[Codelco: Company to Focus on Public-Private Partnerships to Boost Copper and Lithium Production]

Cheng Hehong, Chief Counsel of the China Securities Regulatory Commission (CSRC), delivered a keynote speech at the 2025 Tianjin Wudadao Financial Forum on June 5. We will expedite the research and formulation of the "Several Opinions on Further Strengthening the Protection of Small and Medium Investors in the Capital Market" Cheng Hehong stated that the next step is to effectively protect investors. The trust and participation of a broad base of investors form the foundation for the capital market to support and serve technological innovation. It is essential to synchronize the deployment, arrangement, and implementation of financing services for technology innovation enterprises with the protection of investors' legitimate rights and interests. We will strengthen the disclosure of information related to the technological innovation attributes and investment risks of technology innovation enterprises, and improve the corresponding investor suitability system and mechanisms. We will actively guide and support enterprises, issuers, their controlling shareholders, actual controllers, and relevant securities firms to voluntarily undertake and fulfill commitments to compensate investors in advance in accordance with the law. We will continue to enhance the refined service and management capabilities of the 12386 service platform, and collaborate to promote the establishment of a regularized working mechanism for special representative litigation. We will support the launch of pilot work on arbitration in the securities and futures industry. We will expedite the research and formulation of a comprehensive policy document on investor protection under the "Several Opinions on Further Strengthening the Protection of Small and Medium Investors in the Capital Market." Include high-quality enterprise science and technology innovation bonds in benchmark market-making categories Cheng Hehong stated that the next step is to strengthen comprehensive equity-debt linkage services. We will promote the high-quality development of science and technology innovation corporate bonds, explore the development of more science and technology innovation-themed bonds, and actively encourage eligible enterprises to obtain financing through science and technology innovation bonds, thereby helping to reduce the financing costs of technology innovation enterprises. We will include high-quality enterprise science and technology innovation bonds in benchmark market-making categories. We will support the issuance of Real Estate Investment Trusts (REITs) for projects in areas such as new-type infrastructure including artificial intelligence, data centers, and smart cities, as well as technology innovation industrial parks, to facilitate the revitalization of existing assets and support the digital transformation of traditional infrastructure. Promote the transition of fund share transfer business pilot programs to regular operations and expand the pilot program for physical stock distribution by funds to investors Cheng Hehong stated that the next step is to cultivate and expand long-term and patient capital. We will guide private equity funds to optimize their long-term performance evaluation mechanisms to better align with the development characteristics of technology innovation enterprises. We will support the development of private equity secondary market funds (S funds), promote the transition of fund share transfer business pilot programs to regular operations, expand the pilot program for physical stock distribution by funds to investors, and facilitate a virtuous cycle of "fundraising, investment, management, and exit." We will continue to guide the entry of medium and long-term funds into the market and continuously improve the "long-term capital for long-term investment" system. We will adhere to the basic legal principles of equity investment and promote the establishment and improvement of a fairer and more reasonable legal relationship between private equity investment funds and technology innovation enterprises, as well as their founding shareholders. The CSRC will revise and improve the Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets, and establish a sound system for punishing dishonesty and incentivizing integrity. Cheng Hehong stated that the next step is to build a more honest and friendly market environment. The high risks inherent in technological innovation also bring high risks to capital market activities that support and serve technological innovation. The greater the risk, the higher the required