[Tongding Interconnection: Q1 performance mainly driven by optoelectronic communication and security business segments] Tongding Interconnection stated at its earnings briefing that the company's main performance in Q1 2026 was driven by the optoelectronic communication business segment and the security business segment. The company will continue to focus on its core businesses including optical fiber and cable, power cable, and communication cable, while continuously improving quality and efficiency. Meanwhile, it will vigorously develop new business segments represented by energy storage and security, cultivating new profit growth drivers. The company is currently not engaged in optical module business.

SMM May 11 News: Metals market: As of the midday close, domestic market base metals mostly rose. SHFE copper was up 1.01%, SHFE aluminum up 0.86%, SHFE lead edged down slightly, SHFE zinc fell 0.6%, SHFE tin was up 0.38%, and SHFE nickel up 0.86%. In addition, the most-traded casting aluminum futures rose 1.09%, the most-traded alumina contract fell 0.81%, the most-traded lithium carbonate contract rose 3.1%, the most-traded silicon metal contract rose 1.66%, and the most-traded polysilicon futures fell 2.8%. Ferrous metals mostly rose. Iron ore was up 0.86%, rebar up 0.52%, hot-rolled coil up 0.46%, and stainless steel down 0.07%. Coking coal and coke: the most-traded coking coal contract rose 0.85%, and the most-traded coke contract rose 1.65%. Overseas market base metals, as of 11:46, LME metals were nearly all up. LME copper rose 0.59%, LME aluminum up 0.67%, LME zinc down 0.31%, LME lead edged up slightly, LME tin up 1.16%, and LME nickel up 1.29%. Precious metals, as of 11:46, COMEX gold fell 0.77% and COMEX silver rose 0.66%. Domestic market precious metals: the most-traded SHFE gold contract fell 0.96%, and the most-traded SHFE silver contract rose 0.68%. In addition, as of the midday close, the most-traded platinum futures rose 0.14%, and the most-traded palladium futures fell 0.62%. As of the midday close, the most-traded Europe containerized freight index contract rose 5.07% to 2,474.5 points. As of 11:46 on May 11, midday futures quotes for selected contracts: Spot and Fundamentals Lead: An SMM survey showed that in April, refined lead supply from secondary lead enterprises edged up MoM, mainly driven by production resumptions at previously idled enterprises and restocking of raw materials to boost output... Macro Front China: [NBS: April CPI Up 1.2% YoY, PPI Up 2.8% YoY, PPI Growth Expanded] NBS data showed that in April 2026, the national consumer price index rose 1.2% YoY. Among them, urban areas were up 1.2% and rural areas up 1.0%; food prices fell 1.6%, while non-food prices rose 1.8%; consumer goods prices rose 1.4%, and services prices rose 0.9%. On average from January to April, the national CPI was up 0.9% YoY. In April, the national CPI rose 0.3% MoM. Among them, urban areas were up 0.3% and rural areas up 0.1%; food prices fell 1.6%, while non-food prices rose 0.7%; consumer goods prices rose 0.1%, and services prices rose 0.5%. In April 2026, national industrial producer ex-factory prices rose 2.8% YoY and 1.7% MoM. Industrial producer purchase prices rose 3.5% YoY and 2.1% MoM. For the January–April average, industrial producer ex-factory prices were up 0.2% from the same period last year, and industrial producer purchase prices were up 0.5%. Dong Lijuan, Chief Statistician of the Urban Division of the National Bureau of Statistics (NBS), interpreted the April 2026 CPI and PPI data. The main characteristics of PPI MoM movements this month were as follows: First, international input factors drove up prices in China's petroleum-related industries. Rising international crude oil prices drove up prices in domestic petroleum-related industries. Specifically, prices in the petroleum and natural gas extraction industry rose 18.5% MoM, petroleum, coal, and other fuel processing industry prices rose 16.4%, chemical raw materials and chemical products manufacturing prices rose 8.3%, chemical fiber manufacturing prices rose 5.6%, and rubber and plastics products industry prices rose 1.7%. Second, increased demand in some domestic industries drove prices higher. Rapid growth in computing power demand and accelerated electrification pushed optical fiber manufacturing prices up 22.5% MoM, external storage devices and components prices up 3.2%, and non-ferrous metal smelting and rolling processing industry prices up 0.2%. Restocking demand for thermal coal was released, combined with increased non-power coal demand from chemical and metallurgical industries, driving coal mining and washing industry prices up 1.9%. Continued advancement of manufacturing equipment upgrades drove increased steel demand, pushing ferrous metals smelting and rolling processing industry prices up 0.6%. Third, competition order in the Chinese market continued to improve, with prices in related industries rising or declines narrowing. Efforts to address "involution-style" competition continued to show results, with lithium-ion battery manufacturing prices up 1.6% MoM, new energy vehicle manufacturing prices down 0.1%, with the decline narrowing by 0.7 percentage points from the previous month. The PBOC conducted 500 million yuan in 7-day reverse repo operations today. As no reverse repos matured today, a net injection of 500 million yuan was achieved. US dollar: As of 11:46, the US dollar index was up 0.24% at 98.08. Data from the US Department of Labor showed that US April non-farm payrolls added 115,000 jobs, far exceeding expectations, thanks to strong corporate earnings and enterprises' effective response to supply chain disruptions triggered by the Iran war. The unemployment rate held steady at 4.3%, in line with economists' expectations. From trade to immigration to tax policy, changes across various fronts posed challenges for enterprises, but most did not resort to large-scale layoffs. At the same time, enterprises appeared to take various intertwined headwinds in stride. Robust consumer demand meant that despite news of high-profile layoffs at well-known companies, low hiring was often accompanied