On March 16, Wanshun New Materials issued an announcement stating that its wholly-owned subsidiary, Jiangsu Zhongji Composite Materials (Hong Kong) Co., Ltd., plans to acquire 100% equity of Eurofoil Luxembourg S.A. from Aluminium Investment Company Limited for €12,388,900 in cash. Upon completion of the transaction, the company will hold 100% equity of Eurofoil Luxembourg, which will be included in the company's consolidated financial statements. According to the valuation, the market value of Eurofoil Luxembourg's net assets is €32,170,300, representing an increase of €11,150,100 over the book net assets, a 53.04% increase.

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.

Due to the pullback in coal prices, industry expectations for the profitability of the coal machinery sector have also decreased. A reporter from Cailian Press, acting as an investor, learned from multiple coal machinery producers that despite the intensified competition in the upstream coal machinery market caused by the decline in domestic coal prices, the coal machinery sector still maintains a relatively high market demand due to the high capacity utilisation rate of coal mines and the requirements for intelligent transformation of domestic coal mines. Meanwhile, the domestic coal machinery sector has intensified its efforts to expand into overseas markets in recent years, seeking new growth points. According to industry insiders, with the in-depth promotion of the "Belt and Road" Initiative, overseas demand for domestic coal machinery equipment is increasing, providing broad development space for Chinese coal machinery enterprises. Domestic coal machinery producers have successfully exported their products to regions such as Russia, Southeast Asia, Latin America, and Africa, achieving remarkable results in overseas market expansion. Coal Prices Pull Back, Domestic Coal Machinery Demand Stable with Prices Falling, Market Concentration Rising The coal market peaked at the beginning of last year, and coal prices have continued to fall this year. The Bohai-Rim Steam-Coal Price Index dropped from 731 yuan/mt at the beginning of the year to 669 yuan/mt, while the long-term agreement price of the Xinhua Coking Coal Price Index fell to around 1,000 yuan/mt, a decline of approximately 300 yuan/mt from the beginning of the year. The profitability of coal enterprises has pulled back, with China Shenhua Energy (601088.SH) reporting a net profit excluding non-recurring gains and losses of 11.705 billion yuan in Q1, a YoY decline of 28.89%, and Shanxi Coking Coal (000983.SZ) reporting a net profit excluding non-recurring gains and losses of 725 million yuan in Q1, a YoY decrease of 19.09%. Coal prices are a leading indicator of the prosperity of the coal machinery sector. A representative from Zhengzhou Coal Mining Machinery Group (601717.SH) stated, "Coal prices affect the production and operation of downstream customers, which in turn may influence their decisions on equipment procurement or maintenance." From the financial statements of coal machinery enterprises and the operating conditions of coal production enterprises, it can be seen that the demand for equipment from downstream coal enterprise customers remains relatively resilient, but product prices have pulled back, having a certain impact on the gross profit margins of coal machinery enterprises. A representative from Chuangli Group (603012.SH) stated, "The annual change in the number of mainframe sales is not particularly significant and basically tends to stabilize." In terms of prices, coal machinery products have indeed been impacted to a certain extent. To maintain market share, enterprises have more or less adopted price reduction strategies, as can be seen from the financial reports of relevant publicly listed firms. In Q1 this year, Tiandi Science & Technology (600582.SH) reported a gross profit margin on sales of 26.31%, a YoY decrease of 4.25 percentage points; Shandong Mining Machinery Group (002526.SZ) reported a gross profit margin on sales of 19.55%, a YoY decrease of 2.26 percentage points. The aforementioned representative from Chuangli Group explained that since last year, there has been a decline in revenue in the coal industry, which has also affected upstream coal machinery enterprises, mainly in terms of machine prices. Coal machinery equipment is a necessity for coal mines, but when the economic benefits of downstream coal mines decline, they may reduce procurement prices, thereby affecting gross profit margins. Additionally, another major reason why the current boom period for the coal machinery industry is longer than that for coal prices is the impact of policies. The intelligent transformation of coal mines has relatively extended the boom period for the domestic coal machinery industry. The "Guiding Opinions on Accelerating the Intelligent Development of Coal" issued by the National Energy Administration in 2020 required that large coal mines should basically achieve intelligence by 2025. The "Notice of the National Energy Administration on Further Accelerating the Intelligent Construction of Coal Mines to Promote High-Quality Development of the Coal Industry" issued in 2024 also set requirements for comprehensively promoting the intelligent development of coal mines under construction and the intelligent transformation of large coal mines and those with severe disasters. According to personnel from Zhengzhou Coal Mining Machinery Group Co., Ltd., currently, about 20-30% of coal mines nationwide have completed intelligent transformation, but the total capacity of mines that have achieved intelligence should have exceeded half. The remaining coal mines, which face greater difficulties in transformation or have poorer operating conditions, will also meet the minimum regulatory requirements for transformation. The intelligent transformation of domestic coal mines is required to be comprehensively promoted; it is just a matter of time. Furthermore, the increased technical requirements for intelligent coal mine equipment have also passively driven up the market concentration of top-tier enterprises. In the list of the top 50 Chinese coal machinery industry enterprises for 2024 released last month, the four major types of equipment produced by the top 50 coal machinery producers—shearers, roadheaders, scraper conveyors, and hydraulic supports—accounted for 91.55%, 87.4%, 76.78%, and 86.08% of the total statistics compiled by the association, respectively. Staff from Zhengzhou Coal Mining Machinery Group Co., Ltd. stated that in recent years, the market concentration of top-tier enterprises has been relatively high, and these enterprises have certain advantages in product quality and stability. Although the overall domestic market demand has stabilized and some demand has slightly declined, the company's market share and bid-winning rate have continued to increase. Export Value of Major Coal Machinery Equipment Doubles in Five Years, with Deeper Exchanges with Countries Along the "Belt and Road" The domestic coal machinery industry has achieved remarkable results in overseas market expansion over the past two years. Multiple coal machinery producers have stated that the international competitiveness of many Chinese coal machinery equipment has reached the world's leading level. The recognition and demand for Chinese coal machinery equipment in overseas markets have continued to grow, especially