Shandong Daoneng High-Performance Polymer Co., Ltd. (hereinafter referred to as "Daoneng" or "the Company") was established on December 6, 2002. On January 6, 2017, it was listed on the Shenzhen Stock Exchange. The company specializes in the research, production, sales, and services of high-performance polymer materials, modified plastics, and other products.
1. Necessity of Conducting Commodity Futures Hedging Business
The company recognizes the importance of commodity futures hedging services in response to domestic economic trends and market fluctuations. The volatility in raw material prices significantly impacts the company's cost structure and profitability. To mitigate these risks, the company plans to implement commodity futures hedging services effectively.
2. Basic Situation of Commodity Futures Hedging Business
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Types of Hedging Transactions The company plans to conduct commodity futures hedging business limited to the raw materials involved in its trading activities.
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Hedging Amount and Duration The company intends to initiate hedging activities within a specified period, utilizing its own funds for the commodity futures hedging business.
3. Feasibility of Conducting Commodity Futures Hedging Business
The company believes that engaging in commodity futures hedging business is feasible. It aims to stabilize its operational costs and ensure the sustainability of its business operations. The company has established a comprehensive risk management framework to support this initiative.