Dongpeng Beverage Plans to Conduct Hedging Business to Hedge Against Raw Material Price Fluctuation Risks

Zhongfang Network Data: Dongpeng Beverage (Group) Co., Ltd. announced on December 30th that in order to effectively manage the risk of fluctuations in raw material prices, the company's board of directors has approved a proposal to conduct hedging business. According to the announcement, the company plans to use its own funds to engage in commodity hedging business related to production and operation within 12 months from the date of the board's approval, with the main trading varieties being futures and options corresponding to raw materials such as white sugar and PTA. The maximum trading margin and premium expected to be utilized for this business will not exceed 60 million RMB, and the maximum contract value held on any trading day will not exceed 400 million RMB, with the limit available for recycling within the validity period. The company stated that the purpose of conducting this business is to utilize the hedging function of the futures market to hedge against the impact of significant fluctuations in the prices of main raw materials on the company's product costs, thereby stabilizing operating costs, enhancing overall risk resistance, and improving financial stability. Relevant business will strictly adhere to hedging principles and will not engage in speculative trading. The company has established corresponding management systems and clarified risk control measures to address potential market, operational, and funding risks. This matter has been approved by the company's board of directors and does not require submission for review by the shareholders' meeting.