[SMM Hot Topic: From "Scale" to "Quality" – The Shift and Restructuring of Traditional Construction Steel Demand] From 2026 to 2030, the domestic demographic dividend will gradually shrink, and the era of rapid growth in the real estate industry will come to an end, with the industry's development logic shifting from scale expansion to quality improvement.

Macro News 1. On June 17 local time, during his attendance at the second China-Central Asia Summit in Astana, President Xi Jinping met with Uzbek President Shavkat Mirziyoyev. The two heads of state exchanged views on the current situation in the Middle East. Xi Jinping stated that Israel's military actions against Iran have suddenly intensified tensions in the Middle East, and China is deeply concerned about this. China opposes any actions that infringe upon the sovereignty, security, and territorial integrity of other countries. Military conflict is not the way to resolve issues, and the escalation of regional tensions does not serve the common interests of the international community. All parties should work to de-escalate the conflict as soon as possible and prevent further escalation of tensions. China is willing to work with all parties to play a constructive role in restoring peace and stability in the Middle East. 2. Li Bin, Deputy Director of the State Administration of Foreign Exchange and spokesperson, stated that in May, the overall supply and demand of foreign exchange at home and abroad were balanced, and the foreign exchange market operated smoothly. In May, the net inflow of cross-border funds from non-bank sectors, including enterprises and individuals, amounted to $33 billion. Among them, the net inflow of funds from trade in goods remained at a relatively high level, and foreign investors' holdings of domestic stocks increased further compared to the previous month. The net outflow of funds from services trade, dividend distributions by foreign-invested enterprises, and outward direct investment remained generally stable. 4. Yesterday, a reporter asked whether there were plans to evacuate Chinese citizens in Iran and Israel amid the escalating conflict between Israel and Iran. Foreign Ministry spokesperson Guo Jiakun stated that some Chinese citizens have already been safely evacuated to neighboring countries. The Foreign Ministry and relevant embassies and consulates are working with relevant departments to fully ensure the safety and protection of Chinese citizens in Iran and Israel and to organize the evacuation of Chinese citizens promptly. 6. At yesterday's regular press conference of the Foreign Ministry, a reporter asked about the Financial Times report that the EU had canceled the high-level China-EU economic dialogue, believing that discussions with China were meaningless without progress on trade issues. Guo Jiakun responded by saying to inquire with the competent Chinese authorities. Guo Jiakun stated that strengthening strategic communication and deepening dialogue and cooperation between China and the EU are beneficial to the world. Industry News 1. Zhang Guoqing, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, conducted a survey on industrial innovation and the promotion of the healthy development of the platform economy in Guangdong from the 15th to the 17th. He emphasized the need to thoroughly implement the important instructions and directives of General Secretary Xi Jinping, implement the decisions and deployments of the CPC Central Committee and the State Council, promote the deep integration of technological innovation and industrial innovation, continuously shape new momentum and advantages for development, adhere to the principle of equal emphasis on development and regulation, focus on improving the governance system of the platform economy, and create a fair and orderly environment for the development of the platform economy. 2. The State-owned Assets Supervision and Administration Commission (SASAC) of the State Council held the second thematic promotion meeting for the 2025 Action Plan for Deepening and Enhancing the Reform of State-owned Enterprises in Shenzhen, Guangdong Province, on the 17th. The meeting called for efforts to improve the quality of technological innovation supply, take on responsibilities in building a modern industrial system, make tangible progress in collaborative innovation and the application of research outcomes, and achieve breakthroughs in improving the innovation evaluation and incentive mechanisms. It also urged active promotion of AI-led transformations in the scientific research paradigms of state-owned enterprises, as well as the creation and opening up of strategic, high-value application scenarios. The meeting emphasized that completing the deepening and enhancement action plan with high quality should be the top priority for this year's state-owned enterprise reforms, with a focus on achieving tangible results. 3. The International Energy Agency's new medium-term outlook indicates that global oil supply growth will far exceed demand growth in the coming years. 4. The National Development and Reform Commission (NDRC) announced that starting today, domestic gasoline and diesel prices will be increased by 260 yuan/mt and 255 yuan/mt, respectively. In terms of price per liter, 92-octane gasoline will increase by 0.2 yuan, while 95-octane gasoline and 0-diesel will both increase by 0.22 yuan. After this price increase, filling up a 50L fuel tank of a family car with 92-octane gasoline will cost an additional 10 yuan. 5. According to a survey report titled "The New Silver Hair Economy Will Become Another 'Strategic Opportunity' for Upgrading Consumption Quality" released by the Shanghai Consumer Council, the new silver hair economy will become an important engine for upgrading consumption quality. The consumption demands of the new silver hair group are highly concentrated in areas such as "health and wellness," "travel and socializing," and "hobbies and interests." 6. The commencement ceremony for the EPCI project of the Shanghai Lingang Submarine Data Center Demonstration Project, participated in by the Second Company of CCCC Third Harbor Engineering Co., Ltd., was held in Nantong. As the world's first zero-carbon new infrastructure benchmark for offshore wind power-integrated submarine data centers, this project will help Shanghai reach the international forefront in the field of green and low-carbon computing infrastructure. 7. During an inspection of a shipment of children's toys and plastic cups, customs officers from Beilun Customs, under the jurisdiction of Ningbo Customs, discovered that a plush toy was suspected of infringing on the copyright of the "Labubu Spring Elf Series." After contacting the rights holder for confirmation, it was determined that the entire shipment was infringing. Upon inventory, it was found that there were 20,240 infringing children's toys. 8. Relevant officials from the Guangdong Provincial SASAC stated at the second thematic promotion meeting for the 2025 Action Plan for Deepening and Enhancing the Reform of State-owned Enterprises that Guangdong Province has increased its investment in strategic emerging industries and high-tech enterprises, establishing the Guangdong Advanced Manufacturing Industry Investment Fund and the Strategic Industry Promotion and Development Fund, with a total subscribed capital of approximately 70 billion yuan and 52 investment projects. Company News 1. New World Development stated on an interactive platform that its shopping malls have POP MART vending machines. 2. PetroChina Capital announced its plan to invest 655 million yuan to increase the capital of Kunlun Capital for investment in controllable nuclear fusion projects. 3. SmartSens Technology announced that the shareholding ratio of the National Integrated Circuit Industry Investment Fund Phase II has decreased to 6.99%. 4. BOE Technology Group Co., Ltd. announced its plan to acquire a 30% stake in CHOT. 5. RemeGen announced that Telitacicept has been granted orphan drug designation by the European Union. 6. Dematic announced its strategic cooperation intention with Zhiyuan Xinchuang to explore innovative applications of embodied intelligent robots in logistics scenarios. 7. GCoreLab announced the successful internal testing of its new anti-quantum cryptographic card, which has been sampled to multiple customers. 8. Yuanlong Yatu stated on the interactive platform that its revenue from IP-related businesses with POP MART in 2024 was approximately 2.21 million yuan. 9. Eastcompeace Technology announced that in recent years, the company has actively deployed R&D and applications in fields such as blockchain, but faces risks of new technology R&D and commercial applications not meeting expectations. 10. Asian Paints announced that Runhe Tongcai intends to passively reduce its shareholding in the company by 3% due to the triggering of a mandatory liquidation procedure. Global Markets 1. US stocks opened lower and closed lower, with all three major indices ending in the red. The Nasdaq fell 0.91%, the S&P 500 fell 0.84%, and the Dow fell 0.7%. Major tech stocks generally declined, with Tesla falling nearly 4% and Apple falling over 1%. Most popular Chinese ADRs closed lower, with the Nasdaq Golden Dragon China Index falling 1.77%. Major European stock indices also closed lower, with the German DAX30 index falling 0.86%. 2. International crude oil futures settlement prices rose sharply by over 4%. WTI crude oil futures for July rose 4.28%, and Brent crude oil futures for August rose 4.4%. 