by relatively low levels of layoffs. Data from the Department of Labor and human resources firm ADP earlier this week showed that the job market was stabilizing. Strong hiring in healthcare and social assistance also underpinned overall employment figures. US equities at or near record highs boosted confidence among corporate CEOs. The full impact of the conflict with Iran and the resulting rise in energy prices had yet to manifest in the labour market. Rising US oil prices had put greater pressure on lower-income households, which could dampen travel and services spending, in turn dragging on hiring in sectors such as retail and leisure. The impact of higher oil prices was particularly severe for airlines. However, these effects had yet to show up clearly in monthly employment data. According to the CME "Fed Watch": the probability of the US Fed holding rates unchanged through June was 93.8%, with a 6.2% probability of a cumulative 25 basis point interest rate cut. The probability of the US Fed holding rates unchanged through July was 88.8%, with a 10.8% probability of a cumulative 25 basis point cut and a 0.3% probability of a cumulative 50 basis point cut. (Jin10 Data) Goldman Sachs expects the US Fed to cut interest rates by 25 basis points each in December 2026 and March 2027, compared with its previous forecast of cuts in September and December this year. A CITIC Securities research report noted that US nonfarm payrolls in April 2026 came in above expectations, while the unemployment rate of 4.3% was in line with expectations. We believe April data better reflected the current state of the US job market than the previous two months: first, one-off factors diminished in April; second, the enterprise response rate was higher in April; and third, the Birth-death model impact was the smallest among the last four data releases. Demand side, the US labour market in April exhibited overall resilience with marginally increasing layoff pressure. Supply side, the labour force participation rate and employment-population ratio declined, but the prime-age (25–54) participation rate remained stable, suggesting it was not a large-scale exit of core labour force but rather aging and retirement factors dragging down the overall participation rate. Regarding US Fed monetary policy, we maintain our previous view: after Waller takes over, if the Iran situation eases and oil prices pull back, driving inflation expectations lower, the base case for H2 is one interest rate cut of 25 bps. Other currencies: Bearish yen positions decreased significantly after Japanese authorities intervened to support the yen, highlighting how official action curbed this crowded trade. According to data from the US Commodity Futures Trading Commission (CFTC), leveraged funds reduced their net short positions on the yen in the week ending May 5. Currently, their net short position in the Japanese yen stood at 61,340 contracts, valued at approximately $4.9 billion, hitting the lowest level in nearly a month. Meanwhile, asset management firms also cut 13,839 short contracts, bringing their open interest down to 10,653 contracts. "Given the intervention risk and strong official warnings, chasing yen shorts near the 160 level has become unattractive," said Stefan Rittner, Senior Portfolio Manager at Allianz Global Investors. He held a neutral stance on the USD/JPY exchange rate. However, he noted that "despite the yen's already cheap valuation, persistent structural headwinds limit the scope for a sustained rebound"; moreover, further intervention risks are expected to rise once the USD/JPY rate approaches its previous highs again. (Jin10 Data) On the macro front: Data to be released today include US April existing home sales annualized total and China's April M2 money supply year-on-year. In addition, attention should be paid to: US Treasury Secretary Bessent's visit to Japan, where he will meet with the Japanese Prime Minister, the central bank governor, and the Finance Minister. Crude oil: As of 11:46, oil prices in both markets surged significantly, with WTI up 4.65% and Brent up 4.17%. Renewed tensions between the US and Iran supported oil prices. According to Xinhua News Agency, US President Trump posted on social media on May 10, expressing dissatisfaction with Iran's response, calling it "completely unacceptable." This statement cast a shadow over the already fragile Middle East ceasefire situation. Oil prices jumped sharply after the news broke. (Wallstreetcn) Data from shipping intelligence firm Kpler showed that two more fully loaded crude oil tankers switched off their trackers while passing through the Strait of Hormuz last week to evade Iranian attacks. Data indicated that the very large crude carrier "Basrah Energy" loaded 2 million barrels of Upper Zakum crude oil from ADNOC's Zirku terminal on May 1 and passed through the Strait of Hormuz on May 6. The vessel discharged its cargo at the Fujairah tanker terminal on May 11. It remained unclear which company chartered the tanker owned and managed by shipping company Sinokor. ADNOC and its buyers had recently dispatched tankers through the Strait of Hormuz on multiple occasions to transport crude oil, in response to the issue of stranded oil in the Persian Gulf caused by Middle East conflicts. Another very large crude carrier, Kiara M, switched off its transponder and departed the Persian Gulf on Sunday, carrying 2 million barrels of Iraqi crude oil. The discharge destination of this San Marino-flagged tanker remained unclear. (Jin Shi Data) Spot Market Overview: ► ► ► ► ► ► ► ► ► ►

