On June 17, 2026, the 2026 SMM (3rd) ASEAN Automotive Supply Chain Conference , organized by Shanghai Metals Market (SMM), successfully wrapped up at the Hyatt Regency Bangkok Suvarnabhumi Airport in Bangkok, Thailand! This conference serves as an annual gathering of Southeast Asia's auto industry, bringing together 400+ delegates, 40+ speakers, 15+ partners and 15+ exhibitors from 15+ countries. Conference Background The Southeast Asian EV industry is at a strategic crossroads. Thailand's "30/30" policy is driving adoption, with EV penetration projected to near 15% by 2025. Indonesia is building a full battery chain using its nickel resources, while Vietnam's market potential grows. Amidst supply chain restructuring and technological competition, strategic action is key. The 3rd SMM Asean Automotive Supply Chain Summit 2026 is designed to empower businesses by focusing on: Unlocking NEV Potential: Analyzing ASEAN's role as a production/export hub and examining OEM technology roadmaps. Bridging the Supply Chain: Leveraging SMM's platform to integrate resources and facilitate deals. Establishing a Price Benchmark: Promoting the use of SMM Southeast Asia metals price assessments in procurement. We believe in turning consensus into action. Join us in Bangkok in 2026 to transform strategic blueprints into tangible advantages. 》Click to Watch the Conference Live Video 》Click to View the Conference Photo Live Stream June 16 Main Forum Opening Address Speaker: Adam Fan, Chairman of SMM Opening Keynote: Thailand EV Outlook 2026 Guest Speaker: Dr. Yossapong Laoonual, Head of Mobility & Vehicle Technology Research Center (MOVE), King Mongkut’s University of Technology Thonburi (KMUTT) Dr. Yossapong Laoonual noted that the ownership of battery electric vehicle (BEV) models is expected to surpass that of hybrid models in the medium and long term. Thailand’s BEV penetration rate will also rise steadily, supported by well-developed charging infrastructure. Data shows that the number of DC charging piles in Thailand has continued to grow, with installations already exceeding the government’s planned phased targets. The country’s 2030 charging pile target is 12,000 units, and multiple supporting regulations for motor vehicles have already been implemented locally. Local planning stipulates that each pile should serve 10-15 BEVs. Compared with markets outside China, where each pile in Europe serves fewer than 15 BEVs on average and in China fewer than 10, Thailand currently faces an imbalanced vehicle-to-pile ratio and still requires the large-scale addition of new charging piles. Thailand’s charging piles are primarily located at gas stations, with shopping malls and office buildings as secondary deployment sites. Local gas stations feature diverse commercial formats, offering excellent conditions for setting up charging stations. However, range anxiety remains widespread among consumers, and charging facilities along highways need to be further improved to alleviate concerns about recharging on the road. Opening Keynote: Southeast Asia’s New Automotive Ambition:Can Industry Players Successfully Navigate Transformation Amid Challenges? Guest Speaker: Krzysztof Tokarz, Chairman of the Automotive Working Group at TEBA, Founder of Auteneo He stated that there were four core strategic challenges in the electrification transformation of Southeast Asian automakers: First, a shortage of professional talent, with undersupply of high-quality talent in the EV and software fields, fierce competition for industry talent, and enterprises needing to plan for talent cultivation and retention; Second, cross-cultural coordination difficulties: significant differences in working models among Chinese, Japanese, Korean, European, American, and local enterprises, which easily led to issues such as lack of trust and poor cooperation; Third, complex and changing regional regulations: fragmented regulatory systems across Southeast Asian countries, with a fast pace of policy updates over the past year or more, placing high demands on enterprises' policy adaptation capabilities; Fourth, profitability pressure, as electrification reshaped the pricing system, with many automakers experiencing simultaneous contraction in revenue and profit margins, necessitating the exploration of long-term profitable models. Overall, he believed that while he currently maintained a cautiously optimistic attitude towards the development of industry technology and products, the aforementioned challenges still urgently needed to be addressed. Panel Discussion: Leadership Dialogue: East Asian Titans' "Southeast Asian Chessboard" Moderator: David Huang, The Head of Strategy, Marketing and Business Development, Forvia China Panelists: Dr. Yossapong Laoonual, Honorary Chairman and Advisors, Electric Vehicle Association of Thailand (EVAT) Suphot Sukphisarn, Honorary Chairman, Auto Parts Industry Club (APIC), The Federation of Thai Industries (FTI), Deputy Secretary General, Thai Auto-Parts Manufacturers Association (TAPMA） Krzysztof Tokarz, Chairman of the Automotive Working Group at TEBA, Founder of Auteneo Dr. Viroj Patcharawatanakul, Chief Marketing Officer (CMO), AAPICO Hitech PCL. The panelists noted that ASEAN countries have distinct industrial advantages: Malaysia has ample electronic factory resources, Indonesia possesses mineral resources needed for battery production, and Vietnam offers comprehensive labor incentive policies. To fully leverage each country's locational appeal, overall integrated planning is required. The ASEAN NEV market is expanding rapidly overall, with the regional EV penetration rate more than doubling. Thailand and Vietnam have seen impressive growth in XEV production and sales. Local vehicle production capacity remains stable, and Chinese new energy brands such as BYD, MG, and Great Wall have established a presence in Thailand, driving up demand for new energy parts supply. Thailand has a well-established multi-tier parts supply system: 27 vehicle manufacturers, 500 Tier 1 suppliers, and 1,800 Tier 2 and Tier 3 parts producers. Traditional mechanical processing industries like stamping, injection molding, rubber processing, machining, casting and forging, and assembly have a solid foundation, with huge annual parts capacity, providing the manufacturing capability to support new energy parts production. Keynote Speech: Navigating Automotive Disruption in Southeast Asia Guest Speaker: Timothy Wong, Principal, Roland Berger Roland Berger noted that AI-driven automation continues to advance and autonomous driving is developing steadily. It is expected that by 2040, autonomous driving will still struggle to become mainstream. However, AI technology has already disrupted the automotive industry, becoming a core driving force for enterprises to build differentiated advantages, enhance competitiveness, and innovate business models. The automotive industry is currently undergoing comprehensive disruptive changes, mainly in five dimensions: First, the automotive supply chain value chain is undergoing fundamental transformation, with vehicles and core parts upgrading toward electrification and electronics. Industry enterprises urgently need to adjust their product structures and proactively position themselves in emerging tracks; passively responding to market changes will entail significant risks. Second, the nature of automotive products is being reshaped by technology, shifting from traditional mechanical vehicles to software-defined vehicles. Sole mechanical manufacturing capabilities can no longer meet development needs; enterprises must build diversified cooperation ecosystems involving semiconductors, software, and sensors to cultivate new industrial capabilities. Third, the consumer market is undergoing significant iteration, with consumer car purchase preferences gradually tilting toward emerging brands, and industry competition continuing to intensify. Fourth, the pace of market iteration has greatly accelerated. Compared with the model update pace of once every few years by traditional automakers, Chinese brands iterate at a much faster pace, forcing the supply chain toward agile transformation and adaptation to rapidly changing vehicle specifications. Fifth, the aftersales distribution model is being disrupted, with traditional parts revenue being impacted by the growth of EVs. New direct-to-consumer models are emerging, requiring enterprises to restructure their distribution networks and expand aftersales services related to power batteries and electrification. Overall, all industry participants must proactively face transformation risks, actively transform and strategically restructure supply chains, vigorously explore new clients and deploy new businesses, abandon passive thinking that clings to existing models, and proactively plan future business development directions, so as to continuously maintain market competitiveness. Keynote Speech: Moving Beyond Negotiation: Fostering a New Framework for Southeast Asian Supply Chain Collaboration Based on the SMM Price Index Guest Speaker: Sing Yao, Director of Steel Business Unit, SMM Information & Technology Co., Ltd. She noted that Southeast Asia as a whole exhibits low per capita automobile ownership, limited NEV penetration, and a large young population, which holds enormous incremental market potential. This vast blue ocean is attracting leading Chinese NEV manufacturers to accelerate their footprint in the region. At the same time, however, Southeast Asian auto parts are highly dependent on imports, and the industry chain has long faced two major pain points: procurement difficulties and disorderly pricing. The launch of the SMM Southeast Asia Price Index may open up a new path for collaborative development of the local automotive supply chain. Low Per Capita Automobile Ownership, Limited NEV Penetration, and Large Young Population Create Vast Market Opportunities