BROAD-OCEAN MOTOR(SZ:002249) Xin Lang Cai Jing·2026-01-09 13:56Core Viewpoint - The company plans to conduct copper and aluminum futures hedging operations in 2028 to mitigate the risks associated with raw material price fluctuations, with a maximum margin requirement of 208 million RMB at any given time [1]. Group 1: Hedging Scale and Types - The company intends to hedge up to 22,000 tons of copper futures and 21,500 tons of aluminum futures in 2028, with a maximum margin requirement of 158 million RMB for copper and 50 million RMB for aluminum [1][2]. Group 2: Business Background and Necessity - As a major producer of electric motors for construction and home appliances, as well as powertrain systems for electric vehicles, the company faces significant challenges due to high volatility in the prices of essential raw materials like copper and aluminum, exacerbated by geopolitical tensions and economic cycles [2]. - The primary goal of the hedging strategy is to effectively mitigate the impact of raw material price fluctuations on operational costs, ensuring supply chain security and cost control [2]. Group 3: Hedging Strategy and Implementation - The hedging operations will utilize a dual approach, engaging in domestic futures trading while also establishing a futures account at the London Metal Exchange (LME) through a foreign subsidiary to address international price volatility [3]. - The LME copper and aluminum futures have a trading cycle that can cover up to 24 months, aligning with the company's medium to long-term production needs [3]. Group 4: Risk Control and Institutional Safeguards - The company has established comprehensive management systems, including the "Securities Investment and Derivatives Trading Management System" and "Futures Trading Management System," to regulate hedging limits, types, approval authority, and management processes [4]. - Specific risk control measures have been implemented to address price fluctuations, funding, technology, customer defaults, political, and legal risks [4]. Group 5: Approval Process and Implementation Period - The hedging proposal was approved by the company's board on January 9, 2026, and does not require shareholder approval [5]. - The implementation period for the hedging operations is set from January 2028 to December 2028, with the resolution automatically extending if any transaction exceeds the decision's validity period [5].