On July 2, the tender failure announcement for the PV module procurement (the second tender) of the Luzhou Generation-Grid-Load-Storage Integrated Energy Project (Phase I) was released. The announcement disclosed that the second tender was opened on June 30, 2026. As fewer than three bidders submitted the bid security, this tender failed. The section will be re-tendered in accordance with regulations. Previously, when this section was opened on May 22, 2026, it also failed because fewer than three bidders submitted bids.

★ Macro ★ 01 ★★ [PBOC Conducts 1,000 Billion Yuan Outright Reverse Repo Operation Today] The People's Bank of China recently announced that it would conduct a 1,000 billion yuan outright reverse repo operation on July 6, with a fixed quantity, rate tender, and multiple-price bidding, for a term of 3 months (91 days). As 800 billion yuan of this tenor matures within the month, this 3-month outright reverse repo operation will achieve a rollover with increased volume, ending the three-month streak of shrinking volumes for this tenor. 02 ★★ [ People's Daily: Panda Bonds Reflect Foreign Investors' Increasing Bet on China ] Since the start of this year, panda bond issuance has heated up significantly, with over 130 billion yuan issued in the first five months, and is expected to reach a new high for the full year. Large-scale panda bond issuance by mainstream international issuers signals strong global recognition of China's institutional environment, development expectations, and the renminbi. Specifically, three key reasons stand out. First, comparative financing cost advantages have made borrowing in renminbi more attractive. Second, the continuous improvement of the panda bond framework has enhanced financing convenience. Third, the popularity of panda bonds is closely linked to the accelerating pace of renminbi internationalization. The growing panda bond market is forming a positive feedback loop with the international use of the renminbi. 03 ★★ [ PBOC Reverse Repo Operation Results in Net Withdrawal of 49.5 Billion Yuan on the Day ] The PBOC conducted a 7 billion yuan 7-day reverse repo and a 1,000 billion yuan outright reverse repo operation today. With 157.5 billion yuan of 7-day reverse repos and 800 billion yuan of outright reverse repos maturing today, the net withdrawal for the day amounted to 49.5 billion yuan. In the open market this week, a total of 678.5 billion yuan reverse repos will mature, with 157.5 billion yuan, 69.5 billion yuan, 100 billion yuan, 288.5 billion yuan, and 63 billion yuan maturing from Monday to Friday respectively. Additionally, 800 billion yuan of 89-day outright reverse repos matured on Monday, and the PBOC conducted a 1,000 billion yuan 3-month outright reverse repo operation on Monday. ★ Industry and Downstream ★ 01 ★★ [World's Largest Dock Restarts] After being taken over by a new owner, the long-dormant Gunsan Shipyard of South Korea's largest shipbuilding group, HD Hyundai, has officially restarted, securing its first new ship order. Amid a global new shipbuilding orderbook that continues to fluctuate at highs, this shipbuilding base, which had been idle for nearly nine years, is re-entering the sight of global shipowners, leveraging its advantage of relatively shorter delivery cycles. 02 ★★ [Shaanxi Coal Industry: June 2026 Coal Production Up 0.70% YoY] Shaanxi Coal Industry announced that in June 2026, its coal production was 14.46 million mt, cumulative 91.17 million mt, up 0.70% and 4.30% YoY respectively; sales of self-produced coal were 13.07 million mt, cumulative 83.66 million mt, down 9.49% and up 3.45% YoY respectively. Power generation side, total power generation was 3.352 billion kWh, cumulative 19.082 billion kWh, down 11.86% and up 7.39% YoY respectively; total electricity sales were 3.136 billion kWh, cumulative 17.946 billion kWh, down 12.40% and up 7.98% YoY respectively. 03 ★★ [Hoa Phat Price Adjustment Info] FHS announced July prices last Friday, continuing a significant cut of 1,050 VND per kg (approx. $40 per mt) compared to the previous month. Please see below. ================= 20kt and above: $538 CIF (14,230 VND/kg) 15kt to 20kt: $540 CIF (14,280 VND/kg) 10kt to 15kt: $542 CIF (14,330 VND/kg) 5kt to 10kt: $544 CIF (14,380 VND/kg) 2,000 mt to 5,000 mt: $546 CIF (14,430 VND/kg) <2kt: $548 CIF (14,490 VND/kg) Shipment: Aug/Sep 2026 Port: HCM/PM Exchange rate: 26,460 VND = $1 04 ★★ [Bao Gang United Steel HH AREMA Heat-Treated Rail First Export Outside China] In June 2026, Bao Gang United Steel successfully completed the first batch export of HH370 grade high-strength heat-treated rails conforming to AREMA standards. This marked the first export of HH grade rails, filling the gap in the company’s production and export capabilities for all categories of AREMA-standard rails, further