FLAT GLASS (06865) plans to engage in futures and derivatives hedging business.
FuLate Glass (06865) announced that in order to effectively prevent market risks arising from fluctuations in raw material prices, enhance the company's ability to cope with foreign exchange risk, and strengthen financial stability, the company and its holding subsidiaries intend to utilize the hedging functions of futures and derivatives to conduct futures and derivatives hedging trading activities. The trading of futures and derivatives by the company and its holding subsidiaries is closely related to daily operations, based on the principle of hedging, and does not involve speculative activities, which aligns with the operational development needs of the company and its holding subsidiaries.
FLAT GLASS (06865) announced that, in order to effectively prevent market risks arising from fluctuations in raw material prices and to enhance the company's ability to cope with foreign exchange volatility, as well as to strengthen financial stability, the company and its holding subsidiaries plan to utilize the hedging functions of futures and derivatives to engage in futures and derivatives hedging transactions. The futures and derivatives trading activities of the company and its holding subsidiaries are closely related to daily operations, adhere to the principle of hedging, do not involve speculative operations, and meet the operational development needs of the company and its holding subsidiaries.
The company and its holding subsidiaries will use futures, options, and forwards as hedging instruments. There is a high correlation between the company's raw material and foreign exchange operations and its futures and derivatives hedging activities, with a clear risk hedging relationship between the company's operations and the hedging instruments. The fluctuations in raw material prices and changes in exchange rates bring significant uncertainty to the company's operations, while hedging operations can to some extent lock in prices and exchange rates, thus reducing risk exposure. By engaging in futures and derivatives hedging transactions, the company can effectively respond to risks, stabilize its operational performance, and ensure sustained development.
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