in countries along the "Belt and Road," where the products and services of Chinese coal machinery enterprises have been widely recognized. Le Bin, the executive director of Shanghai Huaxin Minfu Automatic Control Equipment Co., Ltd. (hereinafter referred to as Huaxin Minfu), who had just attended the 2025 Russia International Coal Mine Machinery Exhibition, told reporters from Cailian Press: "The company has intensified its efforts in overseas market expansion over the past two years, and the overseas sales of its products have continued to increase." The export value of major domestic coal machinery equipment has grown rapidly over the past five years. Customs data indicates that the export value of self-propelled coal (cutting) mining machines, rock drills, or tunnel boring machines (corresponding coal machinery categories: shearers, roadheaders) increased from 2.282 billion yuan in 2020 to 5.251 billion yuan in 2024, marking a 130% increase. The export value of belt-type continuous cargo conveyors or elevators (corresponding coal machinery category: scraper conveyors) rose from 3.873 billion yuan in 2020 to 8.904 billion yuan in 2024, showing an approximate 130% increase. The export value of hydraulic or pneumatic automatic regulating or controlling instruments and devices (corresponding coal machinery category: hydraulic supports) grew from 956 million yuan in 2020 to 1.432 billion yuan in 2024, approaching a 50% increase. These figures demonstrate the strong competitiveness and expanding market share of China's coal machinery equipment in overseas markets. Coal Machinery Export Data for the First Four Months of 2020-2025 (Data Source: Customs Statistical Data Query Platform) Behind the growth in export sales is the active "going global" step taken by domestic enterprises. An overseas exhibition organizer told a reporter from Cailian Press that in the past two years, there has been a significant change in the attitude of mining equipment enterprises towards participating in overseas exhibitions, with the number of enterprises participating in overseas exhibitions increasing year by year. Compared to the pre-pandemic period, the number of Chinese exhibitors at some overseas exhibitions has roughly doubled. This exhibition organizer has organized multiple groups of domestic coal mining machinery production enterprises to participate in coal mining machinery equipment exhibitions in countries such as Russia, South Africa, Australia, and Mexico this year. Le Bin, the executive director of Huaxin Minfu, shared his insights on the company's experience in developing the Russian market, stating that in recent years, there has been a rapid increase in demand for equipment in Russia. Previously, the country's coal machinery equipment was mainly sourced from European and American producers, but in recent years, due to changes in the international situation, most have now shifted to purchasing Chinese equipment. However, there are differences in equipment demand between the two countries. Russian coal enterprises do not have high requirements for intelligence, and their demand leans more towards traditional equipment. It will still take some time to promote certain new-type equipment. The company has been seeking partners in the country to continuously deepen its presence in the market. As domestic coal machinery enterprises rapidly expand in overseas markets, they are also gradually adapting to the differences between domestic and overseas markets. A representative from Zhengzhou Coal Mining Machinery Group stated that the company regards the international market as an important future growth source. However, overseas market demand is not particularly balanced, and most overseas mining is open-pit, resulting in relatively less demand for domestic underground mining equipment. Regarding how to expand overseas markets, Le Bin believes that overseas market promotion is a long-term endeavor that requires patience. It is not possible to open up a market by participating in just one or two exhibitions. Additionally, it is necessary to deeply integrate with the local market, such as by seeking local partners and adapting to the procurement habits of overseas end-user mining enterprises.

The stock price of Xingye Yinxi Mining saw a significant increase on the first trading day after the Dragon Boat Festival holiday. As of 9:59 a.m. on June 3, Xingye Yinxi Mining was up 4.16%, trading at 13.78 yuan per share. In an announcement on the evening of June 2, Xingye Yinxi Mining stated that Xiwuqimuqin Banner Budun Yingen Mining Co., Ltd. (Budun Yingen Mining) is a controlled subsidiary of Inner Mongolia Xingye Gold Smelting Group Co., Ltd., the controlling shareholder of Inner Mongolia Xingye Yinxi Mining Co., Ltd. On December 30, 2024, the company signed a "Trusteeship Agreement" with Xingye Group, under which Xingye Group entrusted Budun Yingen Mining to the company for operation and management. On May 30, 2025, Budun Yingen Mining received a "Reply on the Review and Filing of Mineral Resource Reserves for the Verification Report on Silver Mine Resource Reserves in the Budunwula Mining Area, Xiwuqimuqin Banner, Inner Mongolia Autonomous Region" (Xi Ziran Zi Chu Bei Zi (2025) No. 006) from the Xilingol League Natural Resources Bureau. After review, the relevant materials for the review and filing of mineral resource reserves of Budun Yingen Mining were found to comply with relevant regulations and were approved for review and filing. The specific situation is as follows: According to the "Review Opinion on the Verification Report on Silver Mine Resource Reserves in the Budunwula Mining Area, Xiwuqimuqin Banner, Inner Mongolia Autonomous Region" (Xi Ziran Zi Chu Ping Zi (2025) No. 006), through this verification of resource reserves, as of January 31, 2025, the cumulative identified ore quantity of silver mine resources was 70.325 million mt, with a metal content of 11,114 mt and an average grade of Ag 158.07 g/t. This includes: measured resources with an ore quantity of 14.243 million mt, a metal content of 3,546 mt, and an average grade of Ag 248.95 g/t; indicated resources with an ore quantity of 22.512 million mt, a metal content of 3,573 mt, and an average grade of Ag 158.74 g/t; and inferred resources with an ore quantity of 33.57 million mt, a metal content of 3,995 mt, and an average grade of Ag 119.05 g/t. Through this verification of resource reserves, as of January 31, 2025, the identified associated resources of Pb, Zn, Ga, and Cd were as follows: Pb ore quantity of 39.571 million mt with a metal content of 95,643 mt; Zn ore quantity of 59.565 million mt with a metal content of 180,818 mt; Ga ore quantity of 70.271 million mt with a metal content of 3,603 mt; and Cd ore quantity of 10.913 million mt with a metal content of 1,092 mt. The average grades of these associated metals were Pb 0.24%, Zn 0.30%, Ga 0.0051%, and Cd 0.0100%, respectively. Regarding the increase in reserves after this review and filing, the announcement from Xingye Yinxi Mining indicates that the most recent report for Budun Yingen Mining was the "Verification Report on Silver Mine Resource Reserves in the Budunwula Mining Area, Xiwuqimuqin Banner, Inner Mongolia Autonomous Region" compiled in March 2024. Upon comparison, this resource reserve verification indicates an increase of 65.316 million mt in ore volume and 10,273.1 mt in silver metal content compared to the most