[SMM Analysis]Secondary Aluminum Market Remains Strong in Short Term Focus on Demand Recovery and Policy Implementation

In the low-altitude sector centered around eVTOLs, battery companies have made their moves earlier than the policy signals. It is worth noting that power batteries for low-altitude aircraft have all-round requirements for battery performance, with the difficulty level several orders of magnitude higher than that of batteries for EVs. Therefore, cooperation and installation in fields such as eVTOLs can better demonstrate a company's R&D and manufacturing capabilities. "Farasis Energy's eVTOL batteries have undergone over ten thousand real-world tests and validations, and have entered Phase IV certification for aviation safety by the US Federal Aviation Administration (FAA)." Recently, at the Electric Aviation and Next-Generation Battery Technology (CIBF2025 Shenzhen) Symposium jointly hosted by the Power Battery Application Branch and China Battery Network, Jiang Weiran, R&D Vice President and Dean of the R&D Institute of Farasis Energy (Ganzhou) Co., Ltd., stated. Thirteen Years of Layout: eVTOL Batteries to Be Supplied in Bulk As one of the pioneers in the global manufacturing of green aviation power batteries, Farasis Energy began its R&D layout for eVTOL power batteries in 2012, completed sample supply in 2020, achieved mass production and installation of its first-generation products and verification of its second-generation product system in 2022, and assisted its customers in becoming the first eVTOL company to obtain FAA airworthiness certification. "In 2022, we collaborated with low-altitude aircraft companies in China, Europe, Southeast Asia, and South America to verify our second-generation aviation battery system, and in 2023, we became the world's first battery company to deliver eVTOL products to terminal customers." Jiang Weiran stated that in 2024, Farasis Energy's eVTOL batteries have been delivered to the top five domestic complete aircraft customers. Currently, the product has also received orders from well-known domestic research institutes, AeroHT Technology, and several other leading domestic low-altitude aviation enterprises. The outstanding performance of Farasis Energy's power batteries for the low-altitude sector, particularly in the eVTOL field, has also garnered widespread attention in the flying car industry. In March this year, Farasis Energy received a nomination development notice from a leading domestic flying car enterprise. According to informed sources, after a comprehensive analysis of Farasis Energy's quality assurance system, technological R&D, production organization capabilities, and other factors, the flying car R&D enterprise decided to choose Farasis Energy as the supplier of high-voltage power batteries, high-voltage connectors, and low-voltage connectors for its next-generation principle prototypes. During the speech, Jiang Weiran also revealed that this year, Farasis Energy will supply batteries in bulk to leading global eVTOL customers. Maximizing Performance: Farasis Energy Creates "6H Technology" Low-Altitude Power Batteries "We now feel that the competition in the EV power battery sector is fierce, with numerous demands. However, in fields such as eVTOLs, not only are there numerous demands, but even more are required. It can be said that all key performances need to be maximized."Jiang Weiran stated that low-altitude batteries must meet higher requirements than EV batteries in terms of safety performance, energy density, cycle life, low-temperature performance, charging, high power, and flexible assembly. "It's not about achieving a certain threshold for a single indicator; rather, all indicators must meet very high requirements." Taking the eVTOL battery with a mass-produced energy density of 350Wh/kg as an example, when enhancing energy density, it also achieves over 10,000 actual test cycles under eVTOL flight conditions, with excellent low-temperature performance and charge-discharge rates. It supports 8C continuous long-pulse discharge for 60 seconds at 30% SOC, and 15-minute rapid charging meets quick energy replenishment needs for passenger boarding and disembarking, enabling it to handle high-intensity eVTOL operating conditions and pass FAA aviation safety certification. Based on a profound understanding of low-altitude power batteries and application scenarios, Farasis Energy has proposed a 6H low-altitude battery system characterized by "high safety, high energy density, high charge-discharge rate, wide temperature range operation, long cycle life, and high-quality standards": High Safety: "When flying in the sky, batteries cannot have any accidents. There is zero tolerance for battery safety risks, so the requirements for battery safety, whether intrinsic or assembly safety, are extremely high." According to Jiang Weiran, Farasis Energy has designed a very strict product manufacturing process in terms of material system safety, battery cell intrinsic safety, assembly safety, and software control safety. Currently, the company's eVTOL batteries have met safety certifications in major international markets such as China, the US, and Europe, reaching international battery safety standards. After undergoing nail penetration tests, the battery cells show no significant changes in voltage and temperature, and there is no open flame after 24 hours. By adopting new-type phase change material technology, the surface temperature of thermally runaway battery cells can be continuously suppressed below 100°C for over 5 minutes. The BMS system adopts a dual-redundancy