[SMM Global Steel Enterprise Special Report] A Detailed Analysis of US "Steel King" Nucor: 100% Electric Arc Furnace Forging High Profits, Vertical Integration Mitigating Cost Fluctuations Nucor Corporation is a company incorporated in Delaware in 1958. The company and its subsidiaries are engaged in the manufacture of steel and steel products. It also produces and procures ferrous and non-ferrous metal materials, primarily for use in its steelmaking operations. Most of its operating facilities and clients are located in North America. Its operations include international trading and sales companies responsible for buying and selling steel and steel products manufactured by the company and others. Nucor is also the largest recycler in North America, using steel scrap as the primary raw material for producing steel and steel products. In 2025, it recycled approximately 20 million gross tons of steel scrap. Operating Performance Data source: Nucor Corporation Annual Report、SMM Reasons behind the performance changes: ① Decline in gross profit: The primary reason for the decline in gross profit in 2025 was the compression of profit margins in the steel products segment. Due to lower average selling prices, gross profits from the grating and decking, building systems, and rebar fabrication businesses under this segment all experienced significant declines. ② Steel mill segment growth: In contrast, gross profit in the steel mill segment increased, primarily driven by higher sales and improved steel industry spreads. ③ Investment expenditures: Over the past three years, Nucor invested approximately $9.73 billion in capital expenditures and acquisitions, aiming to expand its product portfolio and enhance operational flexibility. Segments, Major Products, and Marketing Nucor reports its results in three segments: the steel mills segment, the steel products segment, and the raw materials segment. The steel mills segment is Nucor's largest segment, accounting for 62% of the company's sales to external clients for the fiscal year ended 2025. It primarily sells its products to steel service centers, manufacturers, and fabricating enterprises located in the US, Canada, and Mexico. In 2025, the steel mills segment sold approximately 19,848 kt of products to external clients. Data source: Nucor Corporation Annual Report、SMM The Steel Products segment primarily produces high-value-added downstream construction and industrial components, holding leading positions across the U.S. in multiple sub-segments including steel joists, prefabricated metal buildings, and insulated metal panels. It accounted for 29% of the Company's net sales to external clients for the year ended 2025. In 2025, total sales of major products in the Steel Products segment were approximately 1.478 million mt, including approximately 658,000 mt of steel joists and joist girders, approximately 436,000 mt of steel deck, and approximately 384,000 mt of metal building systems. Although physical sales volume (tonnage) was far below that of the Steel Mills segment, the per-mt selling price and profit margin were much higher than those of basic steel, and the segment also ranked first in market share across the U.S. in multiple areas. Data source: Nucor Corporation Annual Report、SMM The Raw Materials segment is the cornerstone of Nucor's vertical integration strategy, primarily operated through its wholly-owned subsidiary The David J. Joseph Company (DJJ), and manages DRI production facilities in Louisiana and Trinidad. By blending DRI with steel scrap, it supports electric arc furnace (EAF) production of higher-grade sheets & plates while ensuring cost advantages and supply security of raw materials. It accounted for 9% of the Company's net sales to external clients for the year ended 2025. In 2025, approximately 20 million gross tons of steel scrap were recycled and processed. Data source: Nucor Corporation Annual Report、SMM Clients and Markets Data source: Nucor Corporation Annual Report、SMM Major Development Projects in Recent Years The vast majority (91%) of Nucor's capital was allocated to internal construction (CapEx), strengthening core competitiveness through technology upgrades (such as electric arc furnaces and micro mills); a small portion was used for strategic acquisitions to achieve "outward expansion" into high-margin downstream areas. Through acquisitions such as SWDP, the company quickly entered high-barrier, high-growth sub-segments including data centers and green energy, making its business structure more resilient to cyclical downturns. Data source: Nucor Corporation Annual Report、SMM Core Logic of Vertical Integration for Cost Reduction: Raw Material Supply Structure Data source: Nucor Corporation Annual Report、SMM Core Risk Factors The greatest risk facing Nucor is a combination of internal and external challenges — internally, cost fluctuations in steel scrap and energy; externally, the impact of low-priced imported steel resulting from global (especially China's) overcapacity. Specifically: 1. Core Industry Risks ① Severe global supply-demand imbalance: Global steel surplus capacity reached 704 million net mt in 2025 (8 times US annual production). It is expected to further increase to 795 million mt by 2027. ② Regional impact: China's annual production has exceeded 1 billion mt in each of the past 8 years, and Chinese steelmakers continue to invest in new capacity in Southeast Asia and Africa. ② Import shock: This surplus leads to a flood of low-priced steel into the US market, creating significant downward pressure on Nucor's product prices, sales, and profit margins. 