SMM, April 22: The global new energy and AI industries maintained high prosperity, coupled with traditional consumer electronics entering a seasonal peak, driving a comprehensive recovery in demand for copper foil and high-speed connectivity products. In March 2026, China's copper foil exports hit a single-month record high. The power and ESS sectors maintained high prosperity with steadily growing orders; AI-related orders remained robust, with optimistic demand for copper foil across all specifications, and the operating rate of copper foil enterprises rose both YoY and MoM in March. Supported by these fundamentals, copper cable high-speed connectivity, as a core component of AI computing infrastructure, continued to see improving demand expectations. Combined with resonating capital sentiment in the sector, copper cable high-speed connectivity concept stocks strengthened overall on April 22. As of the close on the 22nd, the copper cable high-speed connectivity concept rose 2.29%. Among individual stocks, Far East Holdings hit the daily limit, while Hengtong Optic-Electric, ZTT, Shenlan Technology, Changxin Bochuang, Zhaolonginterconnect, and Kingsinno led the gains. News [State Council: Advancing Computing Power Layout and Edge Computing Power Development in an Orderly Manner, Improving Intelligent Computing Cloud Service System] The State Council issued the "Opinions on Promoting the Expansion and Quality Improvement of the Service Industry." It mentioned deepening the implementation of the Industrial Internet innovation and development project, advancing the industrial data foundation initiative, cultivating data cooperation consortia, and building a number of high-quality industry datasets. It also called for developing professional services such as data annotation and certification, exploring the establishment of classified and graded mechanisms for data rights confirmation, evaluation, and pricing. Computing power layout and edge computing power development will be advanced in an orderly manner, and the intelligent computing cloud service system will be improved. The application of urban information modeling platforms and building information modeling technologies will be accelerated. [China's Intelligent Computing Power Scale Reaches 1882 EFLOPS] Zhang Yunming, Vice Minister of the Ministry of Industry and Information Technology, stated on the 21st that computing power infrastructure has become a key foundation driving the development of artificial intelligence. As of month-end in March, China's intelligent computing power scale reached 1882 EFLOPS. At a press conference held by the State Council Information Office on the same day, Zhang Yunming said that recently, the Ministry of Industry and Information Technology has been making sustained efforts in key areas such as enabling small and medium-sized enterprises with inclusive computing power and computing-electricity coordination, and the computing power industry has shown a positive development trend. Industrial innovation has become stronger, with the in-depth implementation of the computing power foundation "open competition" initiative, the conduct of policy research and standard formulation for computing-electricity coordination, and the promotion of accelerated implementation of generation-grid-load-storage and green electricity direct connection. Network transmission has become smoother, with over 70 computing power corridors built around computing power hubs over the past two years, and the implementation of the metropolitan "millisecond computing" special initiative, among others. [National Advanced Computing Industry Innovation Center Qingdao Base Officially Launched] According to Sugon, on April 22, the National Advanced Computing Industry Innovation Center Qingdao Base was officially launched in Laoshan District, Qingdao. The National Advanced Computing Industry Innovation Center is a national-level industrial innovation platform established in 2018 with the approval of the National Development and Reform Commission (NDRC), aimed at achieving breakthroughs in core technologies in the field of advanced computing and fostering internationally competitive industrial clusters. The Qingdao base launched this time, co-built with the participation of Sugon, will leverage regional industrial advantages to create an advanced computing innovation platform integrating technology R&D, commercialization of research outcomes, and industrial incubation, further pooling industry resources, driving regional industrial intelligent upgrading, and injecting strong "computing power momentum" into the digital economy development of Qingdao and even Shandong Province. [Yuandong Holdings: Q1 2026 Net Profit of 96.6284 Million Yuan, up 110.36% YoY] Yuandong Holdings disclosed its Q1 2026 report on April 22. The company achieved total operating revenue of 5.325 billion yuan, up 9.26% YoY; net profit attributable to the parent company was 96.6284 million yuan, up 110.36% YoY. [Rickda: Achieved Small-Batch Delivery of 400G/800G Products and Is Driving Capacity Ramp-Up] Rickda released an investor relations activity record announcement. The company is a quality supplier capable of simultaneously providing comprehensive solutions for optical, electrical, microwave, high-speed data, and fluid connections. It has also deployed multiple products for AI applications, including power supply, high-speed transmission, and liquid cooling categories. High-speed copper cable connector-related products are primarily led by Suzhou Richuang Connection Technology Co., Ltd., with planned products mainly including AEC, DAC, and ACC high-speed copper cable products, high-speed board-to-board connectors, high-speed I/O connectors, and other product series. Currently, Richuang has achieved small-batch delivery of 400G/800G products and is driving capacity ramp-up, while multiple products with even higher speeds are also progressing as planned. [Tongguan Copper Foil: The Company's High-Frequency High-Speed PCB Copper Foil Can Be Widely Used in 5G Communication Equipment, High-Computing-Power Servers, and Other Network Equipment and Network Connectors] Tongguan Copper Foil stated on the investor interaction platform on March 23 that the company's high-frequency high-speed PCB copper foil can be widely used in 5G communication equipment, high-computing-power servers, data centers, switches, and other network equipment and network connectors. [Xinhongye: Dedicated Technical Research Has Been Conducted in the High-Speed Copper Cable Connection Field for Intelligent Computing Scenarios] Xinhongye stated on the interaction platform on March 17 that the company pays close attention to the development trends of computing power data centers and the computing-power-and-electricity synergy industry, and will leverage its core business and technological advantages to continuously track industry dynamics and prudently evaluate opportunities for penetration and deployment in related fields. The current AI intelligent computing industry is trending toward the parallel development and synergy of optical and copper solutions. Leveraging its core copper cable technology advantages, the company has launched dedicated technical research in the high-speed copper cable connectivity domain for intelligent computing scenarios. Meanwhile, in line with the industry's technological evolution, the company maintains forward-looking technical research and market tracking in fiber optic-related fields, and is expected to steadily advance related deployments based on industry demand, technological development, and its own strategic planning. AI-Related Orders Remain Red-Hot with Optimistic Demand across All Copper Foil Specifications According to SMM, the operating rate of Chinese copper foil enterprises rose both YoY and MoM in March 2026. Downstream demand recovered rapidly after Chinese New Year, with both production and sales of lithium battery copper