architecture design, ensuring the integrity of the discharge circuit and system-level safety and reliability even in the event of a single-point failure. High Energy Density: Farasis Energy's second-generation eVTOL semi-solid battery cells are expected to enter small-batch production soon, with energy density increased to 320Wh/kg and long-pulse power reaching up to 10C. According to Jiang Weiran, eVTOLs equipped with Farasis Energy's second-generation batteries have a maximum takeoff weight of over 2.4 mt, a payload of nearly half a mt, and can carry 5 passengers. In addition, the second-generation Plus version of eVTOL semi-solid battery cells is expected to enter mass production in 2026, with an energy density greater than 350 Wh/kg. Farasis Energy is systematically advancing the R&D of third-generation semi-solid and all-solid battery cells, targeting an energy density of 400Wh/kg, with various testing work progressing steadily. High Charge-Discharge Rate: It possesses ultra-high-performance charge-discharge characteristics, fully adapting to the operational needs of eVTOLs under all conditions. At an ambient temperature of 25°C, it supports continuous discharge at a high C-rate of 8C, with a capacity retention rate >94% and a temperature rise of the battery cell Wide Temperature Range Operation: It can operate stably and efficiently within a temperature range of -40°C to 60°C, with a capacity retention rate ≥90% at -20°C. It is fully compatible with complex operating conditions across multiple seasons, flight altitudes, and geographical (spatiotemporal) regions. With its rapid recharging capability, it can efficiently respond to sudden weather conditions, ensuring the safe takeoff and landing of aircraft. Long Cycle Life: By constructing a highly stable pole piece structure, optimizing the kinetic balance design of the anode and cathode, and reserving sufficient expansion space for silicon particles, an ultra-long cycle life for the battery cell is achieved. High-Quality Standards: Through PPM-level manufacturing quality control, comprehensive environmental factor control, and PPB-level process precision control, a PPB-level production system is established to ensure that the performance, safety, and lifespan indicators of battery products comprehensively meet industry benchmark levels. Jiang Weiran pointed out that batteries for the low-altitude economy must achieve zero defects. This not only requires PPB-level production control but also stricter measures. For the eVTOL battery production line, Farasis Energy has implemented very stringent upgrades. Each production segment not only undergoes regular inspections but is also equipped with CT detection and full inspection of batteries before they leave the production line, ensuring that every battery cell is flawless. Based on the 6H development, design, and manufacturing philosophy, Farasis Energy has not only gained recognition from leading domestic and overseas aircraft customers in the eVTOL battery field but also holds a leading advantage in various application scenarios for its low-altitude batteries, including logistics transportation, agricultural plant protection, surveying and mapping, and special purposes. According to Jiang Weiran, Farasis Energy's dedicated semi-solid battery cells developed for drones used in logistics transportation, agricultural plant protection, and other fields will also enter the stage of mass production, thereby taking the lead in forming a low-altitude power solution matrix covering multiple fields within the industry. Pouch Battery: A Key Choice for Low-Altitude Power Applications Low-altitude flight has high weight requirements. For batteries, the current R&D direction is to provide high energy while reducing their own weight. Jiang Weiran pointed out that the lightweight advantage of pouch batteries is crucial for the low-altitude economy: "When providing the same amount of energy, the lighter design of pouch batteries can significantly improve overall energy efficiency. Based on the first principles of the low-altitude industry, we believe that pouch batteries are a key choice for low-altitude power battery applications." In addition, looking at low-altitude flight designs both domestically and overseas, there are significant differences in models, sizes, and specifications. Pouch batteries offer excellent flexibility, adapting to different aircraft models and matching customers' varying power and voltage platforms. It is understood that, in response to the internal design of eVTOLs, to further enhance adaptability, Farasis Energy has also planned and designed modules suitable for aircraft, compatible with the main cabin requirements of different aircraft, and capable of quickly meeting the needs of different customers for high-performance, high-safety aviation batteries. From the perspective of battery technology iteration, semi-solid-state batteries and solid-state batteries are the future direction and the key batteries required for aviation aircraft such as eVTOLs. Judging from the current technological approaches of various companies, semi-solid-state and solid-state batteries mostly adopt the pouch form. "Whether it's semi-solid-state, solid-state batteries, or aviation batteries, pouch batteries are the preferred choice," added Jiang Weiran. "Our overseas eVTOL customers conducted numerous tests when selecting batteries and ultimately chose Farasis Energy's pouch batteries. This decision was made by the company based on the first principles and a comprehensive consideration of various performance indicators required for eVTOLs."