recent previous report on silver mine resources. For associated elements: Pb ore volume increased by 34.998 million mt, with a metal content increase of 84,142 mt; Zn ore volume increased by 55.033 million mt, with a metal content increase of 158,441 mt; Cd ore volume increased by 6.008 million mt, with a metal content increase of 601 mt; Ga ore volume increased by 65.422 million mt, with a metal content increase of 3,381 mt. Xingye Silver & Tin disclosed its Q1 2025 report on April 28, showing that in Q1, the company achieved a total operating revenue of 1.149 billion yuan, up 50.37% YoY; and a net profit attributable to the parent company's shareholders of 374 million yuan, up 63.22% YoY. Xingye Silver & Tin's Q1 report indicates that the current period's operating revenue increased by 50.37% compared to the previous period, operating costs increased by 51.55%, taxes and surcharges increased by 59.56%. The main reasons are the increase in production and sales volume of the company's main mineral products and the YoY increase in product selling prices during the reporting period. The current period's operating profit increased by 61.99% compared to the previous period, total profit increased by 63.25%, income tax expenses increased by 65.49%, and the net profit attributable to the parent company's shareholders increased by 63.22%. The main reasons are the increase in production and sales volume of the company's main mineral products, the YoY increase in product selling prices, and the increase in operating revenue during the reporting period. Other important matters announced by Xingye Silver & Tin in its Q1 report include: 1. The company's acquisition of 85% equity in Yubang Mining : The company acquired 85% equity in Chifeng Yubang Mining Co., Ltd., held by Guocheng Mining Co., Ltd., Li Zhenshui, and Li Ruiyang, for a total of 2.388 billion yuan using its own funds and self-raised funds. On January 6, 2025, the company held its first extraordinary general meeting of shareholders in 2025, which approved this transaction. On January 14, 2025, the equity transfer was completed with the industrial and commercial change registration procedures at the market supervision and administration department. Since then, the company has held 85% equity in Yubang Mining, which has become a controlled subsidiary of the company and is included in the company's consolidated financial statements. 2. Approval obtained for the 2.97 million mt expansion project of the subsidiary Yinman Mining : In January 2025, Yinman Mining, a wholly-owned subsidiary of the company, obtained the "Approval from the Development and Reform Commission of the Inner Mongolia Autonomous Region on the Expansion Project of the 2.97 Million mt/Year Copper-Lead-Tin-Silver-Zinc Mine in the Baiyinchagan Dongshan Mining Area of Xiwuqi Yinman Mining Co., Ltd." (Nei Fa Gai Chan Ye Fa Zi (2025) No. 24) issued by the Development and Reform Commission of the Inner Mongolia Autonomous Region to the Development and Reform Commission of the Xilingol League. Yinman Mining is implementing an expansion project for zinc, lead, silver, copper, and tin ore in the mining area (mining license number: C1500002015013210136961). The project's construction scale will be expanded from 1.65 million mt/year to 2.97 million mt/year, with underground mining as the extraction method. The project is classified as a renovation and expansion project. The company will actively promote the construction of the 2.97 million mt/year expansion project at Yinman Mining. Prior to the project's commencement, the company will handle the relevant procedures for land use, environmental protection, energy conservation review, work safety, water and soil conservation, etc., in accordance with relevant laws and administrative regulations, to ensure that the project commences with all necessary permits as planned. After the project is completed and put into operation, the mining and beneficiation capacity of Yinman Mining will increase from 1.65 million mt/year to 2.97 million mt/year, further enhancing the company's profitability and market competitiveness. 3. Safety incident at subsidiary Yinman Mining: At 16:18 on March 9, 2025, a safety incident occurred during development work at the Yinman Mining project department of Henan Jinyuan Construction Co., Ltd., the mining contractor of Yinman Mining, a wholly-owned subsidiary of the company. The incident resulted in one fatality and no injuries. Following the incident, mining operations at Yinman Mining were suspended on March 9, while the beneficiation plant continued normal operations. Currently, Yinman Mining has completed the relevant rectification work in accordance with the regulatory authorities' requirements, and mining operations resumed on April 16, 2025. This incident did not have a significant impact on the company's production and operations, nor did it have a material adverse impact on the company's 2025 performance. In addition, the 2024 annual report released by Xingye Yinxi shows that in 2024, the company achieved operating revenue of 4,270.3872 million yuan, representing a year-on-year increase of 15.22%; total profit was 1,765.2261 million yuan, a year-on-year increase of 64.69%; and net profit attributable to shareholders of the publicly listed firm was 1,529.8586 million yuan, a year-on-year increase of 57.82%. Introduction to Xingye Yinxi: In 2024, the proportion of operating revenue from the company's main business of various mineral products in the company's total operating revenue was as follows: tin ore contributed 1,415.3906 million yuan, accounting for 33.14%; silver ore contributed 1,165.409 million yuan, accounting for 27.29%; zinc ore contributed 981.0361 million yuan, accounting for 22.97%; iron ore contributed 234.7111 million yuan, accounting for 5.50%; lead ore contributed 230.3635 million yuan, accounting for 5.39%; copper ore contributed 129.711 million yuan, accounting for 3.04%; antimony ore contributed 62.8116 million yuan, accounting for 1.47%; and gold ore contributed 13.7186 million yuan, accounting for 0.32%. Among these, the combined operating revenue from tin ore and silver ore accounted for 60.43%. In its annual report, Xingye Yinxi introduced: During the reporting period, the company's main products included non-ferrous metals and precious metals such as silver, tin, zinc, lead, iron, copper, antimony, and gold. Xingye Silver & Tin stated: In 2024, the company made solid progress in various tasks and successfully completed all annual production and operation objectives. Relying on its high-quality operating mines, the company achieved dual growth in production and profitability , with the effectiveness of its strategic layout becoming evident. Xingye Silver & Tin stated: In 2024, the company produced 8,901.85 mt of mineral tin, up 14.58% YoY; 228.93 mt of mineral silver, up 14.68% YoY; 59,740.98 mt of mineral zinc, up 8.67% YoY; 16,958.57 mt of mineral lead, up 8.05% YoY; 2,906.43 mt of mineral copper, up 4.94% YoY; 1,351.70 mt of mineral antimony, up 32.58% YoY; and 339,100 mt of mineral iron, down 3.74% YoY. From 2022 to 2024, the production of the company's main products (excluding bismuth, iron, and gold) increased year by year. Xingye Silver & Tin introduced: As of the end of 2024 (including Yubang Mining), the company's proven reserves of various metals within the scope of mining licenses for each mine are as follows: A research