foil and electronic circuit copper foil climbing in March, bringing the overall industry operating rate close to 90%. End-use demand side, the power and ESS sectors maintained high prosperity with steady order growth. The traditional consumer electronics industry transitioned smoothly into peak season, AI-related orders remained red-hot, and demand across all copper foil specifications performed optimistically . Global New Energy and AI Industries Show High Prosperity — March Copper Foil Exports Hit a Single-Month Record High According to data from the General Administration of Customs, China's copper foil (HS codes: 74101100, 74102190) imports in March 2026 totaled 8,220.04 mt, up 11.88% YoY and up 27.59% MoM. China's copper foil exports in March 2026 totaled 6,663.48 mt, up 56.19% YoY and up 38.23% MoM. Statistics showed that both China's copper foil imports and exports rose to elevated levels in March 2026, with exports hitting a single-month record high. Global new energy and AI industries exhibited high prosperity, coupled with optimistic demand during the seasonal consumption peak. Voices from Various Parties A Huaxi Securities research report stated that external geopolitical risks persist at the current juncture, and market risk appetite may affect short-term market fluctuations. AI remains a key investment theme in the near term, with attention on domestically produced computing power and computing power leasing driven by supply-demand imbalance, as well as optical module and fiber optic cable segments with strong earnings certainty. Computing power supply-demand imbalance is intensifying, with computing power consumption expanding sharply and the three major cloud providers collectively raising prices. On one hand, the current supply-demand imbalance reflects robust demand in upstream chips and computing power leasing industries, with enhanced bargaining power driving price increases, benefiting domestic AI chip and computing power leasing producers. On the other hand, rising AI service costs will be transmitted to downstream application development, potentially accelerating downstream industry consolidation and improving computing power utilization efficiency. Changjiang Securities believed that geopolitical conflicts were accelerating the restructuring of global supply chains, enhancing China's irreplaceability as the "world's factory," and that related export chain and manufacturing leading assets may command a "scarcity premium." In terms of allocation, regardless of whether the Middle East conflict fluctuated, three main themes should be firmly pursued. First, the AI trend that conflicts could hardly alter — focusing on AI infrastructure such as computing power, storage capacity, and power equipment, as well as "HALO" asset opportunities. Second, the urgency of conflicts accelerating the energy revolution — focusing on new energy sectors such as lithium battery and hydrogen energy, as well as resource commodities including non-ferrous metals, oil, and coal. Third, sectors at cyclical bottoms where earnings were expected to gradually improve, such as chemicals, steel, and condiments. Data showed that the CSI A500 Index, closely tracked by A500 ETF South China, covered high-quality large- and mid-cap leading enterprises in A-shares, evenly distributed across core areas such as emerging manufacturing and consumption upgrading, with a focus on new quality productive forces. Investors could gain exposure through A500 ETF South China and its feeder funds in one step. A Huatai Securities research report believed that, with the rapid increase in demand for 800G and 1.6T optical modules in recent years and the approaching 3.2T era, the development opportunities for upstream core materials of optical modules were promising. It systematically reviewed the growth logic of two major industries — InP substrates and thin-film lithium niobate. InP substrates, as upstream core raw materials for optical chips, benefited from the rapid boost in demand from optical chip producers, with the industry showing an undersupply trend. Modulators made from thin-film lithium niobate, leveraging advantages such as low power consumption and high bandwidth, were expected to enter an adoption window in 3.2T pluggable solutions in the future, with broad growth potential across the industry chain. A Shanxi Securities research report indicated that NVIDIA made a $2 billion strategic investment in Marvell to cooperate on expanding the NVLINKFusion ecosystem. On March 31 local time, NVIDIA and Marvell announced a strategic partnership to connect Marvell with NVIDIA's AI factory and AI-RAN ecosystem through NVIDIA NVLINKFusion. Marvell would provide customized XPUs and NVLINKFusion-compatible expansion networks, while NVIDIA would provide supporting technologies, including Vera CPU, ConnectX NICs, Bluefield DPU, NVLINK interconnects, and SpectrumX switches, as well as rack-scale AI computing. Marvell is one of the world's leading ASIC custom service providers, with clients including AWS, Microsoft, and Google. It is a major global supplier of optical module DSP and EIC, and has focused on CPO deployment through the acquisition of CelestialAI. We believe that NVIDIA's strategic investment in Marvell is expected to enhance Marvell's design capabilities in memory semantics, high-speed SERDES, and super-node systems, and to facilitate the expansion of the NVLINKFusion ecosystem. NVIDIA's NVLINK Scaleup technology encompasses an overall solution covering NVLINK SERDES, NVLINK chiplets, NVLINK switches, and rack-scale expansion architecture (including NVLINK SPINE, copper cabling systems, innovative mechanical architecture, power supply, and liquid cooling technologies). NVIDIA unveiled a complete copper-connected rack-scale solution at GTC 2026, including Rubin NVL72, Rubin Ultra NVL144, LPX 256, and ETL 256. Shanxi Securities believed that Marvell's participation is expected to expand the addressable market for copper connectivity. NVIDIA has positioned CPO as one of the most important transformations in Feynman-generation Scaleup technology, and combined with Marvell's silicon photonics technology, we believe the CPO penetration rate is expected to gradually increase. Soochow Securities' research report commenting on Fujida noted: a leading player in China's RF connector industry. The company specializes in the R&D, sales, and services of connectors, cables, cable assemblies, and microwave components, holding a leading position in China and non-China markets. Since its establishment in 1998, the company has been deeply engaged in the RF interconnect field. Backed by AVIC Optronics (its controlling shareholder), it has gradually expanded from traditional general-purpose RF connectors to high-end new product categories, including RF cables (aerospace applications), advanced ceramic products (chip integrated packaging applications), and RF links (active and passive microwave components). In 2025, the company achieved revenue of 881 million yuan and net profit attributable to the parent company of 78 million yuan, up 15.5% and 52.0% YoY, respectively. The company has positioned itself in five core tracks, with broad prospects for high-end connectors: 1) Demand in the defense informatization sector remained strong, with new products showing considerable potential. 2) The civil aerospace satellite sector has become a new growth engine. 3) The semiconductor equipment industry urgently needs high-end RF/electrical connectors. 4) The domestic supply chain for high-end electronic measurement instruments is embracing opportunities. 5) High-speed copper cables and quantum communication cable products are benefiting from the data center construction boom. Large-scale growth in data center infrastructure is boosting high-speed transmission products to gradually evolve toward system-level solutions. The company's high-speed copper cables have achieved product category expansion around 400G components, reaching an internationally leading level; meanwhile, in the quantum communication field, the company has deployed cryogenic superconducting cables, achieved initial small-batch supply, and is expected to gradually achieve commercialization. Recommended Reading:

