Follett Glass (06865) plans to develop futures and derivatives hedging business

According to the Zhitong Finance App, Follett Glass (06865) issued an announcement. In order to effectively prevent market risks caused by fluctuations in raw material prices, improve the company's ability to cope with the risk of foreign exchange fluctuations, and enhance financial soundness, the company and its holding subsidiaries plan to use the hedging function of futures and derivatives to carry out futures and derivatives hedging trading business. The futures and derivatives trading business carried out by the company and its holding subsidiaries is closely related to daily operations. Based on the principle of hedging, there is no speculative operation, which meets the needs of the company and the holding subsidiary's business development.

The company and its holding subsidiaries use futures, options, forwards, etc. as hedging instruments. There is a high correlation between the company's raw materials and foreign exchange business and the futures and derivatives hedging business, and there is a clear risk hedging relationship between the company's business and hedging instruments. Fluctuations in raw material prices and changes in exchange rates bring great uncertainty to the company's operations, and through hedging operations, prices and exchange rates can be locked to a certain extent to reduce risk exposure. By developing futures and derivatives hedging services, it is possible to effectively address risks, stabilize the company's operating performance, and ensure the company's sustainable development.