3. COMEX gold futures fell 0.37%, while COMEX silver futures rose 1.97%. Investment Opportunities Reference 1. China's annual cross-border e-commerce export scale exceeds 2 trillion yuan, with leading sellers expected to continue increasing market share According to media reports, at the 2025 China Langfang International Economic and Trade Fair, which opened on June 16, the Statistical Analysis Department of the General Administration of Customs introduced China's cross-border e-commerce import and export situation in 2024, stating that China's cross-border e-commerce export scale exceeded 2 trillion yuan in 2024, reaching 2.15 trillion yuan, a 16.9% increase from 2023, setting a new historical high for cross-border e-commerce scale. A survey of enterprises by the customs showed that over 70% of enterprises expected cross-border e-commerce import and export to remain stable or grow in 2025. Cinda Securities believes that the increasing penetration of online channels in overseas consumer markets will continue to be an important opportunity for Chinese brands to go global. Leading sellers in cross-border e-commerce are focusing on brand strategies and leveraging their core supply chain advantages, and are expected to continue increasing their market share. 2. Ten new low-altitude logistics routes have been added in the region, and 2025 is expected to be the first year for the commercial application of the low-altitude economy to take root. According to media reports, the Hanshang Low-Altitude Port, which connects the core areas of the three towns of Wuhan (Wuchang, Hankou, and Hanyang) through flight service routes, has officially commenced operations. It is understood that the Hanshang Low-Altitude Port is constructed and operated by Hanshang Low-Altitude Technology Co., Ltd., a subsidiary of Hanshang Group. Currently, it has formed a specialized low-altitude logistics operation system comprising one digital real-time dispatching platform, two intelligent command centers, ten low-altitude routes, and 22 intelligent parking aprons. It primarily serves the distribution and emergency support of commodities such as seafood, fresh-cut flowers, and pharmaceuticals. Galaxy Securities believes that 2025 is expected to be the first year for the commercial application of the low-altitude economy to take root, with infrastructure such as air traffic control systems and takeoff and landing sites accelerating in construction. Kaiyuan Securities further analyzed that the low-altitude economy has ushered in vertical implementation from the macro level (national-level industrial planning) to the meso level (local subsidies in various regions) and then to the micro level (infrastructure mainframe tenders and application scenario creation). It is recommended to pay attention to the subsequent market trends of the low-altitude economy sector. 3. The region's first project of this kind has officially landed! Policy dividends are emerging, injecting strong momentum into foreign trade growth. According to media reports, recently, the Macun Port Customs under Haikou Customs successfully handled the customs clearance procedures for a cross-border bonded lease of a "Lancang" electric multiple unit (EMU) trainset declared by a leasing company within the Haikou Integrated Free Trade Zone, marking the official landing of Hainan Free Trade Port's first cross-border railway EMU leasing project. Currently, the EMU trainset has been delivered to Laos-China Railway Co., Ltd., effectively enhancing the passenger transport supply capacity of the Lao section of the China-Laos Railway and driving regional economic development. "Unlike previous direct sales and exports, the bonded lease approach significantly reduces the investment and operating costs for foreign enterprises. It also helps promote international cooperation and optimal resource allocation, providing more foreign enterprises with access to China's manufacturing resources and market opportunities," said a relevant person in charge of the leasing company. This business represents an important milestone in the company's cross-border leasing business layout. A relevant person in charge of Haikou Customs stated that the customs will strengthen communication and exchanges with various parties, including the Haikou Integrated Free Trade Zone and leasing companies, to further leverage the policy advantages of the Hainan Free Trade Port. By facilitating financing and customs clearance, it will promote industrial development and accelerate the "going global" of large-scale rail transit equipment made in China. According to statistics from Haikou Customs, as of late May this year, the import value of goods under Hainan Free Trade Port's three "zero-tariff" lists reached 22.69 billion yuan, with tax exemptions and reductions totaling 4.32 billion yuan. The early policy dividends of the Hainan Free Trade Port are emerging, injecting strong momentum into foreign trade growth. 4. Hard to Get a Ticket! Number of Scottish Premiership Sponsors Surges to 20 It was reported that as of June 16, the number of Scottish Premiership sponsors had reached 20, more than three times the number at the start of the season. Amid sustained high popularity, the sponsorship fees for the "Scottish Premiership" had soared to 3 million yuan, and it was hard to get a ticket. Meanwhile, according to booking data from Meituan Travel, the booking volume for cultural and tourism activities in Jiangsu Province during the summer vacation had increased by 41% YoY. Over the past weekend, the tourism order volume in Jiangsu Province had surged to the top nationwide, with the order volume for dining in restaurants in Jiangsu contributed by out-of-town consumers increasing by over 49% YoY. The tourism order volume in Nanjing, the provincial capital, led the country, while Suzhou and Yangzhou had both ranked among the top 10, showing a booming trend of "full bloom". The "Scottish Premiership Effect" was amplified by policy support and the platform economy, driving comprehensive growth in the cultural, tourism, sports, and commercial sectors in Jiangsu. The ongoing Jiangsu Provincial City Football League has recently attracted a large number of fans to attend the games. According to Future Report data, the global football market size reached $55.97 billion in 2024 and is expected to expand at a compound annual growth rate of 3.9%, reaching $70.29 billion by 2030. Fang Guangzhao from Kaiyuan Securities believes that driven by both policy support and market demand growth, the Chinese football industry is expected to usher in a period of rapid development, and it is recommended to actively pay attention to investment opportunities related to the football industry chain. The development of the football industry is expected to drive demand for derivatives such as trading cards and sports lotteries. As a core component of the upstream events in the football industry chain, football clubs are expected to see their value continue to rise. In addition, with the rapid development of the football industry, the demand for high-grade football equipment and materials may increase significantly.

On Friday (June 13), US stocks opened lower and continued to decline, with all three major indices closing in the red. At the close, the Dow Jones Industrial Average fell 1.79% to 42,197.79 points; the S&P 500 fell 1.13% to 5,976.97 points; and the Nasdaq Composite Index fell 1.3% to 19,406.83 points. For the week, the Dow fell 1.32%, the S&P 500 fell 0.39%, and the Nasdaq fell 0.63%, all ending a two-week winning streak. In the early hours of Friday (June 13) local time, tensions in the Middle East escalated, causing several popular US stocks to decline significantly during the night session. Affected by geopolitical tensions, international crude oil futures settled sharply higher, rising over 7%. WTI July crude oil futures rose 7.26%, and Brent August crude oil futures rose 7.02%. US COMEX gold futures rose 1.47%. Despite the overall decline in US stocks, sectors such as energy and precious metals rallied against the trend. ExxonMobil rose 2.18%, ConocoPhillips rose 2.4%; VanEck Gold Miners ETF rose 1.74%, and Newmont Corporation rose 3.54%. Louis Navellier, Chief Investment Officer at Navellier & Associates, said, "The lasting damage could be to crude oil prices. If oil prices do not pull back soon, it will certainly cause some damage to US inflation data." Performance of Popular Stocks Most large-cap tech stocks declined, with (ranked by market capitalization) Microsoft falling 0.82%, NVIDIA falling 2.09%; Apple falling 1.38%, Amazon falling 0.53%, Alphabet Class C falling 0.62%, Meta falling 1.51%, Broadcom falling 2.88%, and Tesla rising 1.94%. Oracle rose 7.69%, gaining 23.68% for the week, marking its best weekly performance since 2001. Drone manufacturer AIRO Group surged 140% on its first day of trading. Among Chinese stocks listed in the US, the Nasdaq Golden Dragon China Index fell 2.74%, declining 0.77% for the week. Most popular Chinese stocks listed in the US closed lower, with Pony.ai falling 7.24%, XPeng Motors falling 5.46%, Li Auto falling 3.84%, Alibaba falling 3.22%, NIO falling 3.04%, Pinduoduo falling 2.76%, JD.com falling 2.53%, New Oriental falling 2.33%, Tencent Music Entertainment falling 2.13%, and Baidu falling 2.06%. Company News [Amazon Restructures Healthcare Business] To streamline its structure, Amazon is reorganizing its healthcare business into six "pillars." Previously, Amazon had lost several healthcare executives in recent months. After acquiring PillPack and One Medical and launching some of its own services, Amazon has been struggling to find a consistent strategy in the healthcare market. [AMD Unveils Two Generations of Flagship AI Chips to Compete with NVIDIA; Morgan Stanley: MI400 Could Be a Key Inflection Point] At the AMD Advancing AI conference, AMD showcased its strongest lineup of AI products ever, including flagship AI chips for data centers, AI software stacks, AI rack-level infrastructure, AI network cards, and DPUs, fully demonstrating its ambition to compete with NVIDIA. Morgan Stanley stated that AMD has released the MI350 as expected, but the focus remains on the rack-level MI400/450 products to be launched next year. If these products can be delivered on schedule, they could have a greater impact. [US eVTOL Giant Archer Raises $850 Million] Archer Aviation, a well-known US electric vertical takeoff and landing (eVTOL) aircraft company, announced that it has raised $850 million through the sale of shares. Archer stated that it plans to use the $850 million to support new infrastructure construction and launch an AI-based aviation software platform.