enriching its high-end AREMA-standard rail product portfolio, and demonstrating its full independent manufacturing strength from proprietary technological breakthroughs to large-scale stable production. ★ Other Hot Topics ★ ⭕ [Shan Steel Rizhao Company 800MPa High-Strength Steel First Successful Trial Production] Recently, the 800MPa grade high-strength steel was successfully trial-produced on the hot rolling line. Inspection showed good flatness and surface quality, marking that the hot rolling plant of Shan Steel Rizhao Company has reached a new level in high-end product development, further enhancing the competitiveness of its hot-rolled products in the lightweight markets for construction machinery and commercial vehicles. ⭕ [The environmental impact report for the Phase II construction of the Dongfang Special Steel Green High-End Nickel-Chromium New Material Intelligent Manufacturing Project was approved.] This is an expansion project with a total investment of 3,823,998,800 yuan, of which 190 million yuan is for environmental protection. The project is located at No. 1333 Jiagang Road, Xinfeng Town, Nanhu District, Jiaxing City (within the existing plant area of Zhejiang Nanhu Economic Development Zone and on newly added adjacent land). The project plans to purchase vacuum induction furnaces, electroslag furnaces, vacuum consumable furnaces, cold continuous rolling units, cold single-stand rolling units, and supporting cold annealing, pickling, and tempering units, forming a capacity of 1 million mt of cold-rolled white coils and 35,200 mt of specialty smelting. ⭕ [Multiple departments jointly deploy a crackdown on illegal activities in production safety.] It was learned from the Ministry of Emergency Management on July 6 that the Office of the State Council Work Safety Committee, together with the Political and Legal Affairs Commission of the CPC Central Committee, the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security, and the Ministry of Justice, recently issued a notice. It deploys all regions and relevant departments to conscientiously implement the spirit of General Secretary Xi Jinping's important instructions on production safety, strictly implement the spirit of the national production safety video conference, and, in conjunction with the three-year action plan for tackling the root causes of production safety and the investigation and rectification of major accident hazards, focus on key industries such as ore mines, chemicals, fire protection, and industry and trade to deeply carry out a crackdown on illegal activities in production safety. *This report is an original work and/or compilation created by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), which legally holds the copyright and is protected by the Copyright Law of the People's Republic of China and other applicable laws, regulations, and international treaties. Without written permission, no part of the content may be reproduced, modified, sold, transferred, displayed, translated, compiled, disseminated, or otherwise disclosed to any third party or licensed for use by a third party in any form. Otherwise, upon discovery, SMM will pursue legal means to hold the infringing party liable, including but not limited to demanding liability for breach of contract, the return of unjust enrichment, and compensation for direct and indirect economic losses. 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The northern region serves as the core hub of China’s wire and cable industry. Building on its industrial heritage, full-chain supporting capabilities, and favorable policies under the Beijing-Tianjin-Hebei coordinated development initiative, it has established a complete industrial cluster that integrates raw material processing, wire and cable production, new material R&D, and intelligent equipment manufacturing. The region’s annual output value of the wire and cable sector exceeds 100 billion yuan, supported by a solid industrial foundation and broad market potential. However, compared with the established industrial clusters in the Yangtze River Delta and Pearl River Delta, the northern wire and cable industry still faces shortcomings such as fragmented industrial resources, weak industry-academia-research collaboration, and insufficient risk resilience across the industry chain. Breaking down collaboration barriers has thus become key to upgrading industry quality. will be held on July 23-24, 2026, at the Crowne Plaza Qingdao Jinshui, Shandong . The conference will focus on three major themes: industrial collaboration, green intelligence, and globalization. Shanghai Metals Market (SMM) , in partnership with Jiangsu Guoja Conductor Technology Co., Ltd., invites clients from across the entire industry chain to gather, explore industry opportunities, and promote