2026 Year June 3–5 China · National Exhibition and Convention Center (Shanghai) No. 333 Songze Avenue, Qingpu District, Shanghai Multi-Energy Complementarity and Integrated Development of PV, Energy Storage, and Hydrogen www.snec.org.cn Approving Authority Shanghai Municipal Commission of Commerce Supporter Shanghai Municipal Development and Reform Commission Shanghai Municipal Commission of Economy and Informatization Shanghai Municipal Science and Technology Commission Lead Organizers Asia Photovoltaic Industry Association (APVIA) Chinese Renewable Energy Society (CRES) Renewable Energy Professional Committee of China Association of Circular Economy (CREIA) Shanghai Federation of Economic Organizations (SFEO) Shanghai Science and Technology Exchange Center (SSTEC) Shanghai New Energy Industry Association (SNEIA) Co-Organizers Solar PV Products Sub-Council of China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) PV Professional Committee of Chinese Renewable Energy Society (CPVS) Renewable Energy Professional Committee of China Energy Research Society Exhibition Organizers Shanghai Follow Me Technology Co., Ltd. Shanghai Follow Me New Energy Development Co., Ltd. Shanghai Solar Cloud Exhibition Services Co., Ltd. Follow Me Int'l Exhibition USA Inc. Follow me International Exhibition Co., Ltd. Conference Organizer Shanghai Follow Me Convention and Exhibition Services Co., Ltd. Preface: The “SNEC 19th (2026) International Solar PV and Smart Energy (Shanghai) Conference and Exhibition” (the “SNEC PV Conference and (Shanghai) Exhibition” for short), jointly organized by 25 international institutions and organizations including the Asia Photovoltaic Industry Association (APVIA), the Chinese Renewable Energy Society (CRES), the Renewable Energy Professional Committee of the China Association of Circular Economy (CREIA), the Shanghai Federation of Economic Organizations (SFEO), the Shanghai Science and Technology Exchange Center (SSTEC), and the Shanghai New Energy Industry Association (SNEIA), will be grandly held in Shanghai, China, from June 3 to 5, 2026. The “SNEC PV Conference and (Shanghai) Exhibition” grew from 15,000 m² at its first edition in 2007 to 360,000+ m² in 2025, with more than 3,000 enterprises from 95 countries and regions worldwide participating, of which international exhibitors accounted for 30%, and it has become the most influential international, professional, and large-scale PV event in China, Asia, and the world. The SNEC PV Exhibition is the world's most professional PV exhibition, featuring: PV production equipment, materials, solar cells, PV application products and components, as well as PV engineering and systems, energy storage, mobile energy, etc., covering all segments of the PV industry chain. The SNEC PV Forum is also remarkably diverse, involving analysis of future PV market trends, cooperative development strategies, national policy directions, cutting-edge industry technologies, PV financing, etc., providing the best opportunity to showcase achievements to the industry. We look forward to global industry professionals gathering in Shanghai, China, to take a problem-oriented approach from an industrial perspective, jointly assessing the solar PV power generation markets in China, Asia, and the world, and collectively leading the path of industry innovation and development. We hope to see you in Shanghai in June 2026! Schedule: Setup: May 31, 2026 13:30-18:00 June 1-2 09:00-20:00 Exhibition: June 3-4, 2026 09:00-17:00 June 5 09:00-14:00 Dismantling: June 5, 2026 14:00-22:00 Exhibit Content (Product Categories): Solar PV PV Production Equipment: Silicon rod/silicon lumps/casting ingot production equipment: complete production lines, casting ingot furnaces, crucibles, growth furnaces, other related equipment Silicon wafer production equipment: complete production lines, cutting equipment, cleaning equipment, detection equipment, other related equipment Battery production equipment: complete production lines, etching equipment, cleaning equipment, diffusion furnaces, coating equipment/deposition furnaces, screen printing machines, other furnace equipment, testers and sorters, other related equipment Cell panel/module production equipment: complete production lines, testing equipment, glass cleaning equipment, wiring/welding equipment, laminating equipment, etc. Thin-film cell panel production equipment: amorphous silicon cells, copper indium gallium selenium dioxide cells CIS/CIGS, cadmium telluride thin-film cells CdTe, dye-sensitized cell DSSC production technology and research equipment Solar Cells: Solar cell producers, cell module producers, cell module installers, agents, dealers and distributors, concentrator cells, etc. PV Related Parts: Batteries, chargers, controllers, converters, recorders, inverters, monitors, mounting systems, tracking systems, solar cables, etc. PV Raw Materials: Polysilicon, silicon ingots/silicon lumps, silicon wafers, encapsulation glass, encapsulation films, other raw materials PV Application Products: Lighting products, power supply systems, mobile chargers, water pumps, solar household products and other solar products PV Engineering and Systems: PV system integration, solar air conditioning systems, rural PV power generation systems, solar detection and control systems, solar heating system engineering, solar PV engineering process control and project management and software programming systems System Engineering Construction Equipment and Safety Protection: Electrical construction equipment, construction vehicles, engineering machinery, maintenance tools, aerial work vehicles/platforms, scaffolding, electrical safety tools, personal safety protective equipment Others Solar Energy and Green Buildings: Solar Thermal Utilization: Solar central hot water systems, household solar water heaters, solar heat pump water heaters, solar collector systems, solar heating systems, integrated solar thermal-PV products, solar water heater manufacturing equipment, solar water heater raw materials and accessories Solar PV and Concentrated Solar Power: Grid-connected solar PV power generation systems, off-grid PV power generation systems, PV-wind complementary power generation systems, PV power transmission and distribution equipment, PV modules and components and equipment, trough linear focus systems, tower systems, dish systems, collector tubes, heat storage equipment and corresponding materials, heat exchange technology and products, high-temperature heat transfer technology and products, system control Solar Cooling Systems and Equipment: Solar cooling products and systems, air energy products, solar central air conditioning, ground source heat pump air conditioning Solar Lighting and Building Materials: Solar