ZHENGTONGAUTO (01728) plans to carry out hedging business of bulk commodity derivatives.

ZHENGTONGAUTO (01728) announces that the group plans to carry out commodity derivative hedging business. With the rapid development of the new energy vehicle industry, the market demand for non-ferrous metals such as copper, aluminum, and zinc as key raw materials for automobile and component production continues to grow. In order to seize market opportunities, the company plans to expand its business to the automotive industry chain commodity trade, while also engaging in derivative hedging for better risk management and control. This will further deepen cooperation with original equipment manufacturers, enhance its position as a leading comprehensive service provider in the automotive ecosystem, and expand its business scale. Through the implementation of commodity derivative hedging business, the company expects to manage and mitigate the uncertainty brought by commodity price fluctuations to the group's operations, strengthening the group's long-term strategic business objectives.