000819SZSE

Feasibility Analysis Report on Conducting Commodity Futures Hedging Business

Yueyang Xingchang Petro-chemical Co., Ltd.·April 20, 2026·4 pages

✨ AI Summary

The company plans to develop a commodity futures hedging business to manage price risks associated with raw material sourcing challenges. The business will be limited to RMB 20 million in margin and RMB 25 million per transaction, with a maximum 12-month transaction period, funded by own capital. Key risks include liquidity, market, operational, regulatory, and technical aspects, which will be managed through a structured system, clear procedures, and regular assessments. The ultimate outcome is to enhance operational efficiency by effectively mitigating price volatility.

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Full Translation

AI Translation· azure_openai

In recent times, due to changes in the macroeconomic situation and market demand, the company has faced challenges in sourcing raw materials. To adapt to these fluctuations, the company intends to develop a commodity futures hedging business to manage price risks effectively.

1. Necessity and Viability of the Commodity Futures Hedging Business

The company’s commodity futures hedging business is limited to the company’s economic activities related to raw materials, prohibiting speculative trading. The company will establish a structured management system for the hedging business, ensuring compliance with relevant laws and regulations.

2. Basic Situation of the Commodity Futures Hedging Business

Purpose The company aims to manage price risks associated with raw materials through the development of a commodity futures hedging business.

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