SMM April 21: As the anti-involution policy continued to advance, the second round of coke price hikes was officially implemented. This, combined with persistently tight spot supply and demand, capacity constraints caused by Daqin Railway maintenance, the highlighted coal substitution advantage driven by high oil prices, and incremental demand from continued increases in hot metal production, created multiple positive factors that drove the coal mining sector to a two-day winning streak. Specifically, on the supply side, the Daqin Railway spring concentrated maintenance restricted north-to-south coal transportation capacity, inventories continued to decline, and the implementation of coke price hikes further transmitted cost support, pushing coal prices steadily upward. On the demand side, a stronger-than-usual off-season pattern emerged, with hot metal production continuing to edge up, coupled with significant YoY and MoM increases in daily consumption at coastal power plants. Restocking demand from the construction materials and other industries was released ahead of the Labour Day holiday, and with power plant inventories at low levels, seasonal restocking demand was activated early. In addition, tensions in the Middle East pushed up international oil prices, highlighting the economic advantage of coal-fired power, while the defensive attributes of the coal sector attracted some capital inflows, jointly driving the sector higher. As of the close on April 21, the sector gained 2.27%, with individual stocks performing actively. Gansu Energy Chemical, Huayang New Material Technology, Yankuang Energy, Shaanxi Coal Industry, and Lu'an Clean Energy led the gains. Futures market: As of the daytime close on April 21, ferrous metals mostly rose, with coking coal up 1.53% and coke up 2.42%. Spot market Hot metal production is expected to continue edging up this week On April 15, the blast furnace operating rate of the 242 steel mills tracked by SMM rose WoW. The sample steel mills' daily average hot metal production increased WoW. Last week, according to the latest SMM survey, no new blast furnace maintenance was reported, and a total of 2 blast furnaces resumed production, mainly concentrated in Shanxi. Currently, blast furnace profits were under pressure, and most steel mills produced normally as planned. The pace of maintenance and production resumptions remained generally stable, with hot metal production staying relatively steady. Looking ahead to this week, hot metal production is expected to continue edging up. Spot market: On April 21, the Linfen low-sulphur coking coal price was quoted at 1,530 yuan/mt. The Tangshan low-sulphur coking coal price was quoted at 1,550 yuan/mt. The nationwide average price of first-grade metallurgical coke (dry quenching) was 1,845 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) was 1,705 yuan/mt. The nationwide average price of first-grade metallurgical coke (wet quenching) was 1,490 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke (wet quenching) was 1,400 yuan/mt. Coking coal market: Production at some mines that had previously cut production recovered somewhat, but major mines were still affected by safety inspections, and the incremental supply of coking coal remained limited. Moreover, futures rallied, market sentiment warmed notably, stimulating some coal grades to stabilize and rebound. In the short term, coking coal prices may hold up well. Coke market: In terms of supply, coke enterprises' per-mt profitability has recovered, production enthusiasm was moderate, shipments were relatively smooth, and in-plant coke inventory remained at low levels. Demand side, steel mills maintained strong production enthusiasm, hot metal production edged up, providing solid just-in-time procurement support for coke. Additionally, with the Labour Day holiday approaching, some steel mills released pre-holiday restocking demand. Overall, the coke supply-demand structure remained tight, and the coke market may hold up well in the short term. Institutional Views A Datong Securities research report showed: on coking coal, driven by downstream restocking and coke price hike expectations, port coking coal prices rose, while mine-mouth coal prices showed some divergence. At ports, Shanxi-origin coking coal warehouse-pickup prices at Jingtang Port rose WoW, while mine-mouth prices generally showed a stable-to-declining trend. Internationally, Australian Peak Downs hard coking coal CFR China prices were flat WoW. In the short term, with continued growth in hot metal production, sentiment boost from coke price hikes being implemented, and downstream restocking demand release, the coking coal market may see slight upward momentum. A Shanxi Securities research report noted: currently, Daqin Line maintenance-related destocking and high landed costs of imported coal supported coal prices. Power plant daily consumption was at seasonal lows, while chemicals, steel mills, and other industries drove coal demand. Attention should be paid to the sustainability of just-in-time procurement from non-power industries and the summer electricity consumption peak after May. Investment recommendation: high uncertainty from US-Iran conflicts corresponds to high volatility, but oil prices are unlikely to decline significantly in the short term. Recovery signals have been confirmed, coal PPI is about to turn positive, coal prices are expected to rise, and coal stocks are poised for a Davis Double Play. A Guohai Securities research report suggested that, from a broader perspective, the supply-side constraint logic for the coal mining industry remains unchanged, while demand may experience periodic fluctuations, with prices also showing certain oscillations and dynamic rebalancing. From the long-term industry development trend, the aforementioned driving factors still exist, and coal prices still have upward momentum over the long term. The process may be tortuous, but the direction should be clear. Leading coal enterprises have high asset quality, abundant cash flows on their books, exhibiting "five highs" — high profitability, high cash flow, high barriers, high dividends, and high margin of safety. Since 2025, multiple central and state-owned coal enterprises have initiated share buyback and asset injection plans for their publicly listed firms, also releasing positive signals, demonstrating confidence in coal enterprise development, and enhancing corporate growth potential and stability. A Guangda Futures research report analyzed: Coking coal: supply side, most mines at production areas operated largely normally. There were reports that Mongolian coal throughput decreased due to factors such as fuel shortages. Recently, downstream buyers moderately restocked raw material coal, and overall inventory continued destocking. Demand side, steel mills maintained high hot metal production, with a preference for coke procurement. The second round of coke price increases was implemented, and coking enterprises restocked some coal grades with higher cost-effectiveness. Coking coal futures are expected to hold up well in the short term. Coke: Supply side, coking enterprises in some regions were constrained in operations due to government ultra-low emission retrofit requirements. Coking enterprises saw good shipments, and coke inventory mostly remained at low levels. Demand side, steel mills had a relatively strong willingness to produce, and mainstream steel mills accepted the second round of coke price increases. Transportation restrictions emerged in some regions, and steel mills experienced continuous destocking, with high procurement enthusiasm. Coke futures are expected to fluctuate upward in the short term. Southwest Futures stated: In the short term, changes in the Middle East situation may still have sentiment impact on futures prices, but the impact on the actual supply-demand pattern of coking coal and coke is relatively small. Coking coal side, production at some mines in major producing areas was affected, but the impact on production was limited. Demand side, the online auction atmosphere improved recently, and quotes for some coal grades were raised. Coke side, some coking enterprises currently cut production, but the change in supply was relatively small; demand side, national daily hot metal production may continue to rebound, and demand expansion provides support for coke prices; the second round of spot coke price increases is being implemented. From a technical perspective, coking coal and coke futures may continue to move sideways in the medium term. Strategy-wise, investors may watch for buying opportunities at low levels and pay attention to position management. Recommended reading:

