Jingcheng copper and Xin ke material copper futures performance double Day

October 27, Jingcheng copper Industry (002171.　　SZ) said that 2010 years before the three quarter recorded 11.0162 millionth losses, and another 1.139 million floating losses. "Although futures losses, but do is hedging, so there is cash profits can be filled."　　"Jingcheng Copper Securities representative Kang Hongwen to our correspondent said that its strict in accordance with hedging futures business, the profit and loss of the futures business will not have an impact on the company's profits." However, it is surprising that, compared to the loss of Jingcheng copper industry, its main competitors, with the Wuhu Xin ke materials (600255.　　SH) reported a 13.742 million surplus in futures business in the three quarter of 2010.　　The same is the domestic most important copper belt producer, why but in the hedging business has so big difference?　　In view of the huge risks and temptations, Shenzhen Stock Exchange issued the "Small and Medium-sized board information Disclosure Business Memo 25th", requiring companies to disclose futures profit and loss situation, but too simple disclosure requirements can not clear the enterprise with the name of futures hedging play futures risk. Sincere loss "as a result of the October futures copper price increases, resulting in a sustained loss of copper futures preservation account."　　"On 27th, the announcement of the Jingcheng copper industry explained the futures losses."　　According to the announcement of Jingcheng copper, in order to hedge against copper price changes brought about by the operating risk, in accordance with the "Company's domestic futures hedging control system", the company continued to stock the copper raw materials for the short hedging.　　From the Shanghai Hkfe, the main copper futures contract from the beginning of July onwards, from 50000 yuan/ton, has been up to now nearly 65000 yuan/ton, the increase is close to 30%.　　According to Kang Hongwen's explanation, the short hedging of Jingcheng copper requires short selling operations in the futures market, and once the copper futures market rises, it means that it loses money, and the higher the margin, the greater the loss. But because of the futures market matching the spot market is also rising, so Jingcheng copper from its holdings of cash to obtain profits, spot profits and futures losses to offset the effect of hedging.　　Finally, the copper industry to avoid copper price rise and fall on the enterprise business risks, to ensure that a stable copper processing value. GF Securities Xiao Zheng said, Jingcheng copper processing business accounted for a very small, mainly from the purchase of self-marketing, in order to circumvent the risk of copper price fluctuations, the company to take Indina mode, so the raw material inventory is lower, is generally a reserve of about 5 days of raw materials.　　In accordance with the production of 200 tons/day, copper raw materials about 1000 tons, in this range to do hedging.　　However, it is puzzling that, in the first half of 2010 years, domestic copper futures fell all the way from the beginning of 60000 yuan/ton fell to 50000 yuan/ton, but the half year report of Jingcheng copper industry, its half year, the loss of futures profit and loss also reached 11.51 million.　　Different from the city is more puzzling is that the same is engaged in copper strip processing business of the Xin Ke materials in the 2010 years ago in the three quarter recorded a surplus of 13.742 million. According to the public information, Jingcheng copper industry and Xin Ke materialMaterials are the main copper belt manufacturers, Jingcheng copper industry 2010 years ago three quarter operating income of 2.15 billion yuan, and the same period of business income of Xin Ke materials 2.88 billion yuan, both are private enterprises in Wuhu.　　Jingcheng copper and Xin ke materials business model is also more similar, are imported from the external copper raw materials, and then processed into a copper strip after the sale, which has a small number of Xin ke material wire and cable business, accounting for about 5% of the overall revenue.　　The two companies that are so similar have a completely different two results in futures.　　In addition, China's copper belt industry concentration is low, Jingcheng copper is the country's largest copper belt production company, according to its 2009 report, the market share is only 6.6%.　　Moreover, Xiao Zheng that with the expansion of domestic copper belt production capacity, raw material competition is also intensified, Copper belt processing fee appears to be a downward trend.　　In fact, the total profit of Jingcheng copper in 2009 is 45.12 million, but realize operating profit is only 4.643 million yuan, and the total profit of Xin Ke material is 17.33 million, but the operating profit is negative 7.94 million.　　and sincere copper industry in 2007-2009 the main business gross profit margin of 6.17%, 2.16%, 4.09%, 2010 years, the main business of the gross margin is only 4.79%, copper processing industry is miserable.　　From the perspective of the absolute amount of the futures income and the profit, the futures yield has a key influence on the profit of Jingcheng copper industry and Xin Ke material, and the futures yield has great profit temptation. "It's hard to keep a condom."　　"A large domestic copper producer futures department in charge to the reporter said that only from the company's report is difficult to see the judgment of the company is in the futures hedging or in the futures trading profit, and futures profit and loss is not equal to the overall profit and loss.　　In the opinion of the person in charge, the same type of enterprise, in the same period of two different futures trading results are normal, "futures cover a variety of ways, can be short hedging, can also be long hedging, if you choose a long hedging in the copper price rise in the case, futures will be able to gain profits." According to the above-mentioned person in charge of the company, the enterprise before the long hedging, but caused the market misunderstanding, "we think that a copper producers in copper prices fall when futures also lose money?"　　In order to make the market easy to understand, so the choice of short hedging. "Whether it is a long hedging, or short hedging can be, the key is one-woman."　　"The person in charge said that after the enterprise selected multiple hedging or short hedging scheme, it is necessary to execute according to the scheme, when the scheme is changed," Cannot leave any trail ", namely the futures position of the previous scheme will be closed," if the operation without emptying before the conversion scheme, it is tantamount to speculation. "　　The purpose of the futures hedging is to help the enterprises to resist the market fluctuation risk, to keep the stability of the production and operation of the enterprise, and to identify the risk, quantify the risk and find the current hedging point in the specific futures hedging. But even if the company carries out futures hedging, it can not be said to be foolproof, "for example, futures prices and spot prices do not exactly match, the spot rose 10%, but futures only rose 9%, if this is the case, there will be a difference.　　In addition, sometimes the contract is up to one year, but the domestic futures are only three months, intermediate futures will be the risk of conversion.　　In addition, the enterprise once the futures hedging, most will carry out the risk of operation, "a lot of futures cover costs, the use of futures to earn a certain profit should be."　　In fact, most of the enterprises engaged in futures hedging will set up a risk exposure, that is, some of the stock does not cover, large state-owned enterprises in accordance with the requirements of the state within 10%, "private enterprises to look at their own risk preferences, 50% of the Also, the key is to control the risk within the scope of the "In any case, it is right to choose a futures hedging." "The above-mentioned person in charge of copper futures in the said, futures hedging is a good tool to reduce business risk, but as a listed company" should explain to the public how to make the period of spot one by one corresponding, how to achieve the actual period of spot hedging. "