[SMM Analysis: High Copper Prices Curb Demand, Copper Scrap Payable Indicators Diverge] No.1 and No.2 copper were affected by maintenance at some smelters, the consumption off-season, and high copper prices, which slowed down procurement demand and caused transaction payable indicators to pull back somewhat. As of mid-August, the payable indicator for No.1 copper transactions pulled back to around 96%-97%, with US No.2 copper at about 95.5% and European No.2 copper mainly at 94.5%-95%. In contrast, given still-tight supply and strong direct substitution properties for copper cathode, bare bright copper found notable downside support, and its quoted payable indicator held at a high of 98.5%-99% without visible loosening.

According to customs statistics, in the first seven months of 2026, the total import and export value of China's goods trade reached 30.13 trillion yuan, a YoY (the same hereinafter) increase of 17.3%. Exports were 17.44 trillion yuan, up 14%; imports were 12.69 trillion yuan, up 22%. In July, the total import and export value of China's goods trade was 4.66 trillion yuan, up 19.2%. Exports were 2.71 trillion yuan, up 17.8%; imports were 1.95 trillion yuan, up 21.2%. By trade mode, in the first seven months, China's ordinary trade imports and exports reached 18.13 trillion yuan, up 10.2%; processing trade imports and exports stood at 5.81 trillion yuan, up 26.3%; bonded logistics imports and exports were 5.18 trillion yuan, up 40.8%. By trading partner, in the first seven months, China's trade with ASEAN totaled 5.14 trillion yuan, up 20%; with the EU, it was 3.67 trillion yuan, up 9.5%; with the US, it was 2.38 trillion yuan, down 1.6%. Over the same period, China's combined imports and exports with Belt and Road partner countries amounted to 15.36 trillion yuan, up 15.5%. By type of enterprise, in the first seven months, private enterprises' imports and exports stood at 17.16 trillion yuan, up 17.2%; foreign-invested enterprises' imports and exports were 8.78 trillion yuan, up 17.6%; state-owned enterprises' imports and exports reached 4.14 trillion yuan, up 17.3%. By key commodities, On the export side, in the first seven months, China exported 11.12 trillion yuan of mechanical and electrical products, up 21.2%; labor-intensive products 2.37 trillion yuan, down 1.4%; agricultural products 429.69 billion yuan, up 3.7%. On the import side, in the first seven months, China imported 5.31 trillion yuan of mechanical and electrical products, up 29.7%; 283 million mt of crude oil, down 13.2%; and 904.1 billion yuan of agricultural products, up 7.4%. Based on data released by the General Administration of Customs, SMM has compiled the import and export situation of some metal industry products as follows: Exports: In July 2026, rare earth exports were 4,223.5 mt, a YoY decrease of 29.5% from July 2025 . Cumulative exports for January-July 2026 were 34,706.3 mt, a YoY decrease of 10% from January-July 2025. In July 2026, steel exports were 10.121 million mt, a YoY increase of 2.9% from July 2025 . Cumulative exports for January-July 2026 were 6,499.5 mt, a YoY decrease of 4.4 % from January-July 2025. In July 2026, exports of unwrought aluminum and aluminum semis were 643,000 mt , a YoY increase of 18.6% from July 2025 . In January-July 2026, cumulative exports were 4.039 million mt, a YoY increase of 16.7% from January-July 2025. Imports: In July 2026, iron ore and concentrates imports were 108.085 million mt, a YoY increase of 3.3% from July 2025 . In January-July 2026, cumulative imports were 736.841 million mt, a YoY increase of 5.9% from January-July 2025 . In July 2026, copper ore and concentrates imports were 2.379 million mt, a YoY decrease of 7.1% from July 2025 . In January-July 2026, cumulative imports were 16.985 million mt, a YoY decrease of 1.8% from January-July 2025 . In July 2026, coal and lignite imports were 42.728 million mt, a YoY increase of 20% from July 2025 . In January-July 2026, cumulative imports were 268.109 million mt, a YoY increase of 4.3% from January-July 2025 . In July 2026, rare earth imports reached 9,451.3 mt, a YoY decrease of 1.8% from July 2025 . In January-July 2026, cumulative imports reached 63,323.0 mt, a YoY decrease of 65.5% from January-July 2025 . In July 2026, steel imports reached 445,000 mt, a YoY decrease of 1.5% from July 2025 . In January-July 2026, cumulative imports reached 3.14 million mt, a YoY decrease of 10.1% from January-July 2025 . In July 2026, imports of unwrought copper and copper semis were 425,000 mt, a YoY decrease of 11.5% from July 2025 . In January-July 2026, cumulative imports were 2.915 million mt, a YoY decrease of 6.2 % .

