Huyue Capital · RMC Commodity Risk Office
Commodity Risk Office
Commodity Risk Office
A hedge lasts one trade. A Commodity Risk Office keeps working for your company.
Your margin is being quietly eaten by price volatility
These are not judgement problems — they are structural. Most companies stall in the same place.
The margin you priced in is gone by delivery
You quote at today's input price and see 6% margin. Three months later at delivery the input is up 9% and the order is a loss. The selling price was fixed; the cost was never locked. That time gap is the exposure.
Hedging depends on one person — and leaves with them
A procurement director who understands futures carries the entire hedging operation, and it works. When he resigns nobody takes over, and the accumulated positions are finally closed at the worst possible price. Capability that lives in one person cannot accumulate.
You know you should — but you don't dare
Afraid hedging will lose money, afraid of explaining a mark-to-market loss to the board — so “we know we should” quietly becomes “we still haven't”, until the next price move takes the year's profit.
You want to, but you have no team
You cannot hire people who understand physicals, derivatives and risk control at once. Growing them internally takes years and costs a lot — and they often leave. So risk management gets pushed to “next year”, every year.
RMB 300mAnnual revenue (illustrative)
4%Net margin
60%Input share of cost
RMB 18mCost swing from a 10% input move
Why this has to be solved now
Price volatility is usually larger than anything the business can improve on its own. Take a company with RMB 300m revenue and a 4% net margin: if its main input is 60% of cost, a 10% move in that input is a RMB 18m swing — RMB 6m more than the entire year's profit. Lifting net margin by one point might take a full year of optimising lines, cutting costs and improving yield. In other words: a year of operating improvement can be erased by one price move.
Who does this for you
Hedge fund practitioners — not consultants
HugoFounder · Hong Kong hedge fund manager
9 years tradingFounder, Qianhai trading baseCFA analystBestselling finance authorTrading coachDerivatives trader
2017
Joined CICC and Hong Kong Huixin, working with high-frequency trading and building a top-tier investment framework
2021
Became a CFA analyst and senior trader, and built a proprietary trading system
2022
Became a financial planner trading global macro commodities; made 10x+ in a year against the central bank shock, turning 50k into 500k
2023
Senior financial analyst; one of the first practitioners to teach quantitative trading logic publicly, capturing Nasdaq and gold moves for a 6x+ year
2024
Founded Hugo Trading Academy, having trained 100+ traders
2025
Established the Qianhai trading base and a growth path for independent super-traders; a further 2x+ on gold and Nasdaq — and launched the RMC industry pilot in the same year
2026
6x on gold and silver and 9x on crude oil, a cumulative trading record above 10x — and in the same year brought the same playbook to industry by founding RMC Commodity Risk Management Office
Practising traders
From the front line of hedge funds. They design strategy and run execution — and they know where real accounts actually lose money.
Risk control
Owns the risk budget, limits and policy design — writing discipline into process rather than relying on anyone's self-restraint.
Commodity researchers
Cover commodities, basis and seasonality, producing actionable calls rather than hedged market commentary.
The biggest difference from consulting firms
We trade ourselves, so we know which part of a real account bleeds first. Every method has been tested against real P&L, not derived from papers or frameworks. We do not stop at a strategy deck — we build the policy, train the team, manage the positions and report to the board.
Typical engagements
Anonymised · company names and some figures have been adjusted
An energy trading company · LNG imports
Starting pointAll fixed-price contracts, margin hit directly by price moves, exposure unquantified
What we didExposure ledger + basis pricing mechanism + staggered futures locking
OutcomeAnnual gross margin range narrowed from roughly ±18% to ±6%
A metal fabricator · copper and aluminium procurement
Starting pointHedging in practice but no policy; twice forced to liquidate at lows for lack of margin
What we didRisk budget framework + margin stress testing + tiered authority matrix
OutcomeEighteen months without a forced liquidation, and hedge results the board can follow
A chemicals producer · input cost locking
Starting pointFeared locking would forgo upside, so never hedged; costs moved with the market
What we didA collar structure locking a price range at zero cash cost
OutcomeProcurement cost capped, while keeping roughly 8% of upside
Why an independent Commodity Risk Office
Futures brokers earn from trading, so their interests are not naturally aligned with your risk objectives
Interest-neutral
No reliance on trading commission, so hedge ratio advice is not distorted by volume
Boardroom language
Presented through risk budget, VaR, stress tests and KPIs — ready for the board
Long-term partner
Annual retainer and Dashboard embedded deeply; switching costs more than renewing
Four pricing principles
Our fee is based on risk management value, not on how often you trade.
