►New Advances in Magnesium Materials and Processes ►Development and Application of New-Type Low-Cost, High-Strength, Corrosion-Resistant Magnesium Alloys ►Stainless Magnesium Technology: R&D Progress from Alloy Materials to Semi-Solid Processes, R&D and Application of Stainless Magnesium Alloys ►Hefei • Great “Magnesium” Chaohu — Building a First-Class Magnesium Industry Ecosystem in China ►R&D Progress and Current Industrialisation Status of Magnesium-Based Materials and Products at Baowu Magnesium ►Haitian Magnesium Alloy Injection Molding Technology and Market Outlook ►Magnesium from an International Perspective: The Transformation from a Cost-Driven Bulk Commodity to a Strategic Engineering Material ►: Focusing on the New Cycle of Supply and Demand for Magnesium Metal and Downstream Applications — Outlook for the Magnesium Market in 2026

On February 4, Foxconn's New Energy Vehicle R&D Center officially commenced operations in Zhengzhou Airport Economy Zone, Henan Province. The launch of this facility will assist Foxconn in building an efficient industrial ecosystem, reducing the new vehicle production cycle to 24 months. This also signifies that Foxconn has established comprehensive end-to-end capabilities, from product planning and platform development to vehicle manufacturing.

I. Production and Sales Data According to public data released by authoritative institutions such as the China Association of Automobile Manufacturers (CAAM), the production and sales of fuel cell vehicles in China from January to May 2025 are as follows: (I) Overview of Core Data: Unit: 10,000 units Indicator May Data YoY Change Value (units) YoY Change Production 0.025 -37.2% 0.1 -25.0% Sales 0.0165 -62.9% 0.1 -26.1% Note: The data statistics cover fuel cell commercial vehicles (including buses and trucks), excluding passenger vehicles and stationary power generation applications. (II) Monthly Trend Analysis: 1. January-February: Affected by the Chinese New Year holiday and the policy transition period, the production and sales pace was relatively slow (with approximately 219 units produced and 252 units sold). 2. March: The implementation of local subsidy policies drove demand, with monthly production reaching 365 units and sales reaching 377 units, marking the peak for the quarter. 3. April-May: Stable growth was maintained, with monthly production of approximately 592 units and sales of 493 units. The expansion of infrastructure contributed to an increase in market penetration. II. Key Driving Factors: Policy Support: From January to May 2025, the national and provincial/municipal governments jointly issued 116 hydrogen energy-related policies. Expansion of Application Scenarios: Heavy-duty trucks and logistics vehicles accounted for a significant proportion, with demonstration projects in ports, ore areas, etc., being delivered in batches. Among them, Hydrogen Blue Times delivered 100 hydrogen-powered heavy-duty trucks to Handan, Hebei Province. Cost Reduction: The average price of fuel cell systems has dropped to approximately 1,000 yuan/kW (a 47% decrease YoY), driving an improvement in the economic efficiency of the entire vehicle. III. Regional and Corporate Dynamics: Regional Concentration: The Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong clusters accounted for 78% of the national sales. Performance of Top-Tier Enterprises: Antelope Hydrogen Energy: Delivered and operated 100 hydrogen-powered container trucks for Jiaxing Port Authority; Farizon New Energy Commercial Vehicle: Successively delivered 1,000 Farizon Star Intelligence H9M units to Shanghai Shangqiao; Proton Motor: Signed an export intention agreement with an Australian partner for 20 hydrogen fuel cell heavy-duty trucks. IV. Challenges and Outlook: Existing Bottlenecks: The coverage rate of hydrogen refueling stations is still insufficient, particularly in second- and third-tier cities, which lack supporting hydrogen refueling stations. H2 Outlook: Policy: As the final year of the "14th Five-Year Plan" fuel cell subsidy policy, the uncertainty surrounding the continuity of policies in 2025 will, to some extent, affect corporate production plans. Some enterprises have adopted conservative strategies due