MECOM Locks In HK$100 Million FX Hedges to Manage RMB Exposure

MECOM Power & Construction Ltd. ( (HK:1183) ) has shared an update.

MECOM Power and Construction Ltd. has entered into a series of foreign exchange hedging contracts via its non-wholly owned subsidiary MECOM New Materials to manage RMB/HK$ currency exposure arising from its cross-border procurement and sales activities. The move reflects the group’s effort to stabilise cash flows and mitigate foreign exchange volatility as it purchases steel in RMB and sells new construction materials in HK$, aligning treasury management with its operational needs.

On 26 February 2026, MECOM New Materials signed FX hedging contracts with an independent bank, covering a total principal of HK$100 million, under which it will buy RMB at fixed forward rates between June and October 2026. The transaction qualifies as a discloseable transaction under Hong Kong listing rules, signalling a material but mid-range size risk-management initiative that could enhance earnings visibility and financial predictability for shareholders and other stakeholders.

More about MECOM Power & Construction Ltd.

MECOM Power and Construction Ltd., through subsidiaries MECOM New Materials and Ao Gang Construction, operates in the construction materials and intelligent equipment sector. The group focuses on research and development, manufacturing and sales of new construction materials and intelligent equipment, purchasing steel in RMB while selling finished materials in HK$, exposing it to cross-border currency risk.

Average Trading Volume: 724,426

Technical Sentiment Signal: Buy

Current Market Cap: HK$740.4M

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