SMM, August 7: LME copper prices continued to rise this week. LME copper opened on Monday at $13,850/mt before moving steadily higher, posting a WoW gain of 2.8% to return to a historically high range. Although copper prices were already elevated, payable indicators for copper scrap outside China still showed considerable resilience. Currently, available copper scrap inventories in major consuming regions—including China, Japan, South Korea and India—are generally low, and supply from outside China remains tight, lending firm support to copper scrap prices. In terms of pricing, the quote indicator for bare bright copper outside China largely held at 98.5%–99%, No.1 copper around 97%–98%, and No.2 copper concentrated in the 94%–96% range. On the transaction side, high copper prices boosted suppliers' willingness to sell outside China, but with spot cargoes in short supply, suppliers still showed a strong tendency to hold prices firm. Downstream, against a backdrop of historically high copper prices, enterprises mainly made just-in-time procurement to meet production needs, with limited willingness to actively add inventory. Overall, market transactions improved somewhat WoW, but volume growth remained constrained by both high prices and tight supply. At the same time, the impact of tight copper ore supply is gradually spilling over into the secondary resource market. Tight supply of concentrates has further heightened market attention and buying demand for copper scrap, while copper scrap itself has limited supply elasticity and is unlikely to expand rapidly in the short term. With both ore and secondary supply tightening in tandem, payable indicators for copper scrap outside China are receiving relatively firm support. Looking ahead to next week, with copper scrap supply outside China expected to stay tight and social inventory in major consuming regions holding at low levels, payable indicators for copper scrap outside China are likely to stay high in the near term. If copper prices continue to consolidate at highs, suppliers' willingness to sell may strengthen further, but with downstream procurement dominated by just-in-time demand, the improvement in overall transaction volumes is expected to remain relatively limited.

The latest data released by the General Administration of Customs on August 7 showed that China's copper ore and concentrate imports were 2.379 million mt in July, with cumulative imports of 16.985 million mt from January to July, down 1.8% YoY. China's imports of unwrought copper and copper semis were 425,000 mt in July, with cumulative imports of 2.915 million mt from January to July, down 6.2% YoY. On the export side, China's exports of unwrought aluminum and aluminum semis were 643,000 mt in July, with cumulative exports of 4.039 million mt from January to July, up 16.7% YoY. Detailed data are as follows (unit: 100 million yuan): Note: "Flash" data refers to preliminary monthly aggregates from customs statistics and is subject to revision based on final monthly data after correcting errors in the original statistical source materials. (Compiled by Wenhua)

On August 4, the stock price of JCHX fell. As of 10:38 am on August 4, JCHX dropped 0.54% to 71.17 yuan per share. In terms of news, the monthly investor relations activity summary (July 2026) announced by JCHX on August 3 shows: 1. Project Progress of the San Matias Copper-Gold-Silver Mine in Colombia The Environmental Impact Assessment (EIA) for the Alacran Copper-Gold-Silver Mine has received formal approval from Colombia's National Environmental Licensing Authority (ANLA). As of now, the technical, environmental, and social impact assessment process involving local communities, authorities, and government technical agencies has been satisfactorily completed. In the subsequent development and construction of the Alacran Copper-Gold-Silver Mine, the company will fully implement the social and economic protection requirements of the environmental permit, always adhering to the core principles of human rights protection, risk prevention, and collective well-being. By establishing a long-term communication and sharing mechanism, it will ensure that project operations coexist harmoniously with local communities for mutual benefit and win-win outcomes. According to the feasibility study (FS) for the Alacran Copper-Gold-Silver deposit completed in December 2023 (adopting the NI 43-101 standard), the Alacran Copper-Gold-Silver mine project is an open-pit mining and processing project, with an estimated investment of $420.4 million and a designed ore volume of 97.9 million tons within the pit limit. The construction period is 2 years, and the mine life is expected to be 14.2 years after completion. The project is expected to cumulatively recover 797 million pounds of copper, 550,000 ounces of gold, and 5.35 million ounces of silver. 