[Lead-Acid Battery Enterprise Dynamics] According to data from Tianyancha APP, Shengyang Co., Ltd. (002580) has newly obtained a utility model patent authorization titled "A Wide Tab Grid for High-Rate Batteries". The patent application number is CN202520155826.9, and the authorization date is February 10, 2026. Since the beginning of this year, Shengyang Co., Ltd. has newly obtained 7 patent authorizations. Based on the company's 2025 interim report financial data, the company's R&D investment in H1 2025 was 40.4594 million yuan, up 0.07% YoY.

China Communications Construction Real Estate sold its entire real estate development business in a package deal for 1 yuan. *ST Zhongdi (000736.SZ) released a report (draft) on the material asset sale and related party transaction on June 16, stating that the company intends to transfer the assets and liabilities related to its real estate development business to its controlling shareholder, China Communications Real Estate Group Co., Ltd., at a transaction price of 1 yuan. According to the restructuring draft, the assets to be transferred cover the entire chain of real estate development business, including controlling and participating stakes in real estate development enterprises, corresponding receivables, and liabilities. Additionally, according to the asset appraisal report, as of December 31, 2024, the net book value of the target assets was -3.919 billion yuan, which was appraised at -2.976 billion yuan, representing an appraisal increase of 24.06%. "From the financial data disclosed by China Communications Construction Real Estate, it can be seen that the company is transferring a massive package of negative assets, which explains why the transaction is priced at a symbolic 1 yuan. The core objective is to divest the heavy burden of negative assets," noted Yan Yuejin, Deputy Dean of the E-House China Research Institute. "The 1-yuan pricing is essentially about divesting negative assets," a senior investment banker commented. "To some extent, this is equivalent to the parent company, China Communications Construction Group, providing support to the publicly listed firm by bearing a significant amount of negative assets." Regarding this material asset sale, China Communications Construction Real Estate stated that the real estate development industry, in which the target assets are engaged, has high capital demands and a large scale of liabilities. After the completion of this transaction, the relevant target assets will no longer be included in the consolidated financial statements of the publicly listed firm, which will transition from a "heavy" to a "light" model. It is expected that the total assets and revenue scale of the publicly listed firm will decrease significantly. Industry insiders pointed out that behind this transaction priced at just 1 yuan lies a central state-owned enterprise real estate company deeply mired in losses and on the brink of delisting, undertaking a "drastic" strategic retreat to survive. "In recent years, the real estate market has undergone continuous and profound adjustments, and the real estate development business has dragged down the performance of some publicly listed firms," said Liu Shui, Director of Corporate Research at the China Index Academy. China Communications Construction Real Estate, a central state-owned enterprise, has also been dragged down by its development business, not only incurring losses for two consecutive years but also facing delisting risks. Financial reports show that in 2022, 2023, and 2024, the net profits attributable to the parent company of China Communications Construction Real Estate were 34 million yuan, -1.611 billion yuan, and -5.179 billion yuan, respectively. Alongside the decline in net profit, the sales scale of China Communications Construction Real Estate has also shrunk significantly. In 2022, 2023, and 2024, the sales amounts of China Communications Construction Real Estate were 45.882 billion yuan, 37.3 billion yuan, and 15.64 billion yuan, respectively. Financial data released by the company showed that as of December 31, 2024, CCCC Real Estate had total assets of RMB 107.698 billion and net assets attributable to shareholders of publicly listed firms of -RMB 3.579 billion. In accordance with the relevant provisions of the "Stock Listing Rules," its shares were subject to delisting risk warnings (*ST) on April 16, 2025. "After two consecutive years of losses, if it cannot completely reverse its fundamentals in the short term, delisting is almost a foregone conclusion. Divesting heavy-asset burdens is a crucial step in winning a breathing space," said the aforementioned investment banker. "Divesting loss-making assets through this transaction will enhance the company's asset quality and create conditions for subsequent transformation and development. This transaction can improve the profitability and sustainable operating capacity of publicly listed firms and mitigate the delisting risks of publicly listed firms," said CCCC Real Estate. After shedding the heavy burden of real estate development, CCCC Real Estate announced that it would shift to "asset-light" operations. CCCC Real Estate stated that before this restructuring, the main business of the publicly listed firm was real estate development and sales. Through this restructuring, it will focus on asset-light businesses such as property services and asset management and operations (including commercial management and self-held property leasing) in the future, achieving a strategic transformation to an asset-light operating model. "Divesting the real estate development business can not only reduce the company's liabilities but also mitigate credit risks associated with the heavy-asset nature of real estate development," Liu Shui believed. Shifting the focus to an asset-light model can achieve higher profit margins and reduce the company's exposure to cyclical risks in the real estate market. However, analysts pointed out that divestment will also lead to a significant reduction in total assets and revenue scale. The key to the company's subsequent performance lies in whether the new asset-light engine can quickly take over. "For CCCC Real Estate, which is backed by a central state-owned enterprise but is mired in delisting risks, divesting its real estate business is just the beginning. Its path to revival largely depends on whether it can transform itself in the fiercely competitive red ocean of property services and asset management," said Yan Yuejin.