Macro News 1. On the 28th, He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met with Dan Simkowitz, Co-President of Morgan Stanley in the US, at the Great Hall of the People. He Lifeng stated that China is committed to promoting high-quality development through high-level opening up, and welcomes more US financial institutions, including Morgan Stanley, and long-term capital to continuously deepen mutually beneficial cooperation with China and actively participate in the construction and development of China's capital market. Simkowitz expressed that Morgan Stanley will continue to expand its presence in the Chinese market and provide high-quality services to facilitate investment cooperation between US and Chinese enterprises. 2. From the 27th to the 28th, Zhang Guoqing, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, conducted a survey in Shanghai on promoting the healthy development of the platform economy and market supervision. He emphasized the need to thoroughly implement the important instructions and directives of General Secretary Xi Jinping, implement the decisions and arrangements of the CPC Central Committee and the State Council, focus on promoting high-quality development, comprehensively strengthen governance capabilities in the field of market supervision, promote the construction of a sound ecosystem for the platform economy, and maintain a fair and orderly market environment. 3. On May 28th, Foreign Ministry spokesperson Mao Ning presided over a regular press conference. Mao Ning stated that China has decided to expand the scope of visa-free countries. From June 9, 2025, to June 8, 2026, a visa-free policy will be implemented on a trial basis for holders of ordinary passports from Saudi Arabia, Oman, Kuwait, and Bahrain. Individuals from these four countries holding ordinary passports who come to China for business, tourism, visiting relatives and friends, exchanges, visits, or transit for no more than 30 days may enter the country without a visa. 4. According to the National Disease Control and Prevention Administration, the upward trend of the COVID-19 epidemic nationwide has slowed down, and the epidemic has reached its peak or is showing a downward trend in most provinces. The dominant circulating strain is the sixth-generation sub-lineage NB.1.8.1 of the XDV variant, with no significant changes observed in its pathogenicity or clinical severity of the disease. Industry News 1. It has been learned from multiple informed sources that at a recent symposium on upstream and downstream enterprises in the China-EU semiconductor industry held by the Ministry of Commerce, the policy on rare earth export controls was explained, and communication with China-EU chip enterprises on rare earth export controls was strengthened to maintain the stability of the global industry chain. Another informed source indicated that this move implies that China may relax rare earth export controls targeting the industry chain of China-EU semiconductor enterprises. 2. The Office of the National Healthcare Security Administration conducted an investigation into cases of "ghost pharmacists" (pharmacists whose names are listed but who are not actually present) at designated retail pharmacies. Through screening and analysis, it was found that the names of some pharmacists (corresponding to the same ID numbers) appeared in the drug expense details of multiple designated retail pharmacies, suggesting possible violations such as pharmacist information being falsified or pharmacists engaging in "ghost pharmacist" practices. Designated retail pharmacies found to have engaged in violations such as falsified pharmacist information, "ghost pharmacists," or failure to provide pharmaceutical services as required will be subject to measures such as interviews, rectification within a specified time limit, suspension of the medical insurance service agreement, or termination of the medical insurance service agreement, depending on the severity of the violations. 3. The website of the Shenzhen Municipal Housing and Construction Bureau released the "Administrative Measures for the Allocation and Sale of Affordable Housing in Shenzhen (Draft for Soliciting Opinions)" and the "Administrative Measures for the Planning and Construction of Affordable Housing in Shenzhen (Revised Draft for Soliciting Opinions)". The drafts mention that allocation-and-sale-type affordable housing will be subject to strict closed-loop management, and it is prohibited to convert such housing into commercial housing in any way. 4. It has been learned from informed sources that DJI's robotic vacuum cleaner products have entered mass production and are expected to be launched in June. It is understood that DJI has been engaged in the R&D of robotic vacuum cleaners for more than four years, and the upcoming product is a robotic vacuum and mop combo. 5. The General Office of the People's Government of Fujian Province issued the "Implementation Plan for Special Actions to Boost Consumption in Fujian Province", which proposes supporting automobile consumption. It supports various regions in carrying out automobile consumption promotion activities and providing additional support through preferential car purchase policies. 6. The State Administration for Market Regulation recently issued the "Action Plan for Key Technological Innovations in Metrology and Testing". The Plan proposes that by 2030, more than 50 key metrological core technologies will be achieved, more than 20 new-generation international first-class metrological standards will be established, the self-controllable rate of core devices for newly established metrological standards will reach over 60%, and the leading rate in international metrological comparisons will reach 20%. 7. It was learned from the media briefing on promoting the trade-in of e-bikes in Guangdong that as of May 26, the sales volume of e-bikes traded in in Guangdong Province reached 174,000 units, ranking among the top in the country, with the trade-in volume being approximately three times that of the previous year. The cumulative subsidy funds used amounted to 87.08 million yuan, boosting new e-bike consumption by over 400 million yuan. Corporate News 1. Jiaying Pharmaceutical announced that it is under investigation by the China Securities Regulatory Commission for suspected violations of laws and regulations in information disclosure. 2. China Energy Engineering Group announced that it has won the bid for the 6×660 MW coal-fired power project in the Bingzhun Industrial Park of the China-Kyrgyzstan-Uzbekistan Railway, with a bid amount of approximately 14.586 billion yuan. 3. *ST Jilin Pharmaceutical announced that its shares will be delisted on May 29. 4. *ST Longjin announced that its shares will enter the delisting consolidation period starting from June 6. 