[Cui Dongshu: National Passenger Vehicle Industry Inventory Reached 3.5 Million Units at the End of April 2025] Cui Dongshu, Secretary General of the China Passenger Car Association, stated in an article that the national passenger vehicle industry inventory reached 3.5 million units at the end of April 2025, an increase of 150,000 units MoM and 120,000 units compared to April 2024, indicating a continuous rise in industry inventory throughout 2025. The current policy initiatives have brought about overall optimism among producers, with high production levels after the Chinese New Year and relatively active wholesale activities by manufacturers, leading to the re-establishment of industry inventory. April reached a historical high for the end of April. As sales gradually transition into the off-season from May to July, sales are expected to decline over the next three months. Therefore, based on the inventory at the end of April 2025 and future sales projections, the existing inventory is estimated to support future sales for 57 days, slightly increasing the overall inventory pressure compared to 55 days at the end of April 2023 and 52 days at the end of April 2024. [Rio Tinto and Codelco to Collaborate on Developing the Maricunga Salt Lake Lithium Project, Planning to Invest Up to $900 Million in the Joint Venture] Rio Tinto and Codelco announced on May 19 the signing of a binding agreement to form a joint venture to develop and operate the Maricunga salt lake lithium project in Chile. The transaction is expected to be completed by the end of Q1 next year. According to the agreement, Rio Tinto will acquire a 49.99% stake in Maricunga Salt Lake Ltd. Codelco holds the licenses and mining concessions for the Maricunga salt lake through this company. Rio Tinto stated that it will invest an initial $350 million in Maricunga Salt Lake Ltd. for subsequent research and resource analysis to advance the project until the final investment decision. Once the decision to proceed with the project is made, Rio Tinto will invest $500 million in the company to cover construction costs. If the joint venture achieves the goal of delivering the first batch of lithium by 2030, Rio Tinto will also inject an additional $50 million into the company. (Financial Associated Press) [Wuhan Landian: Currently, the Company's Low-Power Equipment Boasts Stability and High Precision] Wuhan Landian released a record of investor relations activities. Low-power battery testing equipment is mainly used for testing 3C consumer electronics battery cells and battery materials. Common consumer electronics batteries currently include laptop batteries, mobile phone batteries, drone batteries, and other consumer batteries. The main customers for the company's low-power battery testing equipment are 3C battery producers, universities, and research institutes. The demand for low-power battery testing equipment is correlated with the production of consumer electronics batteries. With the continuous growth of the national economy and residents' consumption levels, the market demand for consumer electronics products continues to expand, leading to more diversified demands for various consumer electronics batteries. The overall consumer battery market is showing a steady upward trend. Currently, the company's low-power equipment boasts advantages such as good stability and high precision, but its market share among enterprises remains relatively low. In terms of competition, it faces rivalry from companies like Shenzhen Neware and Rui Neng Co., Ltd. [Sanfu New Tech: Plans to Invest 620 Million Yuan in the Industrialisation Project of Key Materials for High-Safety Dry Electrode Batteries and High-Frequency Electronic Information Composite Materials] Sanfu New Tech (688359.SH) announced that it plans to invest 620 million yuan in the industrialisation project of key materials for high-safety dry electrode batteries and high-frequency electronic information composite materials. Construction is expected to commence in June 2025, with the project scheduled for completion by the end of 2027. The project implementation entities are the company's subsidiaries, Jiangxi Bangyue and Jiangxi Bangxiang. The main products include current collectors, tabs, and high-frequency electronic information composite materials for lithium battery materials. The project may face challenges such as prolonged production cycles, slow yield ramp-up, as well as external environmental factors like macroeconomic fluctuations