Dongshan Precision outlines 2026 financial risk management plans

Dongshan Precision will provide external guarantees totaling up to RMB 150 bn for its subsidiaries and investee companies in 2026. This measure, approved by the board, aims to support daily operations and business development. The actual guarantee amounts are subject to final agreements. The guarantees cover various financial activities, including credit lines, loans, and letters of credit, with a validity period from January 1, 2026, to December 31, 2026.

Dongshan Precision also plans to engage in foreign exchange hedging with a total scale of up to $2 bn to mitigate currency fluctuation risks associated with its international business. The company will conduct commodity futures hedging, focusing on raw material varieties like copper, aluminum, gold, and silver, with a maximum margin of RMB 188m. Both hedging initiatives, valid throughout 2026, are intended to stabilize costs and reduce exposure to market volatility.

These risk management strategies are aligned with the company's commitment to prudent financial management and are designed to protect against adverse market movements, ensuring steady operational performance in 2026.