[SMM Global Steel Company Special] POSCO Business Performance Report POSCO Holdings Inc. released its 2025 consolidated results, reporting revenue of 69.095 trillion won, operating profit of 1.827 trillion won, and net profit of 504 billion won. The details of the steel segment's 2025 performance are as follows. Data source: POSCO Annual Report POSCO (Standalone) Operating Performance Production and Sales Data source: POSCO Annual Report Earnings Overview ① 2025 revenue: 35.011 trillion won, down 2.545 trillion won YoY; ② 2025 operating profit: 1.78 trillion won, up 307 billion won YoY; ③ Operating profit margin: 5.1%, up 1.2% YoY. Performance Analysis On a full-year basis, although selling prices in 2025 declined compared to 2024, operating profit still rose as raw material and production costs fell by a larger margin. ① Carbon steel selling price dropped from 985,000 won/mt in 2024 to 926,000 won/mt in 2025, down approximately 59,000 won/mt. ② Key raw material cost index: fell from 100 in 2024 to 83.8 in 2025, down 16.2. Although annual growth was still achieved, it is worth noting that the sharp rise in LNG prices also significantly impacted costs, pushing up energy and maintenance expenses from 494 won/m³ in 2024 to 633 won/m³ in 2025. More detailed changes are as follows (unit: 1 billion won). Data source: POSCO Annual Report Ex-China Steel Operating Performance Details Data source: POSCO Annual Report Core Steel Business Operating Activities Decarbonisation ① Commenced construction of the HyREX (hydrogen reduction ironmaking) demonstration plant in Pohang (expected to be operational in 2028). ② Operating the Gwangyang Electric Arc Furnace (EAF, capacity of 2.5 million mt, operational from June) to quickly respond to market demand for low-carbon steel products. Building Two Pillars: Energy and Mobility ① Pohang Plant (Energy): Building a "model plant for energy-use steel," deepening capabilities in steel for hydrogen energy, LNG, and power grid applications (including PosMAC, e-steel, etc.). ② Gwangyang Plant (Mobility): Positioned as a "dedicated plant for new mobility," conducting R&D on Giga Steel, silicon steel (Hyper NO), and other low-carbon high-end materials. Cost Innovation 2030 Leveraging technology to reduce structural costs through technology-driven structural cost reduction, targeting fixed cost reductions of 50 billion Korean won in 2025 and 40 billion Korean won in 2026. Optimizing group-wide operating costs: such as optimizing power generation and waste heat recovery, and streamlining logistics and procurement. Overseas Expansion ① [US Louisiana: EAF Integrated Steel Mill] Total investment of $5.8 billion, with POSCO holding a 20% stake and a relatively small financial burden (capital-to-debt ratio of 50:50). Products will be directly supplied to North American automakers and POSCO's Mexico plant. Discussions are underway on battery materials supply chain and next-generation materials collaboration. ② [Strategic Partnership with US Cleveland-Cliffs] Combining POSCO's global network with Cleveland-Cliffs' domestic production assets. Goal: Capturing the North American high-value-added automotive sheet market through the integration of technology and marketing. ③ [India: Integrated Steel Mill Joint Venture] Establishing a 50:50 joint venture with JSW, India's largest steel manufacturer, with equal representation on the board of directors. Constructing an integrated steel mill with a capacity of 6 million mt, and conducting business collaboration in renewable energy (wind and solar) to supply power to the steel mill. Source: POSCO Annual Report Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. 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Samsung Electronics was expected on Tuesday to report that its Q1 operating profit increased by more than eightfold from a year earlier, exceeding market expectations. The boom in artificial intelligence infrastructure led to supply bottlenecks and drove up chip prices. The world's largest memory chipmaker was expected to post an operating profit of 5.72 trillion won (about $37.92 billion) for the January-March period, up from 669 billion won a year earlier and above analysts' expectations of 4.06 trillion won.

