On May 19, the National Enterprise Bankruptcy and Reorganization Case Information Network disclosed that CGN Solar Energy Development Co., Ltd. had applied to the Intermediate People's Court of Bortala Mongol Autonomous Prefecture, Xinjiang Uyghur Autonomous Region, for the bankruptcy of Bortala Mongol Autonomous Prefecture Mueller Sitong PV Power Generation Co., Ltd. The disclosure date was May 19, and the case number was (2025) Xin 27 Bankr. App. No. 1.

On May 19, the National Enterprise Bankruptcy Reorganization Case Information Network disclosed that China General Nuclear Power Solar Energy Development Co., Ltd. had applied to the Intermediate People's Court of Bortala Mongol Autonomous Prefecture, Xinjiang Uyghur Autonomous Region, for the bankruptcy of Bortala Mongol Autonomous Prefecture Mueller Siton PV Power Generation Co., Ltd. The disclosure was made on May 19, with the case number being (2025) Xin 27 Bankr. App. No. 1. According to publicly available information, Bortala Mongol Autonomous Prefecture Mueller Siton PV Power Generation Co., Ltd. was established in April 2015 with a registered capital of RMB 1 million. Its business scope covers the development, investment, general contracting, and construction of solar power generation projects, as well as the R&D, production, and sales of solar products. According to the equity information on Tianyancha, natural person Liu Gang holds 51% of the equity in Mueller Siton PV, while China General Nuclear Power Solar Energy Development Co., Ltd. holds 49% of the shares.