report on Xingye Silver & Tin published by Guosen Securities on May 16 pointed out: In recent years, the company's production of major minerals has steadily increased. In 2024, the prices and volumes of silver and tin both rose, leading to a significant year-on-year increase in the company's profits. The acquisition of an 85% stake in Yubang Mining has further elevated the company's silver reserves. Considering the company's reliance on the resource-rich location advantage in Inner Mongolia and its proactive approach to reserving high-quality mineral resources through external mergers and acquisitions while pursuing endogenous development, Guosen Securities maintains an "Outperform" rating. Risk warnings: Risks of the company's resource development progress falling short of expectations; risks of volatile metal prices. A research report on Xingye Silver & Tin by Huaxin Securities showed: In 2024, the prices and volumes of mineral tin and silver both rose. The expansion of the Yinman Mine and the external acquisition of Yubang Mining indicate promising long-term growth. First overseas takeover bid for tin mine, marking the company's initial foray into going global: On May 6, 2025, the company announced that it had signed the "Offer Implementation Agreement" with Atlantic Tin Limited on April 30, 2025. The company intends to designate its wholly-owned subsidiary, Xingye Gold (Hong Kong) Mining Co., Ltd., to make an off-market conditional takeover offer to shareholders holding all the issued shares of the target company at a price of AUD 0.24 per share through an off-market takeover bid. Atlantic Tin is an unlisted public company founded in 2005 and headquartered in Perth, Australia. The target company's main business activity is the development of the Achmmach tin mine project in Morocco. As of August 12, 2024, the Achmmach tin mine had proven ore reserves of 39.1 million mt, with an average tin grade of 0.55% and a tin metal content of 213,300 mt. Since 2025, silver and tin prices have maintained a high trend, and the company has completed two mergers and acquisitions. The long-term capacity growth is expected, and we maintain an "Overweight" investment rating. Risk warnings: 1) Downstream demand falls short of expectations; 2) Risk of metal price decline; 3) The release of the company's expanded capacity falls short of expectations; 4) The company's acquisition progress falls short of expectations, etc.

①Lopal Technology's overseas factory secured a "major order" worth 5 billion, with the client, Eve Energy, being an overseas subsidiary of EVE, a top-tier battery enterprise. ②In fact, Lopal Technology has recently been frequently increasing investment and introducing investors in its Indonesian factory.

On the evening of May 26, Zijin Mining announced a preliminary plan to spin off its subsidiary, Zijin Gold International Co., Ltd. (hereinafter referred to as Zijin Gold International), for listing on the Hong Kong Stock Exchange (HKEX). The assets proposed for the spin-off and listing are a major focus of market attention, comprising eight world-class large-scale gold mines located in South America, Central Asia, Africa, and Oceania. These mines are the Buriticá gold mine, Norton Gold Fields, Rosebel gold mine, Aurora gold mine, Jilau/Talo gold mine, Akim gold mine (transaction completed on April 16, 2025), Left Bank gold mine, and Porgera gold mine. The total resources amount to 1,799.79 mt, with total reserves of 696.83 mt, and a 2024 production of 46.22 mt. It should be noted that Zijin Mining's gold mine resources total 3,973 mt, with reserves of 1,487 mt, and a total gold production of 73 mt in 2024. Based on the data from the aforementioned eight gold mines, the corresponding proportions within the company are approximately 45%, 47%, and 63%, respectively. For the Buriticá gold mine in Colombia, which has long been subject to illegal mining, the company has made special arrangements. The company stated that due to ongoing international arbitration related to the mine, there is uncertainty regarding the injection of equity in the Buriticá gold mine into Zijin Gold International before the resolution of the arbitration. To ensure the smooth progress of this restructuring and spin-off, the company currently plans to indirectly restructure the gold mine through entrusted operations and yield swaps. Upon completion of these arrangements, Zijin Gold International is expected to include the Buriticá gold mine in its consolidated financial statements, thereby integrating the revenue from this gold mine asset into Zijin Gold International. The Buriticá gold mine is one of Zijin Mining's largest gold mines in terms of gold production and is the only project among the company's 16 major gold mines in 2024 with a gold production exceeding 10 mt. Financial data disclosed by Zijin Mining show that Zijin Gold International achieved revenues and net profits of 21.268 billion yuan and 4.458 billion yuan (unaudited) in 2024 (pro forma data), accounting for 7% and 14%, respectively, of the company's figures for the same period. This highlights the profitability of the assets proposed for the spin-off and listing. In the context and objectives of this spin-off, Zijin Mining mentioned that it would broaden access to high-quality international investors, reduce overseas operational risks, enhance the competitiveness and flexibility of Zijin Gold International in overseas capital market financing and M&A transactions, and, given the upward cycle of gold prices, facilitate the revaluation of the company's gold assets. According to the disclosed plan, Zijin Gold International will remain a controlled subsidiary within Zijin Mining's consolidated financial statements after listing. It is initially proposed to issue no more than 15% of the total share capital of Zijin Gold International after the issuance on the main board of the HKEX, and to grant the underwriters an over-allotment option of no more than 15% of the shares issued. The issuance targets include overseas institutional investors, enterprises, and natural persons. In terms of equity structure, Zijin Mining holds 24% and 76% of the equity in Zijin Gold International through two wholly-owned subsidiaries, Zijin Mining Northwest and Jinshan (Hong Kong), respectively. The company has not disclosed the issuance price, stating that it will consider the interests of existing shareholders of Zijin Gold International, the acceptability of potential investors, and the issuance risks, with the pricing process following internationally accepted pricing mechanisms. Established in 2007 and headquartered in Hong Kong, China, Zijin Gold International's main business is the exploration, mining, processing, and sale of gold. Its main products for sale are gold bullion, dore gold, and gold concentrate. Zijin Gold International focuses on the exploration and development of high-quality gold assets globally and integrates high-quality overseas mine resources through its leading exploration and reserve augmentation capabilities. It is worth mentioning that, as stated in the company's risk disclosure, as of the date of this announcement, the injection of the aforementioned eight gold mine assets into its subsidiary, Zijin Gold International, has not yet been fully completed. If the subsequent progress of injecting these eight gold mine assets does not meet expectations, it may have an adverse impact on this transaction.