level of creditworthiness. In the process of the capital market supporting and serving technological innovation, it is necessary to further strengthen the construction of market integrity, and improve the integrity level of all market participants. The CSRC will revise and improve the Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets, further enrich the capital market integrity archive database system, establish a sound system for punishing dishonesty and incentivizing integrity, severely crack down on serious acts of dishonesty such as fraudulent issuance, false information disclosure, and the failure of intermediaries to fulfill their duties diligently, enhance market transparency, leverage the verification and gatekeeping role of intermediary service institutions, and improve the professional ethics of practitioners. With a highly credible capital market, it will support and serve the development of high-level technological innovation. This year, publicly listed firms in strategic emerging industries have disclosed over 140 asset restructuring cases, twice the number from the same period last year. Cheng Hehong stated that in the field of mergers and acquisitions and restructuring, publicly listed firms in strategic emerging industries have disclosed over 140 asset restructuring cases this year, which is twice the number from the same period last year. In the field of bond financing, as of the end of April 2025, a total of 1,327 science and technology innovation bonds have been issued on the exchange market, with an issuance scale of 1.35 trillion yuan. In the field of private equity funds, the proportion of private equity and venture capital funds invested in strategic emerging industries has continued to increase. Currently, there are over 100,000 ongoing projects with an invested principal of over 4 trillion yuan. The CSRC will provide greater support for the listing of high-quality unprofitable technology firms and actively and prudently promote the implementation of new cases under the fifth set of listing criteria for the Science and Technology Innovation Board. Cheng Hehong, the CSRC's chief lawyer, delivered a keynote speech at the 2025 Tianjin Wudadao Financial Forum on June 5, stating that the next step is to deepen the reform of the stock issuance registration system. Adhering to information disclosure as the core, market intermediary verification and gatekeeping as the basis, and strict supervision and accountability as the guarantee, the CSRC will continue to advance the reform of the issuance and listing systems for the Science and Technology Innovation Board and the ChiNext Market, further enhancing the system's inclusiveness and adaptability. It will provide greater support for the listing of high-quality unprofitable technology firms and actively and prudently promote the implementation of new cases under the fifth set of listing criteria for the Science and Technology Innovation Board. The CSRC will adhere to the complementary and differentiated development of the Science and Technology Innovation Board, the ChiNext Market, and the Beijing Stock Exchange, further optimizing differentiated arrangements to better coordinate and leverage the diverse functions of each board in supporting technology firms, and strive to cover the different financing needs of technology firms at various types and stages of development.

[Jiyao Tongxing, a battery company under Geely Group: Expected to achieve a battery capacity of 70 GWh by 2027] Zheng Xin, Vice President and Chief Strategy Officer of Geely Holding Group, as well as CEO of Jiyao Tongxing, stated that Jiyao Tongxing will achieve a battery capacity of 70 GWh by 2027, with eight production sites in Tonglu, Quzhou, Jianhu, Ganzhou, Shangrao, Yingtan, Ningguo, and Zaozhuang. In terms of business model, Jiyao Tongxing will strive to explore vehicle-battery separation and battery swapping models, and establish a battery bank. Note from Xiaocai: Zhejiang Jiyao Tongxing Energy Technology Co., Ltd. ("Jiyao Tongxing" for short) is the main entity for Geely Holding Group's battery business. (Cailian Press) [Zhang Jinhua of China SAE: Strengthen OTA Upgrade Management and Clarify Corporate Safety Responsibilities] Zhang Jinhua, President of the China Society of Automotive Engineers (China SAE), pointed out in an article that with the accelerated integration of electrification, intelligence, and connectivity in the automotive industry, significant changes have occurred in the form of automotive products, and automotive software online upgrades (OTA upgrades) have been gradually widely applied in intelligent connected vehicle products. On