quality upgrades in the northern wire and cable industry. Click to attend. We look forward to meeting you at the conference. Founded in 1999, Jiangsu Guoja Conductor Technology Co., Ltd. is an enterprise integrating the R&D, design, manufacturing, and sales of five types of flexible aluminum alloy conductors. Driven by market demand and years of product development, the company has formed a distinctive product portfolio. Its main products include flexible aluminum alloy conductors for PV power generation, flexible aluminum alloy conductors for wind turbine twist cables, flexible aluminum alloy conductors for NEV wiring harnesses, and flexible aluminum alloy conductors for aerospace applications. Aluminum Alloy PV Cable — DC Side Copper-Aluminum Transition Connection Solution The company has successively obtained IATF 16949 certification, ISO 9001 quality management system certification, ISO 14001 environmental management system certification, OHSAS 18001 occupational health and safety management system certification, TÜV certification, PCCC certification, and other product certifications, and has been awarded an AAA enterprise credit rating certificate. It also holds 6 invention patents and 42 utility model patents, successfully resolving the copper-aluminum transition issues between aluminum alloy cables on the DC side of PV power stations and PV modules, or between DC-side aluminum alloy cables and inverters, thereby ensuring safe and reliable connections. The company is equipped with over 20 sets of advanced testing equipment and employs several professional testing personnel. Its advanced detection instruments ensure that products comply with IEC international standards, GB national standards, ASTM US standards, JIS Japanese standards, and customer-specific requirements. The company currently maintains cooperation with renowned enterprises from multiple countries such as Australia, South Korea, France, and Denmark, and has deep collaboration with leading players in China’s wire and cable industry. The company always regards quality and service as the foundation of its survival. It conducts strict quality inspections from raw material intake to finished product delivery, and organizes a professional technical team to provide clients with a one-stop service covering pre-sale, in-sale, and after-sale support, earning widespread trust and acclaim from users. Contact Zhang Ting 188 6147 6777 SMM Conference Contact Zhang Guolei 166 0190 0190 zhangguolei@smm.cn

On July 3, JL MAG Rare-Earth's share price rose, closing 3.79% higher at 34.25 yuan per share. On the news front, JL MAG's H1 performance forecast released on July 1 showed: net profit attributable to parent for H1 2026 is expected to be 400 million to 460 million yuan, up 31.17% to 50.84% YoY. Regarding the reasons for performance changes, JL MAG stated in an announcement: 1. In H1 2026, the management adhered to the annual operating policy of "adhering to compliance and regulations, being customer-oriented, focusing on the magnetic materials main business, constructing 20,000 mt of new capacity on schedule, actively deploying embodied robot motor rotors, and reaching new heights." Through measures including technological innovation, organizational optimization, digitalization, and lean management, the company ensured full contract fulfillment and delivery to customers while achieving steady business growth. The company continued to strengthen its leading position in new energy and environmental protection sectors and actively explored emerging markets, with revenue expected to increase by about 30% YoY. Specifically, revenue from the NEV and auto parts sector rose about 30% YoY; in the robot and industrial servo motor sector, revenue rose about 90% YoY, with small-batch deliveries of embodied robot motor rotors already underway. 2. During the reporting period, non-recurring gains and losses are expected to impact net profit by approximately 32.00 million yuan, compared to 70.9405 million yuan (after tax) in the same period last year. 3. In this reporting period, due to A-share and H-share equity incentives as well as H-share convertible bond issuance, total related share-based payment expenses and financial expenses amounted to about 121 million yuan. There were no such expenses in the same period last year. A recent JL MAG announcement shows: to implement the company's development strategy and strengthen comprehensive competitiveness, it plans to acquire a 9.24% equity stake in Baotou Rare Earth Products Exchange Co., Ltd. held by China Northern Rare Earth, through public listing and transfer on the Inner Mongolia Property Rights Exchange Center . According to the valuation report issued by Northern Yashi Asset Evaluation Co., Ltd., as of the valuation date December 31, 2025, the total equity