Xinjiang Sayram boosts risk management with futures and options hedging

Xinjiang Sayram Modern Agriculture announced plans for its subsidiaries to engage in futures and options hedging to stabilize operations amid volatile commodity markets. The company will allocate up to yuan 800m for futures and yuan 700m for options hedging, using a mix of its own funds. The hedging activities, covering cotton, cotton yarn, soybean meal, and soybean oil, will be conducted on exchanges like the Zhengzhou Commodity Exchange and Dalian Commodity Exchange, as well as over-the-counter markets. The program is effective from October 27, 2025, to October 26, 2026.

These initiatives aim to control risks from price fluctuations in raw materials and finished goods, bolstering the company's financial stability. The board approved this strategy, emphasizing adherence to regulations and a focus on maintaining stable operating results rather than speculation.

Additionally, the company is increasing the 2025 related-party transaction limit with Xinjiang Huizhi Supply Chain Co., Ltd. by yuan 3m to yuan 5.6m and adjusting its 2025 subsidiary guarantee quota by reallocating between subsidiaries while maintaining the total guarantee amount. The adjustments include a decrease of yuan 117m for Xinjiang Jimian Tong Agriculture Technology Co., Ltd. and increases of yuan 70m for Xinjiang Xinsai Cotton Industry Co., Ltd. and yuan 47m for Double River Sayram Bohui Agricultural Development Co., Ltd. The company will hold an extraordinary general meeting on November 10, 2025, to vote on these proposals.