Zhaoyuan in Shandong Province, China's county with the highest "gold content," saw its total output value of the gold industry exceed 100 billion yuan last year, ranking first among all county-level cities nationwide. The region has established an entire gold industry chain, spanning from upstream exploration and mining, midstream smelting and processing, to downstream design and retailing. Amidst the current scenario where gold prices have repeatedly hit new historical highs, the city exudes an air of opulence. Recently, a reporter from Cailian Press visited this small city and engaged in discussions with numerous individuals involved in the local gold industry chain to understand their perspectives on gold price trends, the situation of upstream reserve and production increases, the recent developments in midstream smelting and processing, as well as the new trends emerging in the "time-honored" downstream gold jewelry sector. Upstream: Reserve and Production Increases in Progress The Jiaodong region, where Zhaoyuan is located, is China's largest gold ore concentration area, with proven gold resources exceeding 5,800 mt, accounting for 35% of the country's total reserves. Notable ore-controlling faults in the region include the Sanshandao Fault, Jiaojia Fault, Zhaoping Fault, and Jinniushan Fault. Among them, Zhaoyuan's gold resources are mainly distributed within the fault structures of the Zhaoping Fault Zone, with the Linglong ore field in the north being a world-class ore field with reserves exceeding 1,000 mt. Currently, Zhaoyuan boasts two gold mines under active exploitation that rank among China's top ten gold mines. One of them, the Linglong Gold Mine, belongs to Shandong Gold Group, while the other, the Xiadian Gold Mine, belongs to Zhaojin Group. In addition, enterprises such as China National Gold Group Corporation and Jindu State Investment also possess abundant resources in the local area. With the soaring international gold prices—which surged by 26.8% throughout last year and even exceeded $3,500 per ounce at one point this year—the topic of gold prices has begun to attract increasing discussions. Industry insiders in Zhaoyuan told Cailian Press, "The pricing mechanism of gold is based on credit, influenced by supply and demand dynamics, and underpinned by mining costs. From a medium and long-term perspective, the upward trend is evident." The sustained increase in gold prices has profound implications for gold mining enterprises. On one hand, the production cost per gram of gold for major domestic publicly listed gold firms mostly fell within the 200-300 yuan range last year, and the rise in gold prices directly boosted their profits. On the other hand, the increase in gold prices has made it economically viable to mine ore deposits with lower grades or higher costs, leading to significant reserve and production increases for gold mining enterprises. According to the 2025 Zhaoyuan Government Work Report, key local enterprises in Zhaoyuan "achieved remarkable results in reserve and production increases last year," implementing a total of 17 in-region exploration projects and 2 out-of-region M&A projects. The annual new gold reserves reached 178.2 mt, and self-produced gold output amounted to 28.1 mt, representing increases of 10.5% and 16.1%, respectively. The local target for 2025 is to strive for gold production to exceed 31.25 mt and to increase proven reserves by 33.3 mt. Midstream: Gold Bars in Undersupply Zhaoyuan is not only rich in gold ore resources but also serves as the country's largest base for gold intensive and deep processing. Zhaojin Refining, a subsidiary of Zhaojin Group, is the leading enterprise in the local deep-processing industry chain. It holds certifications from the Shanghai Gold Exchange, Shanghai Futures Exchange, and London Bullion Market Association as a "qualified refiner capable of producing standard gold and silver ingots." With an annual refining capacity of 200 mt of gold and 1,000 mt of silver, it ranks first in the industry in terms of gold refining production. Local industry insiders told Cailian Press that gold refining has become fully marketized, with thin profit margins. Core competitiveness depends on production and management efficiency. However, as gold prices doubled over the past two years, processing fees also rose significantly, leading to a substantial improvement in profitability and keeping the entire industry at a high prosperity level this year. Additionally, Zhaojin Refining collaborates extensively with major domestic banks in the field of gold deep-processing, offering comprehensive services including design, processing, distribution, repurchase, customization, and warehousing logistics for precious metal products. Since last year, there has been an "explosive" surge in public demand for investment gold bars, with orders pouring in continuously. Zhaojin Refining's gold bar production workshop once had its production schedule booked a month in advance, forcing workers to work overtime. Due to its heavy involvement in physical gold trading, upstream and midstream gold mining companies need to use "futures + options" combinations for risk hedging and price protection to mitigate market risks caused by gold price fluctuations. Seizing this opportunity, Zhaojin Group entered the futures market, and its subsidiary Shandong Zhaojin Investment Co., Ltd. became one of the largest gold traders on the