In mid-May, Mingtai Al. released a record of investor relations activities, mentioning that the company's production and sales of aluminum plate/sheet, strip and foil in Q1 reached a new historical high, with sales volume approaching 380,000 mt, up 11% YoY. The company is unwavering in its commitment to driving product structure improvement through technological innovation, emphasizing "quality improvement and efficiency enhancement," focusing on "high-end intelligent manufacturing," and strategically positioning itself to seize future opportunities. The development and stable supply of products in emerging fields such as new energy, automotive transportation, and robotics are contributing to the company's steady growth in production and sales. Mingtai Al.'s previously released Q1 performance report showed that the company achieved a total revenue of 8.124 billion yuan in Q1, up 13.07% YoY; net profit attributable to shareholders of the publicly listed firm reached 440 million yuan, up 21.46% YoY. According to public information, the company primarily engages in the comprehensive application of aluminum plate/sheet, strip and foil, aluminum extrusion, and secondary aluminum resources. It possesses four hot continuous rolling production lines, internationally advanced aluminum dross treatment production lines, and secondary aluminum process technology and equipment. Its products cover 47 alloy grades from the 1-series to the 8-series, with over 200 specifications and models available. The company serves more than 4,000 customers, with its products being popular in over 50 countries and regions both domestically and overseas. They are widely used in numerous fields such as new energy, electronics and home appliances, 5G communications, pharmaceutical packaging, food packaging, transportation, ultra-high voltage power transmission, railcar bodies, new infrastructure, and military industries. Regarding current orders on hand, Mingtai Al. stated that historically, March marks the peak consumption season for aluminum. The company's current orders on hand have increased, sufficient to meet one and a half months of production scheduling. Moreover, the company's product processing fees have remained stable with an upward trend. In Q1, the company and the industry raised processing fees for products such as CTP/PS plates, can stock, and easy-open end stock. Additionally, the company was asked about the impact of the US's "reciprocal tariff" policy on its foreign trade. Mingtai Al. responded that during the 2018 Sino-US trade war, the US imposed anti-dumping and countervailing duties on Chinese aluminum products, after which Mingtai Al.'s direct exports to the US decreased significantly. Recently, steel and aluminum products were not included in the US's "reciprocal tariff" policy. Foreign trade sales volume has increased QoQ this year, with foreign trade orders showing signs of recovery. Regarding the company's development plan for 2025, Mingtai Al. stated that it is dedicated to its core business, focusing on "high-end intelligent manufacturing" and "low-carbon circular economy." This year, the company will prioritize the construction of high-end heat treatment lines to promote product upgrading, paying close attention to aluminum demand in fields such as new energy, automotive materials, semiconductors, industrial robots, and low-altitude flight. It will actively develop products in these related fields and continuously improve its product structure. This year, the production capacity of the subsidiary Yirui New Materials and overseas bases continued to be released, ensuring a significant increase in the company's production and sales scale in 2025. Mingtai AL. was also asked whether the company's scale of secondary aluminum conservation application would continue to expand in 2025. The company stated that in the second half of 2024, the EU began requiring the submission of product carbon emission data. After preliminary calculations by the company, secondary aluminum products demonstrated significant advantages in carbon emission reduction, and the company is unwavering in its commitment to continuously promoting the development of the secondary aluminum business. At the end of 2024, China Customs relaxed restrictions on the import of deformed aluminum scrap, supporting the development of enterprises engaged in the conservation application of secondary aluminum. The company established an International Procurement Department for Secondary Aluminum to further expand the sources of aluminum scrap procurement, actively promote the application of secondary aluminum products, and continue to lead the industry in low-carbon development. Previously, the company also released its 2024 annual report data, showing a total revenue of 32.321 billion yuan, up 22.23% YoY; the net profit attributable to shareholders of the publicly listed firm was 1.748 billion yuan, up 29.76% YoY. According to the annual report data, the company currently has an annual processing capacity of over 1 million mt of aluminum scrap and a comprehensive utilization capacity of 120,000 mt of aluminum dross, reaching internationally advanced levels. In terms of the aluminum plate/sheet, strip and foil business, the existing production capacity is over 1.6 million mt. The company produces a variety of products, including battery aluminum foil for pouch batteries, electronic foil, checkered plate, lightweight materials for commercial vehicles, and food and pharmaceutical packaging foil, which consistently rank among the top in the domestic market share. The proportion of high value-added products, such as aluminum for new energy and new materials, aluminum for transportation, and aluminum for automotive lightweight applications, is gradually increasing. In the aluminum extrusion business, Mingtai Traffic New Material operates steadily, achieving self-sufficiency in railcar extrusions, supplying aluminum alloy railcar bodies in bulk, and externally selling products such as new energy battery trays, automotive extrusions, extruded aluminum pipes for GIL used in ultra-high-voltage power transmission equipment, and interior fittings for rail vehicles, continuously expanding its business scope. In terms of procurement mode, the company's main raw materials are aluminum ingots and secondary aluminum, adopting a "produce based on sales, purchase based on production" approach. It procures from suppliers in a continuous and batch-by-batch manner according to customer orders and production and operation plans. The procurement price is determined based on the average spot aluminum price on the Shanghai Nonferrous Metals Market , adjusted in consideration of payment terms, freight responsibility, and the type of secondary aluminum. The company has signed long-term procurement agreements with some aluminum ingot suppliers of a certain scale and economic strength, establishing long-term and stable cooperative relationships to ensure convenient and timely raw material supply. Moreover, to cope with potential losses from volatile raw material prices, Mingtai AL. issued an announcement on April 23 regarding the implementation of aluminum ingot hedging. It mentioned that engaging in aluminum ingot futures trading can fully utilize the hedging mechanism in the futures market to mitigate the risk of raw material price fluctuations, avoid potential losses from volatile raw material prices, ensure the relative stability of product costs, and reduce the impact on the company's normal operations. When mentioning the impact of aluminum ingot hedging on the company, Mingtai Aluminum stated that the company specializes in the production and sales of aluminum plate/sheet, strip and foil, with aluminum ingot as its main raw material. To avoid the impact of fluctuations in raw material prices, the company will actively hedge relevant risks through the hedging function of futures, adhering to the principles of legality, prudence, safety, and effectiveness, without the purpose of arbitrage or speculation. The company has formulated relevant risk control measures to strictly control investment risks. The company's engagement in futures hedging business will not harm the interests of the company and all its shareholders.