[6.17 Morning Meeting Minutes] LME nickel prices declined slightly this week. Demand side, despite signs of recovery in nickel salt demand MoM in June, the overall demand remained in a sluggish phase. Affected by the presence of some raw material inventory and weak order demand, the inquiry and transaction activity of precursor companies for nickel salt were low during the traditional procurement period this week.

SMM Nickel News on June 16: Macro News: (1) The National Bureau of Statistics (NBS) announced today that in May, the total retail sales of consumer goods reached 4,132.6 billion yuan, up 6.4% YoY. Excluding automobiles, the retail sales of consumer goods amounted to 3,731.6 billion yuan, up 7.0% YoY. From January to May, the total retail sales of consumer goods were 20,317.1 billion yuan, up 5.0% YoY. Excluding automobiles, the retail sales of consumer goods were 18,432.4 billion yuan, up 5.6% YoY. (2) The latest financial data released by the central bank showed that the growth rate of broad money supply (M2) remained basically stable, and the growth rate of aggregate social financing remained at a relatively high level. At the end of May, the outstanding aggregate social financing was 426.16 trillion yuan, up 8.7% YoY, 0.3 percentage points higher than the same period last year. In May, the incremental aggregate social financing was 2.29 trillion yuan, a year-on-year increase of 224.7 billion yuan. M2 grew by 7.9% YoY, narrow money (M1) grew by 2.3% YoY, and the balance of RMB loans grew by 7.1% YoY, remaining at around 8% after adjusting for the impact of local debt replacement. Based on historical patterns, economic activities tend to be more active in June, leading to a corresponding increase in financing demand. It is expected that the growth of financial aggregates will remain stable in the next stage. Spot Market: Today, the SMM 1# refined nickel price was 119,400-122,050 yuan/mt, with an average price of 120,725 yuan/mt, down 775 yuan/mt from the previous trading day. The mainstream spot premiums quotation range for Jinchuan #1 refined nickel was 2,400-2,600 yuan/mt, with an average premium of 2,500 yuan/mt, unchanged from the previous trading day. The quotation range for spot premiums and discounts of electrodeposited nickel from mainstream domestic brands was 0-400 yuan/mt. Futures Market: The most-traded SHFE nickel contract (NI2507) opened lower and fluctuated upward during the night session last Friday, but the price continued to weaken during today's daytime session, dropping to a low of 119,000 yuan/mt. As of 11:30, SHFE nickel closed at 119,690 yuan/mt, down 340 yuan/mt or 0.28% from the previous trading day. In the short term, nickel prices are expected to fluctuate rangebound between 118,000-123,000 yuan/mt. If Indonesia tightens its nickel ore policies, it may trigger a phased rebound. However, in the medium and long term, the surplus pressure is difficult to resolve, coupled with a lack of incremental demand, limiting the upside room for nickel prices.

The latest financial data released by the central bank showed that the growth rate of broad money supply (M2) remained basically stable, and the growth rate of total social financing maintained a relatively high level. At month-end May, the outstanding total social financing stood at 426.16 trillion yuan, up 8.7% YoY, 0.3 percentage points higher than the same period last year. In May, the incremental total social financing reached 2.29 trillion yuan, with an increase of 224.7 billion yuan YoY. M2 grew by 7.9% YoY, narrow money (M1) grew by 2.3% YoY, and the outstanding RMB loan balance grew by 7.1% YoY, remaining at around 8% after adjusting for the impact of local government debt replacement. Based on historical patterns, economic activities tend to be more active in June, leading to a corresponding increase in financing demand. It is expected that the growth of the total financial aggregate will remain stable in the next phase.