2. Technological Transformation of the Lubambe Copper Mine Project Since completing the acquisition of the Lubambe Copper Mine in Zambia in H2 2024, the company has continuously strengthened its operation and management, while advancing geological exploration, mining production, beneficiation production, and the renovation of underground auxiliary systems. As the technological transformation plan is gradually implemented, the operational efficiency of the Lubambe Copper Mine will be continuously improved. 3. Remaining Recoverable Reserves and Seasonality of the Dikulushi Mine The company currently holds two mining rights (PE606 and PE13085) in the Katanga Province of southeastern DRC through its subsidiaries Jinjing Mining and Yuanjing Mining, with a mining right area of 68.77 square kilometers. The Dikulushi Copper Mine, which commenced production in December 2021, is part of the PE606 mining right. As of the end of December 2025, the Dikulushi Copper Mine has retained ore reserves of approximately 430,000 tons, with an average copper grade of 7.58%. Since the commencement of production at the Dikulushi Copper Mine, the company has continuously extended the mine's life cycle through simultaneous production and exploration, with significant results: the 2021 annual report disclosed a remaining mining life of 3.58 years, while the 2025 annual report disclosed a remaining mining life of 2.98 years. In the future, this approach of simultaneous production and exploration will continue. The production and sales of the Dikulushi Copper Mine take into account the local rainy season from November to April, and sales are not evenly distributed throughout the year. Generally, the rainy season affects the condition of peripheral roads around the mining area, thereby impacting product transportation, so sales are relatively lower during the rainy season. 4. Expansion and Construction of the Eastern Zone of the Lonshi Copper Mine According to the "Feasibility Study on the Eastern Zone Mining and Processing Project of the Lonshi Copper Mine in DRC" released by the company in January 2025, the eastern zone will adopt underground mining, with a designed annual mining scale of 2.5-3.5 million tons and a planned infrastructure period of 4.5 years. It will reach full production in the 4th year after commissioning, with a total service life of 12 years. To balance the service cycles of the eastern and western zones, the western zone will undergo year-by-year production cuts after the eastern zone commissions, with a combined maximum annual ore output of 4.5 million tons from underground mining in both zones. After the eastern zone reaches full production, the combined annual copper metal production of the eastern and western zones of the Lonshi Copper Mine will be approximately 100,000 tons. 5. Pricing Model of Mining Services Business The pricing model for mining services is cost-plus, based on the mine's resource endowment, technical difficulty of mining, etc., using industry-standard operational efficiency and operating costs as references for pricing. Generally, it is not linked to mineral resource product prices. 6. Listing on the Hong Kong Stock Exchange To further advance the company's global strategic layout, build an international capital operation platform, broaden diversified financing channels through international capital markets, further enhance the company's comprehensive competitiveness and continuously increase its international influence, and strengthen its core competitiveness, the company is planning to issue overseas-listed shares (H shares) and list on the Main Board of The Stock Exchange of Hong Kong Limited. The company is actively discussing the relevant work for this H-share issuance and listing. The specific details have not yet been determined. Once the specific plan is finalized, the H-share issuance and listing still need to be submitted to the company's board of directors and shareholders' meeting for deliberation, and require filing, approval, and/or clearance from relevant government and regulatory bodies such as the China Securities Regulatory Commission, the Hong Kong Stock Exchange, and the Securities and Futures Commission of Hong Kong. There is significant uncertainty as to whether the H-share issuance and listing can pass the deliberation, filing, and review procedures and ultimately be implemented. 