SDIC CGOG (SHANGHAI) INVESTMENT Co.,LTD

Warehouse receipt service

Theessence of warehouse service is the spot trading of Bulk Commodity. Subsidiarycompany that trading spot provide services for customers including registrationof warehouse receipt, purchase of warehouse receipt, repurchase of warehousereceipt, sales of warehouse receipt, swap of warehouse receipt and exchange forphysicals, the pledge of non-standard warehouse receipt, etc. By means ofwarehouse receipt service, the information, exchange, transaction, capitalplatform and Cash flow platform of warehouse receipt can be established forSDIC CGOG Future Co., LTD and industry customers.

Standard warehouse registration. It relies on the advantage ofshareholders of SDIC CGOG Futures Co., LTD and delivery resources accumulatedfor many years. Moreover, for the industry customers who have the demand ofregistration and lack of relevant resources, it provides customers withregistration service of standard warehouse receipt.

Purchase of warehouse receipt. Itfocuses on customers of spot business who need to purchase commodities onfutures market but lack of capital. The subsidiary will accept the delegationof customers and provide the service of purchasing commodities on the futuresmarket instead of customers.

Repurchase of warehouse receipt. Itfocuses on the customers with standard warehouse receipt. Spot subsidiary willprovide preferential repurchase service after buyout the warehouse receipt ofcustomers.

Sales of warehouse receipt. Itfocuses on the customers who possess standard warehouse receipt and want to Thecirculation of cash in advance. Spotsubsidiary will buyout the warehousereceipt and help customers to achieve the objective of funds withdrawal.

Swap of warehouse receipt. Itfocuses on customers who have unmatched area of standard warehouse receipt,inappropriate brand level, or uncontested situation under exchange forphysicals. Spotsubsidiary provides swap platform for the customers who haveneeds.

The pledge of non-standard warehousereceipt. It means to transfer the non-standard warehouse receiptof customers to spot subsidiary. In the meantime, subsidiary provides customerswith capital and assigns third party logistics control company to supervise thebusiness of customers that redeemed on maturity.



Cooperative Hedging

The mainobjective of cooperative hedging is to provide customers with comprehensivescheme of risk management and conduct the process of risk assessment, riskquantification and risk monitoring to the aspect of purchase, sale andinventory of customers. Furthermore, cooperative hedging with customers willimprove operant level of hedging and capital usage efficiency of customers.Relying on industry’s image of SDIC Futures Co,. LTD, which are “Good at RiskManagement and Control” and “Expert at financing”, the spot subsidiary providesservice to purchase hedging products for the customers have the requirement ofhedging and provides flexible transaction mode to try to gain supernormalprofit and spread.


Basis Trading

Basis Trading mainlycontains arbitrage operation. Subsidiaries possess certain advantages that theycould not only take advantage of owned fund to gain spread return, but alsosummary matured basis trading pattern to guide real enterprises using basis tradingto control risk in spot trading. To guide customers of enterprise participatein the basis trading, subsidiary must possess a forming and relatively stablebasis trading pattern. However, the basis trading pattern of most of companieshas not yet formed. Relatively matured trading pattern tend to be high density,hence, in order to guide the enterprises to participate basis trading,subsidiary could use the method of launching new products to finish the serviceto real enterprises.