and adjustments in industry policies. (Science and Technology Innovation Board Daily) [Musk: Tesla Expects to Have Hundreds of Thousands, or Even a Million, Fully Autonomous Vehicles by the End of 2026] Tesla CEO Elon Musk stated that Tesla is currently testing "thousands" of autonomous vehicles in preparation for their launch next month. This summer, Tesla will deploy autonomous vehicles on the roads of Austin, Texas. It is expected that by the end of 2026, there will be hundreds of thousands, or even a million, fully autonomous vehicles. [Beijing Proposes to Revise the Operational Service Standards for Parking Lots, with Charging Facilities in Public Parking Lots Expected to Account for No Less Than 10%] The local standard of Beijing, "Operational Service Standards for Parking Lots (Garages)", is open for public comment. According to the draft for comment, existing public parking lots and P+R parking lots with power supply conditions should be equipped with public charging facilities at a ratio of no less than 10%. For the EV charging infrastructure in parking lots that serve the public, it is advisable to set up different proportions of super-fast and fast charging facilities tailored to different service targets. In response to the increasing proportion of motorcycles year by year, the city will guide qualified parking lots to fully utilize the corner spaces within the lots to set up motorcycle parking spaces. (Finance Link) Related Readings: [SMM Analysis] Both China's Unwrought Cobalt Exports and Imports Saw Significant Growth in April 2025 [SMM Analysis] Domestic Spodumene Imports Totaled 623,000 mt in April, Up 16.5% MoM [SMM Analysis] Both Imports and Exports of Artificial Graphite Saw MoM Increases in April [SMM Data] Import and Export Data of LiPF6 in April 2025 [SMM Analysis] Analysis of Export Situation of Ternary Cathode Precursors in April [SMM Analysis] Import and Export Volumes of Ternary Cathode in April Released, with Imports Up 37% MoM and Exports Up 13% MoM [SMM Announcement] Adjustments to Weekly Data Points Related to Lithium Carbonate Before and After the Labour Day Holiday Driven by Multiple Favorable Factors!The auto parts sector has witnessed a dramatic surge in "limit-up" trends, with over 12 stocks hitting their daily limits! [Hot Stocks] Refined cobalt prices have slightly recovered, while Co3O4 prices continue to decline. The market awaits the follow-up to the June DRC export ban. [Weekly Observations] [SMM Industry Insights] Global Cobalt Industry Chain Changes and Chinese Market Outlook Post-DRC 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 hits a decade-high, with auto production and sales exceeding 10 million units in the first four months! [SMM Special Report] [SMM Analysis] Impact of US tariff adjustments on China's new energy end-users after the "Geneva Talks" [SMM Analysis] 2025 Shanghai Auto Show: Intelligence, Luxury, Electrification [SMM Analysis] Sibanye Stillwater's Finnish lithium mine project sees a 17% cost surge, but the 2026 commissioning plan remains unchanged Lithium carbonate prices fell over 25% YoY in Q1, with miners experiencing mixed performances. When will lithium prices rise? [SMM Special Report] [SMM Analysis] In April 2025, SMM's total domestic lithium carbonate production fell 7% MoM but increased 40% YoY Salt Lake Potash's net profit in Q1 increased over 22% YoY, aiming to achieve a 200,000 mt/year lithium chemicals production capacity by 2030

[Sanfu New Tech: Plans to Invest 620 Million Yuan in the Construction of a High-Safety Dry Electrode Battery Key Materials and High-Frequency Electronic Information Composite Materials Industrialisation Project] Sanfu New Tech announced in a statement that the company plans to invest 620 million yuan in the construction of a high-safety dry electrode battery key materials and high-frequency electronic information composite materials industrialisation project. Construction is expected to commence in June 2025, with the investment project to be completed by year-end 2027. The project implementation entities are the company's subsidiaries, Jiangxi Bangyue and Jiangxi Bangxiang. The main products include current collectors and tabs for lithium battery materials, as well as high-frequency electronic information composite materials. The project may face challenges such as extended production cycles, slow yield ramp-up, and the impact of external environmental factors, including macroeconomic fluctuations and adjustments in industry policies.