Paid on management
not on trading volume
Paid on long-term service
not on one-off consulting
Paid on risk value
not on market forecasts
Paid on business outcomes
not on investment returns
Seven service modules
From diagnostic to full mandate — the complete chain of corporate commodity risk management
①
Risk Diagnostic & Framework
Project Fee
Exposure diagnosis · Hedge policy · Approval workflow · Authority matrix · Risk budget · KPI design
②
Annual Risk Advisor
Annual Retainer
Commodity research · Commodity Score · Risk meetings · Monthly & quarterly reports · Hedging advice · Rolling · Stress test
③
Hedge execution management
Execution Management
Hedge execution · Position management · Risk budget control · Margin management · Rolling execution · Risk monitoring
④
Risk Monitoring Dashboard
SaaS Subscription
Real-time risk monitoring · VaR · Stress test · Margin monitoring · Management reporting
⑤
Structured Solutions
Structured Products
Collar · Zero Cost Collar · OTC · Swaps · Option combinations · Multi-commodity structures
⑥
Corporate Training & Certification
Corporate Training
Commodity risk training · Policy training · Simulation drills · Board-level training
⑦
Risk Value Sharing
Value Sharing
Procurement savings · Cash-flow improvement · Budget optimisation · Lower risk exposure
平台界面 · 制造业套保日常
期现匹配、盈亏归集与敞口管理——制造业企业每天真正在用的三个界面
期现综合盈亏汇总 · 合同级盈亏分布与 Top5 合同追踪
期货委托匹配 · 每笔成交打标回溯到业务合同
按标识盈亏核算 · 平仓与持仓损益分开列示，明细逐笔展开
Three standard packages
Standard entry price: Essential from RMB 300K/yr · Professional from RMB 1.0M/yr · Full Mandate from RMB 2.5M/yr; the final quote depends on actual market risk complexity and the advisor's latest pricing
RMC Essential
Foundation · Early Stage
from RMB 300K / yr
For: companies building a hedging framework for the first time
- Exposure diagnosis
- Hedge policy design
- Management and team training
- Risk budget framework
Recommended
RMC Professional
Professional · Growth Stage
from RMB 1.0M / yr
For: manufacturers already hedging who need ongoing research and execution support
- Annual risk advisor
- Commodity research & scoring
- Arbitrage and hedging strategy design
- Hedge execution management
- Quarterly business review
RMC Enterprise
Full Mandate · Mature Stage
from RMB 2.5M / yr
For: groups, listed companies and energy traders requiring a full mandate
- Full mandate risk outsourcing
- Dedicated research team
- Dashboard system
- Risk committee support
- Structured Solutions
* Prices are standard entry prices. Final quote = package base price × complexity coefficient + add-on fees.
Complexity estimator
Select a package and a coefficient to see how the quote is built. Five dimensions determine the coefficient.
Annual procurement volume
The scale of commodity price exposure the company manages each year.The larger the exposure, the more complex risk monitoring, position management and margin requirements become.
Number of commodities
The number of commodities / instruments being hedged.More instruments mean more complex basis structures, contract selection and cross-commodity correlation analysis.
Departments involved
The number of business departments that must be continuously coordinated, approved, executed and reported to during the engagement.The more decision interfaces across the exposure chain, the higher the ongoing management and implementation cost.
Instrument complexity
The complexity of instruments used, from futures to options, OTC and structured products.More complex instruments raise the cost of solution design, compliance review and valuation monitoring.
Deliverables
The number and depth of deliverables: policies, processes, reports, training and systems.More deliverables mean longer project cycles and greater advisor input.
Select package
Complexity coefficient
Add-on services (multiple)
Formula: —
Your quote has been generated from the selected package, coefficient and add-ons.
Next step
Contact your RMC advisor for the formal quotation
Final quote = package base price × complexity coefficient + add-on fees.These are standard entry prices, subject to actual market risk complexity and the advisor's latest quotation.