the one hand, OTA upgrades can rapidly iterate product functions, optimize product performance, enhance user experience, and reshape product development models, becoming an important means for automotive producers to provide value-added services to consumers and enhance product competitiveness. On the other hand, unlike ordinary electronic consumer goods, automotive OTA upgrades, if lacking necessary supervision, may pose safety risks to vehicle operation and even endanger public safety. Zhang Jinhua stated that strengthening the management of automotive OTA upgrades and clarifying corporate safety responsibilities will provide important support for safeguarding the legitimate rights and interests of consumers and social public safety. (Cailian Press) [Li Auto: The refreshed car models will return to a monthly sales level of 50,000 units, and sedan products will be launched based on market demand] The management of Li Auto stated during the Q1 earnings call that after the launch of the refreshed Li Auto car models, weekly sales have exceeded 10,000 units. As of May, the market share in the market segment above 200,000 yuan is 14.7%. Li Auto is confident that the refreshed car models will soon return to a monthly sales level of 50,000 units. After Li Auto's extended-range and pure electric SUVs, as well as the Li Auto MEGA, support an annual revenue of 300 billion yuan, MPV and sedan products will be launched based on market demand to meet the needs of the domestic market as well as important overseas markets. (Cailian Press) [CATL Signs Strategic Cooperation Framework Agreement with Lanzhou for Zero-Carbon City] On May 29, CATL and the Lanzhou Municipal People's Government officially signed a strategic cooperation agreement. The two sides will deepen cooperation in three major areas: the construction of the aftermarket for new energy batteries, the electrification upgrade of comprehensive transportation, and the establishment of a zero-carbon city ecosystem. The two parties will also establish a zero-carbon urban ecosystem, integrating PV, ESS, and intelligent management technologies to create zero-carbon parks and build industries such as virtual power plants. They will construct city-level integrated demonstration stations for "PV, ESS, charging/swapping, and inspection". They will explore policies for the recycling of end-of-life batteries, jointly establish a battery recycling system and collaborative processing bases, and form a closed-loop value chain covering the entire life cycle. (Science and Technology Innovation Board Daily) [Zhonglun New Materials: BOPA film for solid-state batteries is in the early market promotion stage] Zhonglun New Materials stated on an interactive platform that the company's lithium battery film products, as the core substrate for pouch lithium battery aluminum-plastic films, have taken the lead in achieving localisation substitution and stable mass production. They have successfully entered the supply chain systems of domestic mainstream aluminum-plastic film producers such as Zijiang New Materials, PTL, and Crown. Recently, the company's R&D on BOPA film for solid-state batteries has achieved key breakthroughs. This product can be applied in the solid-state battery field through aluminum-plastic films and is currently in the early market promotion stage. (Finance News) [Lopal: Plans to increase capital investment by RMB370 million in its holding subsidiary Changzhou Liyuan] Lopal (603906.SH) announced that the company plans to use 80% of the funds raised from issuing H shares to increase capital investment in its holding subsidiary Changzhou Liyuan, with the amount equivalent to RMB369.7056 million. Of this, RMB55.5129 million will be credited to the registered capital, and the remaining RMB314.1927 million will be credited to the capital reserve. After the capital increase is completed, Changzhou Liyuan's registered capital will increase to RMB834.1276 million, and it will remain a holding subsidiary of the company. Changzhou Liyuan plans to use the increased capital to invest an additional $14 million in its holding grand subsidiary LBM NEW ENERGY (AP) PTE. LTD. This capital increase constitutes a related-party transaction and still needs to be submitted to the shareholders' meeting for approval. (Finance News) Related readings: [SMM Analysis] REPT Battero and Hyosung Heavy Industries reach a 2.5GWh ESS strategic cooperation [SMM Weekly Review] The lithium carbonate market remains weak, with supply-demand imbalance and weakening costs leading to continued price declines [SMM Analysis] Domestic lithium carbonate imports in April 2025 released April battery