lawn lights, garden lights, solar street lights and other optoelectronic products, solar PV glass, solar rooftop modules, solar PV building integration overall solutions, etc. LED Technology and Products: LED lighting, LED application products, display products/digital signage, parts, modules, kits, etc. Solar Accessories: Solar complementary automatic control devices and instruments, solar pipes and fittings, solar control systems, solar heat pipes, vacuum tube collectors, flat plate collectors, engineering manifolds, insulation materials, hot and cold water pumps, brackets, PV equipment accessories, batteries and other related production equipment and accessory materials International Energy Storage Technology and Smart Grid Energy Storage Technology, Equipment and Materials: Compressed air energy storage, pumped hydro energy storage, superconducting magnetic energy storage, flywheel energy storage, thermal/cold storage, hydrogen storage and other energy storage technologies applicable to plug-in EVs, equipment and materials; various batteries (nickel–metal hydride batteries, lithium-ion batteries, lithium polymer batteries, lead-acid batteries, smart batteries, sodium-sulfur batteries), energy storage power supplies, supercapacitors, renewable fuel cells, flow batteries and other technologies, equipment and materials ESS Power Stations and EPC Projects: BMS battery management systems, PCS energy storage inverters, microgrids, EV charging and battery swapping stations and related supporting facilities C. New Energy Power Generation Grid Connection and Smart Power Transmission and Distribution: Grid-tie inverters, light DC equipment, operation monitoring devices, grid connection control systems, flexible transmission equipment, ultra-high voltage transmission equipment, high-temperature superconducting equipment, high-temperature superconducting cables, distribution automation systems and protection devices, smart switchgear, transformers, instrument transformers, smart components, digital substations, substation integrated automation, distribution network automation devices, transmission and distribution online monitoring, fault diagnosis and self-healing devices, power quality monitoring, harmonic control and reactive power compensation, superconducting electrical technology, various new types of wires and cables, composite materials, safety protection D. Power Grid Dispatching and Automation Control: Smart grid dispatching systems, dispatching integrated data platform systems, grid security and control, smart inspection systems, integrated measurement and control protection and arc suppression line selection systems, security and stability control system solutions, power monitoring systems and microcomputer-based relay protection, wide-area dynamic monitoring systems, grid stability online monitoring systems, distribution network intelligent reactive power compensation devices, control software, remote control and telemetry devices, large-screen display systems, power system simulation E. Smart Metering and Power Consumption Management: Smart meters and chips, remote/centralized meter reading systems, power consumption information collection systems, power consumption management information systems, load management terminals, monitoring systems, verification devices, metering cabinets and components, measuring instruments, sensors, semiconductors F. Smart Grid Information and Communication: IoT technology, cloud computing technology, multi-network convergence technology, transmission technology and equipment, access equipment, optical fiber and cables, industrial Ethernet, data communication and network technology and related products, in-plant communication equipment, power line carrier equipment, supporting equipment and instruments, digital microwave communication equipment, testing equipment and instruments, network online monitoring equipment G. Others International NEV and Charging Piles NEVs (Passenger Vehicles / Commercial Vehicles): Electric buses and trucks, electric sedans, electric sightseeing vehicles, electric golf carts, electric cleaning vehicles, hybrid buses and sedans, solar EVs, light EVs, hybrid vehicles (micro hybrid, mild hybrid, medium hybrid, full hybrid and plug-in hybrid), pure EVs, fuel cell vehicles, hydrogen and natural gas and other new energy clean fuels, hybrid vehicles and various low-emission environmental protection energy-saving vehicles; Power Drive Systems: Power batteries, battery management systems, fuel cells, hybrid systems, drive motors, electric control systems, engines, detection and repair equipment, related testing, monitoring, protection instruments, related technologies; C. Key NEV Parts: Power capacitors, supercapacitors, flywheels, inverters, electric heat pumps, electric power steering, electric air conditioning, tires, wire connections, electromagnetic technology, related materials; coatings, transmissions, filters, carburetors, exhaust systems; axles, steering, braking, suspension systems; auto body accessories; motors and electrical appliances, electronic components, electrical systems, circuits, wheel hubs, tires, etc.; D. Vehicle Design: Complete vehicle design, system control design, etc. E. Charging Facilities: Charging stations, charging piles; charging station smart network project planning and achievement display, gas station expansion to charging (battery swapping) stations, integrated gas and charging service station display, solar and wind complementary NEV charging station technology products, charging station power distribution equipment, chargers, power monitoring systems, active filter devices, transformers, distribution cabinets, cables, direct charging equipment, management auxiliary equipment, charging/swapping batteries and battery management systems, parking lot charging facilities, smart monitoring, charging station power supply solutions F. Others Participation Fees: Standard Booth (Deluxe, 3m x 3m ): Domestic enterprises: RMB 23,800/booth Foreign-funded enterprises: US$4,900/booth Basic configuration: one consultation desk, two folding chairs, one waste basket, one 220V/500W power supply socket, two