2. Production Cost Risks ① Steel scrap price sensitivity: Nucor uses 100% electric arc furnaces (EAF), with steel scrap being the largest cost item. Steel scrap prices fluctuate significantly and are beyond Nucor's control. ② Supply chain uncertainty: Although Nucor has achieved a degree of self-sufficiency through its DRI plants and DJJ recycling system, pig iron and iron ore pellets still rely on international procurement, facing geopolitical risks (e.g., Ukraine, Russia, Brazil). 3. Operational Challenges ① Energy-intensive nature: Steelmaking relies on large amounts of electricity (for melting) and natural gas (for heating and DRI production). ② Cost pass-through: Energy prices are affected by demand, the regulatory environment, and transmission infrastructure (pipelines/power grid), and cost surges may erode profits. 4. Compliance and ESG Risks ① Emission reduction pressure: The steel industry faces intense scrutiny due to greenhouse gas (GHG) emissions. ② Policy risk: Although Nucor's emission intensity is far lower than its blast furnace peers, increasingly stringent environmental protection laws and regulations may increase capital expenditures or restrict operations at existing facilities. 5. End-Use Market Risks ① Industry cyclicality: The steel industry is highly correlated with the macro economy. ② End-use market fluctuations: Nucor's largest market is non-residential construction. If this sector (e.g., commercial offices, industrial facilities) contracts due to high interest rates or economic recession, it will directly impact Nucor's performance severely. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. The copyright, trademark rights, domain name rights, commercial data information property rights, and other related intellectual property rights of all content contained in this report (including but not limited to information, articles, data, charts, pictures, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc.) are owned or held by SMM or its related right holders. 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The minutes of Tianhe Magnetics' investor briefing held on May 7 showed: 1. What is the trend in the revenue share of the NEV business, and how is the recovery in wind power, consumer electronics, and other segments? Tianhe Magnetics responded: Hello, thank you for your attention! The company's products are widely used in NEVs and parts, wind power, energy-efficient home appliances, consumer electronics, and other fields. Its clients are all industry leaders, and the company has been deeply integrated into the core supply chains of top-tier players in and outside China. During the reporting period, NEVs and parts remained the downstream segment with the highest share; wind power and consumer electronics segments recovered and grew YoY. The company adheres to a diversified strategy, deepens strategic cooperation with clients, strengthens client loyalty, and continues to expand downstream applications to support steady business growth. 2. What is the specific progress of "small-batch delivery" of dedicated magnets for humanoid robots, and what is the expected revenue contribution? Tianhe Magnetics responded: Hello, thank you for your attention! In the humanoid robot field, the company works closely with relevant clients to jointly conduct R&D and trial production of related projects. The specific revenue contribution is directly linked to the promotion and application progress of humanoid robots. 3. Against the backdrop of tightening rare earth export controls, how can the sustainability of the 44% ex-China business be ensured? Tianhe Magnetics responded: Hello, thank you for your attention! The company coordinates and obtains export licenses from the Ministry of Commerce in an orderly manner based on client orders to ensure the smooth and sustained operation of its export business. At the same time, the company actively expands markets outside China, deepens engagement with existing clients and develops new clients, increases efforts in developing zero-heavy-rare-earth products, and scales up product exports to ensure steady growth in ex-China performance. Tianhe Magnetics' Q1 2026 report disclosed on April 28 showed: the company achieved total operating revenue of 594 million yuan, up 13.12% YoY; net profit attributable to the parent company was 47.873 million yuan, up 33.41% YoY. Tianhe Magnetics' Q1 report showed: raw material prices remained at high levels, and selling prices of some sales orders were raised, which in turn affected related profit indicators. Tianhe Magnetics' annual report showed: 2025 was the inaugural year of Tianhe Magnetics' entry into the capital market, and the company embarked on a new phase of high-quality development. Positioned at the forefront of the industry, amid the trend of high-end, intelligent, and green development in the rare earth industry, the company anchored on technological innovation and intelligent management as its core, deepened collaborative partnerships with clients, continuously optimized its supply chain layout, steadily released capacity from IPO-funded projects, and progressively implemented automated production line upgrades and green process improvements. Meanwhile, the company actively expanded its product portfolio and industrial reach into injection-molded magnets, bonded magnets, and magnetic