material import and export data released: Both spodumene and lithium carbonate imports increased, with the latter's exports surging! [SMM Special Report] Cobalt product quotes collectively decline, with refined cobalt falling by RMB6,200 and cobalt smelters' willingness to sell increasing [Weekly Observation] Spot price of refined cobalt falls [SMM Weekly Review of Refined Cobalt Market] [SMM Weekly Review] Lithium carbonate prices continue to decline, with the short-term market still under pressure [SMM Analysis] Can titanium-doped iron phosphate be the perfect upgrade for the high-end development path? [SMM Analysis] China's lithium hydroxide exports reached 4,222 mt in April, basically flat MoM [SMM Analysis] China's imports of cobalt intermediate products increased slightly in April [SMM Analysis] Both China's unwrought cobalt exports and imports surged in April 2025 [SMM Analysis] China's total spodumene imports amounted to 623,000 mt in April, up 16.5% MoM [SMM Analysis] Both China's artificial graphite imports and exports increased MoM in April [SMM Data] LiPF6 import and export data for April 2025 [SMM Analysis] Analysis of ternary cathode precursor exports in April [SMM Analysis] Ternary cathode import and export volumes for April released, with imports up 37% MoM and exports up 13% MoM [SMM Announcement] Adjustments to weekly lithium carbonate data points before and after the Labour Day holiday Driven by multiple positive factors! The auto parts sector surged with over 12 stocks hitting daily limits! [Hot Stocks] Refined cobalt prices slightly recovered, while Co3O4 prices continued to decline. The market awaits the aftermath of the DRC's June ban. [Weekly Observations] [SMM Industry Insights] Global cobalt industry chain changes and Chinese market outlook following the DRC's cobalt export ban - Key points from the special speech by Wang Cong, General Manager of SMM Industry Research Tariff suspension spurs lithium carbonate futures to rise over 3%. Can the expectation of a rush in exports help lithium carbonate "stand up"? [SMM Flash News] Retail sales growth of passenger vehicles in April hit a new decade-high, with auto production and sales exceeding 10 million units in the first four months! [SMM Special Report]

On May 22, the report on the filing of the tutoring for the initial public offering (IPO) and listing of Suzhou Kerun New Materials Co., Ltd. was released. The filing report revealed that Suzhou Kerun New Materials Co., Ltd. (hereinafter referred to as "Kerun New Materials") signed the "Tutoring Agreement for the Initial Public Offering of Suzhou Kerun New Materials Co., Ltd. and Minsheng Securities Co., Ltd." (hereinafter referred to as the "Tutoring Agreement") with Minsheng Securities Co., Ltd. (hereinafter referred to as "Minsheng Securities") on May 9, 2025, appointing Minsheng Securities as its tutoring institution for the IPO. It is understood that Kerun Group was established in Huai'an, Jiangsu, in 2008, with its headquarters located in Wujiang Development Zone, Suzhou. The company has completed three rounds of financing, with investors including Sinopec Capital, Lianhong, Sequoia, China General Technology, Jiaqiao Capital, Yutong, BAIC, Great Wall Capital, and many other well-known venture capital and industrial investors. The company's valuation is nearly 3 billion yuan. Kerun boasts 16 years of experience in the R&D and manufacturing of proton exchange membranes and is one of the earliest companies in China to achieve the industrialisation of perfluorinated proton exchange membranes. Kerun operates three major physical factories in Fujian, Huai'an, and Suzhou, and is one of only two companies in China that have achieved the entire industry chain from monomer to sulfonic acid resin to proton exchange membrane. Suzhou Kerun New Materials Co., Ltd. was established on April 10, 2019, with its headquarters located in Wujiang Development Zone, Suzhou. It is one of the top-tier enterprises in China's proton exchange membrane material industry. After more than a decade of scientific research and dedicated efforts, the company is committed to the industrialisation of core membrane materials for "flow battery energy storage + hydrogen energy". The company has established a layout covering the entire industry chain from "resin synthesis to membrane preparation to detection and application development", achieving domestic independent production of perfluorinated sulfonic acid proton exchange membranes. For three consecutive years, it has ranked among the top in the domestic industry in terms of shipments of perfluorinated sulfonic acid proton (ion) exchange membranes.

