CITIC Metal (SH:601061) Shang Hai Zheng Quan Bao·2026-02-11 18:55Core Viewpoint - The company plans to conduct currency and commodity derivatives hedging business in 2026 to mitigate foreign exchange and price volatility risks associated with its trading operations [4][44]. Group 1: Transaction Overview - The primary purpose of the currency derivatives hedging business is to hedge against foreign exchange risks arising from the company's import and export activities [4]. - The maximum contract value held on any trading day during the transaction period is expected to not exceed $2 billion or its equivalent in foreign currency [4]. - The funding for the hedging activities will come from the company's own funds or credit lines from financial institutions, without involving raised funds [4][45]. Group 2: Approval Process - The proposal for the currency derivatives hedging business has been approved by the company's third board meeting and the audit committee, pending approval from the shareholders' meeting [2][8]. Group 3: Risk Analysis and Control Measures - The company acknowledges various risks associated with the hedging activities, including market risk, funding risk, credit risk, internal control risk, and policy risk [3][9]. - To manage market risk, the company will monitor the valuation changes of hedged objects and derivatives, ensuring that hedging is based on actual business needs [15]. - The company will prioritize reputable financial institutions as trading partners to mitigate credit risk [17]. Group 4: Impact on the Company - The hedging activities are closely related to the company's daily operations and aim to improve its ability to manage foreign exchange and commodity price volatility risks [20][58]. - The accounting treatment for the hedging transactions will comply with relevant financial reporting standards, reflecting the appropriate items in the balance sheet and income statement [20][58].