Core Viewpoint - The company, Zhongfu Industrial Co., Ltd., announced its plan to continue commodity hedging activities in 2026 to mitigate price volatility risks associated with aluminum and related products, with a maximum margin amount not exceeding 400 million RMB or equivalent foreign currency [1][2]. Group 1: Hedging Business Overview - The hedging business focuses on core products in the aluminum industry chain, aiming to reduce price volatility risks and enhance performance stability [2]. - The trading instruments include standardized futures contracts and options traded on approved domestic exchanges [2]. - The funding source for the hedging activities will be the company's own funds, with a trading period set from January 1, 2026, to December 31, 2026 [2]. Group 2: Risk Management Measures - The company has identified five major categories of risks associated with the hedging activities, including market risk, operational risk, liquidity risk, internal control deficiencies, and technical system failures [2]. - Six risk control measures have been established, including strengthening internal audit supervision and regularly reviewing the execution of trading plans [2][4]. Group 3: Business Stability and Market Context - As a veteran in the aluminum industry, the company aims to address the challenges posed by price fluctuations in alumina and electrolytic aluminum, which have been affected by supply-demand dynamics and energy costs since 2025 [3]. - By locking in raw material procurement costs and product sales prices, the company expects to smooth out performance volatility [3]. - The company emphasizes adherence to the principle of "hedging aligned with core business" and will not engage in derivative trading unrelated to its production operations [3].