Macro News 1. On the afternoon of May 22, Chinese President Xi Jinping had a phone conversation with French President Emmanuel Macron at the latter's request. President Xi pointed out that during his visit to France in May last year, both sides agreed to carry forward the spirit of China-France diplomatic relations, which is characterized by independence, mutual understanding, foresight, and mutual benefit and win-win results, and to endow it with new connotations of the times. Since then, China-France cooperation has achieved many new developments. Both sides should strengthen strategic communication and build consensus. They should seize opportunities to deepen cooperation in traditional areas such as investment, aerospace, and nuclear energy, and expand cooperation in emerging areas such as digital, green, biomedical, and silver economy. They should also enhance people-to-people exchanges and promote friendship between the two peoples. 2. He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met with Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co., on the evening of the 22nd. He Lifeng expressed welcome to US enterprises, including JPMorgan Chase & Co., to continue deepening mutually beneficial cooperation with China and to contribute to the healthy, stable, and sustained development of China-US economic and trade relations. Jamie Dimon positively evaluated the outcomes of the US-China economic and trade talks and expressed his willingness to continue to deepen involvement in China's capital market, better serve multinational corporations expanding their businesses in China, and support Chinese companies in their overseas development. 3. Yesterday, the State Council Information Office held a press conference. Guo Wuping, spokesperson of the National Financial Regulatory Administration and Director General of the Policy Research Department, stated that the third batch of pilot reforms for long-term investment of insurance funds would be approved soon, with a scale of 60 billion yuan. Yan Bojin, Director General of the Issuance Supervision Department of the China Securities Regulatory Commission, stated that the fifth set of listing criteria for the Science and Technology Innovation Board would be implemented prudently to promote the implementation of new typical cases; the domestic listing environment for technology companies would be continuously optimized to support the return of high-quality red-chip technology companies for domestic listing; and a more flexible and precise counter-cyclical adjustment mechanism for new share issuance would be implemented. 4. He Yongqian, spokesperson of the Ministry of Commerce, presided over a regular press conference yesterday. A reporter asked about the US export controls on AI chips. He Yongqian stated that China firmly opposes this and will closely monitor subsequent developments by the US side, taking resolute measures to safeguard its legitimate rights and interests. 5. The People's Bank of China announced that to maintain ample liquidity in the banking system, it would conduct a 500 billion yuan Medium-term Lending Facility (MLF) operation today through fixed-quantity, interest-rate tendering, and multiple-price bidding, with a term of one year. 6. The Ministry of Commerce reported on China's outbound investment and cooperation in the first four months of this year. From January to April 2025, China's outbound direct investment across all industries amounted to 57.54 billion US dollars, up 7.5% YoY. Among this, outbound non-financial direct investment was 51.04 billion US dollars, up 5.6% YoY. Non-financial direct investment in countries participating in the Belt and Road Initiative was 12.78 billion US dollars, up 16.4% YoY. Industry News 1. The China Society of Automotive Engineers officially released the group standard "Determination Method for All-Solid-State Batteries," clearly defining all-solid-state batteries for the first time. The new standard stipulates that "all-solid-state batteries" must achieve ion transfer exclusively through solid electrolytes, establishing a strict technical demarcation from hybrid solid-liquid electrolyte batteries. 2. Last night, Xiaomi unveiled its first 3-nanometer flagship processor, the "Xuanjie O1," independently developed and designed by the company. The processor is integrated into Xiaomi's latest flagship smartphone and tablet products. Additionally, the Xiaomi YU 7 was officially launched at yesterday's event. The YU 7 is equipped with Xiaomi's Super Motor V6s Plus, delivering a maximum horsepower of 690PS. It accelerates from 0 to 100 km/h in 3.23 seconds, reaches a top speed of 253 km/h, and has a shortest braking distance from 100 to 0 km/h of 33.9 meters. 