Zhuzhou Smelter Group to begin commodity and FX hedging in 2026

Zhuzhou Smelter Group, a major non-ferrous metals company, has approved commodity futures hedging and foreign exchange derivative businesses for 2026. This move aims to manage price and exchange rate fluctuations impacting its main products, including zinc, lead, and gold. The company plans to utilize up to 545 million yuan in margin and rights for commodity futures, with a maximum daily contract value of 3.27 billion yuan. For foreign exchange derivatives, primarily forwards, the maximum daily contract value is $150 million. All transactions will be funded by the company's own funds.

The decision follows board approval on December 8, 2025, and will be submitted for shareholder review on December 26, 2025. The company emphasizes a commitment to hedging, not speculation, ensuring strict adherence to internal control systems and risk management protocols. These measures include a comprehensive management system for financial derivatives and a dedicated organizational structure with expert personnel.

The board also announced changes to its specialized committees and the election of Mr. Peng Shuguang as the new chairman, effective December 8, 2025. This leadership transition follows the resignation of the former chairman, Mr. Liu Langming, due to work adjustments. The company views these hedging activities as essential for maintaining stable operations, controlling costs, and enhancing overall profitability and competitiveness.