The Q1 2025 report released by Yunnan Tin Co., Ltd. showed that in Q1 2025, the company achieved an operating revenue of RMB 9.729 billion, up 15.82% YoY; a net profit attributable to shareholders of publicly listed firms of RMB 499 million, up 53.08% YoY; and a net cash flow from operating activities of RMB 640 million, down 40.14% YoY. As of the end of the reporting period, the company's total assets reached RMB 36.803 billion, up 0.44% from the end of the previous year, and the net assets attributable to shareholders of publicly listed firms reached RMB 20.921 billion, up 0.35% from the end of the previous year. The Q1 2025 report of Yunnan Tin Co., Ltd. indicated that during the reporting period, the market prices of the company's main metal products, including tin, copper, and zinc, increased YoY. The company seized market opportunities, fully released its production capacity, and continuously improved the synergy between mining, beneficiation, and smelting, leading to a significant YoY increase in operating performance. In Q1 2025, the total production of non-ferrous metals reached 82,200 mt, including 24,200 mt of tin, 24,400 mt of copper, 33,300 mt of zinc, and 30 mt of rare and precious metal indium ingots. Yunnan Tin Co., Ltd. also disclosed the following significant events involving the company and its subsidiaries in its Q1 2025 report: 1) In January 2025, the tin branch of Yunnan Tin Co., Ltd. was awarded the title of National Green Factory; Wenshan Zinc & Indium's primary indium (indium ingots) was included in the list of the fifth batch of manufacturing single-product champion enterprises in Yunnan Province; 2) In February 2025, two projects, namely the "Green Recovery Process and Equipment for Multi-Metal in Tin Smelting" by the tin branch of Yunnan Tin Co., Ltd. and the "Key Technologies for Efficient Recovery of Indium Associated with Complex Zinc Concentrates and Their Industrial Application" by Wenshan Zinc & Indium Smelting Co., Ltd., won the first prize of the China Nonferrous Metals Industry Science and Technology Award; 3) In April 2025, the company held a 2024 annual report performance briefing via live video streaming; on April 10, the company received a "Letter on Proposing the Implementation of Share Repurchase by Yunnan Tin Co., Ltd." from its shareholder, Yunnan Tin Group (Holding) Co., Ltd. (hereinafter referred to as "Yunnan Tin Holding Company"). Yunnan Tin Holding Company proposed that the company repurchase some of its issued RMB ordinary shares (A shares) through the trading system of the Shenzhen Stock Exchange via centralized bidding transactions using its own or self-raised funds, with a total repurchase amount of no less than RMB 100 million (inclusive) and no more than RMB 200 million (inclusive) to reduce the company's registered capital. Currently, relevant matters are being orderly advanced. On April 25, Yunnan Tin Co., Ltd. stated in response to investor inquiries on an interactive platform that the repurchase-related matters are being orderly advanced. The 2024 annual report recently released by Yunnan Tin Co., Ltd. showed that in 2024, under the strong leadership of the company's Party committee and board of directors, and closely centered around the overall task of "strengthening breakthroughs, deepening reforms, expanding markets, and stabilizing operations," the company actively overcame challenges from a complex and volatile operating environment, including intensified price fluctuations of non-ferrous metals, tight raw material supply, and continuously declining processing fees. It proactively controlled its operating pace, seized market opportunities, and achieved steady improvement in operating quality and efficiency. In 2024, the company produced a total of 361,000 mt of non-ferrous metals, including 84,800 mt of tin, 130,300 mt of copper, 144,000 mt of zinc, and 1,848 mt of lead. It also produced rare and precious metals: 127 mt of indium ingots, 1,229 kg of gold, and 145 mt of silver. During the reporting period, the company achieved an operating revenue of RMB 41.973 billion, down 0.91% YoY; a net profit attributable to shareholders of publicly listed firms of RMB 1.444 billion, up 2.55% YoY; and a net profit attributable to shareholders of publicly listed firms excluding non-recurring gains and losses of RMB 1.943 billion, up 40.48% YoY. As of the end of the reporting period, the company's total assets reached RMB 36.643 billion, down 1.13% from the beginning of the year; the net assets attributable