7. Development Potential of Mining Services Business Adopting a target market strategy focused on "large markets, large owners, large projects," the company, on the one hand, consistently implements the philosophy of providing value-added services to mine owners with leading technology, gaining their recognition through high-quality mine construction services, and subsequently undertaking later mining operation and management business. On the other hand, by enhancing mine design and technology R&D, it has initially formed an integrated comprehensive business model encompassing mine construction, mining operation management, and mine design and technology R&D. This model can more effectively meet the needs of owners for mine construction and mining operations, better achieve a rapid and stable transition from infrastructure to production, shorten construction cycles, achieve rapid commissioning and full production, and save infrastructure investment for mine owners. At the same time, the development space for the company's mining services business will become broader. In the future, the growth of the mining services business will mainly come from two directions: first, newly undertaken external projects; second, incremental expansion of existing projects — large mines typically have multiple ore bodies, and their development is often carried out in stages. Specifically, when the first phase progresses to a certain stage, construction of the second phase will commence. During this process, owners will actively seek high-quality service providers. 8. Construction Progress of the Northern Mining Zone of the Phosphate Ore Mine The Liangchahe Phosphate Ore Northern Mining Zone has a production scale of 500,000 t/a and is currently under construction, aiming to be completed and put into production by the end of 2028. 9. View on the Trend of Copper Prices Looking at the current and upcoming period, the copper market faces a pronounced "tight balance" pattern. Supply side, production release is strictly limited by the dual constraints of declining average copper ore grades globally and insufficient long-term capital expenditure, and disruption risks at the mine end are intensifying. Demand side, the global energy transition (new energy sector) and infrastructure construction in emerging markets provide sustained and resilient demand support. Against this backdrop, copper prices are expected to drift higher over the medium and long term. 10. Future Development Strategy of the Company On the basis of maintaining stable development of its existing mine development business, the company relies on its accumulated advantages in technology, management, and industry to actively expand into the resource development sector, gradually exploring a development path of "mining services + resources." Driven by the dual engines of "mining services" and "resource development," it promotes the comprehensive transformation from a single mining services enterprise to a group-oriented mining company. 11. Competitive Advantages of the Company in the Industry With its deep expertise accumulated in mine construction and mining operation management, the company extends along the mining industry chain into areas such as mine resource development, design and R&D, and equipment manufacturing, steadily enhancing its integrated service and control capabilities for mining services. It can feed back experiences gained during construction and problems identified through the shortest channels and at the lowest cost to the development consulting and design phases, and incorporate the company's latest scientific research achievements into its design business to optimize design plans, enabling scientific and technological innovations to rapidly transform into productive forces applied in the resource development sector. This can better shorten the construction cycle of resource development, reduce unit production costs, and increase the safety margin in market competition for mineral products. Through the advantages of integrated operations, it improves resource project development efficiency, extends project life, and maximizes the economic value of resource projects. 12. Are There Plans for Further Mine Acquisitions? From a long-term strategic perspective, the company focuses on resource projects that match its scale and have value investment potential. Currently, the company already owns five mine resource projects, and therefore prefers to achieve reserve growth through exploration work on existing projects, viewing this as a more economical way to acquire resources. At the same time, leveraging its advantages in mine construction and operation, the company will also explore expanding its business through equity participation plus operation. In terms of performance, JCHX's Q1 2026 report disclosed on April 28 showed that the company achieved total operating revenue of 3.414 billion yuan, up 21.45% YoY, and net profit attributable to shareholders of 601 million yuan, up 42.55% YoY. For the increase in Q1 operating revenue and net profit, JCHX's announcement stated that it was mainly due to increased sales of mineral resource products (copper cathode, copper concentrates, iron ore) and rising copper product prices during the period. JCHX's 2025 annual report disclosed that the company's 2025 revenue was 13.894 billion yuan, up 39.74% YoY, and net profit attributable to shareholders was 2.339 billion yuan, up 