to unclear expectations for new policies, with some automakers suspending or reducing their production plans. Taking Beijing as an example, the hydrogen vehicle purchase subsidy in 2025 has decreased by 50% compared to 2021, and the subsidy disbursement cycle has been extended to 18 months, exacerbating the cash flow pressure on vehicle manufacturers and significantly reducing their purchase willingness. Additionally, the demonstration city cluster policy is set to expire in September 2025, while new policies remain unclear, plunging the industry into a "policy vacuum," with enterprises generally postponing their expansion plans. Short-term Drivers: Policy Sprint and Peak Season Effect 1. Subsidy Sprint: 2025 marks the final year of the demonstration city cluster policy, with local governments needing to complete their targets by August (Beijing-Tianjin-Hebei) or December (Zhengzhou, Hebei). It is expected that orders will be concentrated in Q3-Q4. 2. Expansion of Highway Access Policies: Ten provinces nationwide (including Shandong and Shaanxi) have introduced policies for free highway access for hydrogen-powered vehicles. The relaxation of highway access will stimulate demand for logistics and heavy-duty trucks. 3. Seasonal Installation Peak: Historical data shows that June and Q4 are the peaks for production and sales, with a rebound expected after the trough in May. The following figure illustrates the completion status of pilot projects in various target cities. (The above information is sourced from public data and survey data compiled by relevant departments.) V. Conclusion: Short-term Pressure, Expected Bottoming Out and Rebound in H2 1. The decline in May reflects a combination of economic bottlenecks, a policy vacuum, and seasonal fluctuations, rather than a reversal of long-term trends. 2. Core variables in H2: The intensity of the subsidy sprint in city clusters, the progress of hydrogen refueling station commissioning, and the speed of green hydrogen cost reduction. 3. Key periods: If sales do not rebound in June, the probability of a conservative annual forecast (7,000 units) will increase. If policy coordination is strengthened, an optimistic target (15,000 units) remains achievable.

The escalation of conflicts between Israel and Iran has strengthened the market's demand for safe-haven assets. Silver, as a precious metal with both safe-haven and industrial attributes, has become an alternative choice for capital to seek refuge amid the backdrop of gold's trend being suppressed by the rebound of the US dollar index on June 17. At the end of May, the gold-silver ratio once broke through the historical extreme of 1:100, far exceeding the previous long-term average of 60-80, indicating that silver was severely undervalued. The demand for silver's valuation repair has supported its price. The long-term trend of the global silver supply-demand gap provides underlying support for silver prices. As the most-traded SHFE silver contract technically broke through the round-number threshold of 9,000 yuan/kg, it attracted more market capital inflows, pushing silver prices to repeatedly hit new highs. As of around 15:19 on June 18, the most-traded SHFE silver contract rose by 2.35%, closing at 9,045 yuan/kg, and refreshing its historical high since listing to 9,075 yuan/kg...

[200MW/800MWh New-Type ESS Power Station Project Lands in Zhengzhou, Henan] Shenzhen Yichu Energy Technology Co., Ltd. announced on its official account that on June 10, Yichu Energy reached a strategic cooperation agreement with the People's Government of Shangjie District, Zhengzhou City, Henan Province. Both parties plan to jointly invest in and construct a new-type ESS power station project in the local area. According to the agreement, the project will be planned, invested, and constructed based on the local new energy development process, with an expected total construction scale of 200MW/800MWh. After the project is completed and put into operation, it will significantly enhance the peak shaving capacity of the local power grid, effectively improve the consumption level of new energy, and provide strong support for the optimization and stable supply of the regional energy structure.