to shareholders of publicly listed firms reached RMB 20.848 billion, up 17.19% from the beginning of the year. The 2024 annual report of Yunnan Tin Co., Ltd. showed that the company's main businesses include the exploration, mining, beneficiation, and smelting of metal ores such as tin, zinc, copper, and indium. Regarding the company's mineral resource reserves as of the end of the reporting period, Yunnan Tin Co., Ltd. introduced that as of December 31, 2024, the company's retained resource reserves were as follows: ore reserves of 258 million mt, tin metal reserves of 626,200 mt, copper metal reserves of 1.1499 million mt, zinc metal reserves of 3.661 million mt, indium reserves of 4,821 mt, tungsten trioxide reserves of 77,800 mt, lead metal reserves of 96,300 mt, and silver reserves of 2,460 mt. In addition, Yunnan Tin Co., Ltd. also introduced the company's mineral resource exploration activities during the reporting period: In 2024, the company's subsidiary mining units invested a total of RMB 101 million in exploration expenditures. A total of 52,400 mt of non-ferrous metal resources were newly discovered throughout the year (as reviewed and confirmed by a third-party expert team), including 17,600 mt of tin and 34,800 mt of copper. The specific situation is as follows: In its 2024 annual report, Yunnan Tin Co., Ltd. discussed its main work objectives for 2025 as follows: The company's comprehensive budgeted operating revenue for 2025 is RMB 46.5 billion. The planned production volumes are 90,000 mt of tin, 125,000 mt of copper, 131,600 mt of zinc, and 102.3 mt of indium ingots. (This plan serves as a guiding indicator, and the final results are subject to uncertainties influenced by various internal and external environmental factors, as well as operational management. Therefore, it does not constitute a substantive commitment to operating revenue or the production volumes of various products. Investors are advised to pay attention to risks.) 》View SMM tin product spot quotes 》Subscribe to view historical price trends of SMM metal spot prices Comparing the daily average prices of SMM #1 tin spot in Q1 2025 and Q1 2024, it can be seen that the daily average price of SMM #1 tin spot in Q1 2025 was RMB 260,724.56/mt, up RMB 43,806.46/mt from the daily average price of RMB 216,918.1/mt in Q1 2024, representing a YoY increase of 20.19%. Such a significant increase is also conducive to improving the operating performance of tin enterprises. Reviewing the historical price trend of SMM #1 tin spot in 2024, it can be observed that in 2024, influenced by factors such as frequent positive macroeconomic policies in China, supply-side disruptions caused by the ban on mining in Wa State, and a slight recovery in end-use demand from consumer electronics, the average price center shifted upward compared to 2023. Among them, the average price of SMM #1 tin spot reached a new high for the year on July 11, 2024, at RMB 281,750/mt. The lowest average price for the year was RMB 205,000/mt on January 9 and 10, 2024. The average price on December 31, 2024, was RMB 246,000/mt, up RMB 35,250/mt from the average price of RMB 210,750/mt on December 29, 2023, representing an increase of 16.73%. Recently, tin prices have been fluctuating considerably in a weak trend. The US announcement of imposing "reciprocal tariffs" on multiple countries has sparked market concerns, leading to fluctuations in the US dollar index and a rise in risk-averse sentiment, which has suppressed non-ferrous metal prices. Fed Chairman Powell clearly stated that there would be no interest rate cut for the time being and warned of the dual risks of rising unemployment and high inflation facing the US economy, further exacerbating market uncertainties. The supply-demand pattern in the domestic tin ore market is tight. In terms of supply, the operating rates of refined tin smelters in Yunnan and Jiangxi have pulled back, constrained by tight raw material supply, especially the lagging production resumptions in Myanmar and the recent 7.9-magnitude earthquake, which have intensified market panic over tin ore supply. In terms of demand, downstream solder enterprises are making just-in-time procurements combined with some restocking. However, the "trade-in" policy and high production schedules for home appliances provide potential support for demand. The operating rate of the tin solder industry surged to 75.81% in March and is expected to remain at a relatively high level in April. Although the news