ongoing training in finance, law, compliance, and risk management [4] Group 3: Corporate Culture - Cultivating a corporate culture aligned with socialist core values is essential, promoting compliance, integrity, and prudent operations to enhance employee engagement and responsibility [5] Group 4: Technological Advancement - Digital transformation is vital for improving competitiveness, necessitating the integration of information technology in risk control, compliance services, and auditing processes [6] Group 5: High-Quality Development - Futures companies should focus on high-quality development that serves the real economy, customizing risk management solutions for enterprises and fostering business innovation [7] - The industry should adhere to the "Five Musts and Five Must Nots" of Chinese financial culture, ensuring that core values of compliance, integrity, professionalism, prudence, and responsibility are embedded in all operations [8]

Core Viewpoint - CITIC Futures has implemented a three-step service strategy to revitalize the underlying commodity assets of ferroalloy plants, effectively addressing issues such as limited sales channels, passive pricing, and significant price volatility in traditional ferroalloy enterprises, ensuring that goods are accessible, manageable, and sellable [1][4] Group 1: Customized Three-Step Solution - Zhongwei City is a major silicon iron production base, accounting for over 85% of Ningxia's total output. A key ferroalloy enterprise in the area, despite having sufficient orders, has been operating at a marginal profit due to overall industry downward pressure. CITIC Futures designed a tiered service plan tailored to the enterprise's characteristics [2] - The first phase involved expanding sales channels through futures delivery, allowing the enterprise to recover funds and alleviate account period pressure. CITIC Futures provided comprehensive guidance on the delivery process to ensure the quality of the goods met exchange standards [2] - The second phase introduced basis trading to enhance pricing capabilities, enabling the enterprise to lock in profits when futures prices were high, maintaining stable earnings even during market volatility [2] - The third phase involved innovative rights trading to increase operating profits, where CITIC Futures designed a "cumulative sales" rights trading plan to help the enterprise achieve high-price inventory clearance amid a persistently low silicon iron price forecast for Q4 2024 [2] Group 2: Significant Results of Industry-Finance Integration - CITIC Futures and its subsidiaries effectively addressed enterprise challenges through a combination strategy of "futures delivery + basis pricing + rights trading," enhancing profits and stabilizing operations. This integration of futures and options tools not only improved the operational quality of the enterprise but also validated the value of these financial instruments in strengthening industry risk management capabilities [3] - The success of this project is attributed to the service philosophy of "finance understands the entity," transforming complex financial tools into understandable and operable solutions for enterprises, thereby bridging the last mile of industry-finance integration [3] Group 3: Establishing a New Benchmark for Futures Services - The project serves as a model by deeply integrating innovative service models with the actual needs of enterprises, addressing challenges such as limited sales channels, weak pricing power, and high price volatility. It validates the application value of derivative tools in traditional manufacturing and demonstrates effective pathways for futures services to support small and micro enterprises [4] - CITIC Futures is committed to providing high-quality services to support the development of the real economy, adhering to principles of compliance, integrity, professionalism, stability, and responsibility. The company aims to enhance the vitality of industries and contribute to their recovery and growth [4] - Moving forward, CITIC Futures plans to deepen the "futures + industry" service model, develop more customized risk management solutions, and strengthen industry training to improve enterprises' understanding and application of financial tools, facilitating their transformation and upgrading [4]