Due to the pullback in coal prices, industry expectations for the profitability of the coal machinery sector have also decreased. A reporter from Cailian Press, acting as an investor, learned from multiple coal machinery producers that despite the intensified competition in the upstream coal machinery market caused by the decline in domestic coal prices, the coal machinery sector still maintains a relatively high market demand due to the high capacity utilisation rate of coal mines and the requirements for intelligent transformation of domestic coal mines. Meanwhile, the domestic coal machinery sector has intensified its efforts to expand into overseas markets in recent years, seeking new growth points. According to industry insiders, with the in-depth promotion of the "Belt and Road" Initiative, overseas demand for domestic coal machinery equipment is increasing, providing broad development space for Chinese coal machinery enterprises. Domestic coal machinery producers have successfully exported their products to regions such as Russia, Southeast Asia, Latin America, and Africa, achieving remarkable results in overseas market expansion. Coal Prices Pull Back, Domestic Coal Machinery Demand Stable with Prices Falling, Market Concentration Rising The coal market peaked at the beginning of last year, and coal prices have continued to fall this year. The Bohai-Rim Steam-Coal Price Index dropped from 731 yuan/mt at the beginning of the year to 669 yuan/mt, while the long-term agreement price of the Xinhua Coking Coal Price Index fell to around 1,000 yuan/mt, a decline of approximately 300 yuan/mt from the beginning of the year. The profitability of coal enterprises has pulled back, with China Shenhua Energy (601088.SH) reporting a net profit excluding non-recurring gains and losses of 11.705 billion yuan in Q1, a YoY decline of 28.89%, and Shanxi Coking Coal (000983.SZ) reporting a net profit excluding non-recurring gains and losses of 725 million yuan in Q1, a YoY decrease of 19.09%. Coal prices are a leading indicator of the prosperity of the coal machinery sector. A representative from Zhengzhou Coal Mining Machinery Group (601717.SH) stated, "Coal prices affect the production and operation of downstream customers, which in turn may influence their decisions on equipment procurement or maintenance." From the financial statements of coal machinery enterprises and the operating conditions of coal production enterprises, it can be seen that the demand for equipment from downstream coal enterprise customers remains relatively resilient, but product prices have pulled back, having a certain impact on the gross profit margins of coal machinery enterprises. A representative from Chuangli Group (603012.SH) stated, "The annual change in the number of mainframe sales is not particularly significant and basically tends to stabilize." In terms of prices, coal machinery products have indeed been impacted to a certain extent. To maintain market share, enterprises have more or less adopted price reduction strategies, as can be seen from the financial reports of relevant publicly listed firms. In Q1 this year, Tiandi Science & Technology (600582.SH) reported a gross profit margin on sales of 26.31%, a YoY decrease of 4.25 percentage points; Shandong Mining Machinery Group (002526.SZ) reported a gross profit margin on sales of 19.55%, a YoY decrease of 2.26 percentage points. The aforementioned representative from Chuangli Group explained that since last year, there has been a decline in revenue in the coal industry, which has also affected upstream coal machinery enterprises, mainly in terms of machine prices. Coal machinery equipment is a necessity for coal mines, but when the economic benefits of downstream coal mines decline, they may reduce procurement prices, thereby affecting gross profit margins. Additionally, another major reason why the current boom period for the coal machinery industry is longer than that for coal prices is the impact of policies. The intelligent transformation of coal mines has relatively extended the boom period for the domestic coal machinery industry. The "Guiding Opinions on Accelerating the Intelligent Development of Coal" issued by the National Energy Administration in 2020 required that large coal mines should basically achieve intelligence by 2025. The "Notice of the National Energy Administration on Further Accelerating the Intelligent Construction of Coal Mines to Promote High-Quality Development of the Coal Industry" issued in 2024 also set requirements for comprehensively promoting the intelligent development of coal mines under construction and the intelligent transformation of large coal mines and those with severe disasters. According to personnel from Zhengzhou Coal Mining Machinery Group Co., Ltd., currently, about 20-30% of coal mines nationwide have completed intelligent transformation, but the total capacity of mines that have achieved intelligence should have exceeded half. The remaining coal mines, which face greater difficulties in transformation or have poorer operating conditions, will also meet the minimum regulatory requirements for transformation. The intelligent transformation of domestic coal mines is required to be comprehensively promoted; it is just a matter of time. Furthermore, the increased technical requirements for intelligent coal mine equipment have also passively driven up the market concentration of top-tier enterprises. In the list of the top 50 Chinese coal machinery