1. The Ministry of Commerce (MOFCOM) website released a joint statement on the China-US economic and trade talks in Geneva. Both sides committed to taking the following measures before May 14, 2025: The US will (i) revise the ad valorem tariffs imposed on Chinese goods (including goods from the Hong Kong Special Administrative Region and the Macao Special Administrative Region) as stipulated in Executive Order 14257 dated April 2, 2025. Specifically, 24% of the tariffs will be suspended for the initial 90 days, while the remaining 10% of the tariffs will be retained for potential imposition in accordance with the provisions of the executive order; (ii) cancel the tariff hikes imposed on these goods under Executive Order 14259 dated April 8, 2025, and Executive Order 14266 dated April 9, 2025. China will (i) correspondingly revise the ad valorem tariffs imposed on US goods as stipulated in Announcement No. 4 of 2025 issued by the Customs Tariff Commission. Specifically, 24% of the tariffs will be suspended for the initial 90 days, while the remaining 10% of the tariffs will be retained for potential imposition, and the tariff hikes imposed on these goods under Announcement No. 5 and No. 6 of 2025 issued by the Customs Tariff Commission will be canceled; (ii) take necessary measures to suspend or cancel non-tariff retaliatory measures against the US that have been in place since April 2, 2025. After implementing the above measures, both sides will establish a mechanism to continue consultations on economic and trade relations. 2. A spokesperson for the Ministry of Commerce made remarks on the joint statement on the China-US economic and trade talks in Geneva. The Ministry of Commerce stated that substantial progress was made in the high-level China-US economic and trade talks, with a significant reduction in bilateral tariff levels. The US canceled a total of 91% of the tariff hikes, and China correspondingly canceled 91% of the retaliatory tariffs. The US suspended the implementation of 24% of the "reciprocal tariffs," and China also correspondingly suspended the implementation of 24% of the retaliatory tariffs. This measure aligns with the expectations of producers and consumers in both countries, as well as with the interests of both countries and the common interests of the world. 3. On May 12, 2025, a deployment meeting was held to strengthen the whole-chain management and control of strategic mineral exports. The meeting emphasized the importance of adhering to the principle of "prevention first, disposal in advance," closely tracking the flow of strategic minerals, enhancing information analysis and sharing, promptly issuing early warnings, and taking relevant disposal measures to strictly prevent the illegal outflow of strategic minerals. 4. A spokesperson for the Ministry of Commerce responded to media inquiries regarding the launch of a special campaign to combat the smuggling and illegal export of strategic minerals. The Ministry of Commerce stated that it requires all relevant departments to strengthen law enforcement collaboration, severely crack down on the smuggling and illegal export of strategic minerals, form a high-pressure situation of "joint management and control," and take practical and effective measures to resolutely prevent the illegal outflow of strategic minerals. 5. On the 12th, Minister of Commerce Wang Wentao presided over a roundtable meeting with foreign trade enterprises. Wang Wentao stated that important consensus had been reached and substantial progress had been made in the recent high-level China-US economic and trade talks, laying the foundation and creating conditions for further bridging differences and deepening cooperation.Going forward, the Ministry of Commerce will earnestly implement the decisions and plans of the CPC Central Committee, coordinate domestic economic work with international economic and trade struggles, and, based on the "three important" positioning of commercial work, collaborate with relevant departments to fully support foreign trade enterprises in overcoming difficulties, provide them with more assistance, help them explore new markets, and promote the stable development of foreign trade. Industry News 1. China has launched a special campaign to combat the smuggling and export of strategic minerals, and will organize a series of actions in the near future. Medium-heavy rare earths, which were previously subject to export controls, are included in this campaign. Previously, US research institutions had expressed concerns that China's rare earth controls would leave the US unable to fill its rare earth gap, as over 90% of rare earths are currently smelted and processed in China. 2. The People's Bank of China and four other departments jointly issued the "Opinions on Financial Support for the Deepening of Comprehensive Guangdong-Hong Kong-Macao Greater Bay Area Cooperation in Nansha, Guangzhou, Facing the World". The document proposes supporting the establishment of institutions in Nansha, such as data computing power centers, R&D and certification centers, evaluation centers, and regulatory platforms, that integrate key digital technologies like blockchain and artificial intelligence with financial scenarios. It also calls for increased support for the marine industry, commercial space, and the all-domain unmanned industry. 3. According to data from the Ministry of Commerce, as of May 11, 2025, there have been 3.225 million applications for vehicle trade-in subsidies, including 1.035 million for vehicle scrappage and renewal and 2.19 million for replacement and renewal. Since the implementation of the vehicle trade-in policy in 2024, the cumulative number of subsidy applications has exceeded 10 million. 4. Apple is reportedly considering raising the prices of its new iPhone models to be released this autumn. Insiders revealed that Apple will strive to avoid attributing the price increase to "Trump tariffs" and instead attempt to link this change to "new features and design modifications". 5. The General Office of the People's Government of Fujian Province issued the "Several Measures to Further Promote the High-Quality Development of Capital Market Services for Technology-Based Enterprises". The document proposes supporting the issuance of REITs products for projects in new infrastructure fields such as big data, artificial intelligence, and the Internet of Things, and encourages the recycling of funds for investment in technological innovation. 6. Recently, some online accounts have fabricated breaking news events, concocted public policies, and fabricated rumors in the fields of social and livelihood issues through the abuse of AI technology, splicing, and other means, misleading netizens' perceptions, causing public panic, and disrupting social order. The cyberspace administration has guided website platforms to continuously increase monitoring and disposal efforts, promptly trace the sources and close accounts that first spread rumors, and has disposed of a total of 2,210 accounts in violation of laws and regulations. 7. The Economic and Information Technology Department of Sichuan Province and seven other departments jointly issued and implemented the "Action Plan for Breakthroughs in the Brain-Computer Interface and Human-Computer Interaction Industry in Sichuan Province (2025-2030)".It was proposed that by 2027, key breakthroughs would be achieved in critical segments of the industry chain, the industrial ecosystem would be basically established, and a number of industrial development clusters would be built. Corporate News 1. CRRC Corporation Limited announced that it had recently signed major contracts totaling 54.74 billion yuan. 2. Longsheng Technology announced that the supply of NEV motor semi-assembly projects with Seres was expected to commence in the second half of 2025 (H2). 3. Boyun New Materials announced that its shareholder, Gaochuangtou, intended to reduce its stake by no more than 3% of the company's shares. 4. Beijing Lier announced its plan to invest 200 million yuan in Shanghai Zhenliang, a domestic AI chip company. 5. Sunshine Nuohe announced its plan to acquire 100% equity of Langyan Life, and its stock resumed trading. 6. Kutesmart stated in the record of investor relations activities that its collaboration with Huawei to upgrade the AI Agent 2.0 was expected to be completed in 2025. 7. Chuanhuan Technology stated on its interactive platform that its cooperation with Chengfei was progressing in an orderly manner. 8. Woer Heat-Shrinkable Material announced its plan to issue H shares and apply for listing on the Main Board of the Hong Kong Stock Exchange. 9. Zhaowei Electromechanical announced that its shareholder, Qingmo Investment, planned to reduce its stake by no more than 1.5% of the company's shares. 10. Yunnan Copper announced its plan to acquire a 40% stake in Liangshan Mining, and its stock was suspended from trading. Global Markets 1. All three major U.S. stock indices closed significantly higher, with the Nasdaq rising 4.35% and the S&P 500 rising 3.26%, both reaching new closing highs since March 3. The Dow Jones Industrial Average rose 2.81%, reaching a new closing high since March 27. Amazon surged over 8%, Meta rose over 7%, Apple and Tesla both gained over 6%, and Nvidia rose over 5%. All three major European stock indices closed higher, with the German DAX index rising 0.29%. 2. International crude oil futures settlement prices rose over 1.5%. WTI crude oil futures for June rose 1.52%, and Brent crude oil futures for July rose 1.64%. 3. COMEX gold futures fell 2.76%, and COMEX silver futures fell 0.42%. Investment Opportunities Reference 1. Nvidia open-sources multiple large code inference models, with institutions stating that AI large models accelerate the development of high-speed optical modules According to media reports, Nvidia recently open-sourced its Code Reasoning models (Open Code Reasoning model), including three parameter versions: 32B, 14B, and 7B. These models are based on Alibaba's Tongyi Qianwen Qwen2.5-32B, Qwen2.5-14B, and Qwen2.5-7B. In recent years, the training and inference applications of AI large models have required massive parallel data computation, leading to greater demands for network bandwidth. These factors have accelerated the development and application of high-speed optical modules.Guosheng Securities released a research report stating that the optical module industry has entered a period of technological iteration and demand restructuring. 800G remains the mainstream product, with the 1.6T mass production cycle longer than expected. CPO is unlikely to replace pluggable solutions in the short term, and the passive component market is undergoing a revaluation. The pace of industry chain upgrades has returned to the 2-3 year iteration cycle, and the secondary market needs to view technological evolution and performance realization rationally. Meanwhile, high-elasticity opportunities in the passive component segment are worth paying attention to. 2. Solid-state batteries in the spotlight! Multiple tech conferences to be held this week, with battery industry leaders gathering This week, the battery industry is set to host multiple tech conferences. The 17th Shenzhen International Battery Fair/Expo (CIBF2025) will be held in Shenzhen from May 15 to 17. The exhibitor list includes several well-known companies such as CATL, BYD, and 3M China. Additionally, Gotion High-tech will hold its 2025 Global Technology Conference in Hefei from May 16-17. At the China EV100 Forum 2025 held in March this year, Zhu Xingbao, Chief Scientist of Gotion High-tech, revealed that Gotion High-tech will launch a new high-safety solid-state battery with an energy density of 300Wh/kg on May 17. Since the beginning of this year, several policy documents released by the Ministry of Industry and Information Technology (MIIT), the Zhuhai Municipal Bureau of Industry and Information Technology, and the Shanghai Municipal Government have all mentioned solid-state batteries. Yang Rui from Huaxi Securities believes that solid-state batteries represent a definitive technological direction, driving technological upgrades in multiple segments such as cathode materials, anode materials, separators, and conductive agents. As industry demand expands and products mature, the advantages of both volume and profit growth are expected to emerge. 3. One of the new tracks for AI hardware and consumer electronics: the market size of this type of AI product is growing rapidly According to media reports, on May 15, Fibocom will jointly host the "AI Toys Innovation Seminar: Exploring the Future of AI with Fibocom and Volcengine" with Volcengine, to jointly unlock the technological frontiers, market opportunities, and industry ecosystem of AI toys. After the Chinese New Year this year, the toy market has quietly been swept up in a wave of intelligence, with AI toys continuously emerging. AI toys integrated with the DeepSeek large model have injected unprecedented interactive experiences into the toy industry. Industry insiders point out that AI toys can not only understand children's speech but also engage in intelligent learning and adaptation based on reactions, thereby providing personalized interactive services. As one of the new tracks for AI hardware and consumer electronics, the market size of AI toys is growing rapidly and is expected to reach 100 billion yuan by 2033. The integration of AI and the toy industry will reshape the future of children's education, entertainment, companionship, and interactive experiences. 4. Songyan Power unveils a new generation of female bionic robots According to media reports, humanoid robot startup Songyan Power has unveiled a new generation of bionic robots featuring a new female image named Xiaonuo.According to reports, it features multimodal embodied interaction, ultra-high degrees of freedom (32DOF), near-human facial expressions, open character customization, and underlying interfaces, supporting personalized makeup. A reporter from the "Science and Technology Innovation Board Daily" learned on-site that the pre-orders for the Songyan Power N2 robot have exceeded 1,000 units. Institutions predict that the global humanoid robot industry could reach $32.4 billion by 2029. Guosen Securities stated that the mass production schedule for Tesla's humanoid robot, Optimus, is gradually becoming clear. With continuous investments from major players both domestically and internationally (Figure, NVIDIA, Huawei, Unitree, Zhiyuan, etc.), the humanoid robot industry is expected to accelerate its development. 2025 could mark the starting point of an industry boom, and the opportunities for industrial upgrading brought by the advancement of humanoid robots are promising.