for Automakers According to SMM, in recent years, Southeast Asia’s automotive industry chain has shown remarkable resilience, with regional automobile production growing by 24.1% from 2020 to 2022. Although 2024 saw a cyclical decline for the first time due to global economic sluggishness, the decline in production and sales in Thailand and the broader Southeast Asian market has narrowed in 2025, underscoring the self-repair capability of the regional supply chain. As the region’s core hub, Thailand continues to dominate Southeast Asia’s automotive industry landscape with a capacity share of over 40%. In the short term, Thailand will maintain its position as a regional production center and export base, but its long-term competitive advantages are facing structural challenges: the sustained contraction of local capacity and the upgrading of neighboring countries’ industry chains are compelling it to accelerate technological transformation and supply chain restructuring. Driven by the immense allure of this industry “blue ocean,” leading Chinese NEV manufacturers are accelerating their expansion into the Southeast Asian automotive market. Keynote Speech:Baowu JFE Southeast Asia Strategy Sharing Guest Speaker: Liang Chen, Vice General Manager, Baowu Jiefuyi Special Steel Co., Ltd. He that overall steel production in Southeast Asia is declining, but the penetration rate of new energy electric vehicles (EVs) is surging: Thailand’s EV-related demand is up 80% YoY, while Indonesia’s demand has experienced a multiple-fold rise, with subsequent growth potential continuing to be released. Local NEV manufacturers previously purchased Japanese steel, but are gradually switching suppliers now, driven by industry competition and cost pressure. This also represents a core opportunity for the company to promote its supporting supply services. Leadership Panel: The Steel vs. Aluminum Debate and Cost Challenges Moderator: Michelle Leung, Head of Asia Metals and Mining, sustainability, Bloomberg LP Panelists: Thanakorn Thangwanichkapong, Director of Asia Operations, Maxion Wheels Martin Dilly, Southeast Asia Area Sales Director, Bureau Veritas The panelists noted that multiple disruptions, including the situation in the Strait of Hormuz and national tariff adjustments, have moved beyond short-term impact and are driving the restructuring of the entire steel and aluminum industry chain, with the structural transformation of the aluminum industry being particularly pronounced. Global supply chain vulnerability continues to intensify, and upward cost pressure on the industry has increased. Tariff barriers are reshaping the global trade landscape, and market competition is becoming increasingly fierce. The implementation of industrial localization has accelerated, but the pace of progress in Southeast Asia has seen a slowdown. Overall, only enterprises that possess both flexible logistics and procurement capabilities and a robust compliance management system can gain an advantage amid the industry transformation. Keynote Speech: Analysis of Southeast Asia's Secondary Aluminum Market and Price Trends Guest Speaker: Wong Yan Ling, Senior Aluminum Analyst, SMM Information & Technology Co., Ltd. She noted that Southeast Asia has become one of the fastest-growing secondary aluminum markets globally, and the worldwide competition for scrap resources is continuously reshaping the regional supply landscape. As resource protection policies are progressively implemented across various countries and regional manufacturing demand steadily expands, ASEAN countries are expected to further consolidate their core position in the global secondary aluminum industry chain. Regarding secondary aluminum price trends in H2 2026, SMM analysis suggests that weak seasonal demand in Southeast Asia may suppress the upside room for secondary aluminum prices, while the geopolitical situation in the Middle East remains a key variable affecting market trends. If shipping through the Strait of Hormuz returns to normal, cost pressures from logistics could ease. However, persistently tight scrap supply coupled with potential logistics disruptions may still drive up regional secondary aluminum prices. Specialized Seminar: Co-building a Resilient Automotive Materials Supply Chain for Southeast Asia Moderator: Sing Yao, Director of Steel Business Unit, SMM Information & Technology Co., Ltd. Panelists: Zongyan Fu, Purchasing Manager, Changan Auto Southeast Asia Co., Ltd. Weijiang Xue, Chief Engineer of Product R&D, Jiangsu Yonggang Group Co.,Ltd. Hui Yuan, General Manager, Tianjin Dewy Metal Surface Treatment Co., Ltd. Yi Huang, Deputy General Manager, Guangdong Superband Precision Industry Co.，Ltd. Thanakorn Thangwanichkapong, Director of Asia Operations, Maxion Wheels Hongwei Liu, General Manager, BYH NEW TECHNOLOGY CO., LTD. Saurabh Sharma, Sr General Manager & Executive Director, Hero Motors Thai Ltd. Jun Zou, Overseas Region Head, Marketing, Management Office, Baowu Jiefuyi Special Steel Co., Ltd. HaiBin Jia, Deputy Marketing Director, Beijing Jianlong Heavy Industry Group Co., Ltd. The panelists engaged in in-depth exchanges, drawing from their own business practices, focusing on the core topic of deep development in the Southeast Asian automotive industry. They focused on enterprises' current business layouts, operating status, and development trends in the Southeast Asian automotive market, and deeply analyzed core pain points and challenges such as supply chain adaptation, stable supply, and logistics support in the process of going global. At the same time, they shared detailed experiences regarding common challenges faced by enterprises going global, including localization certification, compliance system adaptation in and outside China, and alignment of policy standards. They also discussed core paths for enterprises to anticipate market changes, precisely allocate industrial resources, and quickly adapt to regional market rules and industry demands, focusing on industry trends. Furthermore, focusing on supply-demand coordinated development, they elaborated on their expectations for future cooperation models, collaboration mechanisms, and partnership needs with Chinese material suppliers. As buyers, they also clarified the types and directions of high-quality Southeast Asian clients they plan to prioritize for connection and cooperation, providing practical ideas and references for precise supply-demand matching and deep cultivation of the Southeast Asian automotive market for Chinese enterprises going global. Day 2: June 17 Keynote Speech: Analysis and Outlook of the Supply Chain in the Southeast Asian New Energy Market Speaker: Jena Wang, New Energy Consulting Project Manager, SMM Information & Technology Co., Ltd. She stated that driven by the rapid growth of the Southeast Asian NEV market, several automakers are accelerating their localization strategies. Battery demand in each country will also increase rapidly, with the region's total battery demand expected to grow by about ten times from 2025 to 2030, reaching approximately 201 GWh. However, it is worth noting that currently, Southeast Asia faces issues with low localization rates, significant structural gaps, and heavy import dependence for cathode materials and motor components. In Southeast Asia, the supply of local cathode materials and key motor components cannot meet demand, and the low localization rate and large capacity gaps have become key bottlenecks restricting the development of the NEV industry chain in the region. Data indicates that China's global production share of key new energy raw materials—such as batteries, cathode materials, lithium chemicals, and rare earth permanent magnets—generally exceeds 70%, with its capacity ranking first worldwide, demonstrating a significant advantage. In addition, she introduced the capacity distribution and industrialisation progress of key materials in the new energy markets of core Southeast Asian countries. Vietnam: Local automaker VinFast is boosting rapid development of the entire vehicle and upstream/downstream supporting industry chain. Thailand: As a core hub for automotive manufacturing and export in Southeast Asia, it boasts a relatively complete supporting system for motor and electric drive-related industries. Malaysia: It possesses a mature automotive industry foundation, but its local supporting capability for the three electric systems is insufficient; local policies focus on supporting vehicle assembly and regional distribution operations. Indonesia: With abundant nickel resources, it holds a pronounced competitive edge in the battery raw material industry. Overall, SMM believes that the capacity for core new energy components in Southeast Asia is relatively small. National policies are promoting localisation and industrial upgrading, leaving significant room for supply chain development. Leadership Panel: Supply Chain Security and Opportunities in Southeast Asia Moderator: Peter Klöpfer, Senior Manager Automotive Business Unit, RUTRONIK Electronics Worldwide Panelists: Akshay Prasad, Principal, Arthur D. Little SEA Alex Zhan, Head, ZF LIFETEC Thailand Asst.Prof.Uthane Supatti Ph.D., Head of the Power Electronics Applications and Energy Management (PEEM) Research Unit, Faculty of Engineering at Sriracha, Kasetsart University, Thailand, Vice President, Electric Vehicle Association of Thailand (EVAT) The panelists discussed about core themes of the Southeast Asian automotive supply chain. First, they addressed the delivery timeline crisis caused by sudden supply shortages, the crisis of lacking transparency in the industry chain, the crisis of industry-wide collaboration barriers, and the crisis of trust failure between upstream and downstream players. They jointly explored systematic resolution strategies and elaborated on their respective countermeasures. Building on this, the on-site guests further