industry enterprises for 2024 released last month, the four major types of equipment produced by the top 50 coal machinery producers—shearers, roadheaders, scraper conveyors, and hydraulic supports—accounted for 91.55%, 87.4%, 76.78%, and 86.08% of the total statistics compiled by the association, respectively. Staff from Zhengzhou Coal Mining Machinery Group Co., Ltd. stated that in recent years, the market concentration of top-tier enterprises has been relatively high, and these enterprises have certain advantages in product quality and stability. Although the overall domestic market demand has stabilized and some demand has slightly declined, the company's market share and bid-winning rate have continued to increase. Export Value of Major Coal Machinery Equipment Doubles in Five Years, with Deeper Exchanges with Countries Along the "Belt and Road" The domestic coal machinery industry has achieved remarkable results in overseas market expansion over the past two years. Multiple coal machinery producers have stated that the international competitiveness of many Chinese coal machinery equipment has reached the world's leading level. The recognition and demand for Chinese coal machinery equipment in overseas markets have continued to grow, especially in countries along the "Belt and Road," where the products and services of Chinese coal machinery enterprises have been widely recognized. Le Bin, the executive director of Shanghai Huaxin Minfu Automatic Control Equipment Co., Ltd. (hereinafter referred to as Huaxin Minfu), who had just attended the 2025 Russia International Coal Mine Machinery Exhibition, told reporters from Cailian Press: "The company has intensified its efforts in overseas market expansion over the past two years, and the overseas sales of its products have continued to increase." The export value of major domestic coal machinery equipment has grown rapidly over the past five years. Customs data indicates that the export value of self-propelled coal (cutting) mining machines, rock drills, or tunnel boring machines (corresponding coal machinery categories: shearers, roadheaders) increased from 2.282 billion yuan in 2020 to 5.251 billion yuan in 2024, marking a 130% increase. The export value of belt-type continuous cargo conveyors or elevators (corresponding coal machinery category: scraper conveyors) rose from 3.873 billion yuan in 2020 to 8.904 billion yuan in 2024, showing an approximate 130% increase. The export value of hydraulic or pneumatic automatic regulating or controlling instruments and devices (corresponding coal machinery category: hydraulic supports) grew from 956 million yuan in 2020 to 1.432 billion yuan in 2024, approaching a 50% increase. These figures demonstrate the strong competitiveness and expanding market share of China's coal machinery equipment in overseas markets. Coal Machinery Export Data for the First Four Months of 2020-2025 (Data Source: Customs Statistical Data Query Platform) Behind the growth in export sales is the active "going global" step taken by domestic enterprises. An overseas exhibition organizer told a reporter from Cailian Press that in the past two years, there has been a significant change in the attitude of mining equipment enterprises towards participating in overseas exhibitions, with the number of enterprises participating in overseas exhibitions increasing year by year. Compared to the pre-pandemic period, the number of Chinese exhibitors at some overseas exhibitions has roughly doubled. This exhibition organizer has organized multiple groups of domestic coal mining machinery production enterprises to participate in coal mining machinery equipment exhibitions in countries such as Russia, South Africa, Australia, and Mexico this year. Le Bin, the executive director of Huaxin Minfu, shared his insights on the company's experience in developing the Russian market, stating that in recent years, there has been a rapid increase in demand for equipment in Russia. Previously, the country's coal machinery equipment was mainly sourced from European and American producers, but in recent years, due to changes in the international situation, most have now shifted to purchasing Chinese equipment. However, there are differences in equipment demand between the two countries. Russian coal enterprises do not have high requirements for intelligence, and their demand leans more towards traditional equipment. It will still take some time to promote certain new-type equipment. The company has been seeking partners in the country to continuously deepen its presence in the market. As domestic coal machinery enterprises rapidly expand in overseas markets, they are also gradually adapting to the differences between domestic and overseas markets. A representative from Zhengzhou Coal Mining Machinery Group stated that the company regards the international market as an important future growth source. However, overseas market demand is not particularly balanced, and most overseas mining is open-pit, resulting in relatively less demand for domestic underground mining equipment. Regarding how to expand overseas markets, Le Bin believes that overseas market promotion is a long-term endeavor that requires patience. It is not possible to open up a market by participating in just one or two exhibitions. Additionally, it is necessary to deeply integrate with the local market, such as by seeking local partners and adapting to the procurement habits of overseas end-user mining enterprises.