5. ST Huaxi announced that it has signed a major contract for daily operations worth approximately 2.084 billion yuan. 6. Fuda Co., Ltd. announced that it plans to invest in the construction of a project for ultra-precision gears for electric drive systems in NEVs and a project for robotic transmission joint components. 7. Longgao Co., Ltd. announced that the restructuring of its controlling shareholder is undergoing the approval process for the assessment report. 8. Jiangsu New Energy announced that its future performance is related to multiple factors such as the natural resources at the project sites, and significant changes may bring about performance fluctuation risks. 9. China Flag Chemical announced that the company currently has the project approval procedures for chlorantraniliprole, but it has not yet officially commenced production. 10. ST United announced its intention to acquire 100% equity in Jiangxi Runtian Industry, a packaged drinking water company, and its stock will resume trading. 11. Shangwei Cable announced that the company's actual controller has been changed to Zhang Hua. 12. At the earnings briefing, executives of Huguang stated that the first prototype line for the humanoid robot project has been successfully implemented. 13. IntSig Information announced its intention to plan for the issuance of H shares and list them on the Hong Kong Stock Exchange. 14. China National Gold Group announced that its controlling shareholder intends to increase its stake in the company by 168 million to 335 million yuan. 15. Lier Chemical stated on its interactive platform that the 5,000 mt/year chlorantraniliprole production facility is under accelerated construction. Global Markets 1. The three major U.S. stock indices closed lower collectively, with the Dow Jones falling 0.58%, the Nasdaq declining 0.51%, and the S&P 500 index dropping 0.56%. Most popular Chinese ADRs closed lower, with the Nasdaq Golden Dragon China Index falling 0.71%. 2. WTI crude oil futures prices closed up 1.56% at $61.84 per barrel. Brent crude oil futures closed up 1.26% at $64.9 per barrel. 3. COMEX gold futures closed down 0.48% at $3,312.4 per ounce, and COMEX silver futures closed down 0.65% at $33.095 per ounce. 4. Nvidia reported revenues of $44.1 billion in the first fiscal quarter, up 69% YoY, and a net profit of $18.78 billion in the first fiscal quarter, up 26% YoY. Investment Opportunities Reference 1. Xiaomi YU7's pre-booking inquiries exceed those of SU7 during the same period, with the number of users leaving their information being about three times higher. According to media reports, Lu Weibing, Partner and President of Xiaomi Group, stated at the earnings call that Xiaomi YU7 has been well-received by users since its pre-release, becoming more popular and well-known than when Xiaomi SU7 was first unveiled. Lu Weibing revealed that after the technical release of YU7, the number of pre-booking inquiries exceeded those of SU7 during the same period. As of May 25, the number of users leaving their information for the "YU7 Technical Launch Event" was about three times that of the "SU7 Technical Launch Event" during the same period. YU7 has a broader audience than SU7, and we are very confident in YU7. YU7 is expected to be officially launched in July this year. Previously, Xiaomi Auto announced that it had raised its delivery target for 2025 to 350,000 units (up from 300,000 units). Driven by factors such as strong product competitiveness and the launch of new models, Xiaomi Auto's sales are expected to continue to accelerate. Guotai Haitong Securities stated that Xiaomi Group's YU7 was launched on May 22, and its sales after the new model's launch are worth looking forward to, with the industry chain expected to continue benefiting. 2. WeRide Enters Saudi Arabian Market, with Three Major Products Deployed Recently, WeRide, a global leader in autonomous driving technology, announced its market expansion strategy in Saudi Arabia, marking a further expansion of the company's global commercial footprint. As the first step in entering the Saudi market, WeRide has tested and deployed autonomous driving products such as Robotaxi, Robobus, and Robosweeper in key Saudi cities including Riyadh and AlUla, laying the foundation for subsequent large-scale commercial operations across Saudi Arabia. With the rapid development of artificial intelligence (AI) technology, autonomous driving is undergoing unprecedented changes. From intelligent perception to precise decision-making, and from efficient control to data-driven operations, AI has injected strong momentum into autonomous driving. Haitong Securities pointed out that previously, the main barriers to the development of large-scale autonomous driving models included computing power, data loops, etc., with leading autonomous driving enterprises mostly being top-tier technology companies. Following the release of Deepseek's faster inference model, latecomers (including vehicle manufacturers and solution providers) are expected to gain new opportunities, and the autonomous driving algorithm sector is expected to witness a flourishing landscape. Therefore, 2025 is expected to be a year of rapid penetration of high-level intelligent driving, with numerous opportunities emerging across the industry chain. 3. Three Departments, Including MIIT, Coordinate to Promote the Development of Advanced Computing Industry According to media reports, the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC), and the National Data Administration jointly issued the "Implementation Plan for the Digital Transformation of the Electronic Information Manufacturing Industry" to strengthen the construction of new-type information infrastructure. The plan coordinates the promotion of the development of the advanced computing industry, accelerates the integration of networks, data, computing power, and algorithms, drives innovative development in high-performance computing, intelligent computing, and cloud-edge-end collaborative computing, improves the network layout of edge computing centers, and builds a new-type information infrastructure that is highly reliable, high-performance, and widely connected. It promotes the deep empowerment of new-type information infrastructure in electronic information manufacturing applications, accelerating the large-scale application of advanced computing, 5G-A, gigabit optical networks, industrial internet, and AI in the electronic information manufacturing industry. Advanced computing encompasses three major areas: computing power, algorithms, and data, covering various computing methods such as cloud, edge, and end computing. As the core productivity in the digital economy era, computing power plays a crucial role in driving technological and industrial progress, accelerating the deep integration of digital technologies with the real economy, and its strategic and supportive roles are becoming increasingly prominent. Shanxi Securities believes that the demand for AI computing power from two major downstream sectors, the internet and intelligent computing centers, will continue to experience high growth, with rapid progress in localization procurement. 4. Musk's Brain-Computer Interface Company Completes New Round of Financing It is reported that Musk's brain-computer interface company, Neuralink, has raised $600 million in a round of financing, bringing the company's valuation to $9 billion. In recent years, the global brain-computer interface (BCI) technology has witnessed rapid development, with its application areas gradually expanding from the medical field to non-medical fields such as education and gaming. Meanwhile, the rapid evolution of emerging technologies like artificial intelligence (AI) is driving more breakthroughs in the application of BCI technology. According to PrecedenceResearch, the global BCI market size was approximately $2.62 billion in 2024 and is expected to reach $12.4 billion by 2034, with a compound annual growth rate (CAGR) of 17.4% from 2025 to 2034.