spotlights, Chinese-English header board, carpet inside the booth. Indoor Bare Space (minimum 36 m² rental): Domestic enterprises: RMB 2,380/m ² Foreign-funded enterprises: US$490/m ² Exhibitor Notes: 1. Enterprises confirming participation shall complete the exhibition application form, affix the company seal, and fax or mail it to the Organizing Committee; 2. Upon receipt of booth reservation fees, the Organizing Committee will arrange booths according to the principle of "first application, first payment, first arrangement"; 3. Payment details for participation fees: (1) The above participation fees do not include "construction deposit", "construction management fee", "facility rental fee" and other fees; (2) Exhibitors who sign contracts shall remit the deposit to the Organizing Committee's account within ten working days from the date of signing the contract, and fax the remittance receipt to the Organizing Committee for verification; (3) The remaining participation fees shall be remitted to the Organizing Committee's designated account before December 31, 2025; 4. The order of conference booklet advertisements is based on the order of advertisement fee receipt, with the submission deadline being March 31, 2026; 5. The Organizing Committee will send the "Exhibitor Manual" to participating enterprises in April 2026. Inquiries Welcome: Shanghai Fulemi Exhibition Service Co., Ltd. SNEC 19th (2026) International Photovoltaic Power Generation and Smart Energy (Shanghai) Conference & Exhibition Contact: Manager Wei Room 905, Guangqi City, No. 425 Yishan Road, Xuhui District, Shanghai Postal Code: 200235 Room 905-907, Guangqi City Office Building, No. 425 Yishan Road, Xuhui District, Shanghai Tel: +86-13817218765 E-mail: weiwei@snec.org.cn Conference Website:

This week (April 3–April 9), the SMM copper wire and cable enterprise operating rate was 68.48%, down 1.48 percentage points WoW and down 16.19 percentage points YoY. During the week, copper prices rebounded with volatility, suppressing new orders from downstream. Additionally, as the concentrated delivery date in Q1 largely concluded, the pace of power grid order deliveries slowed down, previously accumulated orders neared completion, and enterprise production pace slightly slowed down, leading to a slight decline in the operating rate. By segment, State Grid and China Southern Power Grid recently placed relatively few orders overall, with only scattered small-value orders as the mainstay. Orders in the automotive wire and optical fiber segments maintained relatively robust momentum, while order performance in other segments remained relatively mediocre. Inventory side, enterprises primarily made just-in-need raw material purchases this week, prioritizing the consumption of existing inventory, resulting in a 3.41% WoW decline in raw material inventory. Finished product inventories edged up due to a slowdown in downstream cargo pick-up pace and fewer new orders, increasing 2.54% WoW. Looking ahead to next week, new order intake in the market remains weak, and coupled with enterprises' earlier orders on hand nearing the end of their production schedule, the industry operating rate is expected to continue declining. Therefore, SMM expects the copper wire and cable operating rate for next week (April 10–April 16) to decrease 1.88 percentage points WoW to 66.59%.

This week (March 27-April 2), the operating rate of SMM copper wire and cable enterprises was 69.95, down 0.81 percentage points MoM and down 11.11 percentage points YoY, with overall operations remaining stable. During the week, copper prices moved sideways, while end-users remained bearish. Downstream enterprises showed a strong wait-and-see sentiment in procurement, and new orders were weak. However, as existing orders from the previous period still supported normal production schedules, the operating rate declined only slightly. By segment, SMM learned that order placement in the power grid sector has been relatively weak recently, while orders in the NEV and optical fiber sectors performed well, and construction engineering-related orders remained far from optimistic. Inventory side, raw material inventory was still mainly consumed this week, so raw material inventory fell 2.84% MoM. As for finished product inventories, driven by the gradual pick-up of previous orders, inventory fell 3.31% MoM. Looking ahead to next week, continued fluctuations in copper prices are expected to keep suppressing end-user purchase willingness, and the operating rate is expected to continue to pull back, though downside room will be limited as orders on hand still support production schedules. SMM expects the operating rate of copper wire and cable next week (April 3-April 9) to fall 0.67 percentage points MoM to 69.29, down 15.58 percentage points YoY.

[SMM Copper Wire and Cable Weekly Operating Rate] This week, the operating rate of SMM copper wire and cable enterprises was 69.95, down 0.81 percentage points MoM. Overall operating performance was stable this week. During the week, copper prices hovered at highs, exacerbating wait-and-see sentiment among downstream enterprises, while new orders remained weak. Enterprises still relied on ample orders on hand to keep production basically stable. By segment, the power sector remained the core support, with orders in NEV and optical fiber performing well, while engineering and construction orders were still hardly optimistic. The operating rate of copper wire and cable enterprises is expected to fall 0.67 percentage points MoM to 69.29 next week

According to Cailian Press, the optical fiber concept rebounded amid intraday volatility, with SDGI hitting the daily limit-up after Hangdian Holding earlier touched limit-up; Zhongtian Technology, SDGI, YOFC, and TDG Holding also rose in tandem. On the news front, a research report by China Securities said that in February this year, China exported 3,779.9 mt of optical fiber worth 790 million yuan, up 63.6% and 126.8% YoY, respectively. Converted into kilometers, China’s optical fiber exports in February were about 25.2 million core-km, accounting for about 65% of China’s monthly effective optical fiber production.

