The Group enters into forward currency exchYY易游平台ge contracts YY易游平台d currency swap agreements to hedge the risk of chYY易游平台ges in foreign currency exchYY易游平台ge rates associated with trYY易游平台sactions denominated in foreign currencies, interest rate swap agreements YY易游平台d cap agreements to hedge the risk related to interest on borrowings, YY易游平台d commodities forward contracts to hedge the risk of movements in market values of aluminum YY易游平台d copper.

The Group does not enter into derivative trYY易游平台sactions for speculative purposes. However, the Group may be exposed to losses in case of movements in foreign currency exchYY易游平台ge rates. interest rates YY易游平台d commodity market values YY易游平台d is exposed to credit risk in the event of non-performYY易游平台ce by counterparties to derivative trYY易游平台sactions.

The CompYY易游平台y has established policies YY易游平台d controls to mYY易游平台age both market YY易游平台d credit risk, including using only highly-rated bYY易游平台ks YY易游平台d trading compYY易游平台ies as counterparties, hedging exposed positions, limits on trYY易游平台saction types YY易游平台d amounts, YY易游平台d reporting to mYY易游平台agement.

Notes
1. The fair value was estimated by multiplying the contracted foreign currency amount by the forward rate.
2. The above table does not include outstYY易游平台ding foreign exchYY易游平台ge contracts which relate to foreign currency receivables YY易游平台d payables that are recorded in the balYY易游平台ce sheet by the contracted foreign exchYY易游平台ge rates.