Today, the People's Bank of China (PBOC) released the financial data for May. As of month-end May 2025, the balance of broad money (M2) stood at 325.78 trillion yuan, up 7.9% YoY. The balance of narrow money (M1) was 108.91 trillion yuan, up 2.3% YoY. In the first five months, the net cash injection was 306.4 billion yuan. In terms of social financing, the outstanding social financing scale was 426.16 trillion yuan as of month-end May 2025, up 8.7% YoY. From January to May, the incremental social financing scale was 18.63 trillion yuan, with a YoY increase of 3.83 trillion yuan. In May alone, the incremental social financing scale was 2.29 trillion yuan, with a YoY increase of 224.7 billion yuan. "The rapid growth in social financing scale is mainly driven by direct financing such as government bonds and corporate bonds," an authoritative expert explained to a reporter from Cailian Press. Among them, there has been a significant change in corporate bond financing. "Since Q2, the overall cost of corporate bond issuance has shown a downward trend, remaining at a low level. In May, the average yield to maturity of 5-year AAA-rated corporate bonds was 1.97%, further declining from the already low level in April. Against the backdrop of low interest rates, enterprises have increased their bond financing efforts, which helps reduce overall financing costs." In addition, a bank account manager also reflected to a reporter from Cailian Press that bank customers are now generally more concerned about interest rate adjustments. In May, the PBOC lowered the policy interest rate, and the Loan Prime Rate (LPR), which serves as the benchmark for loan market pricing, also declined accordingly. Many enterprises found the interest rates more favorable, and their willingness to withdraw funds increased significantly. "Liquid Money" Growth Accelerates, Personal Mortgage Loan Disbursements Increase Among the financial data for May, there was also a notable change in the growth rate of M1. As of month-end May, M1 was up 2.3% YoY. In response, an authoritative expert frankly told a reporter from Cailian Press that currently, the M1 statistical scope includes currency in circulation (M0), current deposits of units and individuals, and customer reserves of non-bank payment institutions (such as WeChat Wallet and Alipay balances). Compared with time deposits in bank accounts, these are considered "liquid money" that is more convenient for payment transactions. In May, the growth rate of this "liquid money" accelerated significantly. In the view of the authoritative expert, the accelerated growth of "liquid money" reflects that the recent package of financial support measures has effectively boosted market confidence, with signs of recovery and improvement in economic activities such as investment and consumption. Another indicator that also proves the change in the heat of economic activities is personal loans. Data shows that a banker reflected to a reporter from Cailian Press that with the continued recovery of the local real estate market transactions, personal mortgage loan disbursements have increased. The Substitution Effect of Bonds on Loans Continues to Manifest Regarding the loan data that the market is concerned about, an authoritative expert told a reporter from Cailian Press that nearly 90% of the social financing scale consists of bonds and loans. Although there are differences in their applicable scenarios, to a certain extent, they can substitute and complement each other, jointly creating a favorable financial aggregate environment for stable economic growth. In fact, recently, the substitution effect of bonds for loans has also been quite evident. In response, experts have interpreted this as follows: On the one hand, the issuance of special refinancing bonds to repay bank loans has kept loan growth at around 8% after adjusting for the relevant impacts. "Special refinancing bonds issued for debt resolution exceeded 2 trillion yuan in Q4 last year, and over 1.6 trillion yuan have been issued since the beginning of this year. Preliminary estimates from market surveys suggest that the corresponding loans replaced amount to approximately 2.3 trillion yuan, with loan growth remaining at around 8% at the end of May after adjustment. The aforementioned experts frankly stated that in the short term, the debt replacement of financing platforms to repay bank loans may affect the total credit volume. However, in the long term, it helps mitigate local debt risks, freeing up more local fiscal resources to benefit people's livelihoods, promote development, and enhance the momentum of economic growth. On the other hand, government bonds substitute for bank loans. Some market experts told a Caixin reporter that there is a certain overlap in the investment directions of some government bonds and bank loans. For instance, in infrastructure projects, both special bonds and bank loans can serve as funding sources. In projects involving the acquisition of existing commercial housing for use as affordable housing, in addition to bank loans providing support, special bonds have recently been added to the policy toolkit and are currently being gradually implemented. Several banks in an eastern province told a Caixin reporter that since the beginning of this year, fiscal policies have become more proactive, with an increase in the issuance of local government bonds. Local governments and related enterprises are more inclined to use special bonds to meet the funding needs of project construction, which has a certain substitution effect on bank loans. Data shows that among the sources of fixed asset investment funds from January to April this year, national budgetary funds, including government bonds, grew by 16.7% YoY, significantly higher than the YoY growth rates of self-raised funds (3.9%), domestic loans (2.8%), and other funding sources (-4.2%). In addition, corporate bonds have also substituted for bank loans to some extent. Authoritative experts analyzed to a Caixin reporter that, in addition to interest rate impacts, some trending and institutional factors are also influencing enterprises' choices of financing methods. A series of supportive policies have been continuously introduced in recent years, facilitating smoother access for enterprises to issue bonds, particularly showing more positive changes in bond financing for private and technology innovation enterprises. In early May this year, the People's Bank of China and the China Securities Regulatory Commission issued multiple measures to support the issuance of technology innovation bonds. As these measures gradually take effect, enterprises will find it more convenient to issue technology innovation bonds for financing. "Therefore, against the backdrop of increasingly diversified financing channels and accelerated development of direct financing, the scale of social financing is a more comprehensive measure of financial support than loans alone."Authoritative experts have interpreted it as follows.