of the resumption of operations at the Bisie tin mine once boosted market confidence, overall, due to macroeconomic uncertainties, SHFE tin prices may continue to fluctuate considerably in the short term. Investors are advised to pay attention to changes in fundamentals, operate cautiously, and avoid the risk of chasing high prices. Tianfeng Securities issued a research report on April 09, recommending a "buy" rating for Yunnan Tin Co., Ltd. The main reasons for the rating include: 1) The impact of impairment and supplementary payment of mining rights royalties was concentrated in Q4; 2) The simultaneous increase in volume and price, along with cost optimization, boosted the company's profitability; 3) With tight supply, tin prices are expected to remain strong, and the company is expected to benefit. Risk warnings: Macroeconomic environment risks, market price fluctuation risks, and safety and environmental protection risks. Guosen Securities issued a research report on April 08, giving Yunnan Tin Co., Ltd. a rating of "outperforming the market." The main reasons for the rating include: 1) The company released its 2024 annual report; 2) Data on the production and sales volumes of core products; 3) As the world's largest refined tin producer, the company has maintained a leading position in the global tin market for a long time. Risk warnings: Risks of declining grades of core mine resources; risks of price fluctuations in non-ferrous metals.

The 2024 annual report released by Yunnan Tin Co., Ltd. shows that in 2024, under the strong leadership of the company's Party Committee and Board of Directors, Yunnan Tin Co., Ltd. actively overcame the challenges of a complex and volatile operating environment, including intensified fluctuations in non-ferrous metal prices, tight raw material supply, and continuously declining processing fees. The company focused on the overall task of "strengthening research, deepening reforms, expanding markets, and stabilizing operations," proactively controlled the operating pace, seized market opportunities, and achieved steady improvement in operational quality and efficiency. In 2024, the company produced a total of 361,000 mt of non-ferrous metals, including 84,800 mt of tin, 130,300 mt of copper, 144,000 mt of zinc, and 1,848 mt of lead. The company also produced rare and precious metals, including 127 mt of indium ingots, 1,229 kg of gold, and 145 mt of silver. During the reporting period, the company achieved operating revenue of 41.973 billion yuan, a YoY decrease of 0.91%. Net profit attributable to shareholders of the listed company was 1.444 billion yuan, a YoY increase of 2.55%. Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 1.943 billion yuan, a YoY increase of 40.48%. At the end of the reporting period, the company's total assets were 36.643 billion yuan, a decrease of 1.13% compared to the beginning of the year. Net assets attributable to shareholders of the listed company were 20.848 billion yuan, an increase of 17.19% compared to the beginning of the year. The 2024 annual report of Yunnan Tin Co., Ltd. shows that the company's main business is the exploration, mining, beneficiation, and smelting of metal ores such as tin, zinc, copper, and indium. Regarding the company's mineral resource reserves at the end of the reporting period, Yunnan Tin Co., Ltd. introduced: As of December 31, 2024, the company's retained resource reserves were: 258 million mt of ore, 626,200 mt of tin metal content, 1.1499 million mt of copper metal content, 3.661 million mt of zinc metal content, 4,821 mt of indium, 77,800 mt of tungsten trioxide, 96,300 mt of lead metal content, and 2,460 mt of silver. In addition, Yunnan Tin Co., Ltd. also introduced: During the reporting period, the company carried out mineral resource exploration activities: In 2024, the company's subordinate mining units invested a total of 101 million yuan in exploration. Throughout the year, the company added 52,400 mt of non-ferrous metal resources (confirmed by a third-party expert team), including 17,600 mt of tin and 34,800 mt of copper. The specific details are as follows: In its 2024 annual report, Yunnan Tin Co., Ltd. discussed its main work goals for 2025: The company's comprehensive budget for operating revenue in 2025 is 46.5 billion yuan. The production targets are 90,000 mt of tin, 125,000 mt of copper, 131,600 mt of zinc, and 102.3 mt of indium ingots. (This plan is a guiding indicator, and the final results are subject to uncertainty due to