Securities code: Tech-Bank Food Co.Ltd(002124) securities abbreviation: Tech-Bank Food Co.Ltd(002124) Announcement No.: 2022044
Announcement on the hedging business plan of commodity futures in 2022
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Tech-Bank Food Co.Ltd(002124) (hereinafter referred to as "the company") held the first meeting of the eighth board of directors on May 18, 2022, deliberated and adopted the proposal on the commodity futures hedging business plan in 2022, and agreed that the company and its subsidiaries would carry out commodity futures hedging business with their own and self raised funds within the amount of RMB 250 million within one year from the date of deliberation and approval by the board of directors. The details are announced as follows:
1、 Background and necessity of the company's Hedging Business
The company is mainly engaged in the production and sales of pigs. In order to lock in the company's product cost and product sales price and effectively avoid the risks caused by the price fluctuation of raw materials and inventory products in production and operation activities, the company plans to use commodity futures and commodity options for hedging business operation.
2、 Overview of hedging business to be carried out by the company
1. Varieties to be invested: the company's hedging business is limited to soybean meal, corn, soybean oil, pigs and other varieties related to the company's main business.
2. Amount of capital to be invested: according to the company's business objectives in 2022, it is estimated that the maximum amount of margin required by the company to carry out commodity hedging business in 2022 will not exceed RMB 250 million (excluding the physical delivery of futures), which can be recycled within the validity period.
3. The proposed hedging period: within one year from the date of deliberation and approval by the board of directors of the company.
3、 Feasibility of the company's Hedging Business
The company has met the necessary conditions for carrying out commodity futures and option hedging business. The details are as follows:
The company has updated and formulated the management system of commodity futures hedging business, which was deliberated and adopted at the first meeting of the eighth board of directors of the company. The commodity futures hedging business management system has made clear provisions on the approval authority, internal audit process, risk handling procedures and emergency response plan control of hedging business. The company sets up a "futures decision-making group" to manage the company's futures and option hedging business. The members of the "futures decision-making group" include the president, the person in charge of the supply chain center, the person in charge of pig futures, the person in charge of finance, the person in charge of internal control and the person in charge of legal affairs; The board of directors authorizes the president to take charge of futures and option hedging business and act as the head of the "futures decision-making group"; The team members are responsible for the approval, supervision and disclosure of hedging schemes and related affairs according to their division of labor. The team members are stable and experienced, have a high awareness of the company's operation and products, and have a more in-depth study of the market. The company's existing self owned capital scale can support the margin required by the company to engage in commodity futures hedging business. Therefore, the company's commodity hedging business is feasible. 4、 Risk analysis of hedging business
1. Price fluctuation risk: the futures market changes greatly, which may lead to price fluctuation risk and investment loss.
2. Capital risk: futures trading adopts margin and mark to market system, which may bring corresponding capital risk.
3. Liquidity risk: liquidity risk may be caused by the difficulty of transaction due to the inactive transaction. 4. Internal control risk: futures trading is highly professional and complex, which may cause risks due to imperfect internal control system.
5. Technical risk: technical risk may be caused by incomplete computer system.
5、 Risk control measures taken by the company
1. Match the hedging business with the company's production and operation to hedge the risk of price fluctuation to the greatest extent. The futures position shall not exceed the spot demand of hedging. In principle, the time period of futures position shall match the time period of risk in the spot market.
2. The company will reasonably allocate its own funds for hedging business and will not use the raised funds for hedging directly or indirectly. Strengthen the internal control of fund management and strictly control the maximum margin of no more than 250 million Yuan approved by the board of directors.
3. Reasonable selection of futures hedging months: the company will focus on futures trading and reasonably select contract months to avoid market liquidity risk.
4. In accordance with the provisions of self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 - standardized operation of listed companies on the main board, the company has formulated the management system of commodity futures hedging business, which clearly stipulates the approval authority, internal audit process and risk treatment procedures of hedging business. The company has set up a special commodity hedging operation team, commodity hedging business operation monitoring team and corresponding business processes to control through authorization, post restraint, internal audit and other measures.
5. Set up a trading, communication and information service facility system that meets the requirements: the company will set up a system to ensure the normal operation of the trading system and the normal development of trading work. In case of wrong order, take corresponding treatment measures in time and reduce losses.
6. The audit and supervision department of the company shall regularly and irregularly inspect the hedging transaction business, supervise the hedging transaction business personnel to implement risk management policies and risk management procedures, and timely prevent operational risks in the business.
6、 Opinions of independent directors
Due to the expansion of business scale, the company uses its own and self raised funds according to the business needs, with the purpose of avoiding the commodity price risk in operation and the principle of future cash matching, carries out commodity futures hedging business in the on-site market without speculative arbitrage trading.
1. The company has established a special internal control system, risk management system and risk measurement system for commodity futures hedging business, set up a futures decision-making group, standardize business operation processes, clarify risk handling procedures and relevant punishment measures, etc. Before carrying out hedging business, it shall be submitted to the board of directors of the company for deliberation, and its approval procedures shall comply with relevant laws and regulations and the relevant provisions and requirements of the articles of association.
2. The company uses its own and self raised funds to carry out hedging business, strictly controls the capital scale of hedging business, does not affect the normal operation of the company, does not carry out speculative arbitrage transactions, and the risk is controllable, which is conducive to reducing the risk of operation and improving its ability to resist market fluctuations, without damaging the interests of the company and all shareholders.
In conclusion, we believe that this matter is reasonable and agree that the company and its subsidiaries carry out commodity futures hedging business.
7、 Documents for future reference
1. Resolutions of the first meeting of the eighth board of directors;
2. Independent opinions of independent directors on matters related to the first meeting of the eighth board of directors;
3. Feasibility analysis report on carrying out hedging business;
It is hereby announced.
Tech-Bank Food Co.Ltd(002124) board of directors may 19, 2002