47.66% YoY. JCHX stated in its 2025 annual report that the 39.74% increase in operating revenue and the 47.66% increase in net profit attributable to shareholders year-on-year were mainly due to the ramp-up and efficiency improvement of its captive mine projects in the mine resource development business during the reporting period. A research report from China Post Securities commenting on JCHX's performance shows that the resource segment experienced volume growth, while the mining services business was a slight drag. By business segment, in 2025, the mine resource business achieved revenue/gross profit of 6.986/3.121 billion yuan, up 117.67%/130.20% YoY, and the mining services business achieved combined revenue/gross profit of 6.613/1.515 billion yuan, up 1.06%/-13.47% YoY. The mine business saw both volume and price increases, while the decline in mining services was mainly due to the Lubambe Copper Mine being converted into an internal unit after acquisition, reducing recognized revenue and gross profit, and some projects being affected by declining operational volume/production ramp-up. Volume: In 2025, copper metal sales were 92,700 tons, up 88.16% YoY, and phosphate ore sales were 357,400 tons, down 1.00% YoY. The increase in copper metal production and sales was mainly due to the Lonshi Copper Mine reaching full production and releasing output, with Dikulushi and Lonshi Copper Mines exceeding production plans, and the Lubambe Copper Mine being consolidated for the full year. In Q1 2026, copper metal production and sales were 22,400/18,100 tons respectively, mainly affected by grade decline and the rainy season. Price: In 2025, copper prices rose 7.62% YoY, and in Q1 2026, they rose 36.72% YoY. Production in 2026 is expected to grow steadily, with huge expansion potential in the long term. In 2026, the company's captive resource projects plan to produce 100,300 tons of copper metal (equivalent) and sell 99,700 tons of copper metal (equivalent), and produce and sell 300,000 tons of phosphate ore; the Istanex Mountain magnetite project plans to produce and sell 1.25 million tons of iron ore concentrates. In the long term, the northern mining zone of the Liangchahe Phosphate Ore Mine is expected to be put into use by the end of 2028, with annual capacity expanding from 300,000 tons to 800,000 tons; the eastern zone of the Lonshi Copper Mine, after commissioning, can expand annual production from 40,000 tons to 100,000 tons; the Lubambe Copper Mine is under technological transformation, and after completion, it is expected to produce 35,000 tons of copper per year; the company's equity stake in the San Matias Copper-Gold-Silver Mine has reached 97.5%, and it is in the EIA approval stage. Risk warning: price fluctuation risk; project progress falling short of expectations risk; downstream demand falling short of expectations risk; model assumptions not aligning with reality; policy exceeding expectations risk, etc.

On July 30, Chengtun Mining’s share price declined. As of 13:22 on the 30th, Chengtun Mining was down 5.03% at 10.2 yuan per share. On the news front: Chengtun Mining’s 2026 semi-annual report released on July 30 showed that in H1 2026, the company achieved total operating revenue of 19.264 billion yuan, up 39.56% YoY; net profit attributable to shareholders of 1.804 billion yuan, up 71.37% YoY; and net profit after deducting non-recurring items of 1.913 billion yuan, up 64.63% YoY. Regarding its core business, Chengtun Mining stated in its semi-annual report that the company was committed to the development and utilization of energy metal resources, especially metal varieties required for new energy batteries, while also expanding into precious metals such as gold. The company focused primarily on copper, nickel, cobalt, and gold, with its main business types being energy metals, base metals, metal trading, and others. Chengtun Mining’s semi-annual report showed that in H1 2026, the company’s DRC copper-cobalt segment delivered stable output, with copper production reaching 132,200 mt in metal content, of which Brother Mining (BMS) achieved copper production of 74,400 mt in metal content. BMS’s specialized energy management system took shape. The Kalongwe project advanced in a coordinated manner in optimizing the production system and engineering construction; multiple technological transformation initiatives reduced material consumption, and optimized reuse of return water lowered energy consumption and enabled refined cost control. The copper-cobalt smelting projects CCR and CCM maintained stable production and operations. The company also carried out exploration in prospective areas and extension-style resource M&A to strengthen the foundation for sustainable development. In the Indonesia nickel segment, Youshan Nickel maintained stable production and operations amid global nickel market price consolidation, achieving