On April 23, at the CCIE-2025SMM (20th) Copper Industry Conference and Copper Industry Expo - Main Forum, hosted by SMM Information & Technology Co., Ltd., SMM Metal Trading Center, and Shandong Aisi Information Technology Co., Ltd., with Jiangxi Copper Corporation and Yingtan Land Port Holding Co., Ltd. as main sponsors, and Shandong Humon Smelting Co., Ltd. as a special co-organizer, Xinhuang Group and Zhongtiao Mountain Nonferrous Metals Group Co., Ltd. as co-organizers, Wang Jianlong, Deputy Director of Metallurgy Department One of China ENFI Engineering & Technology Co., Ltd., shared insights on the global copper smelting landscape and intelligent development. Ben Knoefler, Chairman of the Board of KCI Group, analyzed the global copper market for 2025. 1 Global Copper Resource Distribution Overall, the world's copper resources are relatively abundant, with an estimated 31 billion tons of land-based copper resources and 7 billion tons in deep-sea nodules. Natural copper minerals include native copper, oxides, and sulfides. The world's proven copper reserves are about 10 billion tons, and based on current mine production, the static assurance period for mining is approximately 45 years. In terms of regional distribution, the main areas with concentrated copper ore resources globally are: (1) The western foothills of the Andes in Peru and Chile, South America; (2) The Cordillera region in the western part of the North American continent, mainly in the US and Mexico; (3) Central Africa, particularly in the DRC and Zambia; (4) Central Asia, mainly Kazakhstan, Mongolia, and Russia; (5) Australia. The top five countries in terms of copper ore reserves are Chile, Peru, Australia, Russia, and the DRC, accounting for about 57% of the total. 2 Global Refined Copper Consumption Global copper consumption is mainly concentrated in two types of countries or regions. One type is traditional developed Western countries, where copper consumption is relatively stable. The other type is developing countries and regions experiencing rapid economic growth, which have higher copper consumption growth rates and are key factors in global copper consumption growth. According to ICSG statistics, global refined copper consumption in 2024 was 28.577 million mt, up 5.79% YoY. The growth in global refined copper consumption is mainly supported by strong apparent demand in China. The main areas of global copper consumption are power grids, construction, consumer goods, transportation, and engineering machinery, accounting for 28%, 27%, 22%, 12%, and 11% respectively. As a basic raw material, changes in copper consumption are closely related to global economic development. In recent years, consumption of copper plate/sheet and strip in traditional fields and copper foil for circuit boards has been relatively weak, while copper use in the power and new energy sectors has performed well. 3 Global Refined Copper Production and Capacity Distribution Global refined copper production in 2024 was 28.0228 million mt, up 4.07% YoY. The increase in refined copper production is mainly due to capacity expansion in China and the DRC, while production in other regions decreased by about 1%. As the largest consumer and producer of refined copper, China does not have a significant advantage in copper ore resources and needs to import large amounts of copper concentrates. China's refined copper production and copper concentrate imports In 2024, China's refined copper production was 13.644 million mt, and copper concentrate imports were 28.11 million mt. To address the current state of the copper smelting industry, relevant national departments are promoting the healthy and orderly development of the copper smelting industry through industrial policies, environmental protection policies, and other measures. In general, on the supply side, efforts are being made to deepen supply-side structural reforms, strictly control the disorderly expansion of copper smelting capacity, and accelerate intelligent and green transformation. On the demand side, enterprises are being guided to accelerate technological progress, overcome the shortcomings of copper-based new materials, and fully tap the potential applications of copper in new infrastructure and construction projects. Major Chinese Copper Smelters According to incomplete statistics, there are more than 40 copper smelters (production lines) nationwide, with four groups having a capacity of over 1 million mt/a. 4 Global Copper Smelting Processes and Their Development Copper Smelting Processes Pyrometallurgy (80%): Impurities are removed as slag at high temperatures, resulting in copper anode, which is then electrolyzed to produce refined copper. Traditional matte smelting, the main process for copper smelting, is suitable for sulfide ores. One-step copper smelting, with limited industrial application, is suitable for sulfide ores under special raw material conditions. Hydrometallurgy (20%): Copper is enriched in solution through leaching and extraction processes, followed by electrodeposition to produce refined copper. • Leach-extraction-electrodeposition, suitable for oxide ores, especially for large-scale processing of low-grade oxide ores. • Roast-leach-extraction-electrodeposition, suitable for sulfide ores, mixed ores, and copper-cobalt ores. • Oxygen pressure leach-extraction-electrodeposition, suitable for sulfide ores, mixed ores, and copper-cobalt ores. Copper Pyrometallurgical Process Flow It also elaborated on the hydrometallurgical process flow of copper, including roasting, leaching, extraction, and electrodeposition. Several Main Matte Smelting Processes and Their Development ► Flash Smelting: Flash smelting technology includes Outokumpu flash smelting and INCO flash smelting, with Outokumpu technology being widely applied. China began introducing flash smelting technology in the 1980s. Xiangguang Copper innovated boldly based on flash smelting technology, inventing the vortex flash smelting technology, which received a national invention patent. Advantages include high capacity, high automation, and longer furnace life; disadvantages include high investment, complex feed preparation system, poor adaptability to high-impurity raw materials, and the need to reduce costs through scale effects. Recent developments include: high oxygen (even pure oxygen) smelting, further expansion of single-furnace capacity (500,000 mt/a), continuous innovation and improvement of process equipment, and gradual localization. ► Top-Blown Smelting: Top-blown smelting technology, including Ausmelt smelting and ISA smelting, was introduced to China in the 1990s. Characteristics of top-blown smelting technology include using a submerged lance to blow air and oxygen into the melt pool, providing strong stirring and good reaction kinetics, and high production efficiency. Disadvantages include the need to add fuel, inability to separate slag and copper in the furnace, requiring a settling electric furnace, high comprehensive energy consumption, low utilization of oxygen and fuel, and short furnace life. Recent developments include: increasing oxygen concentration, improving matte grade, raising smelting temperature, and continuously extending lance and furnace life. ► Bottom-Blown Smelting: Bottom-blown smelting is a new copper smelting technology with independent intellectual property rights from China ENFI. It was first industrially applied in Vietnam in 2002, and the first bottom-blown copper smelting production line in China was put into operation in 2008. Advantages include simple feed preparation, low furnace investment, high oxygen utilization, and strong adaptability to raw materials, capable of handling high-impurity raw materials. Disadvantages include high copper content in slag and low direct recovery rate. Developments include: further expansion of single-furnace processing capacity (1.8 million mt/a of concentrate); as a representative technology for matte gold capture, it has low requirements for copper content in concentrate and has been applied in complex gold concentrate processing at Shandong Humon, Central China Gold, and Guotou Jincheng. Zhongjin Lingnan Copper Co., Ltd. (formerly Dongying Fangyuan) developed the "Zhongjin Method" for two-step copper smelting based on bottom-blown smelting. China ENFI and Baotou Huading Copper Industry developed the full bottom-blow three-furnace process based on bottom-blown smelting and continuous bottom-blowing. ► Side-Blown Smelting: Based on Vanyukov smelting technology, China developed and applied oxygen-enriched double side-blowing smelting technology in 2009, which has rapidly developed in recent years. Characteristics of side-blown smelting technology include blowing air and oxygen into the melt pool through tuyeres on both sides of the furnace, improving mass and heat transfer conditions, with low blowing pressure, low copper content in slag, and relatively simple operation. Disadvantages