On June 10, 2026, Keda Manufacturing (stock code: 600499) announced that in order to deal with the risk of raw material price fluctuations, the company plans to carry out bulk raw material hedging business. It is expected that the maximum contract value held on any trading day will not exceed 300 million yuan, and the upper limit of margin and royalties will be 30 million yuan.
The announcement shows that Keda Manufacturing’s hedging business is mainly aimed at hot-rolled coils, stainless steel, copper, alumina and other major raw materials required for the company’s machinery and equipment business production.
In recent years, due to the influence of macroeconomics and market supply and demand, the prices of the above-mentioned raw materials have fluctuated significantly. The company hopes to reduce procurement risks, stabilize product costs, and enhance the robustness of production and operations through futures and options tools.
According to the announcement, the core elements of this hedging business are as follows:
| Transaction purpose | Hedging (commodity contracts) |
| Trading varieties | Hot-rolled coil, stainless steel, copper, alumina and other futures and options contracts |
| Maximum margin and premium | 30 million yuan |
| Maximum contract value | 30,000 Ten thousand yuan |
| Source of funds | Own funds |
| Trading period | 12 months from the date of approval by the board of directors |
| Trading place | Shanghai Futures Exchange and other domestic legal trading venues |
Keda Manufacturing stated that this hedging business will strictly follow the “hedging” principle, the transaction scale will match the company’s actual procurement needs, and no form of speculative transactions will be conducted.
The company plans to carry out long-term hedging in an appropriate proportion of the expected purchase volume when raw material prices are at low levels or continue to rise, and at the same time lock in the costs of some fixed-price sales contracts to achieve the goal of reducing comprehensive procurement costs and ensuring contract profits.
In terms of risk control, the company has formulated the “Bulk Raw Materials Hedging Business Management System”, which clarifies the internal management structure, approval process and risk control measures.
Business operations will be strictly limited to the quota approved by the board of directors, and transaction types will be limited to bulk commodities related to production and operations. Market risks, capital risks, and operational risks will be prevented by strengthening capital management, personnel training, and market research and judgment.
This business has been reviewed by the 19th meeting of the company’s ninth board of directors and does not need to be submitted to the shareholders’ meeting for review.
The company emphasizes that the purpose of conducting hedging business is to use derivative financial instruments to hedge the risk of raw material price fluctuations. It is not for profit and is in the long-term interests of the company and all shareholders.
In terms of financial processing, Keda Manufacturing will conduct accounting and information disclosure on the hedging business in accordance with relevant regulations such as “Accounting Standards for Business Enterprises No. 22” and “Accounting Standards for Business Enterprises No. 24”.
Market analysts pointed out that as a machinery and equipment manufacturing company, Keda Manufacturing has a relatively high proportion of raw material costs. The launch of hedging business will help stabilize the impact of raw material price fluctuations on the company’s performance and improve operational stability.
Investors need to pay attention to the actual execution results and risk control of subsequent related businesses.