[SMM Tin Morning Brief: High Prices at the Beginning of Last Week Significantly Suppressed Downstream Purchase Willingness, and Some Enterprises Later Carried Out Moderate Restocking to Meet Rigid Demand at Lower Prices]

As semiconductor demand surged, JX Advanced Metals Corporation, Japan’s semiconductor materials giant (JX Advanced Metals Corp., hereinafter referred to as JX Advanced Metals), plans to increase investment in chip and information technology materials. President Yoichi Hayashi said the company plans to invest about 100 billion yen ($623 million) annually across all business divisions, with a focus on chip-related businesses. Over the past three years, the company invested an average of 90 billion yen per year. JX Advanced Metals is one of the beneficiaries of the rapid buildout of AI data centers, and its clients include global chipmakers such as TSMC, SK Hynix, and Intel. This has prompted the company to shift from its traditional copper smelting business to chip and information technology materials. In an interview, Hayashi said, “I do not think we should blindly expand investment, but it would be a serious mistake to hesitate when there are clear opportunities. I believe now is the time for us to take certain risks.” As demand exceeded expectations, JX Advanced Metals raised its operating profit forecast for the fiscal year ending March 31 by 20. Sales of indium phosphide, a semiconductor material produced by the company, were strong, and the company said it will make additional investment to expand capacity. Hayashi said that, given tight supply and demand, the company was negotiating with clients to raise product prices. He added that the magnitude of the price increases varied by product, but did not disclose specific details. He believes the war in the Middle East will not have a significant impact on the company’s operations, but is monitoring developments closely. JX aims to achieve operating profit of 200 billion yen in growth segments, including its chip materials business, by the fiscal year ending March 2040. Operating profit for the most recent fiscal year was about 52 billion yen. (Wenhua Composite)

Samsung Electronics' largest union in South Korea warned that chip production could be disrupted if members approve the plan in a strike vote in May. As the world's largest memory chip maker, a strike at Samsung could exacerbate global semiconductor supply bottlenecks. Choi Seung-ho, chairman of the Samsung Electronics Labor Union (SELU), said at the launch of the vote last week: "I expect there will be production disruptions." The vote will continue through Wednesday. Choi Seung-ho said that if labor and management fail to reach an agreement, the union is expected to hold an 18-day strike starting May 21, which could affect about half of the production at the massive semiconductor complex in Pyeongtaek, south of Seoul. The Samsung union is demanding a 7% raise in base pay, the removal of the performance-based compensation cap, currently set at 50% of annual base salary, and the introduction of a bonus pool based on operating profit.

[SMM Tin Morning Briefing: The Most-Traded SHFE Tin Contract Opened Slightly Higher in the Night Session and Hovered at Highs, While Downstream Enterprises Showed Relatively Strong Purchase Willingness]

[Volkswagen Group's 2025 Operating Profit Plunged 53%] Germany's Volkswagen Group announced on March 10 that group revenue in 2025 was 322 billion euros, almost stable compared with 324.7 billion euros in 2024; however, operating profit plunged 53% YoY from 2024 to 8.9 billion euros, mainly due to US tariff policies, exchange-rate fluctuations, and strategic adjustments at Porsche, one of its subsidiaries. Volkswagen Group said that, as US tariff issues and competitive pressure in China still persisted, it expected to continue facing a severe situation in 2026. Revenue this year was expected to edge up by 0% to 3%, with the operating margin at between 4% and 5.5%.

[Denso Lowers Full-Year Operating Profit Forecast] Japan's Toyota Motor core parts supplier Denso recently announced that, due to US import tariffs and rising raw material prices, the company has lowered its profit forecast for the fiscal year ending March 2026 by 17.8% from the previously projected 651 billion yen to 535 billion yen (approximately $3.44 billion).