discussed the Japanese industry chain and China’s domestic supply chain, analyzing the development opportunities, long-term prospects, and practical implementation logic of two-way opening, healthy competition and cooperation, and deep integration between the two. Leadership Panel: Capacity Coopetition and Customer Breakthrough: Winning the Southeast Asian Supply Chain Battle Moderator: Wacharapisuth Thannapong, Researcher, BCG (Bio-Circular-Green Economy Policy) Research Team, Thailand Development Research Institute (TDRI) Panelists: MARK BRIAN PIRIE, Senior Vice President Purchasing & Supplier Management Asia Pacific, Executive Board Member, Schaeffler Frank Yu, General Manager of the Automotive Rubber & Metal Components Business Unit and Thailand Branch, Shanghai Baolong Automotive Corporation The panelists assessed the overheating of three-electric system (battery, motor, electronic control) capacity in Southeast Asia. They noted that overcapacity in three-electric systems is a global trend. The capacity now deployed in Southeast Asia and Thailand already exceeds confirmed demand, intensifying market uncertainty and heightening investment concerns. Risks are structurally differentiated: Tier-1 suppliers are more conservative and risk-averse compared to China’s domestic vehicle makers that are rapidly going global. There is localized overcapacity in basic e-drive parts and low-difficulty electronic components, while supply bottlenecks persist for key items such as high-performance automotive-grade semiconductors, advanced materials, and electrical steel. This is also a core motivation for Chinese suppliers setting up in Southeast Asia. Moreover, Southeast Asia’s geographical advantages are prominent, and mine development in Australia is progressing rapidly. Many mines are set to commence production by Q3 next year. The core contradiction in the industry is not simply overall surplus, but a mismatch between the regional allocation of capacity, the technologies adopted, and actual market demand. Additionally, the guests noted that the core challenges in Southeast Asia and Thailand revolve around three major issues: regional adaptation, supply chain gaps, and industrial competition and collaboration. Enterprises must independently weigh risks and expansion scales based on their own supply chain conditions to find a development balance suited to their needs. Meanwhile, to adapt to the unique environment of Southeast Asia—characterized by high temperatures, high humidity, floods, complex road conditions, and underdeveloped charging infrastructure—the EV technologies originally designed for the Chinese and European markets must undergo localized R&D and verification. This process ensures the reliability of batteries, electronic controls, and lubrication systems, as well as overall vehicle durability. It is recommended that Tier 1 suppliers and upstream partners proactively collaborate in depth with OEM design teams. Even for domestically mature production car models going global in Southeast Asia, it is essential to iterate and optimize products by leveraging local expansion opportunities while drawing on the cost, process, and quality control expertise gained from large-scale domestic production. Leadership Panel: Techno-Economic Analysis and Strategic Pathways for Battery Material Localization in Southeast Asias Moderator: Jay Yu, Senior director, SMM Information & Technology Co., Ltd. Panelists: Brian, Sales Director for the Electrolyte Division in Japan, South Korea, and Southeast Asia, TINCI Materials Max Miao, Director, SEVB Thailand Feng Hao, Southeast Asia Marketing Director, Hefei Guoxuan High-Tech Power Energy Co., Ltd. The panelists noted that amid the restructuring of global manufacturing, Southeast Asia’s lithium battery industry faces both challenges and opportunities. Enterprises are following downstream OEM clients in going global, establishing nearby supply systems centered on customer needs. Three key operational aspects require consideration. First, at the policy level, Southeast Asia’s lithium battery industry must supply both the local market and target exports to Europe and the U.S. Regional policy changes have far-reaching impacts, requiring enterprises to conduct ongoing in-depth analysis and implement corresponding response strategies. Second, in terms of human and cultural factors, local traditions and family values are distinct, necessitating flexible management that fully respects local customs, cares for local employees, and stabilizes production teams. Third, regarding the industry chain, the region’s upstream lithium battery materials are notably underdeveloped. Key raw materials such as high-purity solvents, lithium chemicals, and functional additives currently rely heavily on imports from China, Japan, and South Korea. The establishment and improvement of local upstream and downstream supply capabilities urgently need to be addressed, making this a key focus for future enterprise deployment. In addition, they also mentioned that in H2 this year, NEV-related subsidies in Southeast Asia may be gradually phased out, and Thailand's EV 4.0 policy and the year-end tax rebate policy will also undergo adjustments. Drawing on China's NEV development experience, local automakers will gradually break free from reliance on policy subsidies and instead compete in the market by leveraging product strength and market-based pricing. This year, Thailand's NEV sales are conservatively estimated to reach 120,000 units, with a potential to hit 160,000 units. Compared with Japanese car models, Chinese NEV models have ample room for price adjustment, offering a clear advantage. Currently, battery enterprises are actively assisting automakers in expanding markets and securing more orders, while also suggesting that automakers moderately raise vehicle selling prices. The industry generally believes that automakers will most likely offset the operational pressure from subsidy reductions through price adjustments in the future. Procurement Matchmaking Meeting >Click to view more highlights from the event Check-in & Networking This is the end of the 2026 SMM (3rd) ASEAN Automotive Supply Chain Conference . Thank you for the support of all industry peers. See you next year!

Data from the National Bureau of Statistics (NBS) shows: Data from the NBS shows that in June 2026, the national consumer price index (CPI) rose 1.0% YoY. Specifically, urban areas recorded a 1.0% increase and rural areas a 0.8% increase; food prices fell 1.6%, while non-food prices rose 1.5%; consumer goods prices rose 1.1%, and services prices rose 0.8%. In H1, the national CPI rose 1.0% YoY. In June, the national CPI fell 0.3% MoM, with urban areas down 0.4% and rural areas down 0.3%; food prices fell 0.4%, and non-food prices fell 0.3%; consumer goods prices dropped 0.6%, while services prices remained flat. NBS data also showed that in June 2026, the national industrial producer EXW prices rose 4.1% YoY and fell 0.3% MoM. Industrial producer purchasing prices rose 6.4% YoY and fell 0.2% MoM. In H1, industrial producer EXW prices rose 1.5% YoY and industrial producer purchasing prices rose 2.4% YoY. Dong Lijuan, Chief Statistician of the Urban Survey Department at the NBS, interpreted the CPI and PPI data for June 2026. In June 2026, CPI Rose 1.0% YoY In June 2026, the national CPI rose 1.0% YoY. Specifically, urban areas recorded a 1.0% increase and rural areas a 0.8% increase; food prices fell 1.6%, while non-food prices rose 1.5%; consumer goods prices rose 1.1%, and services prices rose 0.8%. In H1, the national CPI rose 1.0% YoY. In June, the national CPI fell 0.3% MoM, with urban areas down 0.4% and rural areas down 0.3%; food prices fell 0.4%, and non-food prices fell 0.3%; consumer goods prices dropped 0.6%, while services prices remained flat. 1. YoY Changes in Prices of Various Categories of Goods and Services In June, the price of food, tobacco, alcohol and dining out fell 0.8% YoY, dragging the CPI down by approximately 0.24 percentage points. Within food, livestock meat prices fell 7.3%, pulling the CPI down by about 0.30 percentage points, of which pork prices dropped 15.9%; dairy product prices fell 1.7%, contributing a 0.02 percentage point decline in the CPI; fresh fruit prices fell 0.7%, contributing a 0.01 percentage point decline; while egg prices rose 16.0%, lifting the CPI by about 0.08 percentage points. Among the other seven categories, prices rose YoY for six and fell for one. Among them, prices for other goods and services, transportation and communication, and healthcare rose by 6.6%, 4.1%, and 2.3%, respectively; clothing and education, culture and recreation prices both rose by 1.4%; household goods and services prices rose by 1.3%; and housing prices fell by 0.3%. II. MoM Changes in Prices of Various Goods and Services In June, prices for food, tobacco and alcohol, and dining out fell 0.3% MoM, contributing to a decrease of about 0.08 percentage point in the CPI. Within food, fresh fruit prices fell 2.0%, contributing to a 0.04 percentage point decrease; fresh vegetable prices fell 1.0%, contributing to a 0.02 percentage point decrease; livestock meat prices fell 0.5%, contributing to a 0.02 percentage point decrease, of which pork prices fell 0.8%; egg prices rose 5.8%, contributing to a 0.03 percentage point increase. Prices in the other seven categories showed one increase, two unchanged, and four decreases MoM. Among them, healthcare prices rose 0.2%; housing and education, culture and recreation prices remained unchanged; other goods and services and transportation and communication prices fell 2.7% and 1.3%, respectively; household goods and services and clothing prices fell 0.2% and 0.1%, respectively. In June 2026, the Producer Price Index rose 4.1% YoY and fell 0.3% MoM In June 2026, the national Producer Price Index rose 4.1% YoY and fell 0.3% MoM. The Purchasing