Core Insights - The article discusses how Huishang Futures has assisted Anhui Huishang Group Material Co., Ltd. in successfully implementing ethylene glycol hedging practices to manage price risks associated with commodity price fluctuations [1][4]. Group 1: Company Overview - Anhui Huishang Group Material Co., Ltd. is a wholly-owned subsidiary of Anhui Huishang Group, specializing in the operation of production materials, covering areas such as metal materials, warehousing logistics, processing and distribution, and supply chain services [1]. - The company aims to become a leading comprehensive trading platform and integrated service provider in Anhui, East China, and nationwide [1]. Group 2: Risk Management Practices - In response to the challenges posed by ethylene glycol price volatility, the company sought effective risk management strategies using futures and derivative tools [1]. - Huishang Futures established a project service team in the second half of 2023 to provide comprehensive support, including professional training, management system development, and organizational structure setup [2]. Group 3: Training and System Development - Huishang Futures organized tailored training courses covering futures basics, hedging operations, software usage, delivery processes, and market research, significantly enhancing the professional skills of the company's personnel [2]. - The project service team assisted in developing the operational guidelines for hedging, which included principles, responsibilities, business processes, fund management, risk monitoring, and confidentiality [2]. Group 4: Implementation of Hedging Business - After completing the system setup and obtaining necessary approvals, the company officially launched its ethylene glycol hedging business in December 2023, primarily using a sell hedge model [3]. - From December 2023 to April 2024, the company executed five hedging operations with a total hedged volume of 2,500 tons, achieving a cumulative profit of 129,800 yuan from futures operations [3]. Group 5: Impact and Future Prospects - The successful implementation of hedging practices has allowed the company to establish a comprehensive price risk management system, enhancing operational stability and market competitiveness [4]. - The experience gained from this project has provided a replicable model for other state-owned enterprises in Anhui to engage in futures markets in a compliant and stable manner [4].