I. Investment Situation Overview
- Investment Objectives
To reduce the price volatility risks related to the company's operations, the company aims to manage the risks arising from price fluctuations in its products. The company (including the report scope) will utilize its capital effectively to enhance investment returns and achieve a certain level of investment income. The company will also use part of its capital to develop futures and derivatives business.
- Transaction Amount
The transaction amount for the futures and derivatives business in 2026 will not exceed 30 million RMB, and this amount may fluctuate within the approved period.
- Transaction Methods
The transactions will involve various raw materials related to the futures and derivatives business, such as crude oil, palm oil, etc. The transaction methods will be based on the legal and regulatory frameworks of the market. Due to market volatility, the company will adjust its transaction strategies based on actual conditions, ensuring that the transactions align with the company's risk management.
- Transaction Period
The transactions will be valid for a period of 12 months from the date of approval. If the trading period exceeds the approved period, the company will suspend trading activities.
- Sources of Funds
The funds will come from the company's capital, and the sources of funds will be integrated. The company will not incur any additional financing costs. During the operation of the futures and derivatives business, the company will conduct reasonable financial assessments.