Price Index for industrial producers rose 6.4% YoY and fell 0.2% MoM. In H1, the Producer Price Index rose 1.5% YoY, and the Purchasing Price Index rose 2.4% YoY. I. YoY Changes in Industrial Producer Prices In June, within the Producer Price Index, prices for means of production rose 5.5% YoY, contributing approximately 4.28 percentage points to the overall increase. Of which, prices for the mining industry rose 16.5%, raw material industry rose 8.6%, and processing industry rose 3.0%. Prices for consumer goods fell 0.9%, contributing approximately 0.20 percentage point to the overall decrease. Of which, food prices fell 2.1%, clothing and general merchandise prices both fell 1.0%, and durable consumer goods prices rose 0.1%. Within the Purchasing Price Index, prices for non-ferrous metal materials and wires rose 21.6%, fuels and power rose 11.8%, chemical raw materials rose 11.5%, textile raw materials rose 3.3%, and ferrous metal materials rose 1.3%; prices for building materials and non-metallic products fell 4.8%, and agricultural by-products fell 1.3%. II. Month-on-Month Changes in Industrial Producer Prices In June, among industrial producer prices, the means of production prices fell 0.3% MoM, dragging down the overall industrial producer price level by about 0.25 percentage points. Among them, mining and quarrying prices fell 0.9%, raw materials prices fell 1.2%, and processing industry prices rose 0.2%. Consumer goods prices fell 0.3%, dragging down the overall industrial producer price level by about 0.06 percentage points. Among them, food prices fell 0.8%, clothing and durable consumer goods prices remained flat, and general daily necessities prices fell 0.1%. In industrial producer purchasing prices, chemical raw materials prices fell 1.3%, fuels and power prices fell 0.5%, building materials and non-metallic minerals prices fell 0.4%, and agricultural and sideline products prices fell 0.3%; textile raw materials prices rose 0.7%, and non-ferrous metal materials and wires prices rose 0.1%; ferrous metal materials prices remained flat. In June 2026, CPI Maintained Mild YoY Growth While PPI YoY Increase Slightly Expanded — Interpretation of June 2026 CPI and PPI Data by Dong Lijuan, Chief Statistician of the Urban Department of the National Bureau of Statistics In June, affected by seasonal factors and fluctuations in international market prices, the Consumer Price Index (CPI) fell 0.3% MoM and rose 1.0% YoY. The core CPI, which excludes food and energy prices, rose 1.0% YoY, continuing to maintain a mild increase. While demand in some domestic sectors increased, affected by factors such as the decline in international crude oil prices, the Industrial Producer Price Index (PPI) fell 0.3% MoM and rose 4.1% YoY. I. CPI Maintained Mild Growth On a MoM basis, the nationwide CPI fell 0.3%. Affected by international market price fluctuations, domestic gold jewelry and gasoline prices fell 8.7% and 4.9%, respectively, with the declines widening by 5.9 and 4.6 percentage points from the previous month, together contributing to a roughly 0.22 percentage point drop in the CPI MoM, and the downward pull on the CPI increased by about 0.19 percentage points from the previous month. Food prices fell 0.4%, the same decline as the previous month, dragging down the CPI MoM by about 0.07 percentage points. Within food, seasonal fruits and vegetables were supplied in abundance, with fresh vegetable and fruit prices falling 1.0% and 2.0%, respectively, together contributing to a roughly 0.06 percentage point drop in the CPI MoM; pork and aquatic product prices fell 0.8% and 0.6%, respectively, together dragging down the CPI MoM by about 0.02 percentage points; laying hen inventories were at low levels, compounded by reduced egg production rates due to high temperatures, causing egg prices to rise 7.0%, which contributed about 0.03 percentage points to the CPI MoM increase. Service prices turned flat after a 0.1% decline the previous month. Within services, affected by factors such as airlines lowering fuel surcharges and off-season travel demand pulling back, prices for hotel accommodation, airfare, and travel agency fees dropped 5.3%, 4.0%, and 0.7%, respectively, dragging down the CPI by about 0.04 percentage points MoM in total; affected by policy-driven price adjustments in some regions, national medical service prices rose 0.3%, contributing about 0.02 percentage points to the CPI MoM. On a YoY basis, the national CPI rose 1.0%, and the growth rate pulled back by 0.2 percentage points from the previous month. Driven by international imported factors, the price increase of domestic industrial consumer goods pulled back. Prices of industrial consumer goods rose 2.9%, with the growth rate pulling back by 1.0 percentage points from the previous month. They contributed about 0.90 percentage points to the YoY CPI increase, and their upward push effect on the CPI decreased by about 0.28 percentage points from the previous month. Among industrial consumer goods, the price increases for gold jewelry and gasoline pulled back to 28.1% and 17.0%, respectively. Together, they contributed about 0.60 percentage points to the YoY CPI increase, and their upward push effect on the CPI decreased by about 0.23 percentage points from the previous month; prices of personal care products and household appliances rose 2.3% and 2.2%, respectively, with both growth rates pulling back. Service prices rose 0.8%, the same growth rate as the previous month, contributing about 0.40 percentage points to the YoY CPI increase. Within services, prices of medical services and education services rose 3.4% and 0.6%, respectively. Prices of housekeeping services and dining out rose 1.4% and 1.1%, respectively, with overall stable growth rates. Food prices fell 1.6%, with the decline narrowing by 0.1 percentage points from the previous month, dragging down the YoY CPI by about 0.28 percentage points. Within food, pork prices dropped 15.9%, with the decline narrowing by 0.2 percentage points from the previous month, dragging down the YoY CPI by about 0.30 percentage points; prices of fresh vegetables, fresh fruits, grain, edible oil, dairy products, and aquatic products fell within a range of 0.3% to 1.7%; egg prices rose 20.0%, with the growth rate expanding by 11.6 percentage points from the previous month; prices of mutton, beef, and poultry meat rose within a range of 1.4% to 6.0%. 2. PPI YoY Growth Slightly Widened On a MoM basis, the national PPI fell 0.3%. The main characteristics of the PPI MoM movement this month: First, the decline in international crude oil prices led to price drops in related domestic industries. Petroleum extraction prices fell 16.0% MoM, and refined petroleum product manufacturing prices fell 3.1%, with the declines widening by 14.2 and 2.8 percentage points, respectively, from the previous month. Prices in the manufacturing of chemical raw materials and chemical products, as well as chemical fiber manufacturing, turned from increases in the previous month to declines of 2.0% and 0.8%, respectively. Second, influenced by seasonal factors, price trends diverged across certain industries. In June, rising temperatures drove higher demand for coal stockpiling ahead of the summer peak and for cooling products. Prices for coal mining and washing rose 5.6% MoM, household refrigeration appliances increased 0.6%, and refrigeration and air-conditioning equipment grew 0.4%. Abundant summer precipitation, sunlight, and wind led to price declines in hydropower, solar power, and wind power, which fell 9.1%, 2.5%, and 2.2%, respectively. Third, accelerated industrial upgrading boosted demand and pushed prices higher in select sectors. With continuously expanding AI application scenarios, broad adoption of new raw materials and advanced materials, and sustained progress in green transformation, prices for virtual reality equipment manufacturing rose 8.4% MoM, wearable smart device manufacturing increased 3.4%, industrial control computers and systems rose 3.3%, and industrial robot manufacturing grew 0.5%. Prices for electronic specialty materials rose 2.5%, carbon-based nanomaterials increased 1.9%, biomass fuel processing grew 1.2%, and the comprehensive utilization of waste resources industry rose 0.4%. On a YoY basis, the national PPI rose 4.1%, with the growth rate expanding by 0.2 percentage points compared to the previous month. Among industries recording price increases, coal mining and washing rose 20.6%, electrical machinery and equipment manufacturing grew 5.1%, computer, communications, and other electronic equipment manufacturing increased 3.3%, and ferrous metal smelting and rolling processing rose 3.1%, all seeing wider growth rates than the previous month. Together, these four industries contributed approximately 1.39 percentage points to the YoY PPI increase. Non-ferrous metal ore mining and dressing, along with non-ferrous metal smelting and rolling processing, rose 25.5% and 23.4%, respectively. Oil and natural gas extraction, petroleum, coal, and other fuel processing, and chemical raw material and chemical product manufacturing rose 16.8%, 16.7%, and 11.3%, respectively, with all three seeing a pullback in growth rates compared to the previous month. These five industries collectively contributed about 3.25 percentage points to the YoY PPI increase. Among industries recording price declines, non-metallic mineral products fell 4.4%, with the decline narrowing by 0.7 percentage points from the previous month. Electricity, heat production, and supply dropped 4.4%, unchanged from the prior month. Alcoholic beverages and refined tea manufacturing, along with automobile manufacturing, fell 5.3% and 2.1%, respectively, with the declines widening by 3.4 and 0.1 percentage points from the previous month. Together, these four industries dragged down the YoY PPI by approximately 0.72 percentage points.