various internal and external environmental factors and operational management. Therefore, it does not constitute a substantive commitment to operating revenue and product output. Investors are advised to pay attention to the risks.) On April 7, Ping An Securities released a research report, giving Yunnan Tin Co., Ltd. a "recommended" rating. The reasons for the rating mainly include: 1) A significant YoY increase in net profit after deducting non-recurring gains and losses, with mining rights transfer income affecting net profit; 2) Focus on refined tin, with rising tin prices driving growth in the tin ingot business; 3) The company's global market share of refined tin has increased, and multiple cooperation agreements are expected to enhance the company's resource potential; 4) The central price of tin is expected to further rise. Risk warnings: 1) Project progress may fall short of expectations, and the company's profit growth may not meet expectations. If the progress of current projects under construction is significantly slower than expected, it may affect the company's future performance growth. 2) Downstream demand may fall short of expectations. If end-use demand contracts significantly, the company's product sales may be affected to some extent. 3) Industry competition may intensify. A significant increase in industry competition may lead to lower-than-expected product sales. On April 6, Pacific Securities commented on Yunnan Tin Co., Ltd.'s research report, showing that tin and indium production increased YoY, and the market share of tin metal increased, maintaining the company's global leadership. In 2024, the company's production of tin ingots/copper products/zinc products/indium ingots was 78,000 mt/130,000 mt/146,000 mt/127 mt, with YoY increases of +19.4%/+0.8%/+7.2%/+24.5%, respectively. The production of tin ingots and indium ingots increased significantly YoY. The company's production targets for 2025 are 90,000 mt of tin, 125,000 mt of copper, 132,000 mt of zinc, and 102.3 mt of indium ingots. In 2024, the company invested 101 million yuan in exploration, adding 52,400 mt of non-ferrous metal resources, including 17,600 mt of tin and 34,800 mt of copper. In 2024, the company's domestic/global market share of tin metal was 47.98%/25.03%, with YoY increases of +0.06/+2.11 pct, respectively. Since 2005, the company has maintained its global leadership in tin production and sales. The expense ratio decreased, and the price of refined indium rose significantly throughout the year. The asset-liability ratio decreased significantly, and the dividend payout ratio increased slightly. Pacific Securities is optimistic about the company's long-term development trend and maintains a "buy" rating. Risk warnings: Risks of significant price fluctuations, unexpected supply-side releases, and demand falling short of expectations. Yunnan Tin Co., Ltd. introduced: In 2024, tin metal prices maintained a considerably fluctuating trend. In H1, tin prices were mainly affected by tight supply, with the first phase seeing tin prices rise from 230,000 yuan/mt to around 280,000 yuan/mt. Due to delays in export approval processes in major tin ingot-producing countries in Southeast Asia, tin ingot supply in H1 hit a new low in recent years. At the same time, LME tin inventory continued to decline, approaching historical lows, raising concerns about the stability of global tin ingot supply. In the second phase, the continued tight supply from major tin ore-producing countries in Southeast Asia further exacerbated market concerns about tin supply. Against the backdrop of a recovery in macroeconomic sentiment, continued supply contraction, and steady demand, SHFE tin prices reached a yearly high of around 295,000 yuan/mt in May. In H2, tin prices began to fluctuate downward, mainly due to macroeconomic cooling and a slowdown in global economic recovery. Tin prices generally followed the trend of most non-ferrous metals, but downstream purchasing remained moderate due to the recovery in the semiconductor cycle, providing strong market support. In 2024, as the global display panel industry entered a new growth phase, combined with domestic market expectations and changes in strategic metal export policies, domestic demand for refined indium increased, supporting a steady rise in indium prices. According to SMM data, the average price of refined indium in 2024 was 2,612 yuan/kg, a YoY increase of 48.31% compared to 2023, with a fluctuation range of 1,985-3,075 yuan/kg.