Shanghai Gold Exchange, consistently ranking among the top three comprehensive members. This serves as a model for the integration of industry and finance in the gold sector. Downstream: Repositioning of Gold Jewelry The rapid rise in gold prices has not been universally welcomed in the gold industry chain, with some benefiting while others suffer—particularly downstream gold jewelry retailers. This is because when gold prices rise from low levels, the increase stimulates jewelry consumption. However, once prices reach a psychological high, further increases tend to suppress jewelry demand. Consequently, since H2 last year, typical gold jewelry stocks such as Lao Feng Xiang, Caibai Co., Ltd., and China Gold have generally faced declining performance and stock prices, starkly contrasting with the continuous climb in gold prices. However, against the backdrop of persistently high gold prices, will gold jewelry consumption inevitably continue to shrink? In Zhaoyuan, industry insiders hold differing views. "If you look at the three newly emerging jewelry brands—Laopu, Linchao, and Junpei—they remain completely unaffected by the surge in gold prices." The professional attributes this to the core strategy of brands like Laopu, which emphasize ancient-style gold jewelry with a focus on design, craftsmanship, and artistic value. These brands align with the current trend of Chinese aesthetic revival and psychologically "capture" consumers, making them view their purchases as luxury or collectible items, thereby desensitizing them to the relationship between product pricing and real-time gold prices. "This brings us a profound insight: the competition in the gold jewelry industry is increasingly focused on product strength and design. The new generation of consumers, including young people, place greater emphasis on the self-pleasing and collectible attributes of gold jewelry. Only by continuously exerting efforts in this dimension can we break through in an environment of high gold prices." Currently, Zhaojin Group is focusing on building its brand "Zhaojin Silver House" (formerly known as Zhaoyuan Silver Workshop, established in 1908). It has launched product series such as "Contemporary Treasure" and "Dunhuang Splendid Ornaments," attempting to secure a place in the fiercely competitive gold retail market through innovative designs that integrate traditional culture. In Zhaoyuan, beyond the traditional business models of gold mining, smelting, and retail, efforts are being made to explore more economic growth points centered around gold themes. Today, Zhaoyuan is promoting the deep integration of "gold + culture + tourism" offline, attempting to leverage the Gold Town to delve into the millennium-old gold culture and experience the intangible cultural heritage of the Song Dynasty. It is constructing a new pattern of integrated development of industry, culture, and tourism that encompasses "mining gold, making gold, playing with gold, buying gold, and exchanging gold," further cultivating a characteristic cultural tourism IP of "China's Gold Capital." Locals in Zhaoyuan say that the charm of gold lies in its heritage from antiquity, yet it always manages to remain fresh and relevant.

On April 22, the "Entering Zhangjiang Science City: AI and Chip Deep Insights" event was held under the guidance of the Pudong New Area Science and Technology and Economic Work Committee, the Pudong New Area Investment Promotion Service Center, the Zhangjiang Science City Construction Management Office (Zhangjiang Administration Bureau), and the Lujiazui Group. The event was hosted by the Cheung Kong Graduate School of Business and Puying Asset, and co-hosted by the Shanghai Branch of SPD Bank and the Research Institute of TF Securities. The event attracted renowned experts, industry leaders, chairmen of publicly listed firms, and heads of leading enterprises from the technology and finance sectors. Through in-depth surveys of leading publicly listed firms in the AI and chip fields, the event aimed to gain insights into the integration trends of chip technology's foundational support and cutting-edge AI applications, building a high-end communication platform among "publicly listed firms—business schools—investment research institutions" to foster industrial collaboration and innovation. During the guest exchange session, Hu Wei, Deputy Director of the Zhangjiang Administration Bureau, highlighted the "Science and Technology Ecosystem Leadership Initiative" of Zhangjiang Science City, sharing the importance and achievements of strategic layouts in the AI and chip fields. He stated, "Zhangjiang Science City is a brand of Chinese innovation and a banner of Shanghai's innovation. We hope to work hand in hand with all sectors of society to jointly build a science and technology ecosystem, cultivate fertile ground for innovation, and focus on Zhangjiang's new journey." Zhou Chunsheng, Professor of Finance and Deputy Dean of the Executive Education Program at the Cheung Kong Graduate School of Business, noted in his speech that innovation is not a Pareto improvement. Amid uncertainty, only continuous disruption and learning can ensure that companies remain on the right side of the normal distribution. AI and chips are exemplary of continuous disruption and have become key to global technological development. The future will see even closer integration of AI and chip industries, especially in emerging