Recently, coal-listed companies have successively released their 2024 annual reports and 2025 Q1 reports. Futures Daily reporters found that 39 listed coal companies achieved a profit of 165.034 billion yuan in 2024, with 32 companies being profitable. In Q1 this year, 39 listed coal companies achieved a profit of 33.645 billion yuan, with 29 companies being profitable. Notably, affected by the decline in coal prices, the profits of listed coal companies generally declined YoY, both in the annual report and the Q1 report. In 2024, only 7 companies, including Baofeng Energy, SDIC Energy, Zhengzhou Coal Mining Machinery, Shaanxi Energy, Xinji Energy, Huaihe Energy, and Liaoning Energy, achieved positive profit growth. In Q1 this year, only 3 companies, including Baofeng Energy, Zhengzhou Coal Mining Machinery, and Liaoning Energy, achieved positive profit growth. Reporters carefully reviewed the annual and Q1 reports of listed coal companies and found that their performance differentiation was very obvious. In 2024, the price of Shanxi medium-sulfur coking coal fell by 42%, and it continued to drop by 25% in Q1 this year. During the same period, the price of 5500K thermal coal at Qinhuangdao Port fell by 14.5% and 12.3%, respectively. However, thermal coal pricing is generally based on long-term contracts, making it less affected by market price fluctuations. Companies mainly producing thermal coal generally performed better than coking coal producers, such as Shenhua, China Coal, and Xinji Energy. Baofeng Energy, by deploying the entire industry chain of coal coking, achieved a net profit growth of 12.16% in 2024 and continued to grow against the trend by 71.49% in Q1 this year. Its coal chemical sector contributed 65% of the profit, effectively offsetting the impact of the decline in coal prices. In addition, Shaanxi Coal Industry and Xinji Energy also adopted the method of coal-electricity joint operation, and their profit declines were significantly lower than other companies. Reporters found that the average cost per ton of coal for some high-quality resource companies was far lower than the industry average. For example, the cost per ton of coal for Shaanxi Coal Industry was around 280 yuan, while the industry average in 2024 was 440 yuan. In addition, some companies reduced costs and increased efficiency through technological upgrades and refined material management. Li Rong, a black researcher at Wuchan Zhongda Futures, told reporters that the net profit of the coal industry generally declined YoY in 2024. The total profit of China's coal mining and washing industry fell by 22% YoY, directly due to the decline in coal prices. The price of thermal coal fell by 16.3% compared to the beginning of the year, while the price of the most-traded coking coal futures contract fell by 38.4%. The price decline directly affected the sales revenue of coal companies, leading to a decline in net profit. From a fundamental perspective, the supply growth rate exceeding the demand growth rate was one of the important factors leading to the reduction in net profit of coal companies. In 2024, raw coal production increased by 1.3% YoY, and imports increased by 14.4% YoY. According to data from the National Bureau of Statistics, preliminary estimates show that coal consumption increased by 1.7%.The growth rate on the supply side exceeded that on the demand side. This supply-demand imbalance not only curbed the upside potential of coal prices but also placed greater pressure on coal enterprises in sales. During the process of continuous price declines, why did some enterprises stand out? Liu Huifeng, the chief researcher of ferrous metals at Donghai Futures, told reporters that enterprises were able to hedge operational risks by utilizing futures derivatives. Judging from the "report cards" released by enterprises, take Liugang Co., Ltd. as an example. It conducted buying hedging on the coking coal 2501 contract in the fourth quarter of 2024 and carried out physical delivery in January 2025. It transported 24,000 mt of coking coal from Lvliang and Jiexiu in Shanxi Province to Guangxi Province using a combination of "truck + railway + shipping" methods. The delivery process took only 10 days, reducing the impact of spot market fluctuations on the enterprise by locking in prices. Another example is Jizhong Energy Resources Group Co., Ltd. In April 2024, its subsidiary Jizhong International Trade conducted hedging on the coke 2405 contract and completed delivery through the group's in-plant inventory, optimizing resource allocation and enhancing industrial synergy efficiency. "Currently, the application of financial derivatives by coal enterprises has shifted from single hedging to diversified strategies, including using on-exchange and over-the-counter derivatives to hedge against price fluctuation risks, reducing margin occupancy through warrant pledges, and improving delivery efficiency through physical delivery + multimodal transport," Liu Huifeng said. In the early stage, mainly some large enterprises actively participated in the futures market relying on their resource and institutional advantages, while small and medium-sized enterprises were more cautious about hedging. In the past two years, as coal prices continued to decline and financial derivatives were widely used, the willingness of small and medium-sized coal enterprises to participate in hedging, either passively or actively, has increased. They have begun to actively engage with futures companies and hope that futures companies can provide corresponding hedging solutions based on their own situations. "In late October last year, we came into contact with a coal enterprise with an annual coking coal production capacity of about 500,000 mt and a regular inventory of 3,000 mt to 5,000 mt. They hoped we could provide a corresponding hedging solution. Given that coal prices had just experienced a rebound at that time, there was certain policy expectation support before the end of the year, and the futures market was in a large discount, there were certain risks in unilateral hedging. Therefore, we recommended a coking coal calendar spread strategy, namely, buying the January contract and selling the May contract to hedge against some losses. As of early December last year, this strategy achieved a gain of about 50 points," Liu Huifeng said. After mid-December last year, the coking coal futures market once again traded at a premium to the spot market. Therefore, we recommended that they conduct hedging on the new most-traded contract and gradually increase the hedging ratio, ultimately effectively avoiding the risk of coking coal price declines last year. The reporter noted that in the first quarter of this year, the net profits of coal enterprises continued to decline.The reasons for the decline are similar to those in 2024: On the one hand, coal prices continued to fall. By the end of March, spot prices of thermal coal and the most-traded coking coal futures had dropped by approximately 11.7% and 14.6%, respectively, compared to the beginning of the year, directly compressing enterprises' profit margins. On the other hand, the supply-demand imbalance in the market intensified. In Q1 this year, raw coal production increased by 8.1% YoY, while imports fell by 0.9%, leading to an increase in total supply. However, demand remained weak. Power generation from thermal power plants decreased by 0.3% YoY, and demand from major coal-consuming industries such as steel and building materials was sluggish, resulting in high inventory levels and further suppressing coal prices. "Currently, the oversupply of coal remains unchanged, and enterprises are facing numerous pressures, including declining revenues, reduced profits, and sluggish sales. In the short term, enterprises can enhance operational stability by increasing the proportion of long-term agreements, using derivatives to hedge against price fluctuation risks, and controlling costs. In the medium term, they can improve their ability to withstand cyclical risks by extending the industry chain, integrating resources, and utilizing futures tools. Meanwhile, enterprises need to closely monitor policy and supply-demand changes and adjust their operational decisions in a timely manner," said Liu Huifeng. A person engaged in the spot trade of coal and coke bluntly stated that under the multiple pressures of falling prices, supply-demand imbalance, and high costs currently facing the coal industry, enterprises need to adopt a multi-pronged transformation strategy: First, deepen cost reduction and efficiency enhancement by improving mining efficiency through intelligent transformation, optimizing supply chain management, and reducing operating costs. Second, flexibly use futures tools to hedge against price fluctuation risks. Third, accelerate transformation and upgrading. Top-tier enterprises can leverage their financial advantages to expand into new energy businesses (such as wind and solar power generation, hydrogen energy) and achieve synergy across the entire industry chain of "coal, power, chemicals, and transportation." Small and medium-sized enterprises should focus on innovation in niche areas, developing high value-added coal chemical products or providing specialized services. Fourth, strengthen market research and judgment capabilities. Enterprises should establish a dynamic inventory management mechanism and actively explore the application of carbon capture technology to cope with the pressure of environmental protection policies. "Through the dual-wheel drive of 'improving the quality of traditional businesses + deploying emerging businesses,' enterprises can not only safeguard their current cash flow but also cultivate future growth points, thereby achieving sustainable development amid industry cycles," said the aforementioned person.