operating revenue of 1.663 billion yuan; by improving management, optimizing processes, and strengthening industry-chain synergies, it successfully withstood market shocks. Phase I capacity of the Guizhou project was gradually released, process flows became increasingly mature, and product quality improved steadily; Phase II of the project carried out trial production. Huajin Mining operated steadily, achieving gold sales of 156.31 kg and operating revenue of 145 million yuan. During the reporting period, operating revenue from production and manufacturing was 18.756 billion yuan, accounting for 97.36% of the company’s total revenue, up 2.92 percentage points YoY, and it continued to maintain high-quality operations. Regarding the status of its core businesses, Chengtun Mining’s semi-annual report showed: 1. Energy Metals Business. During the reporting period, the company’s energy metals business achieved revenue of 14.543 billion yuan, with a gross margin of 27.03%, basically in line with the gross margin in the same period last year. In H1 2026, output of copper products was 133,200 mt in metal content, cobalt products 3,700 mt in metal content, and nickel products 21,200 mt in metal content. ( 1) Copper-Cobalt Segment ① During the reporting period, the company’s DRC copper-cobalt segment delivered stable output, with copper production reaching 132,200 mt in metal content, of which Brother Mining achieved 74,400 mt in metal content. The company addressed power shortage issues through a multi-type energy mix, building a modern energy system that is specialized, intensive, and integrated, driving synchronized growth in operating efficiency and scale effects. ② Dali Sanxin actively advanced mine construction and aimed to achieve trial production in Q4. At present, land and other related procedures had been completed, shaft construction was basically completed, and surface civil works construction was being actively advanced. ③ In April 2026, the company disclosed that it planned to acquire a 50% equity interest in Nkoyi Leopard Mining and Investment Limited to indirectly obtain a 30% interest in a large, specific copper-cobalt mining right. The project completed the equity closing in July 2026, and subsequent cooperation matters regarding the mine were progressing normally. During the reporting period, the company actively sought resource security for sustainable development through exploration in prospective areas and by pursuing extension-style M&A and cooperation for copper ore resources. (2) Indonesia Nickel Segment During the reporting period, the global nickel market fluctuated amid the interplay of Indonesia policy adjustments and rising cost side pressures. Youshan Nickel maintained stable production and operations, achieving operating revenue of 1.663 billion yuan and demonstrating strong operating resilience. (3) Deep Processing and Materials Segment ① During the reporting period, Keli Xin’s operating revenue increased by 25.6% from the same period last year, with rapid growth in operating performance. Meanwhile, the company continued to expand its product lines and enrich product models to meet different battery systems’ requirements for high voltage and high safety, effectively improving client response speed and product compatibility. ② Zhonghe Nickel optimized process technologies, further advanced refined on-site production management, improved recovery rates of valuable metals, and enhanced the production system’s adaptability to multi-channel raw material sources. ③ Phase I capacity of the Guizhou project was gradually released, process flows became increasingly mature, and through various refined control measures, it ensured continuous and stable production operations, with product quality improving steadily. Phase II of the Guizhou project smoothly entered trial production. 2. Base Metals Business. During the reporting period, the base metals business achieved sales revenue of 4.213 billion yuan, with a gross margin of 9.50%, up 5.61 percentage points from the same period last year. (1) During the reporting period, Chengtun Zinc & Germanium operated steadily, with notable results in comprehensive recovery; indium and germanium recovery rates both improved. Technical breakthroughs achieved cost reductions in auxiliary material and a record high in silver recovery indicators; multi-dimensional cost reduction and efficiency enhancement significantly lowered logistics and inventory expenses, and overall production operations remained stable. (2) During the reporting period, the company actively advanced the orderly construction of domestic and overseas mines. Construction of the Baoshan Hengyuan Xinmao mining engineering project progressed steadily; Huajin Mining operated steadily, selling 156.31 kg of gold and achieving revenue of 145 million yuan. 3. Metal Trading Business and Others. During the reporting