Since its listing on the Zhengzhou Commodity Exchange last year, China's urea futures have completed their second main contract delivery at the warehouse of Henan Jinmei Tianqing Coal Chemical Co., Ltd. A total of 2,052 futures warehouse receipts were registered for the urea futures 2005 contract this time, including 1,221 factory warehouse receipts and 831 warehouse receipts. The number of factory warehouse receipts exceeded the number of warehouse receipts for the first time. The delivery volume reached 34,600 tons, more than 2.5 times the volume of the first delivery, setting a new record high. This positive development has further enhanced the enthusiasm of urea producers and downstream companies to participate.

　　According to relevant officials from the Zhengzhou Commodity Exchange, Jinmei Tianqing, as a high-quality urea producer in Henan Province, actively participated in the preparation stage of urea futures listing and became one of the first urea futures delivery factories of the Zhengzhou Commodity Exchange. Zhonghuan Futures, as a strategic partner of Jinmei Tianqing, provided comprehensive guidance to Jinmei Tianqing in establishing a spot and futures business system, a risk control system, etc., improving relevant systems and management methods, and making full preparations for participating in and utilizing the futures market. In this urea delivery, the proactive planning and participation of urea companies achieved good results.

　　Li Zhongyi, manager of the Fertilizer and Chemical Department of Jinmei Tianqing, said that by participating in this urea futures delivery, not only were new sales channels and methods opened up, but risks were also controlled, operating profits were locked in advance, and additional income was obtained. We have a deeper understanding of the importance of participating in and utilizing the futures market, using futures tools, combining spot and futures trading, controlling risks, and implementing refined management. In the future, we will more actively explore new models of integrating industry and finance, actively learn futures knowledge within the company, further utilize futures tools, and contribute to the company's transformation, upgrading, and high-quality development.

　　Xue Haibin, deputy general manager of Zhonghuan Futures, introduced at the delivery site that in this urea delivery, Zhonghuan Futures actively guided companies to participate, achieving the third place in the market delivery volume ranking and a market share of over one-sixth. Urea is not only an important agricultural production material but also a common chemical product. Affected by various factors, after the spring plowing fertilization and summer fertilizer purchases, downstream demand has turned weak, and urea companies have encountered difficulties in sales. The risks of single production and sales and the uncertainty of the post-factor era have intensified business risks for enterprises, while urea futures can provide good support for urea companies in hedging and risk control. Although urea futures have been listed for less than a year, judging from the results of the two deliveries, the functions of urea futures are gradually being recognized by the upstream and downstream of the industrial chain, and many urea companies have realized the necessity and urgency of using the futures market to hedge risks. At the same time, however, most companies face problems such as limited understanding of futures and derivatives, or biased understanding, lack of professional personnel, etc., resulting in doubts and concerns, and they dare not participate in or utilize the futures market. This contradiction is still quite obvious.