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 cultivating 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 intelligent upgrading of regional industries, and injecting strong "computing power momentum" into the digital economy development of Qingdao and even Shandong Province. [Ricconn: Small-Batch Delivery of 400G/800G Products Achieved, Driving Capacity Ramp-Up] Ricconn 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. The planned products mainly include 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 higher speeds are also progressing as planned. [Tongguan Copper Foil: The Company's High-Frequency High-Speed PCB Copper Foil Can Be Widely Applied 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 applied in 5G communication equipment, high-computing-power servers, data centers, switches, and other network equipment and network connectors. [Xinhongye: Dedicated Technical Research Initiated in High-Speed Copper Cable Connection for Intelligent Computing Scenarios] Xinhongye stated on the interaction platform on March 17 that the company closely monitors the development trends of computing power data centers and the computing-power-electricity synergy industry, and will leverage its core business and technological advantages to continuously track industry dynamics and prudently evaluate penetration and deployment opportunities in related fields. Currently, the AI intelligent computing industry exhibits a trend of parallel development and synergy between copper and optical solutions. Building on its core copper cable technology advantages, the company has initiated dedicated technical research in the high-speed copper cable connection field for intelligent computing scenarios. Meanwhile, in line with the industry's technological evolution, the company also maintains forward-looking technical research and market tracking in fiber optic-related fields, and will steadily advance related deployments in the future based on industry demand, technological development, and its own strategic plans. AI-Related Orders Remained Hot, with Optimistic Demand for Copper Foil across All 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. In March, both production and sales of lithium battery copper foil and electronic circuit copper foil climbed, with the overall industry operating rate approaching 90%. End-use demand side, the power and ESS sectors maintained high prosperity, with orders growing steadily. The traditional consumer electronics industry transitioned smoothly into the peak season. AI-related orders remained hot, with optimistic demand for copper foil across all specifications . Global New Energy and AI Industries Showed 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 were 8,220.04 mt, up 11.88% YoY and up 27.59% MoM. China's copper foil exports in March 2026 were 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 high levels in March 2026, with exports hitting a single-month record high. Global new energy and AI industries showed 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 persisted at the current juncture, and market risk appetite may affect short-term market fluctuations. AI remained a key investment theme in the near term, with attention on the domestic computing power and computing power leasing driven by supply-demand imbalance, as well as the optical module and optical fiber/cable sectors with strong earnings certainty. Computing power supply-demand imbalance intensified, with computing power consumption expanding sharply, and the three major cloud providers collectively raised prices. On one hand, the current supply-demand imbalance reflected improving demand prosperity in the upstream chip and computing power leasing industries, with enhanced bargaining power driving price increases, benefiting domestic AI chip and computing power leasing-related 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 accelerated the restructuring of global supply chains, enhancing China's irreplaceability as the "world's factory," and related export chain and manufacturing leader assets may gain a "scarcity premium." In terms of allocation, regardless of whether Middle East conflicts recurred, three main themes should be firmly pursued: first, the AI trend that conflicts could hardly alter, with focus on computing power, storage capacity, and power equipment-related AI infrastructure and "HALO" asset directions. Second, the conflict has accelerated the urgency of the energy revolution. Attention should be paid to new energy sources such as lithium battery and hydrogen energy, as well as resource commodities such as non-ferrous metals, petroleum, and coal. Third, sectors at the bottom of the cycle with earnings expected to gradually improve, such as chemicals, steel, and condiments. Data showed that the CSI A500 Index, closely tracked by A500 ETF South China, covers 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 can gain exposure through A500 ETF South China and its feeder funds in one step. A research report from Huatai Securities suggested 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 are promising. The report systematically analyzed the growth logic of two major industries — InP substrates and thin-film lithium niobate. InP substrates, as the upstream core raw material for optical chips, have 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, are expected to enter an adoption window in 3.2T pluggable solutions in the future, with broad growth potential across the industry chain. A research report from Shanxi Securities showed 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 ecosystems through NVIDIA NVLINKFusion. Marvell will provide customized XPUs and NVLINKFusion-compatible expansion networks, while NVIDIA will 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 major 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, super-node systems, and other areas, and is conducive to the expansion of the NVLINKFusion ecosystem. NVIDIA's NVLINK scale-up technology encompasses NVLINK SERDES, NVLINK chiplets, NVLINK switches, and a comprehensive 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 believes that Marvell's participation is expected to expand the addressable market for copper connectivity. NVIDIA has identified CPO as one of the most important transformations in Feynman-generation Scaleup technology. 