Add-on services
Extra scope is priced as add-ons rather than by re-quoting
Overseas subsidiary module+RMB 200K
OTC structure design+RMB 150K
Weekly management meeting support+RMB 100K
Two-week on-site deployment+RMB 80K
Custom board reporting template+RMB 50K
Corporate training+RMB 50K
Dashboard onboarding+RMB 200K
Structured option programme+RMB 300K
Recommended engagement by company type
Matching the engagement model to company type and scale
| Company type | Engagement model | Matching package | Entry price |
|---|---|---|---|
| Small & mid-size manufacturers | Project consulting + annual retainer | Foundation · Early Stage | from RMB 300K / yr |
| Mid-to-large manufacturers | Annual retainer + execution management | Professional · Growth Stage | from RMB 1.0M / yr |
| Listed company / group | Full Commodity Risk Office mandate | Full Mandate · Mature Stage | from RMB 2.5M / yr |
| Energy traders / commodity firms | CRO mandate + Dashboard + structured solutions | Full Mandate · Mature Stage | from RMB 3.0M+ / yr |
Pricing example
Every dollar maps to a defined piece of work
Pricing example: natural gas importer
Recommended packageProfessional · Growth Stage
Base priceRMB 1.0M / yr
Complexity coefficient1.4
Add-onsOverseas subsidiary module + OTC structure design
RMB 1.0M × 1.4 + RMB 200K + RMB 150K
Add-ons: overseas subsidiary module RMB 200K · OTC structure design RMB 150K
Indicative quoteRMB 1.75M / yr
Why partner with RMC now
How we differ from global consulting firms — not a cheaper BCG, but a different species
| Dimension | Global consulting firms | RMC Commodity Risk Office | What it means for you |
|---|---|---|---|
| Fee logic | Billed per man-day or per project; partner day rates run into tens of thousands of RMB | Package entry price × complexity coefficient, charged as a risk management fee | Predictable budget — you don't pay for headcount |
| Entry threshold | A single strategy project typically starts at RMB 3M | From RMB 300K per year; diagnostic first, package second | Build a risk management framework for the price of one price swing |
| Team DNA | Strategy consultants, strong on desk research and frameworks | Hedge fund traders + risk control + commodity researchers | Plans get executed, not left in a slide deck |
| Delivery scope | Usually stops at a strategy report and recommendations | Policy · execution · rolling · margin · Dashboard — the full chain | From “we know we should” to “someone does it with us” |
| Systems | Requires third-party CTRM procurement, from millions of RMB plus a long rollout | Proprietary risk monitoring Dashboard on subscription | No heavy system procurement needed |
| Time to impact | 3–6 months to a proposal, execution discussed afterwards | 2–9 weeks to complete policy design and team training | Ready before your next procurement pricing window |
| Accountability | Ends at delivery; not accountable for business outcomes | Linked to risk budget / KPIs; value sharing available | Interests aligned with your business results |
| Local fit | Requires localisation; weaker on domestic futures and regulatory practice | Deep expertise in domestic futures, basis trading and regulatory boundaries | Executable in China with no compliance gap |
| Service cadence | Delivered on monthly or quarterly milestones | Weekly risk meetings · daily online response | Price volatility does not wait for a quarter |
This is not a consulting fee — it is a risk budget
Global consultants book their fee under administrative expenses; our fee corresponds to hedging cost savings and locked-in margin.A single unhedged raw-material price swing often exceeds a full year of service fees.
Not a cheaper BCG — a different species
We do not deliver strategy decks. We build policies, train teams, manage positions and report to the board.What you buy is a working Commodity Risk Office, not a report.
Start one quarter earlier, avoid one difficult explanation
Once policies and the team are in place, the next violent price move finds you with a playbook, authority and tools; one quarter later, you may have to explain an avoidable loss in the boardroom.
Huyue Capital · RMC Commodity Risk Office
Commodity Risk Office
Your advisor
132 6682 6629
Mr. Wan · Founder / Managing Director
MSc in Finance, Singapore Management University
jameschg@outlook.com
Scan to add · Ms. Youyou
All prices are standard entry prices. Final quote = package base price × complexity coefficient + add-on fees, subject to actual market risk complexity and the advisor's latest quotation.Training content is for corporate risk management education only, uses historical cases and hypothetical instruments, and does not constitute investment advice.