On January 24, Jiangsu Zhongli Group Co., Ltd. announced that the proposal of 2018 Annual Hedging Business to be reviewed and approved at the first extraordinary meeting of 2018 of the fourth board of directors of the Company.
According to the announcement, the company's futures hedging business is limited to the company's raw materials needed for the production and operation of copper, plastic, aluminum futures contracts. The company uses its own funds for hedging business, futures hedge funds investment limit of 60 million yuan.
According to reports, the company mainly produces cables and photovoltaic products, the production and operation of copper, plastic, aluminum and other raw materials demand is great.As the company's business scope and customer market continues to expand, some customers signed a contract as a closed contract. The market price of copper, plastic and aluminum fluctuates greatly. In order to avoid the risk of significant fluctuations in raw material costs in production and operation, the Company intends to use the hedging function of futures for risk control so as to minimize the product fluctuation caused by the fluctuation of raw material prices Cost fluctuations, to ensure the relative stability of product costs and reduce the impact of the normal operation of the company.