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 cables are benefiting from the data center construction boom. Large-scale growth in data center infrastructure is boosting high-speed transmission products to gradually move toward system-level solutions. The company's high-speed copper cables have achieved product category expansion around 400G assemblies, 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:

Recently, Haiwang (Ningdong) New Materials Co., Ltd. successfully completed the commissioning trial production of its annual 5,000 mt carbazole project, continuously producing high-quality products and achieving batch delivery to clients across multiple sectors, marking a new stage of industrialisation for the world's leading single-unit-scale organic liquid hydrogen storage carrier material production site. It is understood that the site was jointly established by Beijing Haiwang Hydrogen Energy Technology Co., Ltd. and Ningxia Ningdong Science and Technology Venture Capital Co., Ltd., located in the New Materials Park of the Ningxia Ningdong Energy and Chemical Industry Base. Covering 65 mu, the project features an annual 5,000 mt-class continuous carbazole production line, equipped with full-process facilities including raw material pretreatment, synthesis and preparation, and finished product refining, along with comprehensive utility systems, making it the world's leading specialised organic liquid hydrogen storage carrier production site in terms of process route and the largest in single-unit scale . The project's core relies on Haiwang Hydrogen Energy's independently developed original synthesis process , completely abandoning the traditional coal tar extraction route, fundamentally overcoming constraints on raw material supply and capacity expansion bottlenecks, and possessing industrialisation advantages of scalable expansion and continuously declining costs. The base purity of products consistently exceeds 99% , and through parameter adjustment, the line can also produce electronic-grade and pharmaceutical-grade high-end products with purity above 99.5%, with the overall production process being green, low-carbon, and environmentally controllable. This proprietary process represents the first industrial-scale application worldwide , having passed the chemical process safety and reliability assessment by the Ningxia Department of Science and Technology, and was evaluated by the China Petroleum and Chemical Industry Federation as reaching an internationally leading technology level . In terms of industrial value, carbazole and its alkyl derivatives have broad application scenarios. Beyond serving as a core organic liquid hydrogen storage (LOHC) carrier , they are also widely applicable to high-end fine chemical fields such as high-performance dyes, optoelectronic displays, perovskite batteries, and pharmaceutical chemicals, with significant room for industry chain extension and ample market demand potential. The successful trial production of this project will fill the gap in key materials for hydrogen energy storage and transportation, resolve current industry pain points in long-distance and large-scale hydrogen storage and transportation, lay a solid material foundation for the commercialisation and popularization of organic liquid hydrogen storage technology, and facilitate the large-scale, high-quality development of China's entire hydrogen energy industry chain. Haiwang Hydrogen Energy stated that it will take this commissioning trial production as a starting point to steadily advance capacity ramp-up and stable mass production, continuously optimise production processes, reduce energy consumption and costs, further improve the hydrogen storage material industry chain layout, and empower the hydrogen energy industry through independent innovation in core technologies.

[SMM Steel] Hoa Phat Group inaugurated a new steel pipe plant in Tay Ninh with an investment of over VND 2 trillion, adding 400,000 tpa and raising total pipe capacity to 1.2 million tpa. The 15-hectare facility produces black pipes, galvanized pipes, HDG pipes, coils, and large-diameter pipes meeting ASTM, BS EN, and JIS standards. Equipped with a 10 MW rooftop solar system covering over 50% of power demand, the plant supports both capacity expansion and green production goals, with plans to run at full utilization to meet domestic and export demand.

【SMM Steel】Egypt's Ezz Steel plans a $780m investment to establish a DRI plant in Algeria. The company submitted project details to AAPI, intending to utilize local iron ore and benefits like reduced taxes/energy costs. The project has a financing structure of $155m equity and $625m debt, targeting 2.5 Mt/y of sponge iron. By accessing Algeria's iron ore, Ezz Steel intends to expand the facility into an integrated industrial complex covering various stages of iron and steel production.

