Shandong Nanshan Aluminium reduces capital, expands hedging to stabilize performance

Shandong Nanshan Aluminium Co., Ltd. has canceled 129,969,289 repurchased shares, reducing its registered capital from RMB 11,613,670,848 to RMB 11,483,701,559. This change, which involved share repurchases between December 27, 2024, and December 16, 2025, represents about 1.12% of the company's total share capital prior to cancellation. The company's Articles of Association have been amended to reflect this and update its registered address.

In related developments, Shandong Nanshan Aluminium and its subsidiary, Yantai Jintai International Trade Co., Ltd., are expanding their hedging strategies for 2026. Shandong Nanshan Aluminium plans to engage in Shanghai aluminium futures hedging, with a projected maximum capital allocation of RMB 800 million and a daily account usage of RMB 300 million. Yantai Jintai International Trade will undertake financial derivative transactions, including forward and option foreign exchange contracts for USD and EUR, with a maximum capital exposure of RMB 300 million and a daily account usage of RMB 200 million. Additionally, Yantai Jintai will conduct LME aluminium futures hedging with a projected maximum capital allocation of RMB 600 million and a daily account usage of RMB 200 million.

These initiatives aim to mitigate market price fluctuations for raw materials, product sales, and inventory, thereby stabilizing the company's operational performance and safeguarding profitability. All hedging activities are set to commence on January 1, 2026, and conclude on December 31, 2026.