The records of a survey conducted by multiple institutions, recently announced by Xingyuan Zhuomei, show the following: 1. What are the main application directions of the company's products? Xingyuan Zhuomei responded: The company's main magnesium alloy die-casting products include automotive display system parts, NEV powertrain parts, automotive seat armrest structural components, automotive center console frames, automotive lamp heat dissipation brackets, etc., primarily automotive parts. 2. What is the market size and growth trend of magnesium alloys, and what are the main driving factors? Xingyuan Zhuomei responded: China is one of the countries with the most abundant magnesium resources globally. In 2024, global primary magnesium production reached 1.12 million mt, up 12% YoY, with China's primary magnesium production at 1.0258 million mt, up 24.73% YoY; magnesium alloy production reached 396,800 mt, up 14.95% YoY. The automotive industry, especially NEVs, has a high demand for lightweighting to improve driving range and energy efficiency. Magnesium alloys, with their low density and high specific strength, make them ideal materials for automotive lightweighting, used in manufacturing powertrain casings, instrument panel brackets, and other components. The target for magnesium usage per vehicle is expected to increase in the future. 3. What are the performance differences between magnesium alloy products and aluminum alloy products? Xingyuan Zhuomei responded: As the automotive industry's requirements for energy conservation, emission reduction, and improved fuel efficiency continue to rise, automotive lightweighting has become a development trend. Magnesium alloy has a density approximately two-thirds that of aluminum alloy and one-fourth that of steel, effectively reducing vehicle weight when used. Magnesium alloy also possesses good damping performance and electromagnetic shielding performance, meeting customers' special performance needs in areas such as vibration and noise reduction, and electromagnetic interference resistance. 4. What are the company's innovations and unique features in magnesium alloy die-casting technology? Xingyuan Zhuomei responded: The company provides customers with integrated services including product design optimization, mold manufacturing, die-casting and precision machining production, and surface treatment, continuously improving customer satisfaction, cultivating high-quality customer resources, gaining competitive advantages in market segments, continuously developing innovative R&D capabilities for new application areas, and achieving a leading position in the industry through a complete industry chain layout. 5. In the future, will the company make a large-scale shift towards semi-solid die-casting in terms of die-casting processes? Xingyuan Zhuomei responded: Semi-solid forming is a new and advanced process method. Compared with traditional liquid forming, it has advantages such as lower forming temperature, long mold life, improved production conditions and environment, refined grain structure, reduced porosity, shrinkage cavities, and improved tissue density. High-pressure casting offers lower costs and mature equipment. In the future, the company will utilize both processes simultaneously, leveraging their respective advantages to achieve product diversification and enhance market competitiveness. 6. What is the current development status of the company's NEV powertrain projects? Xingyuan Zhuomei responded: Please stay tuned for subsequent announcements regarding the company's major project milestones. 7. What is the product structure classification of the projects the company has undertaken this year? Xingyuan Zhuomei responded: The new projects undertaken by the company in H1 mainly include NEV powertrain parts and automotive display system components. 8. What is the expected product structure of the Fenghua company? Xingyuan Zhuomei responded: The current product structure planned for the Fenghua factory primarily focuses on large magnesium alloy precision molding parts for automotive use. On May 21, Xingyuan Zhuomei's stock price declined. As of 9:53 AM on May 21, Xingyuan Zhuomei fell by 1.48%, trading at 50.09 yuan per share. Xingyuan Zhuomei recently disclosed its Q1 2025 report, showing that the company achieved an operating revenue of 88.3378 million yuan in Q1, up 7.28% YoY, while net profit attributable to the parent company was 16.9395 million yuan, down 4.08% YoY. Xingyuan Zhuomei's previously released 2024 annual report indicated that in 2024, the company achieved an operating revenue of 408.6044 million yuan, an increase of 16.01% compared to the previous year. Net profit attributable to the parent company's shareholders was 80.3311 million yuan, up 0.31% YoY, and net profit attributable to the parent company's shareholders after deducting non-recurring gains and losses was 74.0161 million yuan, up 10.35% YoY. Key operating indicators reached new highs, laying a solid material foundation for high-quality development. Looking ahead, we will continue to uphold the spirit of innovation, constantly enhance our capabilities, contribute more to the global automotive industry, and help elevate the influence of China's automotive industry on the international stage. In its 2024 annual report, Xingyuan Zhuomei stated that in 2024, the company was primarily engaged in the R&D, production, and sales of magnesium alloy and aluminum alloy precision die-casting products and related die-casting molds. The company's main die-casting products include automotive display system components, NEV powertrain components, automotive center console components, automotive seat components, automotive lamp components, high-cleanliness autonomous driving module components, and other automotive die-casting parts, as well as e-bike functional and structural components, garden machinery parts, and other non-automotive die-casting parts. The company's products are ultimately applied to well-known domestic and overseas car models from brands such as BMW, Audi, Porsche, Zhiji, NIO, Great Wall, Chery, and Zeekr. The annual report of Xingyuan Zhuomei shows that the company's total operating revenue for 2024 reached 409 million yuan, with magnesium alloy die-casting parts contributing 284 million yuan, accounting for 69.40%; aluminum alloy die-casting parts contributing 102 million yuan, accounting for 24.91%; molds and other supplementary businesses contributed 19.4855 million yuan and 3.7651 million yuan, respectively. The research report from Shanxi Securities on Xingyuan Zhuomei pointed out: the magnesium alloy business has seen high growth, with new energy structural components performing prominently. The overseas layout has shown initial results, and diversified market expansion has opened up growth space. Profitability has improved, and operations have gradually improved. Relying on core technology to bind customers, the company is actively exploring new applications in the magnesium alloy field. In the short term, with the smooth commissioning of new capacity and new projects gradually entering the mass production stage, the company's performance is expected to continue to grow; in the medium and long term, under the trend of automotive lightweighting, the company is expected to capture more market share with magnesium alloy products, and may also leverage its existing technological advantages to expand into new fields such as robotics, opening up greater growth space. Risk warnings: new project mass production may fall short of expectations; key customer sales may fall short of expectations; competition in the magnesium alloy parts product industry may intensify; new business expansion may fall short of expectations.