According to the website of the State Taxation Administration, recently, the Shenzhen Taxation Bureau Inspection Bureau of the State Taxation Administration, based on tax big data and relevant tax-related clues, investigated and handled, in accordance with the law, a case of tax evasion by Shenzhen Kingsda Applied Materials Co., Ltd. through illegally enjoying preferential tax treatment for additional R&D expense deductions. Upon investigation, the company engaged in false tax declarations by falsely listing expenses for gold materials in R&D expenses, illegally enjoying preferential tax treatment for additional R&D expense deductions, and underpaying corporate income tax by 16.2116 million yuan. Additionally, the company was found to have other instances of underpayment of taxes. In response to its illegal activities, the inspection department made a decision to recover the underpaid taxes, impose late fees, and impose fines totaling 36.1815 million yuan in accordance with the law. The "whereabouts unknown" of over 80 million yuan worth of gold invested in R&D In the early stage, through tax big data analysis, the Shenzhen Taxation Bureau Inspection Bureau discovered that Shenzhen Kingsda Applied Materials Co., Ltd. had made significant R&D investments, far exceeding the normal levels within the same industry. In response to this suspicious clue, inspectors compared the company's declared data, financial records, and inventory data, and found that the company had listed over 80 million yuan worth of gold investments in the "R&D expenses - direct materials" account during the inspection period, with neither corresponding finished product output nor records of scrap recovery. In response to the above suspicions, inspectors initially interviewed Zhang, the then-legal representative of the company, who claimed that the over 80 million yuan worth of gold had been lost due to purification processes. According to common knowledge, gold is an element with extremely high chemical stability in nature, easily purified, and possesses monetary attributes, with high value and strong liquidity. The over 80 million yuan worth of gold involved in this case is not a small amount. It is indeed difficult to comprehend that such a significant loss would occur due to purification processes. What is even more suspicious is that, given such a large loss, the company still listed gold expenses for each R&D project. Do all these R&D projects truly require gold investments? Inspectors could not help but raise questions. The claim of "gold loss due to purification" collapses on its own Based on the accounting books and invoices provided by the enterprise, inspectors discovered that two gold purification institutions had provided gold purification services to the company in three separate years. To verify the company's gold R&D purification loss situation, inspectors issued and delivered "Tax Assistance Inspection Notices" to these two institutions in accordance with the law. According to the feedback from the two purification institutions, the first institution had received over 1.3 million grams of gold materials from the company for purification processing, with basically no loss after processing and purification, returning gold of approximately the same weight to the company, and charging a purification fee (including loss) of 517,313 yuan; the other institution had received over 300,000 grams of gold materials from the company, and after processing and purification, returned gold of approximately the same weight to the company, charging a purification fee (including loss) of 171,760 yuan. The purification feedback from these two institutions largely confirmed the inspectors' judgment that the loss of gold during purification was low, which was clearly inconsistent with the substantial loss claimed by the enterprise. Given that the company's financial statements indicated such significant losses of gold, there should have been "traces" of this process. Did the enterprise have any relevant supporting materials? However, the inspectors did not find any records related to the company's R&D finished products or R&D scrap in the relevant materials, account books, and vouchers provided by the company for its R&D projects. Meanwhile, the enterprise was also unable to provide relevant evidence. The substantial loss of gold during purification claimed by the company was simply untenable. The chain of evidence unveiled the "veil" of tax evasion. If the reason for the gold loss was "untenable," was the substantial amount of gold truly invested? After analyzing over 30 R&D projects of the company one by one, the inspectors discovered that there were suspicions of gold usage in multiple projects of the company, with some projects having no process of using gold during R&D. Meanwhile, based on the project appraisal results issued by third-party appraisal institutions, the Inspection Bureau ultimately confirmed that the company had falsely listed expenses for gold materials and illegally enjoyed tax incentives for additional R&D expense deductions in 17 R&D projects, resulting in a total underpayment of corporate income tax of 16,211,600 yuan. In addition, during the inspection process, it was also found that the company had other acts of underpayment of taxes. The inspectors once again interviewed the company's legal representative, Zhang XX, and conducted legal education for him, informing him of the corresponding legal responsibilities that might arise. In the face of various evidence presented by the inspectors, Zhang XX still refused to admit the relevant illegal facts and was unable to provide reasonable explanations. However, in the face of conclusive evidence, the company's illegal acts could not be concealed and would ultimately be subject to legal punishment. According to the first paragraph of Article 63 of the Law of the People's Republic of China on the Administration of Tax Collection: Where a taxpayer forges, alters, conceals, or unlawfully destroys account books or accounting vouchers, or overstates expenses or fails to record or understates income in the account books, or refuses to file tax returns or makes false tax returns after being notified by the tax authorities to do so, and fails to pay or underpays the tax payable, it constitutes tax evasion. For taxpayers who evade taxes, the tax authorities shall recover the unpaid or underpaid tax, surcharge for overdue payment, and impose a fine of not less than 50% but not more than five times the amount of the unpaid or underpaid tax; if the act constitutes a crime, criminal responsibility shall be investigated according to law. The Inspection Bureau of Shenzhen Municipal Tax Service, State Taxation Administration, classified the relevant illegal acts of Shenzhen Kingstar Advanced Materials Co., Ltd. as tax evasion and made a decision to recover the unpaid tax, impose a surcharge for overdue payment, and impose a fine in accordance with the law.