"Tin" Leads the Future: Industrial Transformation and Value Reshaping in a New Cycle Conference Background Currently, the global tin industry stands at a historic turning point, where traditional cyclical logic has been completely disrupted and strategic value has become fully prominent. The tin market in 2026 presents an unprecedented complex pattern and profound transformation: I. Deep Restructuring of the Supply-Demand Pattern with Unprecedented Enhancement of Strategic Attributes The global tin resource static reserve-to-production ratio is only 14 years, with scarcity becoming increasingly prominent. The supply side faces "triple pressures": repeated setbacks in Myanmar's production resumptions, continued tightening of Indonesian policies, and elevated geopolitical risks in the DRC — resource constraints have become the new normal. Meanwhile, the demand structure has undergone fundamental changes, with tin becoming a strategic resource connecting traditional manufacturing to the digital future. II. Price System Breaking Historical Records with Industrial Ecosystem Facing Reshaping In early 2026, SHFE tin prices broke through 470,000 yuan/mt, hitting a record high. This price breakthrough is not only a reflection of supply-demand imbalance but also a marker of value reassessment for the tin industry. Traditional trade models, risk management systems, and supply chain collaboration methods all urgently require innovative breakthroughs. III. Technology-Driven and Green Transformation Catalyzing a New Symbiotic Ecosystem Digitalization and intelligent technologies are deeply empowering the tin industry chain. The global green transformation requires the tin industry to upgrade toward low-carbonisation and circular economy, with recycled tin recovery and green smelting processes becoming an inevitable path. All segments of the industry chain must shift from competition to collaboration, building an open, resilient, and innovative symbiotic system. Against this backdrop, August 19-21, 2026 in Changsha, Hunan the 2026 SMM (16th) Tin Industry Chain Conference will bring together global industry elites for joint discussions. Ganzhou Yunsheng Tin Co., Ltd. will attend this grand event, discussing industry development trends with industry peers and jointly driving the tin industry toward new heights. Click the to register immediately, witness and participate in this extraordinary and far-reaching industry event, and co-create a brilliant new chapter! Ganzhou Yunsheng Tin Co., Ltd. was registered and established in December 2017, with its registered address at the West Zone of the Industrial Management Area, Longling Town, Nankang District, Ganzhou City. The company's main businesses include tin metal processing and sales; non-ferrous metal powder and tin by-product production and sales; metal materials, timber construction and decoration, mineral products, and machinery equipment sales; and import and export business of goods and technologies. Since its official registration and establishment in 2017, the company currently focuses on tin ingot and mineral product sales, vigorously expanding upstream and downstream related industries. Its downstream coverage is extensive, serving quality enterprise clients in solar PV, storage battery, electronic solder, tin chemicals, tinplate, tin plated copper wire, tin alloy, and other sectors. Its business partners are primarily distributed across Shanghai, Jiangsu, Zhejiang, Jiangxi, Guangdong, Fujian, and other regions. Committed to achieving rapid, stable, and healthy development of the enterprise. Ganzhou Yunsheng Tin Industry Co., Ltd. has been engaged in the production and trade of tin and tungsten since 2005 and started tin ingot trade in 2016. Currently, its main business covers the tin raw material industry chain, including tin ore, tin ingots, crude tin, and secondary tin materials. Relying on the business of tin and tungsten production and trade, the company focuses on the trade projects of the tin raw material industry chain, including tin ore, tin ingots, crude tin, and secondary tin materials, and actively expands other new fields and projects. It has established strategic cooperative relationships with domestic ore traders, smelters, logistics and trade agents and service providers, and financial institutions in China. In the future development, the company will innovate trade models, optimize the structure of trade products, and improve the efficiency of the trade process to achieve mutual benefit and win-win results. With decades of deep engagement in the tin industry, the company has always adhered to the business principles of people-oriented management and integrity-based operations since its establishment, enabling the enterprise to maintain competitiveness in the fierce market competition and achieve rapid and stable development. Ganzhou Yunsheng Tin Industry Co., Ltd. was registered and established in December 2017, with its registered address at the West District of Longling Industrial Management Zone, Nankang District, Ganzhou City. The company's main business includes tin metal processing and sales; production and sales of non-ferrous metal powder and tin by-products; sales of metal materials, wood for building decoration, mineral products, and mechanical equipment; and import and export of goods and technologies. After its official registration in 2017, the company currently focuses on the sales of tin ingots and mineral products, and is vigorously expanding related upstream and downstream industries. Its downstream coverage is extensive, including high-quality enterprise customers such as solar photovoltaic, storage batteries, electronic soldering, tin chemicals, tinplate, tin-coated copper wire, and tin alloys. The business partners are mainly located in Shanghai, Jiangsu, Zhejiang, Jiangxi, Guangdong, and Fujian. The company is committed to achieving rapid, stable, and healthy development. Ganzhou Yunsheng Tin Industry Co., Ltd. has been engaged in the production and trade of tin and tungsten since 2005 and started tin ingot trade in 2016. Currently, its main business covers the tin raw material industry chain, including tin ore, tin ingots, crude tin, and secondary tin materials. Relying on the business of tin and tungsten production and trade, the company focuses on the trade projects of tin ore, tin ingots, crude tin, and secondary tin materials, and actively expands other new fields and projects. It has established strategic cooperative relationships with domestic mining companies, smelters, logistics and trade agents, service providers, and financial institutions. In the future development, the company will innovate trade models, optimize the structure of trade products, and improve the efficiency of the trade process to achieve mutual benefit and win-win results. The company has been deeply involved in the tin industry for decades. Since its establishment, it has always adhered to the business principle of "people-oriented and integrity-based", enabling the company to maintain its competitiveness in the fierce market competition and achieve rapid and stable development. Contact Information Liao Xiaoyun 13766335535 Long Press to Scan the QR Code and Register Now 2026 SMM (16th) Tin Industry Chain Conference

On April 27, Zhong Ke San Huan's share price rose. As of the close on April 27, the share price was up 0.84% to 11.99 yuan per share. On the news front, on April 25, Zhong Ke San Huan disclosed its Q1 2026 report, which showed that the company achieved revenue of 1.677 billion yuan in Q1, up 14.79% YoY, and net profit attributable to shareholders of the publicly listed firm of 16.3958 million yuan, up 21.54% YoY. In response to questions from survey participants, Zhong Ke San Huan stated that the company had established a technology innovation centre, completed the initiation and advancement of key R&D projects, built a platform for sharing technological achievements, and achieved efficient transformation and reuse of technological achievements within the group. The company continued to increase R&D investment, focused on tackling core industry technologies, undertook multiple national major science and technology projects, and achieved industrialisation of many results. The company deepened industry-academia-research collaborative innovation, carried out in-depth cooperation with scientific research institutes, and jointly developed innovative products such as high performance magnetic materials and wind power-dedicated magnetic materials. The investor relations activity record disclosed by Zhong Ke San Huan on April 15 showed: 1. Despite strong earnings growth, the share price declined continuously for a month? Zhong Ke San Huan responded: Share prices are influenced by multiple factors and are subject to uncertainty in the short term. The company has been committed to growing and strengthening its core business, striving to achieve long-term, stable, and healthy development through continuous R&D innovation and market expansion, and endeavouring to create long-term value for shareholders and investors. Thank you! 2. In which direction will future R&D efforts be focused? Zhong Ke San Huan responded: Hello! The company's current key R&D projects include: research and development of new-type grain boundary diffusion technology, development of anisotropic bonded magnets, R&D and industrialisation of high-efficiency energy-saving NdFeB new-type equipment line processes, research on preparation processes for high performance NdFeB magnets, research on mechanisms of heavy rare earth reduction combination technologies, and research on grain boundary diffusion of magnets with high-abundance element substitution. Going forward, the company will continue to focus on common key technological bottlenecks in the industry, actively participate in national and local major scientific research projects, and develop high performance rare earth permanent magnet materials for strategic emerging fields such as NEVs, robotics, and the low-altitude economy. The company will build a full-chain innovation system covering "mechanism research—prototype verification—mass production verification—product transformation," deepen industry-academia-research collaboration and coordination with downstream clients, proactively position itself in new-type permanent magnet material technologies, and build a core technology moat. Thank you! 3. Has the company expanded its business in new energy and other dual-carbon-related fields? Zhong Ke San Huan responded: Hello! As an important energy-saving material, the rare earth permanent magnet materials produced by the company have been applied for many years in fields such as NEVs, energy-saving home appliances, and industrial robots. With the continuous development of low-carbon economic sectors such as robotics, industrial motors, the low-altitude economy, and digitalisation and intelligent technologies, there remain broad application prospects ahead, which will continue to bring new market opportunities for the company. Thank you! 4. What is the company's expansion target in markets outside China in 2026? Zhong Ke San Huan responded: Hello! In 2025, the company's revenue from outside China accounted for 49.45%. The company will continue to optimize market development strategies based on market conditions, deepen engagement with core clients and key markets, actively expand into emerging application fields, improve sales channels and service systems, and enhance the breadth and depth of market coverage; continuously optimize the market structure in and outside China to strengthen market risk resilience. Thank you! 5. What does the company plan to do to improve competitiveness? The earnings every year just go to paying salaries? Can the financial statements be more stable, with impairments fluctuating wildly? Zhong Ke San Huan responded: The company is one of the world's leading rare earth permanent magnet suppliers. In order to continue maintaining the company's leading position in the industry, we focus on improving competitiveness in the following areas: targeting