Securities Code: 001201 Securities Abbreviation: Dongrui Co., Ltd. Announcement No.: 2026-021
Dongrui Food Group Co., Ltd.
Announcement on Conducting Commodity Futures Hedging Business
The company and all members of the board of directors guarantee that the content of the information disclosure is true, accurate, and complete, without any false records, misleading statements, or significant omissions.
Important Content Reminder:
- Purpose of Trading: To effectively avoid the market risks brought by the significant fluctuations in the prices of live pigs and feed raw materials to the operations of Dongrui Food Group Co., Ltd. (hereinafter referred to as "the Company"), lock in operating costs and sales revenues, stabilize the company's operating performance, and ensure the company's sustainable and healthy development, the company and its holding subsidiaries intend to carry out hedging business related to futures and options that have a direct relationship with production and operations.
- Trading Varieties, Trading Tools, and Trading Places: The hedging trading varieties are limited to products and raw materials related to the company's production and operations, including but not limited to live pigs, corn, soybean meal, rapeseed meal, and soybean oil. The trading tools are financial derivatives such as futures and options. The trading places are institutions that have been legally approved or authorized and have the qualifications for derivative trading business.
- Trading Amount: It is expected that during the hedging business period, the maximum margin required by the company at any point in time will not exceed RMB 50 million (excluding the physical delivery amount of the futures underlying), and it can be recycled within the validity period.
- Review Procedure: The company held the second meeting of the fourth board of directors on April 27, 2026, and reviewed and approved the proposal on "Conducting Commodity Futures Hedging Business," agreeing to conduct hedging business for commodity futures including but not limited to live pigs, corn, soybean meal, rapeseed meal, and soybean oil.
- Risk Reminder: The company's conduct of commodity futures hedging business is not for speculative purposes, mainly to effectively avoid the potential adverse effects of fluctuations in live pig prices and feed raw materials on the company's operations. However, there may still be certain market risks, capital risks, technical risks, operational risks, internal control risks, policy and legal risks, etc. Investors are advised to pay attention to investment risks.
I. Overview of Trading Situation
- Purpose
The company is a full industry chain enterprise in pig farming, integrating "feed production, pig breeding, breeding pig propagation, commodity pig raising, live pig supply to Hong Kong, domestic sales of live pigs, slaughter processing, and cold chain distribution." The significant fluctuations in the prices of live pigs and feed raw materials directly affect the company's operating performance and profitability. To effectively avoid the market risks brought by the significant fluctuations in the prices of live pigs and feed raw materials to the company's operations, lock in operating costs and sales revenues, stabilize the company's operating performance, and ensure the company's sustainable and healthy development, the company and its holding subsidiaries intend to carry out hedging business related to futures and options that have a direct relationship with production and operations.