VV Food & Beverage eyes hedging to stabilize earnings

VV Food & Beverage (SSE:600300) is seeking shareholder approval to allow its subsidiaries to engage in hedging activities. According to meeting documents for its upcoming extraordinary shareholders' meeting, the move is designed to manage risks associated with fluctuating prices of key inputs like soybeans, corn, and vegetable oils, as well as its finished goods. The proposal would authorize hedging activities up to a maximum margin deposit of CNY170 million, and would be valid for 12 months. The company has established internal controls and risk management procedures for hedging and has stated that its hedging will be carried out by its subsidiaries, with the goal to stabilize earnings in accordance with relevant accounting standards.