assemblies to provide clients with comprehensive rare earth permanent magnet solutions. In addition, the company accelerated its positioning in emerging sectors such as humanoid robots and the low-altitude economy to build momentum for long-term growth. In 2025, the company achieved operating revenue of 2.346 billion yuan, down 9.47% YoY, total profit of 170.908 million yuan, up 18.81% YoY, and net profit of 161.161 million yuan, up 18.43% YoY. In its annual report, when introducing its main business, products, and application fields, Tianhe Magnetics stated: The company is a leading high performance rare earth permanent magnet material provider in China. With the corporate vision of "being a leader in permanent magnet material innovation," the company is primarily engaged in the R&D, production, and sales of high performance rare earth permanent magnet materials such as sintered NdFeB and sintered SmCo, while extending its industrial reach into injection-molded magnets, bonded magnets, and magnetic assemblies to provide clients with comprehensive rare earth permanent magnet solutions. With independent R&D and technological innovation at its core, and guided by the application scenarios and development needs of downstream cutting-edge fields such as NEVs and auto parts, wind power generation, intelligent manufacturing, and 3C consumer electronics, as well as emerging industries such as humanoid robots and the low-altitude economy, the company effectively leverages the fundamental and pioneering role of rare earth permanent magnets as key strategic materials, continuously advancing the innovation and application of high performance, resource-efficient rare earth permanent magnet materials to drive downstream technological innovation, product upgrades, and industrial transformation. Regarding the company's business plan, Tianhe Magnetics stated in its annual report: 2026 is the second year since Tianhe Magnetics' listing and the opening year of the 15th Five-Year Plan. Standing at a new starting point, the company adopts "innovation" as its annual development theme, upholds the philosophy of "breaking conventions and embracing change," and continues to deepen its presence in the high performance rare earth permanent magnet material field. Leveraging its two rare earth bases in Baotou, the company plans to focus on core technology upgrades and high-end market expansion both in and outside China, seize the strategic opportunities of the global energy transition and intelligent development, and drive "development" through "innovation." Under the leadership of the board of directors, the company plans to further integrate resources, leverage its strengths, and systematically advance various initiatives around its business objectives to ensure high-quality and sustainable development. In 2026, the company plans to focus on the following initiatives: 1. With "innovation" at the core, continuously strengthen R&D investment and drive product and technology upgrades. 2. Pursue new frontiers: focus on expanding new products, new clients, and new markets. 3. Continuously strengthen production and quality management to improve yield and turnover efficiency. 4. Deepen the construction of digital smart factories to continuously enhance production efficiency. 5. Steadily advance IPO-funded and new project construction to expand capacity and support performance growth. (1) Continue to advance IPO-funded project construction. In 2026, the company plans to continue advancing the implementation of IPO-funded projects as planned. Upon full production, the company will reach an annual capacity of 12,300 mt. The company plans to continuously improve manufacturing efficiency through automated production line upgrades, digital management system deployment, and green production process transformation, ensuring capacity alignment across all stages from blank production to finished product inspection, and laying a solid foundation for performance growth. (2) Advance the Tianhe New Materials project construction. The Phase I of the "Tianhe New Materials Rare Earth Zero-Carbon Industrial Park (High Performance Rare Earth Permanent Magnets and Assemblies, Equipment Manufacturing and R&D Project)" invested and constructed by the company's subsidiary Tianhe New Materials has been launched. Upon completion, the project will further expand the business scale and enhance the company's overall profitability, market competitiveness, and risk resilience. 6. Enhance intelligent equipment manufacturing capabilities and cultivate new growth drivers. 7. Management empowerment: continuously strengthen organizational and talent development. 8. Continue to improve ESG efforts and promote sustainable development. 