Midea group: The company engages in bulk hedging primarily to mitigate fluctuations in bulk raw material prices.

How does Midea Group respond to the impact of the rising prices of commodities such as copper? Midea Group, as indicated in the investor relations activities record, has businesses in over 200 countries and regions. It has 22 research and development centers and 41 major manufacturing bases overseas, spanning more than ten countries. In the future, the company will continue to expand its overseas manufacturing layout, and promote the construction and production of new factories overseas. Regarding the fluctuation of raw material prices, the company will actively respond to the related impact through means such as upgrading product structure, improving efficiency throughout the value chain, and optimizing supply chain management. In terms of supply chain, the company conducts hedging activities mainly to deal with fluctuations in the prices of bulk raw materials. Additionally, the company uses collective purchasing for bulk materials, which gives them a relative price advantage.