include the need for manual opening and plugging of tuyeres and the need to add coal (mainly to inhibit magnetic iron in slag). Recent developments: Rapidly achieved a leap from 100,000 mt capacity to 400,000 mt capacity, with the maximum bed area reaching 70 square meters. ► P-S Converter Blowing: P-S converter blowing, invented in 1905, has been used for over a century and remains the primary copper matte blowing technology worldwide. Advantages include flexible operation and the ability to balance various cold copper-containing materials and externally purchased cold copper using reaction heat. Disadvantages include periodic intermittent operation, large fluctuations in flue gas volume and sulfur content, which are unfavorable for acid-making systems, large flue gas collection volumes, and difficult-to-solve low-altitude SO2 pollution caused by ladle lifting. The drawbacks of P-S converters have prompted metallurgists to seek continuous blowing technologies. ► Flash Blowing: The world's first flash blowing furnace was commissioned at Kennecott Utah Copper in 1995, forming the "double flash" process when paired with flash smelting. Xiangguang Copper was the first in China to introduce "double flash" technology, and the first flash blowing furnace in China was put into operation in 2007. After years of improvement, it developed into vortex flash blowing technology. Currently, there are six flash blowing furnaces in operation in China, five of which are paired with flash smelting, each with a capacity of over 400,000 mt/a, and one paired with bottom-blown smelting, with a capacity of 300,000-400,000 mt/a. Advantages include easy measurement of solid matte, high automation, and high operating rate. Disadvantages include the need for additional grinding equipment for matte and limitations in handling cold materials like anode stubs due to furnace structure and thermal balance. The maximum single-unit designed capacity has reached 500,000 mt/a. Additionally, it provided a detailed introduction to the processes and developments of bottom-blowing and multi-lance top-blowing. 5 Trends in the Copper Smelting Industry Main factors and trends driving global copper smelting development It also reviewed the development policies of China's copper smelting industry and shared interpretations of the main contents of the High-Quality Development Plan for the Copper Industry (2025-2027). 6 Intelligent Development in the Copper Smelting Industry Background of intelligent transformation and upgrading Policy promotion for intelligent transformation and upgrading In March 2021, the State-owned Assets Supervision and Administration Commission (SASAC) issued the Notice on Accelerating the Digital Transformation of State-Owned Enterprises. In November 2021, the MIIT issued the 14th Five-Year Plan for Deep Integration of Informatization and Industrialization. In April 2020, the MIIT, NDRC, and Ministry of Natural Resources jointly released the Guidelines for the Construction of Smart Factories (Mines) in the Nonferrous Metals Industry (Trial). Among these, the Guidelines for the Construction of Smart Smelting Factories in the Nonferrous Metals Industry, led by China ENFI, provide a top-level design for the intelligent development of the nonferrous metal smelting industry. Overall implementation plan for smart factories Expected effects of smart factory implementation It discussed in detail aspects such as organizational management model reconstruction, innovative digital transformation panoramic view, data assetization, and improvement of technical and economic indicators. For more information, click to view the special report on the CCIE-2025SMM (20th) Copper Industry Conference and Copper Industry Expo.

I. Policy Review: Accelerated Implementation of Global Green Hydrogen Strategies 1. China's "Action Plan for High-Quality Development of the Hydrogen Energy Industry (2025-2030)" Officially Released It sets a clear target of 5 million mt of annual green hydrogen production by 2030, requiring the cost of hydrogen production from renewable energy to be reduced to below $1.5/kg; It offers fixed asset investment subsidies of up to 30% for liquid hydrogen storage and transportation projects, as well as solid-state hydrogen storage projects; It includes hydrogen energy in the "new infrastructure" category for the first time, supporting the co-construction of hydrogen refueling stations with gas stations and charging stations. Regional Responses: Inner Mongolia and Xinjiang have launched demonstration projects for "wind-solar-hydrogen-storage integration," with individual projects eligible for up to 5 billion yuan in special bond support. 2. EU Adopts Revised "Hydrogen Act" It requires member states to establish 40 GW of electrolyzer capacity and 10 GW of green hydrogen import capacity by 2030; It implements a "carbon label" system for imported hydrogen, imposing a carbon tariff of €60/mt on grey hydrogen and offering a tax credit of €200/mt for green hydrogen. 3. US Launches Second Phase of Tendering for the "Clean Hydrogen Accelerator Program" With a total budget of 1.2 billion US dollars, it focuses on supporting the large-scale production of alkaline electrolyzers (with a target cost of $400/kW) and the R&D of seawater direct electrolysis technology; Six states, including California and Texas, have jointly applied for the "Hydrogen Shipping Corridor" project, planning to deploy 20 hydrogen-powered cargo ships by 2030. II. Corporate Developments: Top-Tier Enterprises Compete for Scale and Commercialization 1. SinoHytec Releases the World's First 400 kW Fuel Cell Stack for Heavy-Duty Trucks Technical Highlights: Power density of 5.2 kW/L, durability of 50,000 hours, suitable for 49-tonne tractors, paired with EVE's 150 kWh solid-state battery hybrid system. Orders: Signed an order with SF Express for 300 hydrogen-powered heavy-duty trucks, planned for operation on the Beijing-Xiong'an cold chain logistics route by 2026. 2. Plug Power and Saudi Aramco Establish a Joint Venture to Build the World's Largest Green Hydrogen Plant Scale: An investment of 8 billion US dollars, planning for 15 GW of electrolyzer capacity, an annual production of 1.2 million mt of green hydrogen, and an annual export capacity of 2 million mt of liquid ammonia; Technology: Utilizing Siemens Gigastack alkaline electrolyzers and Giner ELX proton exchange membranes, with a target lifespan of 100,000 hours. 3. Guohong Hydrogen Energy Announces Mass Production of Monocrystalline Graphite Plate Stacks Breakthrough: Single stack power of 250 kW, lifespan of 30,000 hours, cost reduction of 40% compared to imported metal plate stacks; Collaboration: Established the "Hydrogen Energy Construction Machinery Ecosystem Alliance" with Sany Heavy Industry and Zoomlion Heavy Industry, planning to promote 5,000 hydrogen-powered excavators by the end of 2025. III. Technological Advancements: Breakthroughs in Long-Life and Low-Cost Technologies 1. Industrial Application of Non-Precious Metal Catalysts Achieved Achievements: The Fe-N-C catalyst developed by the Dalian Institute of Chemical Physics, CAS (with a platinum usage of only 0.1 mg/cm²) has been validated in SinoHytec's stack, achieving a power density of 4.5 kW/L and a cost reduction to $8/g (compared to $50/g for the original Pt/C catalyst). 2. Solid-State Hydrogen Storage Technology Enters Commercial Stage for the First Time Project: Shanghai Hydrogen Proton Tech, in collaboration with China Energy Investment Corporation, has commissioned a 5-tonne solid-state hydrogen refueling station in Ordos, with a hydrogen storage density of 50 kg/m³ and a cycle life of 10,000 times. 3. Electrolyzer Efficiency Sets a New World Record • Technology: Siemens Energy of Germany has released a 100 MW alkaline electrolyzer with a current density of 0.8 A/cm² and an efficiency of 82% (LHV), an 8% improvement over the industry average. IV. Industrial Synergy: Accelerated Cross-Sector Integration 1. Hydrogen-Electricity-Heat Multi-Energy Complementary Park Established in Xiong'an Model: China Huaneng Group has constructed a 100 MW fuel cell combined heat and power system, coupled with PV power generation and ground-source heat pumps, achieving a comprehensive energy efficiency of 92% and reducing carbon emissions by 80,000 mt/year. 2. Hydrogen Aviation Takes a Critical Step Forward Progress: COMAC, in collaboration with Air Liquide Haopu, has completed the maiden flight of a hydrogen hybrid regional aircraft (ARJ21-H2), with hydrogen fuel cells contributing 30% of the flight energy, and plans to obtain certification by 2030. 3. Large-Scale Implementation of Green Hydrogen Steelmaking in the Steel Industry Case Study: Baowu Group's Zhanjiang Base has launched a 2 million mt/year hydrogen-based direct reduced iron (DRI) project, paired with a 1.2 GW wind-solar hydrogen production system, achieving annual carbon emission reductions of 1.8 million mt of CO₂.