value of the exchange under the market approach was 239.00 million yuan, representing an appreciation of 27.8551 million yuan, or 13.19%, over the net asset book value of 211.1449 million yuan. The expected transaction price for the subject equity is 22.0836 million yuan. Under the Shenzhen Stock Exchange ChiNext Listing Rules and the company's articles of association, this external investment falls within the CEO's approval authority. This investment does not constitute a related party transaction, nor does it constitute a material asset restructuring as defined in the *Administrative Measures for the Material Asset Restructuring of Publicly Listed Firms*. Regarding the company's main business and product applications, JL MAG Rare-Earth introduced in its 2025 annual report: The company is a high-tech enterprise integrating R&D, production, and sales of high-performance NdFeB permanent magnet materials, magnetic assemblies, embodied robot motor rotors, and comprehensive utilization of rare earth recycling. It is a leading supplier of rare earth permanent magnet materials in the new energy and environmental protection sectors. The company’s products are widely used in NEVs and auto parts, energy-saving variable-frequency air conditioners, wind power generation, robotics and industrial servo motors, 3C, low-altitude aircraft, energy-saving elevators, rail transit, and other fields, and it has established long-term and stable cooperative relationships with industry leaders both in and outside China in these sectors. The company actively positions itself in the robotics field. On one hand, it collaborates with internationally renowned technology companies to conduct R&D and capacity building for embodied robot motor rotors, with small-batch product deliveries already made. On the other hand, through direct investment or participation in industry funds, it strategically lays out key links in the relevant industry chain to accelerate industrial synergy and commercialization. Regarding the operating plan for 2026, JL MAG Rare-Earth introduced in its 2025 annual report: The company's operating policy for 2026: "Adhere to legal compliance, adhere to client orientation, focus on the magnetic material main business, build 20,000 mt of new capacity on schedule, actively position embodied robot motor rotors, and scale new peaks." Based on this operating policy and under the premise of legal compliance, the company will focus on advancing the following tasks: 1. Orderly release of capacity under construction. In 2026, some of the company's projects under construction will gradually release capacity. The specific release progress will consider factors such as equipment commissioning and market demand, advancing the commissioning and ramp-up of new capacity in an orderly manner. 2. Continuous improvement of R&D capabilities. 3. Continuous optimization of the product mix. The company will continue to enrich its product matrix for different application scenarios based on client needs, enhancing product structure resilience and client stickiness. Meanwhile, it will steadily advance the layout of projects such as magnetic assemblies and embodied robot motor rotors, equip dedicated production lines and professional teams, and drive the upgrade of small-batch pilot lines to large-scale, standardized manufacturing and quality systems. 4. Continuous improvement of operational capabilities. 5. Strengthening capital expenditure efficiency. 6. Improving incentive mechanisms and shareholder returns. 7. Advancing the construction of the ESG system. Regarding potential risks the company may face, when introducing the risk of rare earth raw material price fluctuations, JL MAG Rare-Earth stated: Rare earth metals are the main raw materials for producing NdFeB magnets. China is an important global supply base for rare earth raw materials, and wild swings in rare earth raw material prices will adversely affect the company's production and sales in the short term. Mitigation measures: The company has built production plants in Ganzhou, Jiangxi, the main production area for heavy rare earth, and in Baotou, Inner Mongolia, the main production area for light rare earth. The company has established long-term cooperative relationships with major rare earth raw material suppliers, including China Northern Rare Earth Group and China Rare Earth Group. Meanwhile, through measures such as procuring rare earth raw material in advance based on orders on hand, establishing price adjustment mechanisms with key clients, optimizing formulations, and improving processes, the company strives to reduce the adverse impact of rare earth raw material price fluctuations on its operating performance. A review of Pr-Nd alloy’s price performance in H1 this year shows : The average price of Pr-Nd alloy on June 30 was 