Zhongli Group details 2026 plans: Transactions, hedging, cash management

Jiangsu Zhongli Group Co., Ltd. announced an estimated 3 billion yuan in routine related party transactions with Xiamen C&D Inc. and its affiliates for 2026, a significant portion of its total transactions. This follows 1.59 billion yuan in actual related party transactions from January to September 2025. The company will purchase goods and sell products/lease properties at market prices. The board approved this, with certain directors abstaining due to conflicts of interest, and the proposal awaits shareholder approval, where related parties will also abstain from voting.

Additionally, Zhongli Group plans to conduct commodity derivative transactions for up to 500 million yuan in margin, primarily to hedge against price fluctuations in raw materials like copper, aluminum, and polysilicon. The company will also engage in foreign exchange hedging up to 1 billion yuan or equivalent foreign currency to mitigate exchange rate risks, using instruments like forward foreign exchange settlements and options. These hedging activities are not for speculative purposes and are based on normal business operations.

The company also announced a comprehensive financial strategy for 2026, including applying for a credit line of up to 3 billion yuan and managing idle own funds up to 1 billion yuan through investments in highly liquid, secure wealth management products. These proposals will be put to a vote at the Fourth Interim Shareholders' Meeting of 2025 on December 15, 2025, following board approval.