Yongxing Materials Plans to Conduct 300 Million Yuan Lithium Carbonate Futures Hedging Business to Address Price Volatility Risk

MaticHoleFiller · 2026-03-25T23:53:13+00:00

Yongxing Special Materials Technology Co., Ltd. plans to conduct futures hedging and derivatives business for lithium carbonate with a maximum amount not exceeding 300 million yuan to mitigate price volatility risks and ensure stable operating performance. The company has passed board of directors approval and has formulated risk control measures.

MaticHoleFiller

2026-03-25 23:53:13

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[Finance News] On March 17, Yongxing Special Materials Technology Co., Ltd. (Stock Code: 002756, Stock Abbreviation: Yongxing Materials) announced that to hedge against lithium carbonate price fluctuations, the company plans to conduct futures and derivatives hedging activities, involving a total margin and premium of no more than 300 million RMB.

The announcement states that this hedging activity mainly targets lithium carbonate, the primary product of the company’s wholly-owned subsidiary Jiangxi Yongxing Special Steel New Energy Technology Co., Ltd. Due to the significant impact of market fluctuations on lithium carbonate prices, the company intends to use futures and derivatives instruments to hedge against price volatility and reduce operational risks while maintaining stable performance.

According to the announcement, Yongxing Materials’ hedging activities have the following characteristics:

Trading Types: Limited to lithium carbonate directly related to the company’s production and operations
Trading Instruments: Including but not limited to futures, options, and related OTC derivatives contracts
Trading Venues: Compliant on-exchange and over-the-counter markets
Capital Scale: Total margin and premium not exceeding 300 million RMB (excluding physical delivery payments)
Contract Value: The maximum contract value held on any trading day does not exceed 300 million RMB
Funding Source: The company’s own funds
Business Duration: Valid within 12 months from the date of board approval, with possible extension for individual trades

Item	Details
Business Purpose	Reduce lithium carbonate price fluctuation risk and stabilize operational performance
Approval Process	Approved at the 2nd extraordinary meeting of the 7th Board of Directors, no need for shareholder approval
Authorization	The Board authorizes management to operate according to the “Hedging Business Management System”
Risk Control	Establish specialized management policies, set up stop-loss mechanisms, and conduct regular audits

The company emphasizes that the purpose of engaging in hedging activities is not for profit but to effectively offset market risks faced by its main business. The announcement also highlights potential market risks, policy risks, liquidity risks, internal control risks, and technical risks, and states that corresponding risk control measures have been implemented, including establishing and improving the “Hedging Business Management System,” setting up organizational structures, strictly controlling trading scale, enhancing personnel training, and strengthening audit supervision.

In terms of accounting treatment, the company will account for hedging activities in accordance with relevant provisions of the “Enterprise Accounting Standards” and properly disclose them in financial reports.

Yongxing Materials states that engaging in hedging activities will help the company effectively manage lithium carbonate price fluctuation risks, ensure steady development of its main business, and align with the interests of the company and all shareholders.

Click here to view the original announcement >>

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