①The acceleration of capacity exit and the high inventory levels coexist. Can the supply-side reform of the PV industry chain truly reverse the industry's surplus situation? ②Financial reports frequently show signals of "hitting bottom." Is the logic behind the valuation repair of the PV sector sustainable? (Finance Link)

"The company has focused on its core business and optimized its industrial structure. Last year, through mergers and acquisitions of high-quality assets in the industry, it achieved horizontal industrial integration and a dual-region market layout in central and east China, driving the company's long-term development," Shen Peiliang, Chairman of Yongda Co., Ltd. (001239.SZ), stated at the 2024 Annual General Meeting on the afternoon of May 12. Yongda Co., Ltd.'s products are mainly applied in fields such as tunnel boring, construction machinery, and wind power generation. Financial reports show that in 2024, Yongda Co., Ltd. achieved operating revenue of 849 million yuan, up 3.48% YoY, and net profit attributable to shareholders of 79.0801 million yuan, down 13.31% YoY. In the first quarter of this year, the company achieved operating revenue of 471 million yuan, up 170.42% YoY, and net profit attributable to shareholders of 18.2532 million yuan, up 14.94% YoY. "Since the beginning of this year, the wind power industry has seen a significant improvement in market sentiment, with wind turbine prices stabilizing and rebounding. The industry is entering a period of intensive deliveries, and installations are expected to experience rapid growth." Regarding the company's rebound in performance in the first quarter of this year, a company official told a reporter from Cailian Press that the company's structural components for wind power equipment cover a variety of models and specifications ranging from 1.5MW to 18MW, encompassing multiple technical routes. The company possesses customized production capabilities, enabling it to meet various application needs for both offshore and onshore wind power. It has also established long-term cooperation with enterprises such as Mingyang Smart Energy and XEMC Wind Power Co., Ltd. Against the backdrop of a favorable outlook for the wind power business, Yongda Co., Ltd. previously extended its industry chain through external mergers and acquisitions. In 2024, the company acquired a 51% stake in Jiangsu Jinyuan High-end Equipment (hereinafter referred to as "Jinyuan Equipment"), which is primarily engaged in the research, production, and sales of high-speed heavy-duty gear forgings. Its products, as core components of gearboxes, are applied in multiple industries including wind power and construction machinery, with some products also applied in the robotics sector, though the business scale in this area remains small. After Jinyuan Equipment became a controlled subsidiary of the company, it was consolidated into the financial statements of the publicly listed firm starting from November 2024. "Jinyuan Equipment is located on Zhongguancun Avenue in Liyang City, Jiangsu Province, within the Yangtze River Delta region and close to core suppliers and customers," the aforementioned official said. Through this merger and acquisition, the company has horizontally extended its product lineup from metal structural components to metal forgings and entered the wind power gear sector. By integrating resources in their respective key industries, both parties have achieved bidirectional penetration in sales regions and customer bases. Before the acquisition, Yongda Co., Ltd. had four production sites, all located in the Jiuhua District of Xiangtan City, Hunan Province. The factory areas were adjacent to each other, with a total area of approximately 130,000 m². The company's core customers, including China Railway Construction Heavy Industry Co., Ltd., Zoomlion Heavy Industry Science & Technology Co., Ltd., SANY Group, and CRRC Corporation Limited, all have factories located near the company. According to the company's previous announcement, the performance commitment party of Jinyuan Equipment, the acquired company mentioned above, has committed to achieving a cumulative net profit of no less than 250 million yuan from 2025 to 2027. Shen Peiliang stated that this year, the company will continue to focus on its core business market, promote external mergers and acquisitions and integration, and build a leading enterprise in the integrated field of large, irregular, and high-end special equipment metal "structural parts and forgings."

Macro News 1. On the morning of May 10 local time, President Xi Jinping successfully concluded his state visit to Russia and attended the celebrations marking the 80th anniversary of the victory in the Great Patriotic War of the Soviet Union before returning to Beijing. 2. On May 9, Premier Li Qiang of the State Council presided over an executive meeting of the State Council, during which a report was heard on the work to promote the high-quality and efficient development of pilot free trade zones (FTZs). The meeting emphasized the need to support pilot FTZs in aligning with high-standard international economic and trade rules, further intensifying institutional innovation, and taking the lead in pilot initiatives in areas such as the development of service trade and the facilitation of cross-border data flows, while conducting differentiated explorations. It was also highlighted that reform task authorizations should be expanded in a manner suited to local conditions, and that the regional layout should be optimized and adjusted according to the actual needs of industrial development, steadily promoting the upgrading of mature pilot FTZs. 3. The high-level economic and trade talks between China and the United States were held in Geneva, Switzerland, from May 10 to 11. He Lifeng, the Chinese head of the economic and trade delegation and Vice Premier of the State Council, stated at a press conference held by the Chinese delegation on the evening of May 11 local time that the high-level economic and trade talks between China and the United States were frank, in-depth, and constructive, with important consensus reached and substantive progress made. Both sides agreed to establish a China-U.S. economic and trade consultation mechanism. China and the United States will finalize the relevant details as soon as possible and release a joint statement on the outcomes of the talks on May 12. 4. On May 10, Wang Yi had a phone conversation with Pakistan's Deputy Prime Minister and Foreign Minister Bilawal Bhutto Zardari. Wang Yi expressed that China expects and supports both Pakistan and India to achieve a ceasefire as soon as possible. Once a ceasefire is achieved, it must be jointly adhered to in order to avoid the resurgence of conflicts. This is in the interests of both Pakistan and India, conducive to regional peace and stability, and also a widespread expectation of the international community. China is willing to continue to play a positive role in this regard. On the same day, Wang Yi also had a phone conversation with India's National Security Advisor Ajit Doval, during which he stated that China supports and expects India and Pakistan to achieve a comprehensive and lasting ceasefire through consultations. This is in the fundamental interests of both India and Pakistan and is also the common aspiration of the international community. 