In the upcoming year of 2025, we anticipate that the global economy will face a series of complex and volatile challenges. With the US presidential election concluded, the uncertainty of global trade policies will further increase, presenting new topics for international trade cooperation. In the realm of geopolitics, ongoing conflicts and tensions show no significant alleviation, posing threats not only to global security but also significantly impacting resource allocation and industrial layout. Against this macro backdrop, industrial transfer and supply chain restructuring have become key topics that we must closely monitor. At the industrial level, the trend of protectionism in mineral resources is on the rise, directly affecting the stability of global copper concentrate TCs. With the rapid expansion of global smelting capacity, the profit margins of copper smelters are further compressed, and the challenges faced by the industry are becoming increasingly severe. In the field of secondary copper raw materials, the advancement of Environmental, Social, and Governance (ESG) standards and the "dual carbon" goals have significantly increased market attention to secondary copper. However, the "reverse invoicing" policy implemented in 2024 and the "Fair Competition Regulations" have had a profound impact on the secondary copper industry. Looking ahead to 2025, the changes in the landscape of the secondary copper industry will have a critical impact on the entire copper industry chain. Additionally, with the cancellation of tax subsidies and other incentive measures, the space for copper cathode trade will further narrow. We expect that the procurement ratio of copper processed materials between traders and smelters will show a more pronounced differentiation. In this context, the "CCIE 2025 SMM (20th) Copper Industry Conference and Copper Industry Expo" meticulously prepared by SMM will be grandly held from April 22-25, 2025, in Nanchang, Jiangxi. Beijing Jingruida Technology Co., Ltd. will make a splendid appearance at this conference. We will synchronize with the times, aim at our goals, strive diligently, and move forward courageously! Click the registration form to sign up immediately, and we look forward to meeting you at the conference. Booth number: D31. Professional thickness gauge producer, suitable for environments such as cold rolling, hot rolling, and composite rolling mills, and can design different sizes and shapes according to requirements. Beijing Jingruida Technology Co., Ltd., founded in 2017, is a manufacturer integrating R&D, production, sales, service, and management. With leading technology, excellent quality, professional production, and a comprehensive service system, we have successfully created a series of high-precision X-ray thickness gauges, coating thickness gauges, laser thickness gauges, and color coating thickness gauges, establishing a brand image in the industry. The company adheres to the business philosophy of "technology first, people-oriented, precision supreme, honesty and trustworthiness, moral management, and reputation first." We insist on technological innovation and quality first, providing customers with efficient, high-quality, and accurate solutions with high-tech products and a comprehensive service system. The company has won more customer recognition through professional technology and comprehensive after-sales service. The company's products are sold nationwide to companies such as HBIS Group, Shougang Group, Hansteel Group, Tongling Nonferrous Metals, Jiangxi Yuntai, Xinke Group, Jiangxi Kaian, Jiangsu Tongda, Jianlong Group, Sansteel Group, Liugang, Pangang Group, Zhongshan Zhongyue, Tsingshan Group, Yongjin Group, etc., in the steel industry. Products are exported to countries such as Uzbekistan, Ethiopia, Vietnam, Thailand, India, Iran, Russia, Turkey, UAE, Indonesia, and Bangladesh. In the future, we will continue to uphold the tenet of "survival through quality, development through reputation," constantly innovate, manage rigorously, and repay customers with better products and services. Contact: Zhou Shenglei, 18618403116. SMM Conference Contact: Zhang Wencheng, 18766457954, zhangwencheng@smm.cn.

The steel sector opened strong, with Liugang Co., Ltd. and Guangdong Pearl River Chemical Co., Ltd. both hitting the daily price limit, Youfa Steel Pipe Group Co., Ltd. rising by more than 5%, and TISCO Stainless Steel Co., Ltd., Anyang Iron & Steel Co., Ltd., and Bayi Iron & Steel Co., Ltd. following suit.

On the 7th, Lecong hot-rolled: the morning market quotation decreased by 50 yuan/mt compared to yesterday. Currently, the mainstream quotations for Liugang, Wangang, and Dadonghai -5.5 are 3,280-3,300 yuan/mt, and the mainstream quotation for Liugang -5.5 is 3,290 yuan/mt [SMM Steel].