Core Viewpoint - The company, Anhui Xinbo Aluminum Industry Co., Ltd., continues to engage in commodity hedging activities to mitigate the impact of raw material price fluctuations on its operations [1][2][3] Group 1: Business Overview - The main products of the company and its subsidiaries include new energy photovoltaic, automotive lightweight materials, and other aluminum profiles [1] - The company has a long-standing practice of organizing production based on customer orders and follows a pricing principle of "aluminum ingot price + processing fee" [1][2] - The market price for aluminum ingots is determined by the Shanghai Nonferrous Metals Network [1][2] Group 2: Hedging Activities - The company will limit its hedging activities to aluminum rods, with a maximum trading margin and premium balance not exceeding RMB 80 million [2][4] - The hedging period will not exceed 12 months from the date of board approval [2] - The hedging tools will include futures and derivatives, with a focus on ensuring liquidity and proper settlement arrangements [2][4] Group 3: Risk Assessment - The company acknowledges various risks associated with hedging, including price volatility, funding, internal control, technical, operational, and customer default risks [3][4] - The maximum margin and premium for hedging represent approximately 0.79% of total assets and 2.65% of net assets attributable to shareholders as of December 31, 2024 [4] Group 4: Impact on Financials - The company will adhere to relevant accounting standards for hedging activities, which will reflect in the balance sheet and income statement [5] - The company aims to mitigate the impact of raw material price fluctuations through its hedging activities [5] Group 5: Approval Process - The proposal to continue hedging activities was approved by the company's board of directors and independent directors, confirming that it aligns with the company's operational needs and does not harm shareholder interests [6][7]

Core Viewpoint - The company, Anhui Xinbo Aluminum Industry Co., Ltd., has approved the continuation of its commodity hedging business to mitigate the impact of raw material price fluctuations on its operations [1][5]. Group 1: Commodity Hedging Business Overview - The company and its subsidiaries primarily produce products in the fields of new energy photovoltaics, automotive lightweighting, and other aluminum profiles, with aluminum rods being the main raw material [1][3]. - The company has adopted a production model based on customer orders and follows a pricing principle of "aluminum ingot price + processing fee," with market prices determined by the Shanghai Nonferrous Metals Network [1][3]. - The company aims to lock in product sales prices and costs through hedging, effectively reducing the impact of raw material price volatility on its normal operations [1][3]. Group 2: Hedging Business Details - The hedging transactions will be limited to aluminum rods, with a maximum margin and premium balance of RMB 80 million (including RMB 80 million) during the business period [1][3]. - The authorized period for the hedging business is up to 12 months from the board's approval, with the possibility of automatic extension for ongoing transactions [2][3]. - The company does not consider this hedging activity as a major asset restructuring or related party transaction [2][3]. Group 3: Risk Analysis and Control Measures - The company acknowledges risks associated with hedging, including price fluctuations, funding, internal control, technical, operational, and customer default risks [4][5]. - To mitigate these risks, the company restricts its hedging activities to aluminum futures and related derivatives, prohibiting speculative trading [4][5]. - The company will ensure that funds used for hedging do not come from raised capital and will manage the margin and premium balance within the specified limit [4][5]. Group 4: Impact of Hedging Business - The board believes that continuing the hedging business will help prevent market risks arising from raw material price changes and reduce product cost fluctuations [5][6]. - The supervisory board agrees that the hedging business effectively lowers the impact of raw material price volatility on the company's operations and does not harm the interests of the company or minority shareholders [5][6]. - Independent directors support the continuation of the hedging business, stating it is beneficial for controlling operational risks and does not harm the interests of the company and all shareholders [5][6].