CITIC Metal (SH:601061) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2026-02-11 22:33Group 1 - The core point of the announcement is that CITIC Metal Co., Ltd. has convened its 14th meeting of the third board of directors to approve several proposals, including the initiation of currency and commodity hedging activities for the year 2026 [2][3][7][41]. - The board meeting was held on February 11, 2026, with all nine directors present, and the meeting procedures complied with relevant laws and the company's articles of association [2][3]. - The proposals approved include the initiation of currency derivatives hedging business, commodity hedging business, and the convening of the first extraordinary shareholders' meeting of 2026 [3][7][11]. Group 2 - The currency hedging business aims to mitigate foreign exchange risks arising from the company's import and export activities, with a maximum contract value not exceeding $2 billion or its equivalent in foreign currency [16][17]. - The company plans to use its own funds or credit lines from financial institutions for the hedging activities, without involving raised funds [17][43]. - The hedging transactions will include both on-exchange and over-the-counter trades, utilizing various derivative products such as foreign exchange forwards, swaps, options, and futures [18][19]. Group 3 - The commodity hedging business is intended to reduce price volatility risks associated with the trading of metals and minerals, with a maximum margin amount not exceeding 30% of the audited net assets for 2024 [41][42]. - The company will engage in commodity derivatives trading across various exchanges, including the Singapore Exchange, London Metal Exchange, and others, to manage price risks effectively [44]. - The duration for the authorized trading activities will be 12 months from the date of approval by the shareholders' meeting [45]. Group 4 - The company has established risk management measures to address potential market, funding, counterparty, operational, and legal risks associated with the hedging activities [23][48]. - Specific measures include monitoring the correlation between hedged items and derivatives, ensuring liquidity, and selecting reputable counterparties for transactions [29][55]. - The company will adhere to relevant accounting standards for the recognition and measurement of financial instruments related to the hedging activities [35][57].