Zhongfu Industry invests in wheel hubs, manages financial risk

Henan Zhongfu Industry's wholly-owned second-level subsidiary, Guangyuan Linfeng Aluminum, plans to invest 259.30 million yuan in a green intelligent manufacturing project for 3 million aluminum-based wheel hubs, to be completed in two phases. This investment aims to boost market competitiveness and reduce production costs for aluminum alloy wheels.

Concurrently, the company and its subsidiaries are seeking comprehensive credit lines of up to 4 billion yuan for 2026 to optimize debt structure and support operational needs. They also plan to engage in foreign exchange derivative transactions, up to $200 million or equivalent in other currencies, to manage exchange rate and interest rate fluctuations.

Additionally, Zhongfu Industry will continue its commodity hedging activities, committing up to 400 million yuan in margin for aluminum-related futures and options to stabilize production costs and mitigate price volatility. These financial strategies are aimed at strengthening the company's financial stability and operational efficiency.