Announcement on Conducting Commodity Futures Hedging Business in 2026
Zhejiang Hailiang Co., Ltd. (hereinafter referred to as "the Company" or "Hailiang") and all members of the board of directors guarantee the authenticity, accuracy, and completeness of the announcement content and bear responsibility for any false records, misleading statements, or significant omissions in the announcement.
On February 11, 2026, the ninth board of directors of Zhejiang Hailiang Co., Ltd. held its eighth meeting and approved the proposal on conducting commodity futures hedging business for 2026, which will be submitted to the Company's second extraordinary general meeting of shareholders in 2026 for review. The relevant matters are announced as follows.
1. Basic Situation of Conducting Hedging Business
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Purpose of Conducting Hedging Business
The Company and its subsidiaries mainly produce copper tubes, copper rods, copper foils, copper fittings, conductor materials, aluminum profiles, and other products. The main raw materials for these products are commodities such as copper, zinc, aluminum, nickel, and lead, which have high unit values. To effectively prevent and mitigate the risks of price fluctuations of major raw materials and protect the interests of the Company and its shareholders, the Company will utilize futures instruments to conduct hedging business for the raw materials required for production and operation. -
Investment Amount and Source of Funds
The Company plans to use its own funds to conduct commodity futures options hedging business within 12 months from the date of approval by the shareholders' meeting. The total amount of funds (margin) invested in the hedging business will not exceed 300 million RMB (or equivalent foreign currency). The source of funds will be the Company's own funds and will not involve raised funds.