major scientific and technological issues in the future rare earth permanent magnet industry and major demands of the low-carbon economy, continuously researching new rare earth permanent magnet technologies, products, and equipment with core proprietary intellectual property rights, and developing and producing high performance rare earth permanent magnetic materials suitable for low-carbon energy saving, intelligent manufacturing, and traditional high-tech fields; further improving the technology innovation and intellectual property system, rationally allocating scientific and technological resources, and establishing innovation platforms with smooth information flow, close integration, and efficient processes both within and outside the company. Fully leveraging the company's advantageous resources, establishing long-term new product development partnerships with top international clients, and continuously enhancing innovation capabilities; continuously intensifying market development efforts, refining sales channels construction, improving service capabilities, strengthening brand promotion, innovating marketing models, and continuously increasing market share, with particular attention to downstream high-end market and emerging application field demands; accelerating the informatization, automation, and intelligentization of production lines, further enhancing equipment automation levels, continuously improving digital and intelligent management and control of production processes, and driving further improvements in production efficiency, product quality, and profitability; continuing to seek cooperation opportunities in the upstream rare earth raw material industry to support the company's sustainable development; while steadily developing the rare earth permanent magnetic material core business and safeguarding the company's competitive advantages in this field, actively expanding into new industrial development areas and extending into downstream application fields at appropriate times. 6. Peers in the rare earth permanent magnet sector have delivered strong performance and market capitalization, yet the company, as a significant player in the rare earth permanent magnet sector, has been consistently disappointing in terms of performance and share price. What concrete measures does the management plan to take to improve performance and market capitalization? Zhong Ke San Huan responded: Hello! The company is one of the world's leading rare earth permanent magnet suppliers. In order to continue maintaining the company's leading position in the industry, we focus on the following areas: targeting major scientific and technological issues in the future rare earth permanent magnet industry and major demands of the low-carbon economy, continuously researching new rare earth permanent magnet technologies, products, and equipment with core proprietary intellectual property rights, and developing and producing high performance rare earth permanent magnetic materials suitable for low-carbon energy saving, intelligent manufacturing, and traditional high-tech fields; further improving the technology innovation and intellectual property system, rationally allocating scientific and technological resources, and establishing innovation platforms with smooth information flow, close integration, and efficient processes both within and outside the company. Fully leverage the Company's advantageous resources, establish long-term new product development partnerships with top international clients, and continuously enhance innovation capabilities; continuously intensify market development efforts, deepen channel development, improve service capabilities, strengthen brand promotion, innovate marketing models, and continuously increase market share. Pay particular attention to demand in downstream high-end markets and emerging application fields; accelerate the informatization, automation, and intelligent upgrading of production lines, further enhance the level of equipment automation, continuously improve digital and intelligent management and control of production processes, and drive further improvements in production efficiency, product quality, and profitability; continue to seek cooperation opportunities in the upstream rare earth raw material industry to support the Company's sustainable development; while steadily developing the core business of rare earth permanent magnet materials and safeguarding the Company's competitive advantages in this field, actively expand into new industrial development areas and extend into downstream application fields at appropriate times. Thank you! 7 How is the progress of intelligent and automated upgrades at each production site? Zhong Ke San Huan responded: Hello! Based on industry characteristics and actual conditions, the Company has been actively pursuing informatization/automation/intelligent transformation and upgrades, continuously promoting the integrated development of informatization and digitalization with enterprise operation and management, improving management and production efficiency, and providing solid support for the Company's overall digital transformation. Thank you! 8 What are the Company's target plans regarding high-performance magnets for humanoid robots? Zhong Ke San Huan responded: Hello! The NdFeB permanent magnet materials produced by the Company have been applied in the industrial robot field for many years. Currently, the humanoid robot industry has not yet achieved large-scale mass production. Once commercialization is realized, it is expected to bring positive impacts to the NdFeB permanent magnet materials industry and the Company. In recent years, the Company has been continuously conducting technology development in this field, actively communicating with downstream application clients, and striving to capture potential market opportunities. Thank you! 9 How does the Company hedge against the risk of raw material price fluctuations? Zhong Ke San Huan responded: Hello! The Company will continue to monitor raw material price movements and actively address the adverse impacts of raw material price fluctuations through measures such as strengthening concentrated procurement of raw materials and optimizing inventory management. Thank you! 10 Please share the Company's performance guidance for 2026. Zhong Ke San Huan responded: Hello! For relevant information, please refer to the announcements released by the Company on its designated information disclosure media. Thank you! 11 Does the Company have any plans for expansion into emerging fields? Zhong Ke San Huan responded: Hello! In response to major scientific and technological challenges in the future rare earth permanent magnet industry and major demands of the low-carbon economy, the Company continuously researches new rare earth permanent magnet technologies, products, and equipment with core proprietary intellectual property rights, and develops and produces high-performance rare earth permanent magnet products suitable for low-carbon energy conservation, intelligent manufacturing, and other emerging high-technology application fields. Thank you! 12. What is the status of the commercialisation of industry-academia-research collaboration outcomes? Zhong Ke San Huan responded: Hello! The Company established a Technology Innovation Centre, completed the initiation and advancement of key R&D projects, built a technology achievement sharing platform, and achieved efficient conversion and reuse of technology achievements within the Group. The Company continued to increase R&D investment, focused on tackling core industry technologies, undertook multiple national major science and technology projects, and achieved industrialisation of most outcomes. The Company deepened industry-academia-research collaborative innovation, conducted in-depth cooperation with scientific research institutes, and jointly developed innovative products such as high performance magnetic materials and wind power-dedicated magnetic materials. Thank you! 13. What is the revenue contribution from the low-altitude economy segment? Zhong Ke San Huan responded: Hello! The Company's products have been applied in the drone sector. Currently, products used in drones account for a relatively small proportion of the Company's total shipments. Thank you! Zhong Ke San Huan released its 2025 annual report on the evening of March 27, which showed that: In 2025, facing a complex and volatile external environment and increasingly fierce industry competition, the Company's management and all employees worked together, continuously optimised business management, actively adopted effective measures such as cost reduction and efficiency improvement, and strived to promote the Company's stable operations and healthy development, achieving significant YoY growth in operating performance. During the period, the Company's foreign exchange gains increased to a certain extent compared with the same period of the previous year, and the Company's asset impairment losses decreased significantly compared with the same period of the previous year. During the reporting period, the Company achieved operating profit of 176.573 million yuan, a YoY increase of 372.87%; total profit of 179.8863 million yuan, a YoY increase of 379.71%; net profit attributable to shareholders of the publicly listed firm of 91.3186 million yuan, a YoY increase of 660.50%; and after excluding the impact of non-recurring gains and losses such as government subsidies, net profit attributable to shareholders of the publicly listed firm after deducting non-recurring gains and losses of 60.6065 million yuan during the reporting period, a YoY increase of 451.03%. Regarding the Company's main business and product applications, Zhong Ke San Huan stated in its 2025 annual report: The Company's main products are sintered NdFeB and bonded NdFeB permanent magnet materials, which are widely used in NEVs, automotive motors, consumer electronics, robots, industrial motors, energy-saving elevators, variable-frequency air conditioners, wind power generation, and other fields. Amid the global trend of low-carbon economy, countries around the world have focused on environmental protection and low-carbon emissions as key technology areas. Rare earth permanent magnet materials, represented by sintered NdFeB and bonded NdFeB, play an important role in establishing a complete low-carbon and green industry chain for emission reduction. Humanoid robots and the low-altitude economy are two emerging growth drivers for high performance NdFeB demand. The former boosts explosive growth in high-end magnetic materials through joint servo motors, while the latter expands demand for high power density magnetic materials driven by eVTOL aircraft and drones. Together, they are reshaping the demand structure and technological direction of rare earth permanent magnets. Currently, the humanoid robot industry has not yet achieved large-scale mass production. Once commercialisation is realised, it will have a positive impact on the NdFeB permanent magnet materials industry and the Company. During the reporting period, the Company focused on the R&D of high performance magnets for humanoid robots to capture market opportunities following their future commercialisation. Meanwhile, the Company actively and continuously monitored developments in the low-altitude economy sector, striving to seize potential market opportunities. Regarding the business plan for 2026, Zhong Ke San Huan stated: In 2026, the Company will closely align with its future development strategy, focus on core objectives, advance the implementation of key initiatives, and drive sustained improvement in business operations. (1) Continue to strengthen technological R&D, focus on key R&D directions, intensify efforts in core technology breakthroughs, promote the industrialisation of R&D achievements, and enhance product technological content and market competitiveness; improve R&D management and incentive mechanisms to stimulate the innovation vitality of R&D teams. (2) Optimise market development