On May 29, at the 2025 SMM (2nd) Rare Earth Industry Forum hosted by SMM Information & Technology Co., Ltd. (SMM), Liang Xingfang, the Deputy Director of the Shandong Rare Earth Research Institute, discussed the "Application and Industrial Production of Rare Earth Fluorides." Part 1: Characteristics and Main Applications of Rare Earth Fluorides Structural Characteristics of Rare Earth Elements 1. Scandium, yttrium, and the lanthanides share the same outermost electron configuration, resulting in similar chemical properties. 2. The number of electrons in the 4f orbital ranges from 0 to 14 from lanthanum to lutetium. 3. The 4f orbital is shielded by outer electrons, leading to energy transition differences and structural variations during electron loss, resulting in distinct properties. 4. Fluorine is one of the elements with the strongest oxidizing power. Rare earth fluorides exhibit strong ionic bond stability. Rare earth fluorides are compounds containing rare earth elements and fluorine. 1. Binary rare earth fluorides: Direct combination of rare earth elements with fluorine; 2. Complex rare earth fluorides: Doped with other elements to possess specific functions; 3. Nanoscale rare earth fluorides: Exhibit special size and surface effects. Binary rare earth fluorides High melting point; low vapor pressure; chemically stable and insoluble in water; outstanding optical properties, capable of reducing excited state energy loss and significantly enhancing upconversion luminescence efficiency. Rare earth fluorides are important materials with unique magnetic, optical, and electrical properties. 1. Optical materials: Laser crystal materials, photofunctional materials, fluorescent materials, and optical fiber materials; 2. Catalytic materials: Catalysts for petroleum cracking and environmental protection; 3. Additives for polishing materials, ceramic materials, lubricants, and anticorrosive materials; 4. Raw and auxiliary materials for preparing rare earth metals or alloys. Raw and auxiliary materials for producing rare earth metals and alloys via molten salt electrolysis and calciothermic reduction processes. The applications in high-end industries and the demand from traditional industries have promoted the development of the rare earth fluoride industry. He also elaborated on the characteristics and main applications of binary rare earth fluorides. Main Applications of Rare Earth Fluorides in the Rare Earth Industry 1. Raw and auxiliary materials for producing rare earth metals and alloys Auxiliary materials for molten salt electrolysis process: Electrolyte REF3+LiF Raw materials for calciothermic reduction process: REF3+Ca China's NdFeB production reached approximately 300,000 mt in 2024. To produce raw materials such as Pr-Nd alloy, Nd, Ce, Gd-Fe alloy, and Dy-Fe alloy, over 5,000 mt of rare earth fluorides are required. 2. The raw materials for grain boundary diffusion of NdFeB permanent magnet materials, dysprosium fluoride and terbium fluoride, are mainly restricted by Japanese patents. Part II: Industrial Production Technology of Rare Earth Fluorides It elaborates on 1. the wet process (which has been listed as an obsolete process by the Ministry of Industry and Information Technology (MIIT)), and 2. NH₄HF₂ fluorination, etc. Experience sharing on the preparation of terbium fluoride: • Mix NH₄HF₂ with terbium oxide evenly and place in a high-purity graphite crucible • Heat slowly from 0-150℃, hold at 150℃, and remove ammonia at 300℃-400℃ (can be less than 100ppm) • After NH₄HF₂ fluorination, fluorinate again at 600℃ with (argon + hydrogen fluoride) gas • Prepare terbium metal by the calcium thermal reduction method, with an oxygen content of 230ppm Suitable for preparing rare earth fluorides of high-value elements such as scandium and terbium 3. Fluorination with hydrogen fluoride gas Key points of process control: Thickness of rare earth oxide furnace charge; channel for hydrogen fluoride gas; coordination between the temperature rise regime and the hydrogen fluoride gas flow rate; the biggest issue is the poor contact between the solid and gas in the solid-gas reaction; how to keep the rare earth oxide material in motion to increase its contact surface with the hydrogen fluoride gas. Fluidization and rolling. Comparison of industrial production technologies for rare earth fluorides Part III: Problems and Directions of Current Rare Earth Fluoride Production Methods ◇ The hydrogen fluoride method, NH₄HF₂ method, and wet process each have their own advantages, depending on the product characteristics. ◇ The production equipment for dry fluorides is not entirely reasonable, and the level of intelligence is not high; there is a caking phenomenon, incomplete solid-gas reaction, and the application of fluidized beds; process control for material thickness, gas feed rate, reaction temperature, and water vapor drainage. ◇ Corrosion resistance of lining materials ◇ Rare earth fluorides are prone to forming oxyfluorides at around 780℃ They are reduced to rare earth fluorides under a hydrogen fluoride atmosphere at 1700℃. ◇ After adopting the wet dehydration process + NH₄HF₂ (or hydrogen fluoride gas method) NH₄HF₂ fluorination + hydrogen fluoride gas fluorination Rare earth fluorides with lower oxygen content can be obtained ◇ High chemical purity and outstanding physical properties High purity (4N), ultra-high purity (greater than 6N) ◇ Nanomaterials, composite rare earth fluoride materials with comprehensive functions. Click to view the special report on the 2025 SMM (2nd) Rare Earth Industry Forum