On Wednesday (June 11), US stocks moved downwards after a higher opening, with all three major indices declining. Both the S&P 500 and the Nasdaq ended their three-day winning streaks. By the closing bell, the Dow Jones Industrial Average dipped slightly by 1.1 points to close at 42,865.77. The S&P 500 fell 0.27% to close at 6,022.24, and the Nasdaq Composite Index dropped 0.5% to close at 19,615.88. Data released before the US market opened showed that the US Consumer Price Index (CPI) for May rose 2.4% YoY, while the core CPI increased 2.8% YoY, both falling short of market expectations of 2.5% and 2.9%, respectively. Following the data release, US President Trump posted on his social media platform, calling the CPI figures "very good numbers" and reiterating his earlier statement that "the US Fed should cut interest rates by a full percentage point." Alexandra Wilson-Elizondo, an executive at Goldman Sachs Asset Management, stated that the lower-than-expected inflation in May suggests that tariffs have not yet had a significant direct impact, as companies have been using existing inventory or adjusting prices slowly due to uncertain demand. She added that if US inflation remains manageable or the labor market shows weakness, the US Fed may consider an interest rate cut. However, during the trading session, tensions in the Middle East reversed market risk appetite. Hossein Salami, commander-in-chief of the Islamic Revolutionary Guard Corps (IRGC) of Iran, stated that Iran is prepared with upgraded missiles for any combat. He also reiterated that Iran is ready for any threat scenario. Earlier in the day, Iranian Defense Minister Mohammad Reza Ashtiani warned that if conflict is forced, US losses would far exceed those of Iran. He pointed out that in any conflict, the US would have to withdraw from the region as all its bases would be within Iran's missile range. During the session, media reports indicated that the US was preparing to evacuate some staff from its embassy in Iraq and allow US military families to leave the Middle East due to heightened security risks in the region. This news led to a surge of over 4% in the settlement price of international crude oil futures. Performance of Popular Stocks Most large-cap tech stocks declined, with Microsoft (ranked by market cap) rising 0.36% to reclaim its position as the world's most valuable company, while Nvidia fell 0.78%. Apple dropped 1.92%, with its total market cap falling below $3 trillion. Amazon fell 2.03%, Google Class C fell 0.68%, Meta fell 1.18%, and Tesla rose 0.1%. The Philadelphia Semiconductor Index fell 0.19%, with only 7 out of 30 component stocks rising. Broadcom saw the largest gain, rising 3.38%, while Intel fell 6.34%, marking its biggest single-day decline in two months. US nuclear power company Oklo rose by 29.48%, hitting a new all-time closing high. Space technology company Voyager Technologies surged by 82.19% on its first day of trading in the US IPO. Among US-listed Chinese companies, the Nasdaq Golden Dragon China Index rose by 0.08%. Popular US-listed Chinese stocks had mixed changes. Bilibili rose by 8.28%, Tencent Music Entertainment rose by 1.31%, Li Auto rose by 1.12%, Pinduoduo rose by 0.75%, and Baidu rose by 0.07%. Pony.ai fell by 3.21%, NIO fell by 1.84%, Alibaba fell by 1.27%, New Oriental Education & Technology Group fell by 1.11%, TAL Education Group fell by 1.02%, XPeng Motors fell by 0.24%, and JD.com fell by 0.18%. Company News [Meta Launches New Model V-JEPA 2] Meta has launched a new model, V-JEPA 2, claiming it "achieves state-of-the-art visual understanding and prediction in the physical world, thereby enhancing the physical reasoning capabilities of AI agents." Meanwhile, the company has also released three new benchmarks to evaluate the ability of existing models to infer the physical world from videos. [Meta Introduces AI Video Editing Feature on AI APP] Meta Platforms has introduced an AI video editing feature on its AI APP. Recently, the company has been testing a new private messaging feature on its social media platform Threads. Meta Platforms stated that users can now easily adjust elements such as clothing, location, and lighting using preset AI video editing prompts, and then share or publish the edited videos. [Disney and Universal Sue AI Company for Copyright Infringement] On June 11 local time, Disney and Universal Studios filed a copyright infringement lawsuit against AI company Midjourney, alleging that Midjourney pirated the copyright libraries of these two Hollywood studios to generate and distribute "countless unauthorized copies" of their famous characters. [Heineken Plans to Invest $2.7 Billion in Mexico by 2028] On June 11, Heineken Mexico announced that it will invest $2.7 billion in Mexico by 2028, including the construction of a previously announced plant in Yucatan. The company stated that it will not close any plants in other regions of Mexico and will continue to expand its business. [Trump Responds to Musk's Apology: "I Think He Did a Great Job"] On June 11 local time, Trump responded to Musk's apology, saying, "I think he did a great job." In the early morning of the 11th Eastern Time, Elon Musk, CEO of Tesla and SpaceX, stated on his social media platform "X" that he regretted some posts he made about US President Trump last week, saying that "the content went too far." [Oracle's adjusted EPS for the fourth fiscal quarter was $1.7, exceeding market expectations] Oracle's adjusted EPS for the fourth fiscal quarter was $1.70, compared to analysts' expectations of $1.64. Adjusted revenue for the fourth fiscal quarter was $15.9 billion, compared to the estimated $15.59 billion. Operating profit for the fourth fiscal quarter was $7.04 billion, compared to analysts' expectations of $6.85 billion. Cloud infrastructure revenue (IaaS) for the fourth fiscal quarter was $3 billion, compared to the estimated $3.07 billion.

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