strategies, deepen engagement with core clients and key markets, actively expand into emerging application fields, improve sales channels and service systems, and enhance the breadth and depth of market coverage; continuously optimise the market structure in and outside China to strengthen market resilience against risks. (3) Deepen production and operations management, advance the intelligent and automated upgrading of production sites, optimise production processes and resource allocation, and further reduce costs and increase efficiency; strengthen supply chain coordination management to ensure stable raw material supply and controllable costs. (4) Advance digital transformation, expand the coverage of information system applications, improve business-finance integration, enhance data consolidation and analytical capabilities, and empower business management and decision-making through digitalisation. (5) Strengthen the talent and incentive system, continue to recruit talent in key areas, improve talent development and career pathways, and fully mobilise employee enthusiasm and creativity. (6) Strengthen compliance management, continuously track changes in industry policies, dynamically optimise the compliance management system, and ensure that all business activities of the Company strictly comply with laws, regulations, and regulatory requirements. In highlighting the raw material supply and price risks that the Company may face, Zhong Ke San Huan stated in its 2025 annual report: Rare earth raw materials are the core input for the Company's product manufacturing. Their supply is significantly affected by policies such as industry rectification and production controls, and there may be risks of tight supply. Meanwhile, rare earth raw material prices are influenced by multiple factors including the international economic environment, policy regulation, and market supply and demand. Price fluctuations may cause fluctuations in the Company's production costs, thereby affecting business performance. A review of the 2025 price performance of Pr-Nd alloy, a key raw material for NdFeB, shows that the average price of Pr-Nd alloy on 31 December 2025 was 735,000 yuan/mt, compared with 489,000 yuan/mt on 31 December 2024, representing an increase of 50.31% in 2025. The annual daily average price of Pr-Nd alloy in 2025 was 602,181.07 yuan/mt, compared with its annual daily average price of 484,704.55 yuan/mt in 2024, representing an increase of 117,476.52 yuan/mt, up 24.24% YoY. Looking back at the price trend of Pr-Nd alloy in Q1 this year: the average price of Pr-Nd alloy on March 31 this year was 880,000 yuan/mt, up 145,000 yuan/mt or 19.73% compared with its average price of 735,000 yuan/mt on December 31, 2025. The Q1 daily average price of Pr-Nd alloy this year was 913,035.71 yuan/mt, up 385,018.17 yuan/mt or 72.92% compared with the Q1 2025 daily average price of 528,017.54 yuan/mt. According to SMM's latest quotes: on April 27, the price of Pr-Nd alloy was 940,000-960,000 yuan/mt, with an average price of 950,000 yuan/mt, unchanged from the previous trading day. Currently, the rare earth market is showing a clear divergence: the oxide market experienced notable fluctuations, while the metal market remained relatively stable. Focusing on the Pr-Nd market, affected by ongoing fermentation of market news, Pr-Nd oxide futures prices continued to decline, and some oxide traders lowered their offers accordingly. However, most producers chose to suspend quoting, with a strong wait-and-see sentiment prevailing in the market and actual trading volumes remaining sluggish. In the metal market, despite the continued decline in oxide prices, metal enterprises showed limited willingness to sell at low prices due to inventory cost support, keeping their offers relatively firm. Magnetic material enterprises adopted a cautious purchasing stance, mostly inclined to seek lower prices for procurement, leading to a stalemate in market trading. In the short term, affected by the tug-of-war between upstream and downstream, Pr-Nd product prices are expected to move sideways. Recommended reading:

SMM April 21 News: Metals Market: As of the daytime close, domestic market base metals mostly fell, with SHFE lead being the only one to rise, up 0.48%. SHFE aluminum led the decline with a drop of 1.23%, while the rest of the metals fell less than 1%. The alumina front-month contract rose 1.95%, and the casting aluminum alloy front-month contract fell 1.36%. In addition, the lithium carbonate front-month contract fell 2.84%, the polysilicon front-month contract rose 2.56%, and the silicon metal front-month contract fell 0.35%. The Europe containerized freight front-month contract rose 1.37% to 2,143.4. On the ferrous metals front, all rose except stainless steel. Stainless steel fell 1%, while hot-rolled coil and rebar both rose over 0.7%, with hot-rolled coil up 0.72% and rebar up 0.76%. For coking coal and coke, coking coal rose 1.53% and coke rose 2.42%. On the overseas market front, as of 15:03, overseas base metals all fell except LME lead. LME lead rose 0.28%, while the rest of the metals fell less than 1%. On the precious metals front, as of 15:03, COMEX gold fell 0.7% and COMEX silver fell 1.35%. In China, SHFE gold fell 1.08% and SHFE silver fell 2.75%. In addition, the platinum front-month contract fell 1.08% and the palladium front-month contract fell 1.01%. Market data as of 15:03 today Macro Front China: [Good Start! China's Raw Material Industry Value-Added Up 4.6% YoY in Q1] According to a press conference held by the State Council Information Office this morning, China's raw material industry achieved a good start in Q1. Data showed that in Q1, the value-added of the raw material industry was up 4.6% YoY. Among them: the value-added of the petrochemical and chemical industry was up 7.4% YoY, and the value-added of the non-ferrous metals industry was up 2.6% YoY. Zhang Yunming, Vice Minister of MIIT, stated that in Q1, the cement industry reduced and retired nearly 30 million mt of capacity through capacity replacement with reduction. Meanwhile, the revenue of the green building materials industry grew steadily, and the number of certified green building material products increased 5% compared to the end of 2025. Innovation achievements in the raw material sector also accelerated, with China's independently developed T1200-grade ultra-high-strength carbon fiber industrial-grade product making its global debut, expected to be deeply applied in strategic emerging industries such as aerospace, low-altitude economy, and humanoid robots. (CCTV News) [MIIT: Fully Activate the Innovation Engine, Accelerate Frontier Material Development and Key Material Breakthroughs] Zhang Yunming, Vice Minister of MIIT, stated at the State Council Information Office press conference that in Q1, they implemented the new round of work plans for stabilizing growth in ten key industries in detail, focused on promoting the optimization and upgrading of capacity structure, and the raw material industry achieved a good start, with more vigorous transformation steps and a stronger industrial foundation. Next, the Ministry of Industry and Information Technology is expected to thoroughly implement the deployment of the Outline of the 15th Five-Year Plan, adhere to a combination of “strengthening the fundamentals” and “fostering the new,” and enhance overall planning and policy supply. On the one hand, it will focus on solidifying the foundation for upgrading traditional industries, promoting optimization of existing capacity and a green, safe transition; on the other hand, it will fully energize the innovation engine, accelerate the layout of frontier materials and breakthroughs in key materials, and provide more solid and reliable material support for developing new quality productive forces and advancing new-type industrialization. (Jinshi Data) [MIIT: Q1 Industrial Robot Production up 33.2% YoY; Drones, AI Glasses, and More Becoming Increasingly Diverse] This morning, the State Council Information Office held a press conference to brief on industrial and information technology development in Q1 2026. In Q1, the application of new technologies such as artificial intelligence accelerated and expanded in the electronics and consumer goods industries; end-use products such as drones and AI glasses became increasingly diverse; and production of products such as industrial robots and integrated circuits rose 33.2% and 24.3% YoY, respectively. (CCTV News) [PBOC Reverse Repo Operations Recorded a Net Injection of 4 billion yuan on the Day] The PBOC conducted 5 billion yuan of 7-day reverse repo operations today. As 1 billion yuan of 7-day reverse repos matured today, it recorded a net injection of 4 billion yuan on the day. (Jinshi Data) US dollar: As of 15:03, the US dollar index was at 98.14, up 0.09%. Middle East tensions pushed up oil prices and supported the dollar; a plunge in US consumer confidence weighed on the real economy; and Japan’s manufacturing sector was under pressure. Meanwhile, Fed Chairman nominee Warsh was set to face a hearing, and how to balance interest rate cuts and inflation became the market focus. (Jinshi Data) The US Congress will hold the first confirmation hearing for Fed Chairman nominee Warsh on Tuesday local time. Warsh will pledge to lawmakers to maintain strict independence on interest rate matters. According to opening remarks obtained in advance by Politico, Warsh said interest rate decisions must be strictly independent of political considerations, and monetary policy should not become a tool for short-term political objectives; he also stressed that the US Fed’s credibility comes from institutional constraints and policy discipline. Warsh said the central bank should listen to differing views, and politicians expressing opinions on interest rates is not a real threat; rather, it is the US Fed’s own discipline and rigorous approach that sustains its independent status. He emphasized that price stability is the US Fed’s shield and pledged to take full responsibility for it, “making no excuses and shirking no responsibility.”Regarding the continuous expansion of the US Fed's functional boundaries in the post-crisis era, Warsh also issued a warning, arguing that the Fed should not extend its reach into fiscal policy or social policy areas where it lacks statutory authority. The US Senate Banking Committee is scheduled to hold a confirmation hearing for Warsh at 10 PM Beijing time on April 21. In addition, on April 21, according to Zhuifeng Trading Desk, Citi laid out clear bullish reasons for interest rate cuts in its latest research report, arguing that crude oil supply disruptions were only temporary disturbances and that the path to interest rate cuts, though bumpy, was clearly directional; Deutsche Bank, however, poured cold water on such optimism, warning that US Fed policy was already at a neutral position and was expected to maintain current interest rates indefinitely. As the two major investment banks clashed in their views, the upcoming March retail sales data is set to become the key litmus test to break the deadlock. This data will not only reveal the true destructive impact of high oil prices on core consumption but will also directly determine the US Fed's near-term policy path. (Wall Street Insights) On the macro front: Data to be released today include the US March retail sales MoM, US February business inventory MoM, US March pending home sales index MoM, Germany's April ZEW Economic Sentiment Index, UK February three-month ILO unemployment rate, UK March unemployment rate, UK March jobless claims, Switzerland's March trade balance, and the Eurozone April ZEW Economic Sentiment Index. In addition, attention should also be paid to the US Senate Banking Committee's confirmation hearing on Kevin Warsh's nomination as Fed Chairman, and European Central Bank President Lagarde's keynote speech at the 75th anniversary annual reception of the Association of German Banks. Furthermore, China is about to open a new round of refined oil price adjustment