fields like intelligent computing and edge computing, where chip computing power and energy efficiency will be critical factors determining AI application performance. The ongoing tariff war has accelerated the localisation of chips and AI. Zhou Chunsheng believes that the tariff war has increased inflationary pressures in the US, impacted economic growth, and put pressure on China's export trade, with the tech industry facing challenges in acquiring key equipment and technologies. However, crises also present opportunities, as the tariff war has spurred the acceleration of localisation in industries such as EDA tools and lithography machines. Zhou Chunsheng suggested that companies closely track tariff negotiations, promote market diversification, optimize supply chain layouts, enhance competitiveness through brand and technology, and develop new strategies to respond to the tariff war, driving China's chip and AI industries to new heights. Tang Haiqing, Party Secretary, Director, Managing Director, and Chief Analyst of the Technology Industry at the Research Institute of TF Securities, proposed in his keynote speech "The Once-in-20-Years Tech Revolution—AI" that while the tariff war has impacted the chip and AI industries, it has also brought positive factors. Global computing power is rapidly growing, DeepSeek is driving the development of domestic computing power, and large models are continuously evolving. AI applications are being implemented across multiple fields, with rapid development in edge AI and AI Agents. Companies should grasp technological trends, leverage the characteristics of domestic computing power, seek breakthroughs in adversity, and promote the sustained development of the chip and AI industries to meet the challenges of the tariff war. Dai Weimin, Chairman of VeriSilicon, detailed the company's progress and advantages in the semiconductor IP licensing service sector during the event. As a globally renowned chip design service provider, VeriSilicon's IP licensing services are widely used in consumer electronics, automotive electronics, IoT, and other fields. According to IPnest's 2024 statistics, VeriSilicon ranks eighth globally in semiconductor IP sales revenue, with its IP types ranking among the top two in the global top ten companies. Dai Weimin stated that DeepSeek has promoted the application and explosion of edge AI technology, stimulating the launch of low-parameter models and supporting the deployment of small AI large models and small AI models on end-user devices. By 2030, generative AI is expected to triple semiconductor revenue in the server field compared to 2024. As customer products gradually enter mass production, VeriSilicon will further increase royalty income and expand the scale effect of its IP licensing business. Zhou Xi, Chairman and CEO of CloudWalk Technology, shared the company's cutting-edge achievements in the AI field. As a domestic AI solution provider, CloudWalk's core products, the human-machine collaboration operating system and AI solutions, are widely used in smart finance, urban governance, smart mobility, and other industries. Zhou Xi noted that CloudWalk's Congrong large model ranked seventh domestically in the SuperCLUE April 2024 rankings, and its self-developed "All in One" infrastructure provides strong support for the efficient operation of models. He also stated that future Agents will bring disruptive improvements to production and management efficiency, promote knowledge equality, and enhance professional capabilities across various enterprise fields. It is expected that "killer" applications of large models will emerge in the next 2-3 years. Tian Ye, Deputy General Manager of the Technology Finance Department at SPD Bank, detailed the latest trends in technology finance. He stated that the tariff war has impacted the chip and AI industries, with companies facing challenges such as export blockages and difficulties in acquiring technology. Under its "Digital Intelligence" strategy, SPD Bank leverages the "Puke 5+7+X" product system to provide financial support at various stages of the industry. By using AI to build a smart service system, the bank enhances service and credit efficiency. Through the Five Forces Model, it accurately assesses enterprises and provides "patient capital." SPD Bank aims to help the industry withstand the risks of the tariff war and achieve steady development. Ding Yaming, founder of Puying Asset, stated that technological innovation requires comprehensive changes in "industry, academia, research, and investment." He hopes to use capital as a link to synergize the industrial chain capabilities of publicly listed firms and remove blockages between investment and industry. In the future, Puying Asset will collaborate with the Cheung Kong Graduate School of Business to focus on the new quality productive forces track and build the "Publicly Listed Firm Leader Project" resource platform.

On March 21, CMOC released its performance report. The report showed that in 2024, the company's operating revenue exceeded 200 billion yuan for the first time, reaching 213.029 billion yuan, up 14.37% YoY. Its net profit attributable to the parent company surpassed 10 billion yuan for the first time, reaching 13.532 billion yuan, up 64.03% YoY. In 2024, the production of the company's main products, including copper, cobalt, niobium, and phosphate fertiliser, all reached record highs.