9. Strengthen investor relations and market capitalization management to drive sustained enhancement of company value. When disclosing the risk of raw material price fluctuations, Tianhe Magnetics stated: The main raw materials required for the company's production are rare earth metals, which are relatively expensive and subject to notable fluctuations due to multiple factors including macro economy, trade environment, industrial policies, and market supply and demand. Although rare earth permanent magnet material enterprises can dynamically adjust product selling prices based on factors such as raw material price changes, some existing order prices are locked in, and price adjustments for new orders also involve negotiation cycles, so product price adjustments typically lag behind raw material price fluctuations. If raw material prices continue to swing wildly in the future and the company fails to respond in a timely and effective manner, it may adversely affect business performance. Countermeasures: To address this risk, the company continuously strengthens supply chain management, signs long-term agreements with major suppliers to establish stable partnerships, and implements a scientific raw material reserve strategy to smooth out the impact of price fluctuations. A review of the 2025 price performance of Pr-Nd alloy, a key raw material for NdFeB, showed: the average price of Pr-Nd alloy on December 31, 2025 was 735,000 yuan/mt, up 50.31% compared with its average price of 489,000 yuan/mt on December 31, 2024. The annual daily average price of Pr-Nd alloy in 2025 was 602,181.07 yuan/mt, up 117,476.52 yuan/mt or 24.24% YoY compared with the annual daily average price of 484,704.55 yuan/mt in 2024. A review of the price trend of Pr-Nd alloy in Q1 this year showed: the average price of Pr-Nd alloy on March 31 this year was 880,000 yuan/mt, up 145,000 yuan/mt or 19.73% compared with its average price of 735,000 yuan/mt on December 31, 2025. The daily average price of Pr-Nd alloy in Q1 this year was 913,035.71 yuan/mt, up 385,018.17 yuan/mt or 72.92% compared with the Q1 2025 daily average price of 528,017.54 yuan/mt. On May 8, the price of Pr-Nd alloy was 925,000–930,000 yuan/mt, with an average price of 927,500 yuan/mt, down 0.8% from the previous trading day. Currently, rare earth market prices continue to weaken. Pr-Nd market, downstream purchasing inquiries showed no improvement, and suppliers of oxides maintained a low-price selling strategy to facilitate shipments. However, Pr-Nd oxide futures prices recovered somewhat on the morning of May 8, narrowing the price decline of Pr-Nd oxide. Metal market, constrained by sluggish downstream inquiries, factories showed limited willingness to actively quote, and some suppliers chose to continue lowering their offers. However, as the decline in spot oxide prices narrowed, the actual decline in Pr-Nd alloy prices also narrowed. Nevertheless, downstream wait-and-see sentiment remained strong, and the market trading atmosphere did not see effective improvement. In the short term, Pr-Nd product prices are expected to move sideways amid the tug-of-war between upstream and downstream players.

Spring tides surge, ushering in a new chapter. In Q1, driven by the sustained improvement of the macro economy, China's non-ferrous metals industry, guided by the principle of stability with simultaneous gains in quality and efficiency, delivered an impressive report card of a "good start" — from steady recovery in industrial investment to sustained growth in market demand, from strengthening price resilience to an overall surge in enterprise profitability, and from continuous optimization of industrial structure to accelerating technological innovation. Steady Growth in the Non-ferrous Metals Industry On April 16, the National Bureau of Statistics (NBS) released Q1 macro economic data. In Q1, China's GDP grew 5.0% YoY, up 0.5 percentage points from Q4 last year, reaching the upper end of the full-year growth target range of 4.5%–5.0%, achieving a solid start for the economy. Among the data, industrial value added of enterprises above designated size grew 6.1% YoY. Among the three major sectors, mining grew 6% YoY; manufacturing grew 6.4% YoY, with high-tech manufacturing up 12.5% YoY; and the production and supply of electricity, heat, gas, and water grew 4.3% YoY. Among major industries' value added, non-ferrous metal smelting and rolling processing grew 2.5%. In Q1, China's production of ten major non-ferrous metals totaled approximately 20.53 million mt, up 3.6% YoY, including aluminum production of approximately 11.41 million mt, up 3.1% YoY. The non-ferrous metals industry achieved steady growth. The recently released monthly prosperity index report for the non-ferrous metals industry showed that in March, China's non-ferrous metals industry prosperity index stood at 38, up 2.8 points MoM, displaying a steady upward trend, with the industry overall exhibiting characteristics of stable production, steady investment, and sustained growth in profitability. Capacity utilization side, in Q1, the capacity utilization rate of non-ferrous metal smelting and rolling processing remained flat YoY and was slightly above the national average for industrial enterprises above designated size. The national capacity utilization rate for industrial enterprises above designated size was 73.6%, down 1.3% from Q4 last year and down 0.5% YoY. Among them, the mining industry's capacity utilization rate was 72.1, down 2.5% YoY; the capacity utilization rate of non-ferrous metal smelting and rolling processing was 77.2%, down 0.3% YoY. Notably, investment side, in March, investment in China's non-ferrous metal smelting and rolling processing turned from a 9.2% YoY decline in the previous two months to a 3.7% YoY increase, shifting from negative to positive and achieving a notable rebound. Market side, as China's macro economy maintained steady progress, the manufacturing PMI returned to expansion territory, industrial production grew steadily, and monetary policy remained prudent, providing support for the non-ferrous metals market. Aluminum prices in particular continued to strengthen, supported by costs and demand, with SHFE aluminum futures reaching a