period, the metal trading business achieved operating revenue of 307 million yuan. At present, the scale of the company’s core businesses continued to grow steadily, the proportion of the trading business gradually declined, and the business structure continued to be optimized, achieving solid results on the path of high-quality development. In addition, Chengtun Mining announced on July 23 that the cumulative deviation in the increase of its stock’s closing price exceeded 20% over three consecutive trading days on July 21, July 22, and July 23, 2026, constituting abnormal fluctuations in stock trading. After verification, the company found no media reports or market rumors that needed clarification or response, and found no other material events that could have a significant impact on the company’s share price. As of the date of this announcement, other than information publicly disclosed by the company in designated media, there was no other material information that should have been disclosed but had not been disclosed, including but not limited to planning major asset restructurings involving publicly listed firms, share issuances, major transactions, business restructurings, share repurchases, equity incentives, bankruptcy reorganizations, major business cooperation, introduction of strategic investors, and other major matters. The company’s current operating conditions were normal, and there had been no material changes in the internal and external operating environment. Chengtun Mining announced on July 9 that the transaction in which its wholly owned great-grand subsidiary Preeminence Holdings Limited (Preeminence) acquired a 50% equity interest in Nkoyi Leopard Mining and Investment Limited (Nkoyi) had made new progress. As of the date of this announcement, Nkoyi had completed the change of its shareholder register, and all registration and filing procedures for changes involving directors and senior management in this transaction had been completed. Preeminence had now obtained a 50% equity interest in Nkoyi, and the company had, in accordance with the Share Purchase Agreement under the transaction, paid the equity acquisition consideration to the target company. In Huafu Securities’ nonferrous metals weekly report released on July 26, its commentary on industrial metals mentioned: Industrial metals: tight inventory coupled with geopolitical tailwinds lifted copper prices strongly. From a macro perspective, the Middle East US-Iran geopolitical conflict continued to recur. Multiple parties mediated to advance ceasefire talks, but differences between the two sides were difficult to bridge quickly, and the market continued to trade the potential risk of disrupted shipping through the Strait of Hormuz. Once passage through the waterway is restricted, it would not only push up international crude oil prices and raise global smelting and logistics costs, but also affect outbound shipments of Middle Eastern sulfur, directly disrupting the supply of raw materials for ex-China hydrometallurgical copper production, continuously injecting a geopolitical risk premium into copper prices; repeated changes in news flow also amplified intraday fluctuations in LME copper. This week, tensions in the US-Iran Strait of Hormuz situation remained elevated, and shipping risks in the strait continued to affect market sentiment. Individual stocks: Copper—watch JCC, CMOC, Chengtun, Zangge, JCHX, and Beitong; for H-shares, watch NFC and Minmetals, among others. Aluminum—watch Tianshan, Hongchuang, Yunnan Aluminum, Shenhuo, Huatong, Hongqiao, and Zhongfu, among others. Citigroup recently published a report stating that it held a constructive view on the copper market over the coming weeks, maintaining its expectations unchanged for a 0–3 month short-term copper price target of $14,500 per mt and a year-end target of $15,000 per mt. Citigroup noted that over the past month, despite a pullback in speculative long positions and overall weakness in commodities, copper prices remained resilient. While demand growth remained weak, the supply side faced greater pressure. Global mine supply remained under pressure, while year-to-date scrap supply appeared to respond weakly to high prices. Chilean mine supply risks and sulfur supply constraints could, at the margin, lift market sentiment. A CITIC Securities research report said that multiple positive factors drove copper prices to again challenge $14,000, and that core drivers such as declining inventory and supply disruptions were expected to persist; most potential tariff paths remained positive for copper, and under a neutral assumption, copper prices were expected to challenge $15,000 within the year. The copper sector was still at the beginning of a valuation recovery, and the formation of expectations for price hike and improvements in market sentiment would continue to drive valuation recovery.