3. He Yongqian, spokesperson for the Ministry of Commerce, introduced that according to statistics from relevant departments, from September 2024 to April 2025, retail sales of home appliances maintained double-digit growth for eight consecutive months. In April, retail sales of home appliances and audio-visual equipment by enterprises above designated size increased by 38.8% year-on-year, ranking first among the 16 major categories of consumer goods in terms of growth rate. 4. In response to reports of HiPhi Auto's alleged "resurrection," Lanjing Auto called HiPhi's official customer service hotline. Staff members stated that there was no news at present, that the company had not yet announced information on resuming work and production, nor had it opened order bookings. Currently, the company is still undergoing restructuring. 5. Miao Bo, Deputy Director of the Science and Technology Department of the National Radio and Television Administration, stated at the 5th China (Beijing) Radio and Television Media Integration Development Conference on the 22nd that it is necessary to plan and promote the healthy and sustainable development of artificial intelligence in the radio, television, and audiovisual sectors with a higher stance, deeper understanding, broader perspective, and wider vision. 6. BYD's EV sales in Europe surpassed Tesla's for the first time, overtaking the US brand, which has long dominated the European EV market. According to data from market research firm Jato Dynamics, BYD registered 7,231 new EV sales in April, representing a 169% increase compared to the same period last year, placing BYD among the top 10 EV brands in terms of sales. 7. According to a report by CRIC Real Estate Research, as of the end of 2024, the total land reserves of the TOP 100 real estate enterprises amounted to 25.23 trillion yuan, a 13% decrease from the end of last year. Based on the TOP 100 real estate enterprises' total land reserve value rankings, the weighted average de-stocking period for the land reserves of the top 100 enterprises as of the end of 2024 was 6.93 years, a record high. 8. It is reported that the cryptocurrency exchange Kraken plans to allow non-US customers to trade popular stocks such as Apple, Tesla, and Nvidia in tokenized form through digital ledgers. The company stated that such "tokenized stocks" will make it easier for non-US investors to invest in US stocks. Company News 1. Xinhua Insurance announced that it would invest 10 billion yuan to subscribe for shares in private equity funds. 2. Daqian Ecology announced that Xinhua Publishing Group and Wang Zheng'an plan to jointly reduce their holdings by no more than 3.3% of the company's shares. 3. Nanjing Port announced that its holding subsidiary does not directly participate in import and export trade. 4. Zangge Mining announced that it had received a cash dividend of 1.539 billion yuan from its participating company, Julong Copper. 5. Laysen & Thorne announced that it had not signed any major contracts recently, and its production costs, sales, and other conditions were normal. 6. Tiantie Technology announced that it had signed a strategic cooperation framework agreement with Xinjie Energy, planning to cooperate in solid-state battery lithium metal anode materials and related fields. 7. Sany Heavy Industry announced that it had submitted an application for the listing and issuance of H shares to the Hong Kong Stock Exchange and published the application materials. 8. Changan Automobile stated in its investor relations activity record that it would launch 35 new digital and intelligent vehicles in the next three years and achieve solid-state battery vehicle installation verification by 2026. 9. Cao Peng, Chairman of the Technical Committee of JD Group and President of JD Cloud Business Unit, revealed that 14,000 intelligent agents had been put into "competition," with digital humans achieving sales performance exceeding 80% of human anchors. 10. 3S Bio announced that it had reached a cooperation agreement with Pfizer on Project 707, with uncertainty regarding the actual sales milestone payments and royalties received by the licensor. 11. Hongchuang Holding announced that it planned to purchase 100% of the equity in Hongtuo Industrial for 63.518 billion yuan. 12. Demashi announced that the company's actual controller would change from He Jianping to Pan Yi, and its shares would resume trading. Global Markets 1. The three major US stock indices closed with mixed changes. The Dow closed flat, the Nasdaq rose 0.28%, and the S&P 500 fell 0.04%. Most popular Chinese ADRs closed lower, with the Nasdaq Golden Dragon China Index falling 1.18%. 2. WTI crude oil futures closed down 0.6% at $61.20 per barrel; Brent crude oil futures closed down 0.72% at $64.44 per barrel. 