Macro News 1. The Customs Tariff Commission of the State Council issued an announcement on adjusting the measures for imposing additional tariffs on imported goods originating from the US. Upon approval by the State Council, effective from 12:01 a.m. on May 14, 2025, the Customs Tariff Commission of the State Council adjusted the measures for imposing additional tariffs on imported goods originating from the US. The additional tariff rate stipulated in Announcement No. 4 of 2025 by the Customs Tariff Commission was reduced from 34% to 10%. The implementation of the 24% additional tariff rate was suspended for 90 days, and the measures for imposing additional tariffs stipulated in Announcement No. 5 and No. 6 of 2025 by the Customs Tariff Commission were ceased. 2. The "Joint Statement between the People's Republic of China and the Federative Republic of Brazil on Strengthening the China-Brazil Community with a Shared Future for a More Just World and a More Sustainable Planet, and Jointly Upholding Multilateralism" was issued. It mentioned that the heads of state of both countries believed that cooperation between the two sides in agricultural trade, agricultural science and technology, and food security was dynamic. They reaffirmed their long-term commitment to promoting the development of bilateral relations in this key area and agreed to strengthen cooperation between scientific research institutions and agricultural enterprises of the two countries to promote technological innovation in areas including biotechnology and social development. Both sides agreed to deepen cooperation in technological innovation in fields such as aerospace, energy transition, artificial intelligence, semiconductors, bio-economy, and food security, and to jointly address global challenges. 3. Foreign Ministry spokesperson Lin Jian hosted a regular press conference on May 13. A reporter asked whether China and the US planned to discuss the special tariffs imposed by the US on China on the grounds of fentanyl. Lin Jian stated that fentanyl is a US issue, not a Chinese one, and that the responsibility lies with the US itself. The US has ignored China's goodwill and unreasonably imposed additional tariffs on China on the grounds of fentanyl, which has severely impacted dialogue and cooperation between China and the US in the field of drug control and also seriously harmed China's interests. 4. The People's Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) jointly issued an announcement on May 7 regarding matters related to supporting the issuance of science and technology innovation bonds. The Shanghai Headquarters of the PBOC, together with relevant departments such as the Municipal Financial Office, actively promoted the participation of relevant private equity institutions, technology-based enterprises, and financial institutions in Shanghai in the issuance of the first batch of national science and technology innovation bonds. As of May 9, two technology-based enterprises and one equity investment institution in Shanghai had been included in the first batch of national pilot projects. 5. The Department of Regional Revitalization of the National Development and Reform Commission (NDRC), in conjunction with relevant departments, organized a video conference on May 9 to deploy and advance the work of expanding the scope of implementing work-relief programs to promote employment and income growth among key groups. The meeting emphasized the need to further increase the planning and reserve efforts for work-relief projects, deeply explore employment opportunities in various links such as engineering construction, service support, project management, and post-construction maintenance and management, implement work-relief projects with high standards and quality, and maximize the absorption and promotion of local employment among relevant key groups. Industry News 1. Recently, Li Yunze, Director of the State Administration of Financial Regulation, announced at a press conference held by the State Council Information Office that the scope of the pilot program for long-term investment reforms using insurance funds will be further expanded in the future, with an additional 60 billion yuan expected to be approved soon. A reporter from Caixin exclusively learned that insurance institutions such as China Post Insurance Asset Management and China Life Insurance Asset Management are actively vying for the qualification to participate in the third phase of the long-term investment pilot program for insurance funds. 2. Recently, the State Administration for Market Regulation and four other departments jointly held a meeting with platform enterprises such as JD.com, Meituan, and Ele.me to address prominent issues in the current competitive landscape of the food delivery industry. They urged relevant platform enterprises to strictly comply with laws and regulations, fulfill their primary responsibilities, proactively shoulder social responsibilities, strengthen internal management, operate legally and in compliance, compete fairly and orderly, jointly foster a favorable market environment, effectively safeguard the legitimate rights and interests of consumers, operators within the platforms, and food delivery riders, and promote the standardized, healthy, and orderly development of the platform economy. 3. Recently, the Ministry of Agriculture and Rural Affairs and three other departments jointly issued the "Key Points for the Development of Digital Villages in 2025." The document outlines the work objectives: by the end of 2025, the "14th Five-Year Plan" for the development of digital villages will be successfully concluded. The role of digital technologies in ensuring national food security and preventing large-scale return to poverty will be more prominent. 4. According to industrial and commercial information, the "Saimi Industrial Private Equity Fund," a semiconductor and integrated circuit industry investment fund in Shenzhen, recently completed its industrial and commercial registration. The fund has a total scale of 5 billion yuan. It is reported that the fund will primarily invest in key projects and leading enterprises in Shenzhen's semiconductor and integrated circuit sectors, as well as other projects that significantly contribute to the improvement of Shenzhen's semiconductor industry chain. 5. Recently, the Sichuan Provincial Development and Reform Commission and other departments jointly issued the "Several Policy Measures to Support the Development of the Low-Altitude Economy." The measures provide substantial financial support for scientific and technological breakthroughs in areas such as low-altitude complete aircraft equipment, low-altitude power equipment, and UAV countermeasure equipment. 6. On the afternoon of the 12th, Xinjiang Korla Fumin Rural Bank announced on its official WeChat official account that it would adjust the listed interest rates for some RMB individual deposits starting from that day. After the adjustment, its 1-year deposit interest rate (2%) has surpassed the 5-year rate (1.95%). This indicates that after the phenomenon of "storing for 5 years is less profitable than storing for 1 year" emerged at China Merchants Bank earlier this year, the extreme interest rate inversion has reappeared, this time occurring in small and medium-sized banks for the first time. 7. The Tiebei 1 Side HF Well, deployed by Zhongyuan Oilfield, a subsidiary of Sinopec, in the Puguang area of the Sichuan Basin, has achieved a daily industrial gas flow of 314,500 m³. The well has a vertical depth exceeding 5,300 meters and a horizontal section stretching 1,312 meters, setting a new record for the vertical depth of shale gas wells in China. 8. Recently, institutions such as Dongguan Rural Commercial Bank, Tangshan Bank, and Xingyin Wealth Management have successively issued announcements regarding the downward adjustment of the performance comparison benchmarks for their wealth management products. The adjustment range for some products exceeds 100 basis points, with the lower limit of interest rates falling below 2%. Following the downward adjustment of the performance comparison benchmarks, in order to maintain relationships with clients, banks have initiated a wave of fee reductions for wealth management products. Recently, multiple wealth management companies, including Bank of Communications Wealth Management, China Merchants Bank Wealth Management, Minsheng Wealth Management, Everbright Wealth Management, and Huaxia Wealth Management, have successively issued announcements regarding preferential fee rates, implementing phased fee reductions for multiple products under their management. Corporate News 1. Nissan Motor announced that it will lay off 20,000 employees by fiscal year 2027 and reduce the number of its factories from 17 to 10. 