Yindu Kitchen Equipment to begin futures hedging for raw materials

Yindu Kitchen Equipment Company Limited announced the initiation of a futures and derivatives trading program primarily aimed at hedging against price fluctuations of raw materials like stainless steel, copper, and chemicals, as well as shipping costs. The company's board of directors and audit committee have approved this initiative, which is within the board's authority and does not require shareholder approval. The program, effective from December 5, 2025, to December 4, 2026, will utilize the company's own funds.

The estimated maximum amount of trading margin and option premiums to be utilized is CNY 10,000万元. The maximum contract value held on any given trading day is projected to be CNY 100,000万元. The company will trade commodity and index futures on established exchanges such as the Shanghai Futures Exchange and Zhengzhou Commodity Exchange. All trading activities will be based on normal production and operations, without speculative intent.

Yindu Kitchen Equipment emphasizes risk control through its "Hedging Business Management System" to manage potential market, delivery, operational, technical, and policy risks. The company will ensure that futures positions align with actual physical inventory and that the holding period does not exceed the duration of physical contracts to effectively manage price risks and maintain stable operating performance.