Core Insights - The futures industry is experiencing steady growth, with significant performance differentiation among companies, highlighted by the impressive growth of Zhongcai Futures, which has become a model for the industry [1][3][4] Industry Performance - In the first half of 2025, over 150 futures companies achieved a net profit of 5.074 billion yuan, a year-on-year increase of 32%, and operating revenue of 18.676 billion yuan, up 3.89% [1] - The trading volume and value in the national futures market increased significantly, with a total trading volume of 4.076 billion contracts and a trading value of 339.73 trillion yuan, representing year-on-year growth of 17.82% and 20.68% respectively [2] - The participation of private equity funds in the futures market reached a record high, growing by 15% compared to the end of the previous year [2] Company Strategies - Zhongcai Futures reported a net profit of 690 million yuan, a staggering increase of 376%, and operating revenue of 980 million yuan, up 303% [3][5] - The company's success is attributed to its strong research capabilities, effective team collaboration, and a robust client resource ecosystem supported by its parent company [5][6] - The shift from traditional brokerage income to a diversified revenue model, including proprietary investments and asset management, has been crucial for profit growth [2][3] Competitive Landscape - The industry is undergoing a strategic transformation from traditional brokerage services to diversified, high-value financial services, leading to increased profit margins for leading firms [3][7] - Larger firms are expected to maintain their competitive edge due to their capital strength, brand recognition, and advanced research capabilities, while smaller firms face increasing pressure [7][10] - Companies are encouraged to focus on differentiated services and niche markets to survive in a competitive environment [7][10] Future Outlook - The internationalization of the futures industry is expected to accelerate, providing broader development opportunities while raising the bar for operational capabilities [8] - The trend towards mixed operations and collaboration with other financial institutions will likely expand the business scope of futures companies [8][10] - Companies must leverage technology and enhance their service offerings to meet evolving market demands and investor needs [9][10]

General Principles - The company establishes a system to regulate financial derivatives trading and mitigate associated risks, in accordance with relevant laws and regulations [1] - Financial derivatives trading includes activities involving swap contracts, forward contracts, and non-standard options, with underlying assets being securities, indices, interest rates, exchange rates, currencies, commodities, or combinations thereof [1] Operational Principles - The company strictly controls the types and scale of financial derivatives trading, focusing on hedging and risk avoidance rather than profit-making [2] - Transactions are only permitted with qualified financial institutions approved by regulatory authorities, and the company must use its own funds for these activities [2] Approval Authority - Financial derivatives trading requires a feasibility analysis report to be submitted to the board for approval, with certain conditions necessitating shareholder approval [3] - The board or shareholders must approve the trading limits, and the general manager is authorized to manage and operate the derivatives business [3] Management and Internal Processes - The finance department is responsible for planning, funding, operations, accounting, and daily management of derivatives trading [4] - The audit and supervision department evaluates risks and compliance of trading activities, while the board office ensures legal compliance and information disclosure [4] Risk Management - The company must establish a robust risk management mechanism to prevent and address various risks associated with derivatives trading [6] - In case of significant risks, the finance department must report to the financial director and board secretary, who will discuss countermeasures [6] Information Disclosure - The company must disclose trading activities according to regulatory requirements, especially when losses exceed certain thresholds [7] - Documentation related to trading plans and agreements must be maintained for ten years by the finance department [7] Miscellaneous - The system will be revised in accordance with any new laws or regulations that conflict with it, and it will take effect upon board approval [8]

Meeting Overview - The 15th meeting of the 10th Board of Directors of Chongqing Iron & Steel Company Limited was held on June 30, 2025, via written signature, with all 9 directors present [1][2] - The meeting's convening and procedures complied with relevant laws and regulations [1] Resolutions Passed - The board approved the performance responsibility letter for management personnel for the year 2025, authorizing the chairman to sign it on behalf of the company [1] - The resolution regarding the performance responsibility letter received 7 votes in favor, with no votes against or abstentions [1] - A financial derivatives trading plan for 2025 was also approved to enhance the company's ability to manage price and exchange rate fluctuation risks [2] - This financial derivatives trading plan received unanimous approval with 9 votes in favor [2]

Group 1 - The core objective is to establish a comprehensive international commodity storage, processing, maritime service base, and trading center, referred to as "three bases and two centers," to enhance regional competitiveness and international influence in commodity resource allocation [1] - Zhejiang Free Trade Zone has made significant progress in the commodity industry chain, achieving 252 institutional innovations, including 125 national firsts and 13 replicable nationwide initiatives [2] - The energy storage capacity in Zhejiang has reached 58 million cubic meters, and it has built the largest integrated refining project in the country, significantly reducing the dependency on imported PX [2] Group 2 - The chemical industry faces challenges such as frequent price fluctuations and intense competition from international peers, necessitating the development of a multi-layered futures market to enhance competitiveness [2] - The futures market is expected to provide strong support for industry development by offering tailored hedging solutions and improving operational stability for enterprises [3] - The integration of digital finance and logistics resources is crucial for addressing financing difficulties faced by small and medium-sized enterprises in the port economy, promoting economic upgrades [4]

General Overview - The company has established a financial derivatives trading management system to regulate its trading activities and control associated risks, in compliance with relevant laws and regulations [1][2][3] Financial Derivatives Definition - Financial derivatives include products such as futures, options, forwards, and swaps, which can be based on various underlying assets including securities, indices, interest rates, exchange rates, currencies, and commodities [1] Applicability - The management system applies to the company and its wholly-owned and controlling subsidiaries, prohibiting them from engaging in financial derivatives trading without the company's consent [1][2] Trading Counterparties - The company is only allowed to trade with financial institutions that have been approved by regulatory authorities, ensuring that transactions are conducted with qualified entities [2] Trading Accounts - The company must establish dedicated financial derivatives trading accounts in its name and is prohibited from using third-party accounts for trading [2] Capital Requirements - The company must have sufficient self-owned funds that match the margin requirements for financial derivatives trading and must strictly control the scale of trading to avoid impacting normal operations [2][3] Management Structure - A financial derivatives trading working group, led by the chairman and including key executives, is responsible for the implementation and management of trading activities [2][3] Risk Assessment - The finance department is tasked with evaluating trading risks and preparing feasibility analysis reports, which must be submitted to the board for review [3][4] Audit and Supervision - The audit department oversees the trading activities, conducting pre-approval, ongoing supervision, and post-audit to ensure compliance and proper fund usage [3][4] Approval Process - Major trading plans and limits must be approved by the board and, in certain cases, by the shareholders, especially when the trading involves significant amounts relative to the company's net profit or net assets [4][5] Authorization Management - The company implements an authorization management system for trading operations, requiring written authorization for any trading activities [5][6] Risk Control Measures - The company must clearly define roles and responsibilities within the trading team and ensure that incompatible functions are separated to maintain checks and balances [6][7] Market Analysis - Prior to engaging in trading, the company should conduct market comparisons and select financial derivatives that align with its business needs and risk tolerance [6][7] Ongoing Management - The finance department is responsible for tracking market prices and assessing the risk exposure of invested derivatives, reporting any significant changes to the board [7][8] Disclosure Requirements - The company must disclose any confirmed gains or losses from derivatives trading that exceed 10% of the most recent audited net profit [8] Record Keeping - All trading documentation and authorization records must be properly archived by the finance department and the board [8][9] Confidentiality - Employees involved in derivatives trading must adhere to confidentiality protocols to protect sensitive information related to trading activities [8][9] Implementation Date - The management system will take effect upon approval by the company's board [9]