Ge Long Hui·2026-01-14 13:16Core Viewpoint - The company aims to mitigate the adverse effects of commodity price fluctuations and foreign exchange risks on its operations by utilizing hedging strategies to enhance risk defense capabilities and ensure stable operations [1][2] Group 1: Hedging Strategies - The company employs financial instruments for hedging related to its production and operational activities, focusing on products and raw materials [1] - For smelting and trading enterprises, profit is locked in through hedging, with unhedged portions managed under exposure limits; smelting enterprises have a maximum exposure of 25% for copper and zinc, and 50% for gold and silver [1] - Trading enterprises are required to match hedging positions with the exposure of goods pricing, with a maximum limit not exceeding authorized quotas [1] Group 2: Mining Enterprises - Mining enterprises will hedge based on the annual production plan for mineral products, with a maximum hedging position of 5% of the annual planned production for copper, zinc, gold, and silver [1] - The maximum hedging position for lithium carbonate will be determined by the company's financial committee based on market conditions within the board's authority [1] Group 3: Foreign Exchange Risk Management - The board authorizes the financial committee to dynamically adjust the hedging scale based on the total foreign exchange exposure for non-functional currency assets and liabilities, as well as for foreign exchange transactions with clear payment plans due to mergers, dividends, and procurement [2] - The amount of foreign exchange derivatives held must not exceed the actual foreign exchange exposure [2]