Macro News 1. The Political Bureau of the CPC Central Committee held a meeting on April 25 to analyze and study the current economic situation and economic work. General Secretary of the CPC Central Committee Xi Jinping presided over the meeting. The meeting pointed out that it is necessary to continuously consolidate the stable momentum of the real estate market and maintain the stability and vitality of the capital market. More proactive and effective macro policies should be implemented promptly, including RRR cuts and interest rate cuts. It is essential to increase the income of middle- and low-income groups and vigorously develop service consumption. A "Science and Technology Board" should be innovatively launched in the bond market, and the "AI+" initiative should be accelerated. For enterprises significantly affected by tariffs, the proportion of unemployment insurance fund refunds for job retention should be increased. Incremental reserve policies should be promptly introduced in response to changing circumstances, and unconventional counter-cyclical adjustments should be strengthened. 2. On the afternoon of April 25, the Political Bureau of the CPC Central Committee held its 20th collective study session on strengthening the development and regulation of artificial intelligence. General Secretary of the CPC Central Committee Xi Jinping emphasized during the study that, in the face of the rapid evolution of the new generation of AI technology, it is necessary to fully leverage the advantages of the new system of mobilizing resources nationwide, adhere to self-reliance and self-improvement, highlight application-oriented approaches, and promote the healthy and orderly development of China's AI in a beneficial, safe, and equitable direction. 3. Premier of the State Council Li Qiang presided over a State Council executive meeting on April 27, deciding to approve nuclear power projects such as the Sanmen Phase III project in Zhejiang. The meeting emphasized that safety must be ensured in nuclear power development without any compromise. The primary responsibilities of participating construction units and owner units should be solidified. Nuclear power units should be constructed and operated in accordance with the highest global safety standards. Efforts should be continuously made to strengthen the construction of safety regulatory capabilities and effectively ensure the safety of nuclear power. 4. The State Council Information Office is scheduled to hold a press conference at 10 a.m. today. Zhao Chenxin, Deputy Director of the National Development and Reform Commission, Yu Jiadong, Deputy Minister of Human Resources and Social Security, Sheng Qiuping, Deputy Minister of Commerce, and Zou Lan, Deputy Governor of the People's Bank of China, will introduce policy measures related to stabilizing employment, the economy, and promoting high-quality development. 5. The State Council has approved the establishment of comprehensive pilot zones for cross-border e-commerce in Hainan Province and 15 other cities (regions), including Qinhuangdao. Meanwhile, the comprehensive pilot zones for cross-border e-commerce established in Haikou, Sanya, and Alashankou have been revoked. 6. The 2025 National Conference on Responding to Trade Frictions was held in Beijing from April 24 to 25. The meeting pointed out that China's trade frictions have entered a high-intensity phase. Facing difficulties and challenges, it is necessary to remain confident, maintain determination, and adopt strategic approaches to foster new opportunities amid crises and open up new prospects amid changes. It is essential to enhance political awareness, adhere to a systematic perspective, strengthen bottom-line thinking and extreme-case thinking, focus on preventing and mitigating trade risks, and make new contributions to the high-quality development of trade. 7. It has been reported that CK Hutchison's sale of overseas ports will proceed as two separate transactions. A spokesperson for the State Administration for Market Regulation recently stated that China is highly concerned about the relevant transactions and will conduct reviews in accordance with the law. All parties to the transactions must not evade reviews in any way and must not implement concentration before obtaining approval; otherwise, they will bear legal responsibilities. 8. Huang Haihua, spokesperson and director of the Research Office of the Legislative Affairs Commission of the Standing Committee of the National People's Congress, stated at a press conference of the Legislative Affairs Commission of the Standing Committee of the National People's Congress on the 25th that the 2025 legislative work plan includes 14 legal bills scheduled for continued review and 23 legal bills scheduled for initial review. Among them, in terms of improving institutional mechanisms conducive to promoting high-quality development, laws such as the Promotion of the Private Economy Law, the National Development Planning Law, the Financial Law, the Financial Stability Law, and the Farmland Protection and Quality Improvement Law will be formulated. 9. In the first quarter, the profits of industrial enterprises above designated size nationwide turned from a 3.3% year-on-year decline for the entire previous year to a 0.8% increase, reversing the trend of continuous decline in cumulative profits of enterprises since the third quarter of the previous year. In March, the profits of industrial enterprises above designated size turned from a 0.3% decline in January-February to a 2.6% increase, with profits for the month showing improvement. 10. According to Ministry of Finance data, from January to March, the total operating revenue of state-owned enterprises was 19,845.16 billion yuan, unchanged from the previous year. The total profits of state-owned enterprises were 1,090.74 billion yuan, up 1.7% year-on-year. At the end of March, the asset-liability ratio of state-owned enterprises was 65.0%, up 0.1 percentage points year-on-year. Industry News 1. The Ministry of Commerce and five other departments issued a notice on further optimizing the departure tax refund policy to expand inbound consumption. The notice mentions lowering the threshold for departure tax refunds. Overseas tourists who purchase tax-refundable goods worth 200 yuan or more on the same day at the same store and meet other relevant regulations can apply for departure tax refunds. The payment service for departure tax refunds has been optimized. The cash tax refund limit has been increased to 20,000 yuan. 2. In 2025, the Shenzhen Stock Exchange issued revised "Rules for the Review of Securities Issuance and Listing by Publicly Listed Firms." The main adjustments include: first, in accordance with the new "Company Law" and other regulations, changing "shareholders' meeting" to "shareholders' assembly" and deleting provisions related to supervisors and shareholding reductions; second, solidifying the responsibilities of intermediary institutions, strengthening on-site supervision and prevention of financial fraud, and clarifying the verification obligations of intermediary institutions; third, increasing penalties for violations, imposing heavier sanctions on financial fraud and other behaviors, extending the maximum period for intermediary institutions to be temporarily ineligible for document acceptance to five years, and extending the filing interval for sponsors to six months. The new regulations further strengthen strict supervision and maintain market order. 3. The China Securities Regulatory Commission (CSRC) has formulated the "Administrative Provisions on the Suspension and Exemption of Information Disclosure by Publicly Listed Firms," which will come into effect on July 1, 2025. The "Provisions" clarify two categories of exemptions: one is information that constitutes state secrets or may violate national confidentiality regulations or management requirements if disclosed publicly; the other is trade secrets or confidential business information. 4. The Ministry of Finance and the CSRC revised and issued the "Administrative Measures for the Record-Filing of Accounting Firms Engaged in Securities Service Business." The main revisions to the "Measures" include: improving record-filing requirements and strengthening guidance on the focus on practice quality; improving the management loop and strengthening the whole-process supervision of accounting firms engaged in securities service business. 5. The Ministry of Transport and ten other departments issued guidelines on promoting the integrated development of transportation and energy. The guidelines point out that by 2035, pure electric vehicles will become the mainstream of newly sold vehicles, new energy commercial heavy-duty trucks will be applied on a large scale, and a green fuel supply system for transportation will be basically established. 6. Recently, on the official website of the State Taxation Administration's 12366 tax service platform, the State Taxation Administration stated in response to a question that taxpayers who replace their existing home loans in accordance with the "Notice on Matters Related to Reducing Interest Rates on Existing First-Home Mortgages" can continue to enjoy the special additional deduction for home loan interest because the taxpayer's home remains the same before and after the replacement. 7. Informed sources revealed that Apple plans to shift all iPhone production for the US market to India as early as 2026. In 2024, Apple's global iPhone shipments were approximately 225.9 million units, a slight decrease of 1% from the previous year. The US market accounted for 28% of shipments, approximately 63.25 million units. This means that to achieve its goal, Apple needs to nearly double its production capacity in India next year. 8. The National Financial Regulatory Administration recently issued the "Notice on Matters Related to Strengthening the Supervision of Universal Life Insurance." Relevant department heads of the National Financial Regulatory Administration stated that insurance companies are allowed to adjust the minimum guaranteed interest rate for universal life insurance products when meeting corresponding constraints, especially during periods of declining interest rates, to effectively prevent interest rate spread loss risks by lowering the minimum guaranteed interest rate. Company News 1. BYD's net profit in the first quarter was 9.15 billion yuan, up 100.4% year-on-year. 2. Gree Electric Appliances released its annual report, showing a 10.91% year-on-year increase in net profit for 2024. It plans to distribute a cash dividend of 20 yuan for every 10 shares. 