SMM April 22: Metals market: As of the daytime close, base metals in the domestic market mostly rose, with only SHFE lead and SHFE tin declining together. SHFE lead fell 0.65% and SHFE tin fell 0.24%. The remaining base metals all gained less than 1%. The alumina front-month contract rose 0.28%, and the casting aluminum front-month contract rose 0.15%. In addition, the lithium carbonate front-month contract rose 0.23%, the silicon metal front-month contract rose 0.29%, and the polysilicon front-month contract rose 5.13%. The Europe containerized freight front-month contract rose 2.52% to close at 2,176.1. Ferrous metals, all rose except stainless steel, which fell 0.5%. Hot-rolled coil rose 0.62%. Coking coal and coke, coking coal rose 1.07% and coke rose 0.63%. Overseas market, as of 15:06, overseas base metals mostly rose. LME copper, LME tin, and LME nickel all gained over 1%, with LME tin leading the gains at 1.82%, LME nickel up 1.35%, and LME copper up 1.18%. The remaining metals all gained less than 1%. Precious metals, as of 15:06, COMEX gold rose 1.38% and COMEX silver rose 2.62%. In China, SHFE gold fell 0.46% and SHFE silver fell 1.3%. In addition, the platinum front-month contract rose 0.39% and the palladium front-month contract rose 0.83%. Market data as of 15:06 today Macro Front Domestic: [Ministry of Emergency Management: China's workplace safety accidents dropped significantly in Q1] April 22 — According to the Ministry of Emergency Management, the total number of workplace safety accidents in China declined significantly in Q1, with the safety situation in most regions and industry sectors improving notably. Shen Zhanli, Director of the News and Publicity Department of the Ministry of Emergency Management, noted that a total of 3,258 workplace safety accidents of various types occurred nationwide in Q1, down 26.7% YoY. No extraordinarily severe accidents occurred, but major accidents and significant near-miss incidents remained frequent in some regions and industry sectors. Illegal production activities in sectors such as mining, chemicals, fire safety, and fireworks showed signs of resurgence, with increasing pressure to prevent and curb major and extraordinarily severe accidents, leaving the workplace safety situation far from optimistic. Regarding natural disasters, China was primarily affected by low-temperature freezing rain and snow, snowstorms, hailstorms, and earthquakes in Q1, while droughts, floods, forest fires, and geological disasters also occurred to varying degrees. (Xinhua) (Jin10 Data) [China Motorcycle Commerce Association: Motorcycle exports reached 4.6268 million units in Q1] Based on customs data analysis, from January to March 2026, China's motorcycle exports totaled 4.6268 million units, up 13.49% compared to the same period last year, with an export value of $3.014 billion, up 16.93% compared to the same period last year. Latin America had the highest exports, with exports of 1.4812 million units, down 8.47% YoY, and an export value of $963 million, down 0.99% YoY. Africa saw the largest YoY increase, with exports of 1.753 million units, up 44.95% YoY, and an export value of $949 million, up 48.01% YoY. (Jin10 Data APP) [Inauguration Ceremony of PV Patent Pool Expert Advisory Committee and PV Patent Pool Co-building Seminar Held in Beijing] On April 21, the inauguration ceremony of the PV Patent Pool Expert Advisory Committee and the PV Patent Pool Co-building Seminar were held in Beijing. The establishment of the Expert Advisory Committee aimed to provide regulatory supervision and guidance for the construction and operation of China's PV patent pool, promoting its lawful, compliant, and healthy development. Through prior solicitation, selection, and review, the first batch of 14 experts were selected, covering fields such as intellectual property management, PV technology R&D, legal litigation, and antitrust research. At the event, representatives from enterprises including TrinaSolar Co., Ltd., JA Solar Technology Co., Ltd., and Jinko Solar Holdings Co., Ltd. jointly launched the PV patent pool in the TOPCon battery technology field. (National Industrial Information Security Development Research Center) [PBOC Reverse Repo Operations Achieved Net Injection of 5.5 Billion Yuan on the Day] The PBOC conducted 6 billion yuan of 7-day reverse repo operations today. As 500 million yuan of 7-day reverse repo operations matured today, a net injection of 5.5 billion yuan was achieved on the day. (Jin10 Data APP) US Dollar: As of 15:06, the US dollar index fell 0.09% to 98.3. Bank Indonesia Governor: The US Fed interest rate cut may be delayed, and rates may remain unchanged through the end of 2026. (Jin10 Data APP) A CICC