The investor relations record recently announced by Shenghe Resources shows the following: 1. What are the main considerations for the company's proposed further acquisition of Peak's equity? Shenghe Resources responded: The company adheres to rare earth business as its core, while also considering zirconium and titanium. It leverages both domestic and international resources and markets, with the vision of becoming a responsible international supplier of key raw materials. To further consolidate the company's resource base for development, optimize its global business layout, and promote the rapid implementation and development of the Ngualla rare earth mine project, through friendly consultations, Chenguang Rare Earth, a wholly-owned subsidiary of the company, has agreed with Peak and intends to sign a "Scheme Implementation Deed" with the main content being the acquisition of all ordinary shares issued by Peak to external parties. 2. What is the latest progress of the Peak acquisition project? Shenghe Resources responded: After the official disclosure of the project plan, the relevant internal teams of the company are accelerating the submission of project regulatory approval applications. The company will maintain close contact with all parties involved, respond promptly, and provide timely communication and feedback to steadily advance the implementation of this project. 3. How do you view the future development prospects of the industry? Shenghe Resources responded: The company's current main products include rare earths, zirconium, and titanium. Rare earths are important strategic mineral resources. Rare earth elements possess rich magnetic, optical, and electrical properties, and can be used in materials such as permanent magnets, catalysts, hydrogen storage, polishing, precision ceramics, fluorescence, lasers, and optical fibers. They have very wide applications in fields such as new energy, new materials, energy conservation and environmental protection, aerospace, military industry, and electronic information. With the global energy transition and the development of downstream industries such as intelligent electric vehicles and energy conservation and environmental protection, the market prospects for the rare earth industry are broad. Zirconium has excellent physical and chemical properties and is mainly applied in consumer sectors such as zirconium silicate, zirconium chemicals, fused zirconium, precision casting, and refractory materials. The demand for zirconium products in the high-end manufacturing industry is gradually increasing, with the demand for markets such as metallic zirconium, composite zirconium, and nuclear-grade sponge zirconium rising year by year. Titanium is the metal element with the lowest density among refractory metals, possessing the two major advantages of high specific strength and strong corrosion resistance. It has a wide range of applications in fields such as aerospace, military industry, marine engineering, medicine, chemical pigments, metallurgy, and electric power. 4. What is the current capacity utilization rate of the company? Shenghe Resources responded: The capacity utilization rates of the company's rare earth smelting and separation, as well as metal processing, remain at a high level. 5. What is the company's current overall operating performance? Shenghe Resources responded: The company continues to strengthen market tracking and analysis, and scientifically formulates and implements business strategies. Since the beginning of this year, the company has demonstrated strong overall profitability, with a significant increase in gross profit margin compared to the same period last year. Taking the rare earth metal processing segment as an example, the company's production costs and material ratios are at the leading level in the industry, with indicators such as production volume, qualification rate, and labor efficiency all showing substantial improvements compared to the same period last year. Shenghe Resources disclosed its 2025 Q1 report on April 30, showing that in the first quarter of this year, the company achieved a total operating revenue of 2.992 billion yuan, up 3.66% YoY; and a net profit attributable to shareholders of 168 million yuan, turning from a loss YoY. Regarding the reasons for the increase in net profit, Shenghe Resources explained: Compared to the same period last year, the prices of major rare earth products have rebounded significantly this year, leading to an increase in sales gross profit, along with the reversal of some inventory impairment losses. Shenghe Resources' 2024 annual report shows that in 2024, the company achieved a total operating revenue of 11.371 billion yuan, down 36.39% YoY; and a net profit attributable to shareholders of 207 million yuan, down 37.73% YoY. The main reason for the substantial decline in net profit attributable to shareholders of publicly listed firms compared to last year is that in 2024, the market prices of major rare earth products declined significantly YoY, and the market prices of zirconium-titanium products were in the doldrums, resulting in a decrease in the average selling price and sales gross profit of the company's major products compared to the same period last year, leading to a decrease in the company's profit for this reporting period compared to the same period last year. Regarding the reasons for the change in operating revenue, Shenghe Resources stated that it was mainly due to the impact of market conditions in 2024, which led to a significant decline in the selling prices of rare earth and zirconium-titanium products compared to the previous year. Meanwhile, the scale of the company's trading business also decreased compared to the previous year. Regarding the company's business plan, Shenghe Resources stated in its 2024 annual report that in 2025, the company will strive to leverage the synergies among its various business segments, fully utilize its mineral resource advantages, tap into potential, continuously improve production and operation efficiency, and enhance the company's development quality. In 2025, the company plans to achieve a total operating revenue of 15 billion yuan for the whole year. The above targets are only the company's planned arrangements, which are significantly influenced by market supply and demand, and there is uncertainty about whether they can be completed as scheduled. In 2025, the company will orderly advance the Leshan 15,000 