Dawei Co., Ltd. plans to carry out a 40 million yuan commodity futures and options hedging business to address lithium salt and copper price fluctuation risks.

【Shenzhen News】Shenzhen Dawei Innovation Technology Co., Ltd. (Stock Code: 002213, Stock Abbreviation: Dawei Co.) announced on March 17th that to effectively hedge against risks from raw material and product price fluctuations, the company and its controlling subsidiaries plan to carry out commodity futures and options hedging activities. The estimated maximum margin and premium used will not exceed 40 million yuan, and the maximum contract value on any trading day will not exceed 400 million yuan.

The announcement states that this hedging activity mainly targets raw materials such as copper used in the company’s production and operation, as well as lithium salts like lithium carbonate. The company notes that copper, an important raw material for automotive retarders, accounts for a significant portion of costs. The frequent price fluctuations in copper and lithium salt markets have a substantial impact on the company’s product costs and gross profit margins. By engaging in hedging, the goal is to stabilize product costs and reduce the impact of price volatility on operational performance.

According to the disclosure, the specific arrangements for this hedging activity are as follows:

The company emphasizes that this hedging activity is not for speculation or arbitrage but is based on normal production and operation. To control risks, the company has formulated the “Management System for Commodity Futures and Options Hedging Business,” which clearly defines approval authority, business procedures, and risk control measures. The audit department will review the operational status of the hedging activities.

The announcement also notes that despite multiple risk control measures, hedging activities may still face risks related to price fluctuations, internal controls, technology, operations, policies, and funding. The company will closely monitor market changes and prudently execute hedging operations.

This matter has been approved by the 33rd meeting of the company’s sixth board of directors and the 19th meeting of the sixth board of directors’ audit committee, and is subject to approval at the company’s first extraordinary shareholders’ meeting in 2026.

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