5. An article titled "Equal Dialogue is the Right Path to Resolving Issues Between Major Powers" by Zhong Sheng in the People's Daily pointed out that if the United States wants to resolve issues through negotiations, it must face up to the serious negative impacts that unilateral tariff measures have brought upon itself and the world, respect international economic and trade rules, fairness, justice, and the rational voices of all sectors, demonstrate sincerity in negotiations, and correct its erroneous practices, rather than saying one thing and doing another, or being inconsistent and unpredictable. 6. According to data from the National Bureau of Statistics (NBS), in April 2025, the national consumer price index (CPI) decreased by 0.1% YoY. In April 2025, the national ex-factory prices of industrial producers decreased by 2.7% YoY and 0.4% MoM; the purchase prices of industrial producers decreased by 2.7% YoY and 0.6% MoM. Industry News 1. The 17th Shenzhen International Battery Technology Exchange/Exhibition (CIBF2025) will be held in Shenzhen from May 15 to 17. The list of exhibitors includes several well-known companies such as CATL, BYD, and 3M China. The concurrent Battery Frontier Technology Symposium will feature multiple presentations related to solid-state batteries. Gotion High-tech will host a Global Technology Conference, where its chief scientist previously revealed that a new high-safety solid-state battery will be launched. Brokerages pointed out that sectors such as low-altitude aircraft and humanoid robots will significantly stimulate the accelerated development of solid-state batteries. 2. Data from the Passenger Car Association shows that retail sales of passenger NEVs in April reached 905,000 units, up 33.9% YoY but down 8.7% MoM. Cumulative retail sales from January to April this year totaled 3.324 million units, an increase of 35.7%. The association stated that China's car exports to the US are minimal, especially since independent brands are not sold in the US at all, so domestically produced independent brand cars will not be affected by US tariff increases. 3. Multiple reports suggest that Apple's iPhone release strategy will change starting in 2026: the basic model will be launched in H1, while the Pro, ultra-thin, and foldable models will be updated in H2. A reporter recently learned from a supply chain company that Apple has provided suppliers with shipment target guidance for the first foldable iPhone, a "large foldable iPhone," to be launched in H2 2026. This supply chain company is a supplier of multiple parts for Apple phones. 4. Since the beginning of this year, more than 20 commercial banks have lowered their listed interest rates for time deposits, making "high-interest deposits" with rates above 3% increasingly rare in the market. Bank deposit rates have now fully entered the "1% era." Amid the banks' intensive interest rate cuts, medium and long-term deposit rates at several banks have shown a significant "inversion." 5. On May 11, humanoid robot startup Songyan Power unveiled a new generation of bionic robots, featuring a new female character named Xiao Nuo. According to reports, it boasts multi-modal embodied interaction, ultra-high degrees of freedom (32DOF), near-realistic facial expressions, open character customization, and underlying interfaces, supporting personalized makeup. A reporter from the Science and Technology Innovation Board Daily learned on-site that Songyan Power's N2 robot has already secured over 1,000 pre-orders. 6. The country's first commercial hydrogen-powered locomotive began trial operations on the 10th in Liuzhi Special District, Liupanshui City, Guizhou, filling the gap in hydrogen-powered rail freight transportation in south-west China. 7. The China Academy of Chinese Medical Sciences released an evaluation standard for traditional Chinese medicine (TCM) large models. This standard is the first to establish a quantitative assessment system for large models in the TCM field.According to this standard, the evaluation of large models in traditional Chinese medicine focuses on two aspects: technology and application capabilities. The standard primarily covers three capability domains—scenario richness, capability support, and application maturity—with 13 capability subdomains and over 30 capability items. 8. A research report by China Securities pointed out that, based on the 2024 annual reports and the Q1 2025 reports, the profitability of the PV industry has significantly pulled back. However, the current report suggests that the bottom of the PV industry's financial statements has been reached. The substantial impairment of fixed assets in Q4 and the impact of the Southeast Asian anti-dumping and countervailing duties in Q1 have already been reflected in the financial statements, and it is expected that the probability of further deterioration in profitability is relatively small. The report believes that the industry should subsequently focus on upstream destocking and the progress of capacity exiting the market. Corporate News 1. During his speech at the 6th Shanghai Youth 50 Forum for Innovation and Entrepreneurship, Wang Xingxing revealed that the development of humanoid robot companies, including Unitree, is currently in good shape. "Many companies have seen a surge in orders," Wang said. He mentioned that Unitree Technology is currently in urgent need of personnel across all positions, including administrative, procurement, sales, technical, R&D, and marketing roles, and welcomes young talents to join. 2. Wanxiang Qianchao, which has had two consecutive trading days of limit-up, announced that the transaction plan for a major asset restructuring is undergoing further negotiations. 3. Chengfei Integration, which has had three consecutive trading days of limit-up, announced that there have been no significant changes in the company's operating conditions or internal and external operating environments recently. 4. Hongqiang Corporation, which has had eight limit-up trading days in 14 days, announced that there are no material matters that should have been disclosed but have not been. 5. *ST Youshu announced that the delisting risk warnings and other risk warnings for the company's stock trading have been revoked. 6. Qujiang Cultural Tourism announced that 4.7% of the company's shares held by its controlling shareholder are scheduled to be auctioned. 7. Li Auto announced that the cumulative delivery volume of the Li L7 has exceeded 300,000 units. 8. Mabwell Therapeutics announced that its Chairman and General Manager, Liu Datao, is under investigation for suspected short-swing trading. 9. China First Heavy Industries announced that its Chairman, Lu Wenjun, is under investigation, with the company's performance declining over the past three years under his leadership. Global Markets 1. On the 10th, Pakistani Deputy Prime Minister and Foreign Minister Bilawal Bhutto Zardari stated on social media that Pakistan and India have agreed to an immediate ceasefire. On the same day, Indian Foreign Secretary Vinay Mohan Kwatra announced that India had reached a ceasefire agreement with Pakistan. However, shortly after both sides announced the ceasefire, explosions were once again heard in the Indian-administered Kashmir region. 