Xingtong Co., Ltd. plans to conduct financial derivatives trading worth 1.25 billion yuan, focusing on hedging to avoid exchange rate and interest rate risks.

[Finance News] On March 18, Xing Tong Shipping Co., Ltd. (Stock Code: 603209,简称 “Xing Tong Co.”) announced that the company’s board of directors has approved the 2026 financial derivatives trading limit plan. The company plans to conduct financial derivatives trading with a maximum contract value of no more than 1.25 billion yuan over the next 12 months, all using its own funds. The purpose of the transactions is clearly for hedging and does not involve speculative operations.

The announcement states that Xing Tong Co.'s financial derivatives trading mainly includes swap contracts, forward contracts, and non-standardized options, or combinations thereof. The underlying assets cover securities, indices, interest rates, exchange rates, currencies, commodities, and their combinations. The trading period is from March 18, 2026, to March 17, 2027, during which the limit can be reused cyclically.

Overview of Key Trading Elements

The company states that the purpose of this business is to effectively hedge against and prevent risks from exchange rate and interest rate fluctuations, enhance financial stability, and improve the ability to respond to market volatility. The counterparties will be banks and other financial institutions with sound operations, good credit, and qualifications for financial derivatives trading, and will have no related-party relationships with the company.

Regarding risk control, the company has established the “Securities Investment and Financial Derivatives Trading Management System,” which clearly stipulates that speculative trading is prohibited, and all transactions are based on normal production and business operations. The company will implement tiered management through departments such as the Capital Management Department, Finance Department, and Audit Department, and will select large, compliant financial institutions as trading counterparts to prevent market risk, liquidity risk, performance risk, and internal operational risk.

The announcement specifically reminds that although the company’s financial derivatives trading is for hedging purposes, it still faces market risks from exchange rate and interest rate fluctuations. According to relevant accounting standards, this hedging activity does not meet the conditions of “Enterprise Accounting Standard No. 24—Hedge Accounting,” and the company will account for and disclose it as a regular financial instrument.

Xing Tong Co. emphasizes that the risks associated with this financial derivatives trading are controllable, align with the company’s operational needs, and do not harm the interests of the company or all shareholders, especially minority shareholders.

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