2. JD.com announced that its net revenue for Q1 was RMB 301.08 billion, up 16% YoY; adjusted EBITDA was RMB 13.7 billion, up 27% YoY. 3. Hainan Huatie announced plans to repurchase company shares worth RMB 200 million to RMB 300 million. 4. Cambridge Technology announced that a shareholder plans to reduce its stake by no more than 3% of the company's shares. 5. Haoen Automotive Electronics announced that it has received a nomination for intelligent driving camera system products worth RMB 430 million. 6. Zhongrong Print & Dye announced that Huang Huanran, the actual controller, chairman, and general manager, has been placed under residential surveillance at a designated location. 7. Zhejiang Rongtai announced that shareholders and senior executives plan to reduce their combined stake by no more than 1.93%. 8. WUS Printed Circuit stated at an investor relations event that it expects its capacity to improve effectively in H2 2025. 9. Baotong Technology announced that it has signed a cooperation contract with Unitree, which includes the secondary development of industrial robots. 10. Zongyi Corporation announced plans to acquire the controlling stake in Jilai Micro, which is expected to constitute a major asset restructuring. 11. Kaimeite Gas announced that shareholders and concerted parties plan to reduce their stake by no more than 3% of the company's shares. Global Markets 1. The three major U.S. stock indices closed with mixed changes: the Nasdaq rose 1.61%, the S&P 500 rose 0.72%, and the Dow fell 0.64%. Among them, the S&P 500 turned positive for the year. Nvidia surged over 5%, hitting a new closing high since February 27; Tesla rose approximately 5%, reaching a new closing high since February 24. Most popular Chinese ADRs declined, with the Nasdaq Golden Dragon China Index closing down 0.07%. The three major European stock indices closed with mixed changes: the German DAX rose 0.24%, hitting a new all-time closing high. 2. International crude oil futures settlement prices rose by over 2.5%. WTI crude oil futures for June increased by 2.77%, while Brent crude oil futures for July rose by 2.57%. 3. COMEX gold futures rose by 0.96% to $3,259 per ounce; COMEX silver futures rose by 1.47% to $33.105 per ounce. Investment Opportunities Reference 1. Huawei and UBTech Sign Agreement to Jointly Promote the Implementation of Humanoid Robots; Institutions Say Industrial Development Will Accelerate Significantly According to media reports, Huawei and UBTech Robotics recently reached a comprehensive cooperation agreement in Shenzhen. The two parties will focus on the fields of embodied intelligence and humanoid robots, collaborating in areas such as technological R&D, scenario applications, and industrial systems. Leveraging Huawei's technological capabilities, including Ascend, Kunpeng, and Huawei Cloud, combined with UBTech's full-stack humanoid robot technology, they will jointly drive the transition of humanoid robots from laboratories to practical scenarios in industries and households, enhancing efficiency and achieving scalable replication. Shanxi Securities stated that humanoid robots, as an important carrier for AI to land in the physical world, have immense potential for future application scenarios. With increasing domestic policy support, industrial funds have accelerated their implementation across various regions since 2024. Market participants range from startups and automobile OEMs to leading companies in various fields, indicating that industrial development is expected to accelerate significantly. The industry is set to enter its first year of mass production in 2025. With data accumulation, large model iterations, and a decline in hardware costs, the widespread adoption of humanoid robots in industrial and household scenarios is highly anticipated. 2. Domestic mobile phone shipments in March reached 22.765 million units, up 6.5% YoY According to media reports, data from the China Academy of Information and Communications Technology (CAICT) showed that domestic mobile phone shipments in March reached 22.765 million units, up 6.5% YoY. Among them, 5G mobile phone shipments were 19.424 million units, up 9.5% YoY, accounting for 85.3% of total mobile phone shipments during the same period. From January to March 2025, domestic mobile phone shipments reached 69.67 million units, up 3.3% YoY. Among them, 5G mobile phone shipments were 61.043 million units, up 8.2% YoY, accounting for 87.6% of total mobile phone shipments during the same period. Huayuan Securities stated that the wave of high-end localisation is rising, and the cost-effectiveness of consumer electronics is becoming prominent. Currently, the consumer electronics industry chain is in the middle to lower range of its historical valuation, and its operational rhythm is expected to steadily improve. Focus should be placed on screening bottom-up varieties from the perspectives of "performance" and "valuation" for layout. 3. Aviation Industry Corporation of China (AVIC): The First Mass-Produced AG600 Aircraft Completes Final Assembly, Rolls Off the Line, and is Delivered for Flight Testing According to the official WeChat account of the Aviation Industry Corporation of China (AVIC), the first mass-produced AG600 aircraft (serial number 1101) recently completed final assembly and rolled off the line. Currently, the second aircraft (1102) in the batch production of AG600 has completed the installation of major components such as engines and landing gear systems, as well as the insulation and conduction testing of the aircraft's wiring harnesses. It is now undergoing testing of the avionics system. The third aircraft (1103) in the batch production has also completed the mating of major components such as wings and vertical/horizontal stabilizers, and has entered the system installation phase. The AG600 amphibious aircraft is China's first large-scale special-purpose aircraft developed to meet the urgent needs of forest firefighting and water rescue. Wang Zeyu from Tianfeng Securities believes that the engine system, known as the "heart" of a large aircraft, boasts high technological content and value. Generally, the value of an aero-engine accounts for approximately 20-30% of the total value of a commercial aircraft. Based on this estimation, the market demand for new commercial engines in China over the next 20 years (2023-2042) is expected to exceed $600 billion, with an average annual demand exceeding 200 billion yuan, indicating a vast market potential. 4. Accelerated Construction of Nuclear Fusion Projects: Institutions Say the Segment Has Entered a Period of Intensive Catalysis Media reports indicate that the Japanese government recently announced its participation in a materials testing program being advanced in Europe for the design of highly durable and safe nuclear fusion reactors. Relevant facilities are currently under construction in Spain, and Japan will bear a portion of the costs. On the same day, at the venue of the Osaka-Kansai Expo, Nonaka Atsushi, Japan's Vice Minister of Education, Culture, Sports, Science and Technology, signed a memorandum of cooperation with relevant personnel from the Spanish side. A research report by China Merchants Securities points out that the construction of domestic nuclear fusion projects is accelerating. On March 9, the 1/8 vacuum chamber and overall installation system of CRAFT (Comprehensive Research Facility for Advanced Fusion Technology) passed testing and acceptance. On May 1, the launch ceremony for the general assembly of the BEST (Burning Plasma Experiment for Steady-state Tokamak) project was held, two months ahead of the original schedule. China Merchants Securities believes that with the accelerated commercialization process, the nuclear fusion segment has entered a period of intensive catalysis. Subsequent catalysts include the unveiling of the Guoguang Electric hybrid reactor project and potential tenders, including intensive tendering and bidding for projects such as BEST, CRAFT, Spark-1, and "China's HL-3." Tokamak-based controllable nuclear fusion technology is currently in a golden age of rapid development. The rapid implementation of experimental reactors is driving the rapid development of the upstream equipment industry chain, and relevant enterprises are expected to benefit.

Shanxi Securities: New Energy Vehicle Market Expected to Further Grow, Focus on Lithium Battery Industry Chain Shanxi Securities research report pointed out that the demand for new energy vehicles and power batteries rebounded in March, with the gradual implementation of the policy to support the replacement of old cars with new ones, it is expected to further stimulate the growth of the new energy vehicle market. The rise in lithium carbonate prices has driven up the prices of the lithium battery industry chain. It is recommended to focus on the battery segment with stable profitability, positive profit margins in the cathode materials, and lithium hexafluorophosphate.