window. On the crude oil front: As of 15:03, oil prices in both markets fell together, with WTI down 1.05% and Brent down 0.73%. The market held optimistic expectations that US-Iran negotiations would continue this week. According to information from maritime intelligence firm Tanker Trackers, a tanker belonging to the National Iranian Tanker Company returned to Iran via the relevant maritime blockade line after completing the offloading of approximately 2 million barrels of crude oil in Indonesia. The tanker is currently heading to Kharg Island, Iran's main oil export hub, and is expected to arrive on the 22nd local time. The tanker reportedly departed Iran in late March, heading for the Riau Islands in Indonesia. (CCTV News) According to foreign media reports, gasoline prices in Australia fell for the third consecutive week as government measures eased the upward pressure on gas station prices triggered by the Iran war. According to data from the Australian Institute of Petroleum, in the week ending last Sunday, the national average gasoline price dropped about 5% to A$2.129 per liter (approximately $1.5279), but remained about 18% higher than at the outbreak of the conflict in early March. Diesel prices fell about 3% to A$3.089 per liter. It was reported that Canberra attempted to ease the domestic fuel crisis by sending delegations to communicate with major trading partners, covering oil transportation costs, relaxing diesel standards, cutting fuel taxes, and tapping into reserves. In addition, the government was conducting a publicity campaign aimed at encouraging Australians to reduce driving. Despite being a major energy producer and exporter, Australia still relied on imports from outside China for most of its refined fuel, and its fuel reserves were among the lowest in developed countries, making the country highly vulnerable to disruptions in global energy supply. (Jin Shi Data APP) SMM Daily Review ► ► ► ► ► ► ► ► ► ► ► ►

SMM April 21 News: Metals market: As of the midday close, domestic market base metals mostly fell. SHFE copper dropped 0.64%. SHFE aluminum fell 1.45%. SHFE lead rose 0.33%, SHFE zinc fell 0.76%. SHFE tin dropped 0.31%, SHFE nickel fell 0.69%. In addition, the most-traded casting aluminum futures fell 1.49%, the most-traded alumina futures rose 2.38%. The most-traded lithium carbonate futures fell 3.86%. The most-traded silicon metal futures fell 0.63%. The most-traded polysilicon futures rose 2.19%. Ferrous metals mostly rose. Iron ore gained 0.64%, rebar rose 0.76%, hot-rolled coil rose 0.87%, stainless steel fell 0.53%. Coking coal and coke: the most-traded coking coal contract rose 1.49%, the most-traded coke contract rose 1.96%. Overseas market base metals, as of 11:40, LME metals fell across the board. LME copper dropped 0.2%. LME aluminum fell 0.89%, LME lead fell 0.1%, LME zinc fell 0.78%. LME tin dropped 0.68%. LME nickel fell 0.6%. Precious metals, as of 11:40, COMEX gold fell 1.32%, COMEX silver dropped 0.21%. Domestic market precious metals: the most-traded SHFE gold futures fell 0.76%, the most-traded SHFE silver futures fell 2.7%. In addition, as of the midday close, the most-traded platinum futures fell 1.18%, the most-traded palladium futures fell 0.78%. As of the midday close, the most-traded Europe containerized freight index contract edged down 0.01%, closing at 2,114.1 points. As of 11:40 on April 21, midday futures quotes for selected contracts: Spot and Fundamentals Copper: Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a premium of 290 yuan/mt, up 30 yuan/mt from the previous trading day; standard-quality copper was quoted at a premium of 200 yuan/mt, up 30 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 140 yuan/mt, up 30 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 102,420 yuan/mt, down 460 yuan/mt from the previous trading day; the average price of SX-EW copper was 102,315 yuan/mt, down 460 yuan/mt from the previous trading day. Spot market: Guangdong inventory finally ended its 24-day consecutive decline...... Macro Front China: [Good Start! China's Raw Material Industry Value-Added Output Up 4.6% YoY in Q1] According to a press conference held by the State Council Information Office this morning, China's raw material industry achieved a good start in Q1. Data showed that in Q1, the value-added output of the raw material industry was up 4.6% YoY. Specifically, the petrochemical and chemical industry's value added was up 7.4% YoY, and the non-ferrous metals industry's value added was up 2.6% YoY. Zhang Yunming, Vice Minister of MIIT, stated that in Q1, the cement industry reduced and retired nearly 30 million mt of capacity through volume replacement. Meanwhile, the green building materials industry saw steady revenue growth, with the number of certified green building material products increasing 5% compared to the end of 2025. Innovation achievements in the raw material sector also accelerated, as China's independently developed T1200-grade ultra-high-strength carbon fiber industrial-grade product was launched globally for the first time, and is expected to be extensively applied in strategic emerging industries such as aerospace, low-altitude economy, and humanoid robots. (CCTV News) [MIIT: Fully Activate Innovation Engines, Accelerate Frontier Material Deployment and Key Material Breakthroughs] Zhang Yunming, Vice Minister of MIIT, stated at the State Council Information Office press conference that in Q1, detailed implementation of the new round of work plans for stabilizing growth in ten key industries was carried out, with focused efforts to promote capacity structure optimization and upgrading. The raw materials industry achieved a good start, with more vigorous transformation and a stronger industrial foundation. Going forward, MIIT will thoroughly implement the deployments outlined in the 15th Five-Year Plan, adhere to the combination of "consolidating fundamentals" and "fostering new growth," and strengthen overall planning and policy supply. On one hand, efforts will focus on solidifying the foundation for traditional industry upgrading, promoting optimization of existing capacity and green and safe transformation; on the other hand, innovation engines will be fully activated to accelerate frontier material deployment and key material breakthroughs, providing more solid and reliable material support for developing new quality productive forces and advancing new-type industrialization. (Jin10 Data) [MIIT: Industrial Robot Production Up 33.2% YoY in Q1, Drones, AI Glasses and Other Products Increasingly Diversified] This morning, the State Council Information Office held a press conference to introduce the industrial and information technology development in Q1 2026. In Q1, new technologies such as artificial intelligence accelerated their application in the electronics and consumer goods industries. End-use products such as drones and AI glasses became increasingly diversified, with industrial robot and integrated circuit production up 33.2% and 24.3% YoY, respectively. (CCTV News) [PBOC Achieved Net Injection of 4 Billion Yuan via Reverse Repo Operations Today] The PBOC conducted 5 billion yuan of 7-day reverse repo operations today. As 1 billion yuan of 7-day reverse repos matured today, a net injection of 4 billion yuan was achieved. (Jin10 Data) US dollar: As of 11:40, the US dollar index was up 0.11% at 98.16. The US Congress was set to hold the first confirmation hearing for Fed Chairman nominee Warsh on Tuesday local time. Warsh was to pledge to lawmakers his strict independence on interest rate matters. According to opening remarks obtained in advance by Politico, Warsh stated that interest rate decisions must be strictly independent of political considerations, and that monetary policy should not be used as a tool for short-term political objectives. He also emphasized that the US Fed's credibility stems from institutional constraints and policy discipline. Warsh said the central bank should listen to diverse opinions, and that politicians expressing views on interest rates does not pose a real threat. On the contrary, it is the US Fed's own discipline and rigor that sustains its independent status. He stressed that price stability is the US Fed's talisman and pledged to assume full responsibility for it, "making no excuses and passing no blame." Warsh also warned against the post-crisis expansion of the US Fed's functional boundaries, arguing that it should not extend its reach into fiscal or social policy areas where it lacks statutory authority. The US Senate Banking Committee was to hold a confirmation hearing for Warsh at 10 PM Beijing time on April 21. Fed Chairman nominee Kevin Warsh believes that upcoming productivity growth may give the US Fed room to lower interest rates, provided that higher productivity enables low-inflation economic growth. However, economist Ed Yardeni, who also expects the economy to benefit from technological advances this decade, disagrees that such an outcome would justify lowering interest rates. Yardeni wrote: "While we share Warsh's optimism on productivity, we have fundamentally different views on what this outcome means for monetary policy." Yardeni argues that faster growth will raise the natural rate of interest, or R*, the rate that neither stimulates nor restrains the economy. He wrote: "If the US Fed lowers the federal funds rate below R*, the risk is that it fuels financial speculation and instability." (Jin Shi Data) On other currencies: The exact timing of the Bank of Japan's next rate hike remains uncertain, with significant uncertainty. However, Goldman Sachs analyst Akira Otani said a rate hike in July remains possible. The economist wrote in a research note: "By then, all the data needed to assess the impact of high oil prices on the economy, wages, and prices will be available." The Bank of Japan is likely to keep rates unchanged this month but may lower its economic growth expectations and raise its FY2026 inflation forecast to reflect heightened tensions in the Middle East and rising oil prices. Otani added that the Bank of Japan may consider the uncertainty surrounding this outlook to be high. (Jinshi Data) Data: Today's scheduled releases include US March retail sales MoM, US February business inventories MoM, US March pending home sales index MoM, Germany April ZEW economic sentiment index, UK February three-month ILO unemployment rate, UK March unemployment rate, UK March claimant count, Switzerland March trade balance, and Eurozone April ZEW economic sentiment index. In addition, attention should be paid to the US Senate Banking Committee hearing on Kevin Warsh's nomination as Fed Chairman, and ECB President Lagarde's keynote speech at the 75th anniversary reception of the Association of German Banks. Furthermore, a new round of domestic refined oil price adjustment window will open in China. Crude oil: As of 11:40, oil prices in both markets fell, with WTI down 0.96% and Brent down 0.58%. Signs of resumed negotiations between Iran and the US boosted market sentiment, while international oil prices slid further on expectations of easing tensions. (Wallstreetcn) Wallstreetcn noted that Iran's Supreme Leader Mojtaba Khamenei approved the dispatch of a negotiating delegation to Islamabad on the night of April 20. According to Xinhua, citing the US Axios website, US Vice President Vance was expected to depart for the Pakistani capital on the morning of April 21 Eastern Time, with Trump envoy Steve Witkoff and presidential son-in-law Jared Kushner also heading to join the negotiations. (Wallstreetcn) The market is still waiting to see whether some form of consultation will take place in Islamabad. Investors generally expect that the likelihood of reaching some preliminary agreement is higher than that of a comprehensive deal. Currently, the market is mainly reacting to a sentiment shift from optimism to concern. However, it is widely believed that the most severe phase of the crisis and the accompanying energy supply disruptions may have passed. (Jinshi Data) Spot market overview: ► ► ► ► ► ► ► ► ► ►