Analysis of Operational Risks in Jiangte Motor's Futures Hedging Loss Incident

Based on the collected information, I systematically analyze the operational risks reflected by Jiangte Motor’s futures hedging loss incident.

In 2025, Jiangte Motor (002176.SZ) established short positions in the lithium carbonate futures market and then encountered an extreme market reversal, resulting in

[1]. Since the launch of lithium carbonate futures in July 2023, the company has participated in hedging business, later increasing the hedging scale from 100 million yuan to 300 million yuan and adding copper futures hedging business [1].

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Jiangte Motor attempts to build a dual main business pattern of ‘lithium salt + motor’, but both businesses face severe challenges:

• Lithium salt business: Revenue growth without profit growth
  : In the first three quarters of 2025, the company’s operating revenue was 1.432 billion yuan, a year-on-year increase of 14.62%, but the net profit was
  113 million yuan in loss
  , a year-on-year decrease of 37.31% [1]. In the first half of the year, lithium salt production and sales increased by 115.91% year-on-year, but the gross margin fell to
  -16.27%
  , and the asset impairment loss surged by
  1513.26%
  year-on-year [1]

• Motor business growth is slow
  : Unable to offset losses from the lithium salt segment, the company faces a dilemma of continuous blood loss from main businesses

The company’s high-expectation Xikeng lithium mine project has repeatedly delayed production launch, and has not yet formed effective capacity due to policy approval, technical transformation and other factors [1]. This reflects the company’s insufficient strategic execution in resource layout.

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[1]:

Risk Performance	Specific Description
Directional Misjudgment	Established short positions when prices fell to 70,000 yuan/ton, misjudging price trends [1]
Scale Out of Control	Hedging scale expanded from 100 million yuan to 300 million yuan, exceeding the reasonable hedging range [1]
Tool Abuse	Turned risk hedging tools into ‘lifesaver’-style speculative behavior [1]

The company has fallen into a dual dilemma of

[1]:

• Spot business losses due to falling lithium salt prices
• Huge floating losses from short futures positions due to price rebound
• Further intensified financial pressure

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From the financial data [0][2]:

Indicator	Value	Risk Warning
ROE	-10.17%	Severe negative shareholder return
Net Profit Margin	-15.31%	Main business loss
Operating Profit Margin	-20.66%	Continuous blood loss from core business
P/E	-49.14x	Extremely pessimistic market outlook on profitability

The company’s free cash flow is

, and EV/OCF is -59.69x [0], indicating that operating cash flow is seriously insufficient to support business operations and debt repayment needs.

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Jiangte Motor’s dilemma reflects the

[1]. Lithium carbonate prices have fallen from the high at the beginning of the year, and the industry as a whole faces dual pressures of overcapacity and weak demand.

• Rectification of lithium mica mining rights affects raw material supply [1]
• Price volatility caused by energy storage demand fluctuations
• Market volatility intensified by the upgrade of risk control measures of Guangzhou Futures Exchange

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Main business loss → Cash flow tension → Seek quick profit-turning ways
    ↓                              ↓
Blind expansion of hedging scale → Directional misjudgment → Futures loss
    ↓                              ↓
Double loss → Financial pressure intensification → Operational risk amplification

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• Determine futures positions strictly based on spot exposure
• Establish strict stop-loss mechanisms
• Distinguish between hedging and speculation boundaries

• Focus on improving the core competitiveness of the motor business
• Reasonably plan the expansion rhythm of the lithium salt business
• Promote the Xikeng lithium mine to start production as soon as possible

• Establish an independent risk control mechanism for futures business
• Set an upper limit for futures position scale
• Enhance market trend research and judgment capabilities

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Jiangte Motor’s futures hedging loss incident profoundly reveals the huge risks faced by enterprises when recklessly expanding derivative business scale against the backdrop of

. This case warns investors: the futures market is a risk management tool rather than a speculative tool; blindly treating it as a ‘cash machine’ may eventually lead to the dilemma of ‘losing more than gaining’. Enterprises should return to main businesses, strengthen risk control, and use financial derivatives cautiously.

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[1] Qihe Wang - ‘Too Stubborn! He Shortened Lithium Carbonate in a Surge Market and Lost Tens of Millions!’ (https://www.7hcn.com/article/477425-1.html)

[0] Jinling API - Jiangte Motor (002176.SZ) Company Financial Data and Market Price Information

[2] Jinling API - Jiangte Motor (002176.SZ) Financial Statement Analysis