high of 25,965 yuan/mt. In addition, gold, cobalt, and lithium prices saw remarkable rebounds. Overall, amid a macro environment of stable supply and growing demand, the non-ferrous metals industry exhibited a steady and positive development trend. Profitability side, driven by the combined effects of high-level price fluctuations in major metal varieties and steady growth in market demand, industry profitability continued the steady growth momentum from the end of last year. In January–February, overall industry profitability improved significantly, with industrial enterprises above designated size achieving revenue of 1,713.17 billion yuan, up 28.3% YoY, and total profits of 123.16 billion yuan, up 133.5% YoY, with profitability steadily strengthening. Steady Growth in Publicly Listed Firms' Performance Driven by demand growth and industrial structure optimization, in Q1, the non-ferrous metals sector on A-shares delivered significant performance growth, with publicly listed firms in the non-ferrous industry generally reporting substantial profit increases. As of now, among non-ferrous metals companies on A-shares that have disclosed Q1 earnings forecasts, over 90% reported positive results, with nearly half posting YoY net profit growth exceeding 100%. Leading enterprises delivered particularly impressive results. Aluminum Corporation of China is expected to achieve Q1 net profit of approximately 5.302–5.585 billion yuan, up 50%–58% YoY, setting a record high for the same period. Yunnan Copper, benefiting from rising copper prices and the recovery of smelting TC, reported a Q1 earnings increase with net profit up approximately 45% YoY. CATL achieved Q1 revenue of 129.131 billion yuan, up 52.45% YoY, and net profit attributable to shareholders of approximately 20.738 billion yuan, up 48.52% YoY. Zijin Mining is expected to achieve net profit attributable to shareholders of 17–20 billion yuan, up 65%–97% YoY, with both volume and price of its two core products — copper and gold — rising, highlighting the advantages of its global resource deployment. CMOC, driven by rising prices of copper, cobalt, rare earths, and other products, is expected to achieve Q1 net profit of 7.5–9 billion yuan, up 90%–128% YoY. Shenhuo Co., benefiting from rising aluminum prices and declining raw material costs, is expected to achieve Q1 net profit of 2.25 billion yuan, up 217.68% YoY. Huayou Cobalt is expected to achieve Q1 net profit of 2.497 billion yuan, up 99.45% YoY, driven by robust demand for new energy battery materials and rising volumes and prices of nickel, cobalt, and lithium. Boosted by international gold prices hitting record highs, gold stocks saw explosive performance, with Western Gold expected to achieve Q1 net profit of 450–560 million yuan, up over 11 times YoY. In Q1, with stable supply and better-than-expected demand, the non-ferrous sector was broadly favored. International gold prices broke through $2,400/oz, the average SHFE copper price exceeded 100,000 yuan/mt, and prices of aluminum, tin, tungsten, rare earths, and other metals rose significantly YoY. The supply-demand pattern continued to improve — globally, new mine capacity was limited and ore grade at aging mines declined, keeping supply tight. Demand side, emerging markets such as AI computing power, NEVs, energy storage, and ultra-high voltage saw robust demand, while traditional infrastructure and real estate demand gradually recovered, driving sustained growth in the non-ferrous metals consumer market. Production cost and efficiency improvement side, enterprises advanced industry chain integration, green smelting for cost reduction, and refined management, significantly enhancing profitability. Notably, in this round of the non-ferrous sector's sharp rise, beyond traditional leading varieties such as copper, aluminum, and gold, minor metals including rare earths, tungsten, and antimony also delivered eye-catching performance. Additionally, the new energy revolution and changes in the geopolitical environment drove significant growth in demand for metals such as lithium and cobalt, boosting demand for strategic materials including non-ferrous metals and steel. Analysts believe that against the backdrop of intensifying global resource competition and the accelerating development of new energy and the digital economy, the non-ferrous metals industry, as a strategic raw material sector, is expected to see sustained and steady improvement in industry prosperity. Steady Breakthroughs in Technological Innovation Technological innovation is the core driving force and key pillar for the sustained and stable development of China's non-ferrous metals industry, and a vital engine for driving the industry's transformation toward high-end, intelligent, and green development. Through continuously deepening scientific research and innovation and persistent, solid efforts, China's non-ferrous metals industry has achieved fruitful results in technological innovation. Recently, a research team at the Institute of Metal Research, Chinese Academy of Sciences, successfully developed a "super copper foil" that enables smartphones, computers, and EVs to generate less heat, charge faster, and operate more safely during high-current charging. In daily life, electric current generates heat when passing through resistance — the higher the charging power, the hotter electronic devices become. This phenomenon is caused by the inconspicuous copper foil inside electronic devices. This