905,000 yuan/mt. Compared with its average price of 735,000 yuan/mt on December 31, 2025, the increase in H1 this year was 23.13%. The annual daily average price of Pr-Nd alloy in H1 this year was 904,650.86 yuan/mt. Compared with its annual daily average price of 529,559.83 yuan/mt in H1 2025, the semiannual daily average price rose by 375,091.03 yuan/mt, up 70.83% YoY. According to SMM quotations: On July 3, the Pr-Nd alloy price was 920,000-930,000 yuan/mt, with an average of 925,000 yuan/mt, up 1.09% from the previous trading day. Currently, rare earth market prices overall are showing a broad upward trend. Driven by a marked increase in market trading activity on July 2, low-priced supply of Pr-Nd oxide tightened, and suppliers of oxides raised their quotations one after another. However, overall inquiry activity in the market declined somewhat compared with yesterday, and actual transactions were not ideal. In the metal market, supported by oxide costs, prices also rose. However, downstream magnetic material enterprises made fewer inquiries, and metal enterprises were not very proactive in offering quotations, resulting in a generally sluggish trading atmosphere and relatively strong wait-and-see sentiment. In the short term, affected by the tightening of low-priced supply in the market, Pr-Nd product prices are expected to drift higher amid consolidation. Recommended reading:

According to data from the National Energy Administration, in May 2026, a total of 6,173 new energy power generation projects were registered nationwide, including 6,136 PV power generation projects (39 centralized PV projects and 6,097 commercial and industrial distributed PV projects).

Recently, FTXT Energy, jointly with Brazil's SENAI CIMATEC (Innovation and Advanced Technology Center of the National Service for Industrial Training), officially launched a road test and validation project for hydrogen fuel cell trucks in Brazil. This test is being jointly advanced by the technical team of FTXT Energy, the commercial vehicle engineering team of Great Wall Motor, and the expert team of SENAI CIMATEC. The test will be conducted in stages to validate aspects such as vehicle power performance, driving range, high-pressure hydrogen storage safety, and real-world local road operating conditions. Previously, the "New Long March No. 1" hydrogen heavy-duty truck, jointly developed by FTXT Energy and Great Wall Motor Commercial Vehicles, arrived in Brazil in August 2025, becoming the first hydrogen heavy-duty truck introduced to the country. This road test will accumulate key data for the commercial application of hydrogen fuel cell heavy-duty trucks in Brazil. The test will focus on the system efficiency, stability, and adaptability of the vehicles in Brazil's complex environments, and will collect data on how factors such as temperature, altitude, road surface types, and driving conditions affect the performance of the fuel cell system. Additionally, the test will verify the vehicles' adaptability to different hydrogen sources, including pathways such as electrolysis hydrogen and hydrogen from ethanol reforming, providing a reference for Brazil to build a localized hydrogen supply and vehicle application system. SENAI CIMATEC is an authoritative testing institution for light and heavy vehicles in Brazil, having participated in multiple national industrial projects such as the Brazil Mobility Program, the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP), the Brazilian Electricity Regulatory Agency (ANEEL), and the Brazilian Industrial Innovation Enterprise Support Program, and has experience in vehicle testing and industrialisation projects. Recently, the institution, in partnership with HYTRON and Petrogal Brasil, inaugurated Brazil's first green hydrogen demonstration project in Camaçari, Bahia, covering aspects including solar power generation, water electrolysis for hydrogen production, hydrogen refueling station construction, and end-user vehicle applications. Previously, leveraging the market resources of Great Wall Motor Group in Brazil, FTXT Energy has signed memorandums of understanding with institutions including the University of São Paulo, the Brazilian Institute of Technology, the Itaipu Technological Park, JAQ under the Nautica Group, and SENAI CIMATEC, covering areas such as hydrogen fuel cell vehicle R&D, hydrogen refueling infrastructure construction, and technical exchanges. The launch of this road test marks a substantive advancement in the cooperation between FTXT Energy and its Brazilian industrial partners. In the future, the two parties will continue to explore areas such as hydrogen-powered ships and stationary power generation, promoting the expansion of hydrogen energy applications from vehicle demonstrations to a multi-scenario, full-chain ecosystem.