002157SZSE

Jiangxi Zhengbang Technology Co., Ltd. Feasibility Analysis Report on Commodity Futures and Options Hedging Business

✨ AI Summary

Jiangxi Zhengbang Technology Co., Ltd. plans to utilize commodity futures and options for hedging to mitigate risks from significant price fluctuations in live pigs and feed raw materials. The company will limit its hedging transactions to agricultural products like corn, soybean meal, and live pigs, with a maximum trading margin of 300 million RMB and a maximum contract value of 1.5 billion RMB. A comprehensive management system and internal controls are in place, making the hedging business feasible and aimed at stabilizing operating performance.

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Jiangxi Zhengbang Technology Co., Ltd. Feasibility Analysis Report on Commodity Futures and Options Hedging Business I. Background and Necessity of the Company Engaging in Hedging Business

The company is primarily engaged in the production and sales of live pigs, feed, animal health products, and other products. In recent years, affected by the macroeconomic situation and changes in the natural environment, domestic live pig and feed raw material prices have experienced continuous and significant fluctuations. The company's main business faces certain market risks. To lock in the company's product costs and sales prices, and effectively mitigate the risks arising from price fluctuations of raw materials and inventory products in its production and operation activities, the company plans to utilize commodity futures and commodity options for hedging operations. II. Overview of the Hedging Business Planned by the Company

1. Investment Objective: The company is primarily engaged in the production and sales of live pigs, feed, animal health products, and other products.
In recent years,Affected by the macroeconomic situation and changes in the natural environment, domestic live pig and feed raw material prices have
experienced continuous significant fluctuations, the company's main business faces certain market risks, to lock in the company's product costs and sales
prices,effectively mitigate the risks arising from price fluctuations of raw materials and inventory products in its production and operation activities, the com

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