wafer-thin "copper sheet" serves as both a conduit for electric current and a carrier of heat. However, for a long time, copper foil has faced an insurmountable challenge — high strength means poor conductivity; good conductivity means thermal stability cannot keep up. These three properties form an "impossible triangle," where improving one comes at the expense of the others. The "super copper foil" newly developed by the research team at the Institute of Metal Research, Chinese Academy of Sciences, has cracked this "impossible triangle" — maximizing strength, conductivity, and thermal stability simultaneously. First, strength surged. Ordinary industrial copper foil has a tensile strength of approximately 300–600 MPa, while the newly developed "super copper foil" achieves a tensile strength of 900 MPa, roughly twice as strong as conventional copper foil. Second, conductivity remained intact. Despite the significant increase in strength, the "super copper foil" maintains an electrical conductivity of 90% of high-purity copper. Compared with traditional copper alloys of similar strength, the "super copper foil" offers approximately twice the conductivity, truly achieving both strength and conductivity. Furthermore, the "super copper foil" also excels in thermal stability — after being stored for six months under normal conditions, its performance showed no degradation, making it suitable for long-term use in electronic products, batteries, and other applications. When manufacturing the "super copper foil," the research team added a trace amount of organic additive to the electroplating solution, causing numerous 3nm-sized "micro-locks" to form inside the copper foil. These "micro-locks" act like countless microscopic nails, firmly locking the gaps between copper crystal grains, naturally boosting the foil's strength significantly. These "micro-locks" bond seamlessly with the surrounding copper, so electrons passing through encounter virtually no obstacles, resulting in almost no loss of electrical conductivity. It can be said that copper foil serves as both the "nerves" of electronic devices and the "blood vessels" of the new energy industry. This "super copper foil" is already capable of continuous production under industrial conditions, opening new pathways for upgrading and iterating various devices including smartphones, AI chips, and EVs. The successful breakthrough of this technology holds significant strategic importance for the independent and controllable development of China's electronic information and new energy industries. Additionally, small-scale technological transformations and on-the-job innovations in production workshops also yielded remarkable results, becoming an important lever for quality and efficiency improvement in Q1. Baiyin Group's smelting system focused on maintaining continuous and stable production, rationally allocating raw material structures and dynamically adjusting process workloads in response to changes in raw materials and market conditions, achieving new highs in product quality while maintaining stable output. Dianzhong Non-ferrous Metals Co., Ltd., a subsidiary of China Copper, focused on comprehensive utilization of resources, successfully converting sulfur slag into a profit-generating "rich ore," forging a path that achieves both green, low-carbon development and economic benefits. The key technology for collaborative disposal and resource recovery of typical solid waste from copper, lead, and zinc, led by Kunming Institute of Metallurgy Research, won the first prize of the Environmental Technology Progress Award from the China Association of Environmental Protection Industry, thanks to its advanced technical capabilities and significant environmental benefits, providing a practical and feasible technical pathway for the industry's green transformation and making the conversion of solid waste into valuable resources a reality. In the production workshop of Luoyang Copper Processing Co., Ltd., the world's widest copper plate cold and hot rolling mill — the 3500mm copper and copper alloy wide-thick plate cold and hot rolling mill — completed its first trial rolling successfully, marking a major breakthrough for China in the field of high-end copper and copper alloy wide-thick plate rolling equipment. Spring heralds a new journey, with steady momentum and rising quality. In Q1, China's non-ferrous metals industry advanced steadily with gains in both volume and efficiency, demonstrating operational resilience; publicly listed firms maintained sound operations with continuously improving profitability, building a solid foundation for development with strong performance; innovative achievements in key material breakthroughs, green low-carbon smelting, and digital-intelligent transformation continued to materialize, injecting strong momentum into industrial upgrading and firmly establishing a high-quality start for the 15th Five-Year Plan period. Standing at a new starting point, the entire industry will build on stability, pursue progress to enhance quality, continue to deepen the industry chain, strengthen the innovation chain, and elevate the value chain. In Q2, the industry will seize the momentum and forge ahead, advancing the non-ferrous metals industry toward high-end, intelligent, and green development with more solid steps, and delivering an even more impressive non-ferrous metals report card for achieving stable growth and promoting transformation throughout the year.