mt/year polishing powder project, overseas rare earth and zirconium-titanium resource projects, as well as other investment projects of the company. Through new construction, technological transformation, quality improvement, and efficiency enhancement, the company will continuously enhance its market competitiveness. Minsheng Securities issued a research report commenting on Shenghe Resources on May 21, pointing out that the company announced that its wholly-owned subsidiary, Ganzhou Chenguang Rare Earth New Materials Co., Ltd., intends to acquire 100% of the equity of Peak Rare Earths Limited. Peak is an Australian publicly listed firm headquartered in Perth, Western Australia, and listed on the Australian Securities Exchange (code: PEK). Its core asset is the Ngualla rare earth mine project in Tanzania (with an equity interest of 84%). Basic Information on Ngualla Rare Earth Mine: The Ngualla rare earth mine is located near Ngwala village in the Song region of Tanzania, approximately 1,000 kilometers west of Dar es Salaam (the former capital) and 150 kilometers from the city of Mbeya (near the Zambian border). It is one of the world's largest, highest-grade, and lowest-cost rare earth deposits. Mine Benefit Analysis: Upon completion of the acquisition, the company will hold 100% equity in Peak and an 84% stake in the core asset, the Ngualla rare earth mine project. The transaction is expected to be completed in early October 2025, with a total acquisition cost of AUD 158 million (RMB 743 million). According to Peak's FEED study, the total capital expenditure for the Ngualla mine is estimated at USD 287 million, including USD 182 million in direct capital expenditure and USD 105 million in indirect capital expenditure. The Ngualla project has a lifespan of 24 years, with an expected average annual REO production of 16,200 mt. The mine's annual operating cost is USD 64 million, and the total operating cost, including transportation expenses, is USD 76.7 million. Based on an annual REO production of 16,200 mt, the unit REO cost is USD 4,735/mt. Ngualla demonstrates excellent financial robustness, with all-in sustaining costs (AISC) maintained at a low level. According to the company's analysis, even as rare earth prices rise from USD 60/kg to USD 120/kg, the increase in Ngualla's costs remains insignificant. Therefore, the project can generate favorable profits even when rare earth prices are low. The company has formed a relatively complete industry chain, spanning from rare earth beneficiation, smelting and separation to deep processing, with abundant rare earth resource reserves. With the future commissioning of the company's existing projects and mines such as Ngualla, the company's rare earth production is expected to increase year by year. Coupled with the gradual stabilization and rebound of rare earth prices, the company's future performance is promising. Risk Warnings: Risks include the project acquisition and construction progress falling short of expectations, significant volatility in rare earth prices, and operational risks in overseas markets. It can be seen from Shenghe Resources' Q1 report this year and its 2024 annual report that changes in rare earth prices are closely related to the performance of rare earth enterprises. 》Click to view the SMM Rare Earth Industry Chain Database Taking the historical price trend of Pr-Nd oxide as an example: The price of Pr-Nd oxide generally increased in Q1 2025 compared to the end of 2024. Reviewing the price trend of SMM Pr-Nd oxide in Q1, it can be observed that the average price of Pr-Nd oxide on March 31 this year was RMB 444,500/mt, an increase of RMB 46,500/mt compared to the average price of RMB 398,000/mt on December 31, 2024, representing a Q1 increase of 11.68%. Comparing the daily average price of Pr-Nd oxide in Q1 2025 (RMB 429,605.26/mt) with that in Q1 2024 (RMB 381,646.55/mt), it can be seen that the daily average price in Q1 this year increased by 12.57% YoY. Reviewing the historical trend of the SMM average price of Pr-Nd oxide in 2024, we can see that the average price on December 31, 2024, was 398,000 yuan/mt. Compared to the average price of 442,500 yuan/mt on December 29, 2023, the average price in 2024 fell by 44,500 yuan/mt, representing a decline of 10.06%. The annual daily average price of Pr-Nd oxide in 2024 was 391,871.9 yuan/mt. Compared to the annual daily average price of 529,274.79 yuan/mt in 2023, the annual daily average price fell by 137,402.89 yuan/mt, a YoY decline of 25.96%. According to SMM quotes, the average price of SMM Pr-Nd oxide on May 26 was 435,000 yuan/mt, up 6,000 yuan/mt from the previous trading day, representing an increase of 1.4%. It is reported that recently, most rare earth mine suppliers are still reluctant to sell their inventory, with low enthusiasm for shipping goods, making it difficult for separation plants to purchase raw materials. Influenced by the recent procurement tenders from major producers with relatively high tender prices, the confidence of some suppliers in refusing to budge on prices has increased, leading to a tightening of low-priced supplies in the market, which in turn has supported the rise in rare earth prices. Currently, there is a strong wait-and-see sentiment in the market, with downstream buyers being cautious in purchasing. For the future market, it is necessary to continue to monitor the sustainability of tenders from major producers and whether there will be a significant increase in downstream demand.

[SMM Analysis: Germanium Prices Continue to Decline] SMM, March 7: Recently, domestic germanium market prices have continued to pull back. Low-priced resources of germanium dioxide and germanium ingots have been emerging in the market, with germanium dioxide prices driving the weakening of germanium ingots. Overall, the germanium market prices have shown a continuous pullback trend. Currently, the average price of germanium ingots is 15,450 yuan/kg, and the average price of germanium dioxide is 9,550 yuan/kg.