Overview of Feed Raw Material Hedging Operations of Juxing Agriculture & Animal Husbandry

Based on the public information I collected, the details regarding the feed raw material hedging ratio of Juxing Agriculture & Animal Husbandry (SZ002477) are as follows:

• Maximum Margin Occupancy
  : The maximum amount of margin and premium required for the company’s commodity futures hedging business shall not exceed RMB
  250 million
  [1]
• Actual Positions
  : The 2024 Semi-Annual Report shows that the company’s year-end positions related to futures were approximately
  RMB 4.8155 million
  [2]

The hedging business of Juxing Agriculture & Animal Husbandry covers the following products[1]:

• Feed Raw Materials
  : Corn, Soybean Meal, Soybean Oil
• Finished Products
  : Live Hogs

According to announcements and common industry practices, the hedging strategy of Juxing Agriculture & Animal Husbandry follows the following principles[1]:

1. Matching Principle
   : Align commodity futures hedging business with the company’s production and operations
2. Strict Correspondence
   : All futures operations are strictly matched with the physical slaughter volume and raw material procurement volume
3. Speculation Prohibition
   : No excessive hedging beyond actual production needs
4. Integration of Futures and Physical Markets
   : Evaluate strategy effectiveness based on the combined performance of the futures market and physical market

Although Juxing Agriculture & Animal Husbandry has not publicly disclosed specific hedging ratio figures, the hedging ratios of peer companies can be used as a reference[3]:

• New Hope Liuhe
  : Sets a futures operation range of 5% to 20% of physical trading volume
• Dekang Agriculture & Animal Husbandry
  : Strictly implements the hedging principle of matching with physical slaughter volume and slaughter rhythm

(such as the specific percentage of hedging ratios for corn and soybean meal relative to its raw material procurement volume). Such data usually belongs to the company’s internal risk management details, and only the overall scale and hedging principles are disclosed in announcements and annual reports.

To obtain more detailed information on hedging ratios, it is recommended to:

1. Pay attention to the company’s subsequent announcements or investor relations activities
2. Contact the company’s investor relations department directly
3. Review the company’s internal management system documents

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[1] Sina Finance - Juxing Agriculture & Animal Husbandry: Announcement on Conducting Commodity Futures Hedging Business (http://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=603477&id=10992297)
[2] Qixinbao - 2024 Semi-Annual Report of Leshan Juxing Agriculture & Animal Husbandry Co., Ltd. (https://qxb-pdf-osscache.qixin.com/AnBaseinfo/568f428f883ec76590af2ad18b24510c.pdf)
[3] The Economic Observer - Hog Prices Continue to “Bottom Out”, Enterprises Use Futures Tools to Break Cycle Dilemmas (https://finance.sina.com.cn/stock/wbstock/2026-01-10/doc-inhfuvqu9722966.shtml)