research report noted that Fed Chairman nominee Kevin Warsh attended a Senate Banking Committee hearing, revealing his core policy stance of pursuing "balance sheet reduction and interest rate cuts" in parallel: at the balance sheet level, he explicitly opposed normalizing quantitative easing (QE), advocating for a gradual and orderly reduction of the US Fed's balance sheet size, withdrawing from quasi-fiscal functions, and returning it to its core monetary policy role; at the interest rate level, although he made no explicit commitment, his statements indicated an inclination toward interest rate cuts. In our view, Warsh's policy stance represents not only an adjustment to the monetary transmission mechanism, but also an extension of the "America First" strategy into the monetary domain amid the wave of de-globalization — shifting from a "global central bank" that endlessly supplies liquidity to the world, toward a new approach that firmly controls the monetary spigot, focuses on domestic productivity, and emphasizes monetary sovereignty. We believe this shift implies that the narrative of persistently excessive US dollar liquidity will face correction, and assets that relied solely on liquidity-driven momentum and benefited from "US dollar oversupply" may come under pressure. (Jin10 Data APP) A CITIC Securities research report stated that Warsh's testimony demonstrated the high-difficulty balancing act he faces. On one hand, he needs to "please" Trump to a certain extent, thus acknowledging Trump's right to voice opinions on interest rates; on the other hand, he needs to earn the trust of the market and the US Fed internally, thus emphasizing the mission of price stability and the US Fed's independence. Although Warsh's performance was unsatisfactory when facing questions from Democratic lawmakers, this has a relatively small impact on whether Warsh can succeed Powell. Whether Warsh can successfully pass the Senate Banking Committee vote depends on whether he can secure the support of Republican Senator Tillis. We believe Trump will most likely TACO and withdraw the investigation into Powell to help Warsh pass the Senate vote. Warsh emphasized during the Q&A session that he would not become Trump's "puppet," and the market leaned toward hawkish trading. Warsh's ideas on reforming the US Fed deserve more market attention, especially his proposal that the US Fed needs a new inflation framework and his criticism of the US Fed's current approach to forward guidance. Warsh emphasized that the US Fed should shrink its balance sheet, using interest rates as the primary policy tool. However, we still believe Warsh's plan to shrink the balance sheet requires lengthy preparation, and the pace of implementation will be gradual. (Jin10 Data APP) According to CME "FedWatch": the probability of the US Fed raising interest rates by 25 basis points in April was 0%, and the probability of keeping rates unchanged was 100%. The probability of a cumulative 25-basis-point interest rate cut by the US Fed through June was 1.7%, and the probability of keeping rates unchanged was 98.3%. (Jin10 Data) On the macro front: The eurozone's preliminary April consumer confidence index, UK March CPI month-on-month rate, and UK March retail price index month-on-month rate were scheduled for release today. In addition, US Fed Governor Waller delivered a speech at the Brookings Institution. Crude oil: As of 15:06, oil prices in both markets fell, with WTI down 0.97% and Brent down 0.76%. Iran said there were "signs" that the US was preparing to lift its maritime blockade, and international oil prices plunged on the news. (Jin10 Data APP) Iran's Tasnim News Agency reported that the Iranian side received "some signs" indicating that the US was preparing to lift its maritime blockade. Some analysts said that if the report was true, it would be good news, as it encouraged Iran to come to the negotiating table. For now, the ceasefire agreement will continue to be extended in accordance with US President Trump's statement. However, further negotiations may be delayed until further notice. Earlier, US Vice President Vance was originally scheduled to head to Pakistan later today, but some media reports indicated that his trip had been canceled due to Iran's unwillingness to engage in talks. Nevertheless, the market remained hopeful, and risk trades recovered on the news. (Jin Shi Data APP) SMM Daily Review ► ► ► ► ► ► ► ► ►

[SMM Analysis: Tight Effective Graphite Anode Capacity Drives Expansion Wave] As effective capacity in the traditional graphite anode material industry was tight at year-end 2025, China's graphite anode enterprises intensively disclosed progress on expansion projects in Q1 2026.