3. COMEX gold futures closed down 0.56% at $3,295.1 per ounce, and COMEX silver futures closed down 1.39% at $33.18 per ounce. Investment Opportunities Reference 1. XPeng Motors plans to launch humanoid robots for industrial and commercial scenarios in 2026 According to media reports, at XPeng Motors' Q1 2025 earnings call, XPeng Motors Chairman He Xiaopeng stated that XPeng's physical world foundation large model would be fully applied in the AI automotive field in 2025, while a larger-scale cloud foundation large model and edge-side model were also under development. Next, XPeng Motors will advance from the R&D of L2+ assisted driving to higher-level autonomous driving technologies, specifically L3 and L4. The company aims to launch humanoid robots for industrial and commercial applications by 2026, leveraging data-driven evolution through mass production scenarios. Minsheng Securities believes that the inflection point for the industrialisation of humanoid robots has been established, with three key drivers opening up a trillion-yuan market. The humanoid robot sector is transitioning from thematic investment to growth investment, with 2025 expected to be the first year of global mass production. On the technology front, large models have broken through the versatility bottleneck, and DeepSeek's low-cost training paradigm is accelerating the deployment of AGI. On the industrial front, tech giants such as Tesla, NVIDIA, and Huawei are intensively deploying in this area. On the policy front, the government work report clearly states the need to cultivate future industries such as embodied intelligence and vigorously develop intelligent robots. 2. One of the emerging tracks in AI hardware, with overall demand radiating across all age groups It is reported that, as one of the emerging tracks in AI hardware, the AI toy market is growing rapidly. According to data from consulting firm IMARC Group, the market size reached $18.1 billion in 2024 alone, accounting for nearly 20% of the $108 billion global toy market in the same year. Northeast Securities believes that AI toys have endowed toys with the ability to "move," namely, triple capabilities of interaction, companionship, and education (Q&A). Overall demand is radiating across all age groups. AI is expected to become the core catalyst for the toy market after trendy IPs, with potential far exceeding that of the Z-generation during the boom of trendy toys. From a neutral perspective, the penetration rate of AI toys is expected to at least match that of trendy toys. It is projected that the domestic penetration rate will reach 29%, 41%, and 47% by 2026, 2028, and 2030, respectively, with the domestic market potentially approaching 85 billion yuan by 2030. 3. The increasingly diversified needs of companies going global, with policy guidance expected to open up new growth spaces for the industry According to media reports, as the financial service needs of companies going global become increasingly diversified, more and more domestic cross-border payment institutions are actively seeking higher-value overseas payment licenses as the foundation for upgrading their cross-border fund collection, payment, and exchange services. Guotai Haitong Securities pointed out that the plan proposed by the People's Bank of China and three other departments aims to enhance the functionality and global network coverage of the Cross-border Interbank Payment System (CIPS) and promote more banks to join CIPS. In addition, the State Council has deployed and implemented a strategy to upgrade pilot free trade zones and advance high-level opening up. Policy guidance is expected to support the cross-border payment industry in opening up new growth spaces. 4. The National Press and Publication Administration announces approval information for online games in May According to media reports, the National Press and Publication Administration announced the approval information for domestic online games in May, with a total of 130 games approved in May. So far this year, a total of 610 domestic games have been approved. In addition, the National Press and Publication Administration also released the approval information for imported online games in 2025, with a total of 14 imported games approved in May. Since the beginning of this year, a total of 44 imported games have been approved. In May, the issuance of game licenses proceeded at a steady pace, with the total number of domestic game approvals remaining above 100. Overall, the supply side continued to release, the trend of normalized license issuance remained firm, and the pace of industry recovery continued to advance. Wanlian Securities stated that, from the perspective of fund overweight allocations and valuation levels in the SW Media industry in Q1 2025, valuation levels have significantly recovered. The industry as a whole is still in an underweight allocation range, with significant room for improvement. Leading companies in the gaming and advertising & marketing sectors are the core focus of institutional attention. It is recommended to pay attention to gaming companies with abundant game license reserves and AI application layouts, as well as leading companies in the digital marketing and elevator media sectors.