2. Ukrainian Foreign Minister Dmytro Kuleba stated on the 10th that German Chancellor Friedrich Merz, French President Emmanuel Macron, Polish Prime Minister Donald Tusk, and UK Prime Minister Keir Starmer had a phone conversation with US President Donald Trump after concluding their meeting with Ukrainian President Volodymyr Zelenskyy in Kyiv.Sebihga stated that Ukraine and all its allies are ready to achieve a complete and unconditional ceasefire on land, in the air, and at sea for at least 30 days starting from the 12th. 3. The three major U.S. stock indices closed mixed last Friday. The Dow Jones Industrial Average fell 0.29%, with a weekly decline of 0.16%; the S&P 500 index dropped 0.07%, with a weekly decline of 0.47%; the Nasdaq index closed flat, with a weekly decline of 0.27%. Among large-cap tech stocks, there were mixed performances. Tesla surged over 4%, and Intel rose 2%. Lyft jumped over 28%, marking its best single-day performance since February 2024. Insulet Corp. (PODD) rose nearly 21%, its best single-day performance since November 2022. Most popular Chinese ADRs declined, with the Nasdaq Golden Dragon China Index closing down 0.45%. Investment Opportunities Reference 1. World UAV Congress to be held; institutions say future industry market size may exceed 300 billion yuan It is reported that the 9th World UAV Congress 2025, themed "Entering a New Era of the Low-Altitude Economy," will be grandly held in Shenzhen in late May. Zhongtai Securities analysis points out that UAVs have demonstrated outstanding cost-saving and efficiency-enhancing performance in industrial applications, with an average annual growth rate exceeding 50%. In comparison, the market size of China's industrial UAV industry has grown from 4.3 billion yuan in 2016 to 38.18 billion yuan in 2021, with a compound annual growth rate (CAGR) of 54.7%. It is expected to reach a market size of 301.85 billion yuan by 2026. From the supply side, in industrial application scenarios, UAV enterprises continue to improve various models, such as equipping the airframe with customized payloads to enable capabilities like infrared detection, radar scanning, pesticide spraying, loudspeaking, and monitoring, thereby expanding the industrial application landscape of UAVs. From the demand side, in industrial scenarios, UAVs can partially replace manual labor in executing tasks, bringing cost-saving and efficiency-enhancing advantages. UAVs can perform tasks in complex terrain environments, with inspection efficiency reaching 3-5 times that of manual inspection. 2. Baidu Apollo and CAR Inc. will jointly launch the world's first self-driving car rental service According to media reports, on May 8, 2025, CAR Inc. and Apollo reached a strategic cooperation agreement, announcing that the two sides will carry out in-depth cooperation in the intelligent mobility sector to jointly create the world's first self-driving car rental service. They will explore innovative applications of self-driving technology in the car rental industry, deeply integrate scenario demands, and build a new "intelligent mobility" service ecosystem centered around users. From a market perspective, the multi-dimensional collaborative cooperation between the two sides will accelerate the deployment of self-driving technology in various scenarios such as urban cultural tourism, unlocking consumer potential and tapping into a billion-level intelligent mobility blue ocean market.Great Wall Securities' research report states that the intelligent driving market has broad prospects, and it is recommended to pay attention to links such as modules and LiDAR. According to IDC forecasts, the global scale of connected vehicles will reach 78.3 million units in 2025, with a 5-year compound annual growth rate (CAGR) of 11.5%. In addition, the global scale of autonomous vehicles is expected to reach 89.3 million units in 2026, with a 5-year CAGR of 14.8%. As leading producers at home and abroad continue to invest in the intelligent driving industry, it will enter a period of rapid development. 3. New Breakthrough: Overseas Companies Develop New Technologies, Potentially Tripling the Lifespan of Such Products Industry media reported that South Korean battery manufacturer SK On is accelerating the R&D of polymer, oxide, and sulphide solid-state power batteries. The company has discovered a new protective layer in its research, which is expected to significantly enhance the cycle life of lithium metal batteries. Batteries currently used in EVs typically begin to experience performance degradation after undergoing 1,000 to 100,000 charge-discharge cycles. However, SK On's R&D team claims to have tripled this lifespan indicator. Solid-state batteries represent a revolutionary battery technology, with their core innovation being the use of solid electrolytes to replace the liquid electrolytes found in traditional lithium-ion batteries, offering significant advantages in terms of safety and energy density. Shenwan Hongyuan Securities stated that the industrialisation of solid-state batteries is expected to accelerate. In February this year, at the 2nd China All-Solid-State Battery Innovation and Development Summit Forum, numerous experts, scholars, research institutions, and enterprise representatives gathered to focus on material science, new processes and equipment, and cutting-edge industrial developments, discussing innovative breakthroughs and challenges in all-solid-state batteries. Many experts believe that solid-state batteries are expected to enter mass production and be installed in vehicles by 2027. 4. High R&D Costs + Capital Barriers: The Industry Holds Significant Strategic Importance According to media reports, recently, the Indonesia TransNusa Airlines flight 8B101 (Manado, Indonesia - Shanghai Pudong), operated by the domestically produced regional aircraft C909, made its first landing at Pudong Airport, passing through the "water arch," a symbol of the highest honor in civil aviation. The international route between Shanghai and Manado, Indonesia, was officially opened, marking the longest commercial operation of the C909 aircraft to date, with a flight range exceeding 3,300 kilometers. China's civil aviation market has broad demand. According to Boeing's 2024 CMO Forecast, from 2023 to 2043, China is expected to add 8,830 new civil aviation aircraft deliveries, accounting for 20.08% of the world's total deliveries. Founder Securities pointed out that the development of the large aircraft industry holds significant strategic importance, with a wide radiation scope and strong linkage benefits. The civil aircraft manufacturing industry is of profound strategic significance to the country, directly linked to national economic growth, employment opportunities, and technological progress. This industry not only significantly boosts economic growth but also drives substantial employment and plays a huge role in promoting technological development, particularly in the fields of new materials, new energy, and advanced electronic technologies.