[Ganfeng Lithium: The company has established a full-chain layout in the solid-state battery sector] Ganfeng Lithium (002460.SZ) stated at an earnings briefing that it has established a full-chain layout in the solid-state battery sector, possessing R&D and production capabilities in key areas of solid-state batteries, including sulphide electrolytes and raw materials, oxide electrolytes, silicon carbon anodes, lithium metal anodes, battery cells, and battery systems, and is accelerating the commercialization of solid-state batteries. The high specific energy battery developed by the company in the solid-state battery sector has achieved an energy density of 420Wh/kg, and samples with an energy density of 500Wh/kg have been developed, which can pass stringent safety tests such as the 200°C hot box and nail penetration tests. The company is actively pursuing application innovations in the solid-state battery sector. In the NEV sector, it has signed a joint development agreement with a leading international automaker, and the development and on-vehicle verification of high specific energy lithium anode batteries are underway. (Financial Associated Press) [Shanghai's Special Action Plan to Boost Consumption: Expanding and Intensifying the Implementation of Trade-in Policies for Consumer Goods] The General Office of the Shanghai Municipal People's Government issued the "Special Action Plan to Boost Consumption in Shanghai". It mentions expanding and intensifying the implementation of trade-in policies for consumer goods. To promote automobile consumption, it will implement the national automobile scrappage and renewal subsidies and the city's automobile replacement subsidy policies. It will also implement the national home appliance trade-in subsidy policy, introduce new subsidies for the purchase of digital products such as mobile phones, tablets, and smartwatches (bands), and intensify support for green home appliance, furniture, and home improvement consumption. [Japan's Exports to the US Fall for the First Time in 4 Months, with Automobile Exports Down 4.8%] On May 21, the Japanese Ministry of Finance announced the preliminary trade statistics for April, showing that exports to the US fell 1.8% YoY to 1.7708 trillion yen, marking the first decline in four months. In terms of specific items, automobile exports fell 4.8%, and exports of manufacturing equipment such as construction and mining machinery and semiconductors also declined YoY. (Financial Associated Press) [Jinlongyu, with 2 Consecutive Daily Limit-ups: Solid-State Battery-Related Business Has Not Yet Generated Long-Term Stable Revenue] Jinlongyu (002882.SZ) announced that its stock price rose by more than 20% cumulatively in terms of the deviation from the daily closing price over two consecutive trading days on May 20 and May 21, 2025, constituting abnormal fluctuations in stock trading. The company has made certain progress in the R&D of solid-state battery and its key material-related technologies, and some materials have been sent to customers for evaluation. Recently, its subsidiary, Jinlongyu New Energy (Shenzhen) Co., Ltd., signed a procurement order for high-energy-density solid-state battery cells for drones with a customer. The order amount is relatively small and is not expected to have a significant impact on the company's profits for the current and future years. The company's research and development of solid-state battery and related key material technologies constitute cross-border investment. Although orders have been received, the relevant business has not yet generated long-term stable revenue and does not currently have a significant impact on the company's overall performance. (Cailian Press) [FAW Jiefang: Has Prioritized the Layout of Solid-State Batteries] FAW Jiefang stated on an interactive platform that the high specific energy, fast charging capability, and high safety characteristics of solid-state batteries offer broad application prospects in trunk line scenarios. The company has prioritized the layout of solid-state batteries. Focusing on pain points in the commercial vehicle industry, such as short lifespan and high costs, FAW Jiefang has initiated research on new solid-state battery material systems and key preparation process technologies. It plans to integrate these technologies into the next-generation new energy long-haul trunk line platform technology of Jiefang to build a competitive advantage in total vehicle ownership (TVO) throughout the life cycle, achieve technological leadership in the industry, and maintain product leadership. (Cailian Press) [He Xiaopeng: Sales to Double in 2025, Profitability Expected in Q4] He Xiaopeng, Chairman of XPeng Motors, stated at the 2025 Q1 earnings conference that the company is confident of achieving a YoY sales growth of more than double in 2025 and expects to achieve profitability in the fourth quarter, with full-year free cash flow turning positive on a large scale. (Science and Technology Innovation Board Daily) Related Readings: [SMM Analysis: Can Titanium-Doped Iron Phosphate Be the Perfect Upgrade for High-End Development?] [SMM Analysis: China's Lithium Hydroxide Exports Reached 4,222 mt in April, Basically Flat MoM] [SMM Analysis: Slight Increase in Cobalt Intermediate Product Imports in April] [SMM Analysis: Both China's Unwrought Cobalt Exports and Imports Saw Significant Growth in April 2025] [SMM Analysis: China's Domestic Spodumene Imports Totaled 623,000 mt in April, Up 16.5% MoM] [SMM Analysis: Both Artificial Graphite Imports and Exports Increased MoM in April] [SMM Data: LiPF6 Import and Export Data for April 2025] [SMM Analysis: Analysis of Ternary Cathode Precursor Exports in April] [SMM Analysis: Ternary Cathode Import and Export Data for April Released, with Imports Up 37% MoM and Exports Up 13% MoM] [SMM Announcement: Adjustments to Weekly Lithium Carbonate Data Points Before and After the Labour Day Holiday] Driven by Multiple Positive Factors! 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