3. CATL announced that it has repurchased 1.0753 million shares of the company for the first time. 5. JD.com announced that it will recruit 100,000 full-time riders in the next three months. 6. China Rare Earth released its first-quarter report, showing a net profit of 72.62 million yuan in the first quarter, turning from a loss year-on-year. 7. *ST Renle issued a revised performance forecast announcement, estimating that its net assets at the end of 2024 will be revised to -407 million yuan to -392 million yuan. The company's shares may be delisted. 8. *ST Gongzhi announced that its shares may be delisted and will be suspended from trading starting today. 9. Wuliangye Yibin announced that its net profit in 2024 increased by 5.44% year-on-year, and it plans to distribute a dividend of 31.69 yuan for every 10 shares. Its net profit in the first quarter was 14.86 billion yuan, up 5.8% year-on-year. 10. Yunji Group announced that it has signed a general contracting contract worth approximately 2.926 billion yuan for a bauxite project in Guinea, accounting for approximately 190.53% of the company's audited operating revenue in 2024. 11. Luzhou Laojiao released its annual report, showing a 1.71% year-on-year increase in net profit for 2024. It plans to distribute a cash dividend of 45.92 yuan for every 10 shares. 12. Xingguang shares announced that its stock trading will be subject to delisting risk warnings. 13. Gujinggong Liquor released its annual report, showing a 20.22% year-on-year increase in net profit for 2024. It plans to distribute a dividend of 50 yuan for every 10 shares. 14. TISCO Stainless Steel released its first-quarter report, showing a 5507% year-on-year increase in net profit in the first quarter. 15. Zhenghe Ecology announced that it has signed a 2 billion yuan strategic cooperation agreement with Yanshan Cultural Tourism Group. 16. Haiyuan Composite Materials announced that its shares will be subject to delisting risk warnings and will be suspended from trading for one day. 17. Chuandazhisheng announced that its shares will be subject to delisting risk warnings, and its stock abbreviation will be changed to "*ST Zhisheng." 18. Tonghua Dongbao announced a correction to its 2024 performance forecast, estimating a net loss of 42.72 million yuan. 19. Songfa shares announced that its shares will be subject to delisting risk warnings, and its stock abbreviation will be changed to *ST Songfa. Global Markets 1. US President Trump stated that he is unlikely to approve another 90-day tariff suspension. Trump told reporters traveling with him on Air Force One, "I hope to reach trade agreements with a series of countries." 2. The latest Financial Stability Report released by the US Fed last Friday showed that rising global trade risks, overall policy uncertainty, and the sustainability of US debt top the list of potential risks to the US financial system. 73% of respondents said that global trade risks are their biggest concern, more than double the proportion in the November report. Half of the respondents believe that overall policy uncertainty is the most worrying issue, a proportion that has increased from the same period last year. 3. The three major US stock indices closed higher collectively last Friday, with the Dow up 0.05%, the Nasdaq up 1.26%, and the S&P 500 up 0.74%. For the week, the Dow gained 2.48%, the Nasdaq rose 6.73%, and the S&P 500 increased 4.59%. Investment Opportunities Reference 1. Bookings increase by over 100% year-on-year, and the heat of the Labour Day holiday travel market continues to rise As the Labour Day holiday approaches, the heat of the travel market continues to rise. Since this week, there has been a significant increase in online hotel searches and flight ticket searches, marking the arrival of the booking peak for the Labour Day holiday. Data shows that as of now, the number of bookings for domestic travel during the Labour Day holiday has increased by over 100% compared to the same period last year. Among them, the booking increases for products such as self-drive tours, independent travel, and package tours are particularly significant. In addition, the core businesses of online travel platforms, such as hotels and tickets, have increased by over 70%. Especially the ultra-long holiday mode of "taking 4 days off for an 11-day holiday" has further promoted the booking of long-distance travel. Kaiyuan Securities stated that the tourism consumption during the Labour Day holiday exhibits three characteristics: "rapid growth in long-distance travel, two-way warming in cross-border travel, and a comeback in county-level tourism." The tourism consumption in sinking markets contributes structural increments, and the beta of the tourism market continues.Deng Lijun, Chief Strategy Analyst at Huajin Securities, stated that driven by holiday consumption and anticipated improvement in residents' income, coupled with the issuance of consumption vouchers and frequent local consumption promotion activities, the consumption potential of the food and beverage industry is expected to be continuously unleashed in the near term. The upcoming May Day holiday is expected to boost orders in railway and civil aviation businesses. If passenger flow remains high during the holiday, industries such as tourism, hotels, and catering are likely to benefit significantly. 2. New-Generation Low-Altitude Information Infrastructure, Entering the Stage of Validation and Commercial Exploration The Shenzhen Municipal Committee of the Communist Party of China published an article titled "Striving to Lead and Pioneer in Promoting New-Type Industrialization" in the "New-Type Industrialization" release. The article emphasized improving the digital infrastructure and service system, increasing investment in new infrastructure such as digital infrastructure, making moderately advanced layouts, accelerating the construction of low-altitude intelligent integrated infrastructure and low-altitude communication networks with integrated sensing, vigorously implementing industrial software research and application promotion actions, building a batch of standard testing and validation service platforms, consolidating the digital foundation of cities, and fostering the foundation for industrial development. Guotai Junan Securities pointed out that as a new-generation low-altitude information infrastructure, 5G-A integrated sensing has entered the stage of technical validation and commercial exploration. The development of the low-altitude industry is not limited to low-altitude monitoring systems but also faces challenges in communication and navigation capabilities. Due to the height limitations of traditional base stations, effective low-altitude communication cannot be achieved. With the increasing frequency of low-altitude activities and the demand for high-density flights, navigation modes also need to become more digitalized and refined. Systematic solutions to communication, sensing, and navigation issues rely on 5G-A integrated sensing, which offers significant cost-effectiveness. Currently, the three major operators have conducted 5G-A validation and large-scale trials across the country. Over 300 cities nationwide have initiated the latest 5G-A network deployments, aiming to build the world's largest low-altitude communication network. 3. Special Action for Facilitating Cross-Border Trade Launched in Beijing The Special Action for Facilitating Cross-Border Trade was launched in Beijing on April 24, with Vice Premier He Lifeng attending the deployment meeting and delivering a speech. He emphasized the need to thoroughly implement the spirit of the Central Economic Work Conference and the State Council's work deployment, fully recognize the importance of facilitating cross-border trade, unswervingly expand opening-up, win development initiatives through open cooperation, and build a new system of a higher-level open economy. On the same day, Wuhan City issued the "2025 Wuhan Measures to Promote Cross-Border Trade Facilitation," introducing 21 specific measures across six major areas, including improving customs clearance efficiency and deepening regulatory reforms. Bonded warehouses are a special type of storage space that allows importers to store goods in specially licensed warehouses near ports until they are sold to US end-users, at which point customs clearance and duty payment are completed. Generally, goods can be stored in bonded warehouses for up to five years. Institutions believe that for importers, the uncertainty of trade policies greatly increases the appeal of such warehouses. If Trump reverses tariffs, businesses can seize the fleeting window to quickly complete customs clearance. Conversely, if tariffs remain in effect, companies can extract inventory in small batches over an extended period, spreading the impact of tariffs over a longer cycle, thereby retaining as much flexibility as possible during a downturn in the US consumer market. 4. The Development of AI Agents Opens a New Paradigm for Human-Machine Collaboration According to industry media reports, Butterfly Effect, a Chinese startup behind the general-purpose AI agent ManusAI, recently completed a $75 million funding round. This round was led by the renowned US venture capital firm Benchmark and also attracted participation from existing investors. According to insiders, this round of funding has propelled Butterfly Effect's valuation to nearly $500 million, a fourfold increase from before. Guosen Securities stated that the development of agents has opened a new paradigm for human-machine collaboration, providing new development ideas for AI applications. In the future, model capabilities will continue to improve, and agents in various fields will become carriers for models to reach end-users. The subsequent development of AI applications remains highly promising. According to reports by McKinsey and others, driven by diversified demand, the AI agent market is experiencing explosive growth. The global AI agent market size in 2024 is approximately $5.1 billion and is expected to surge to $47.1 billion by 2030, with a compound annual growth rate of 44.8%.

On April 22, at the CCIE 2025 SMM (20th) Copper Industry Conference & Copper Industry Expo – Copper Pipe and Billet Processing Industry Development Forum, Lin Jin, Senior Advisor of the Bathroom Branch of the China Building Sanitary Ceramics Association, discussed the development trends of the faucet industry in the bathroom sector.

After the strongest market stabilization stimulus policy package, what is the willingness of insurance funds to enter the market? On April 8, the National Financial Regulatory Administration issued the "Notice on Adjusting the Regulatory Ratios of Equity Assets of Insurance Funds" (hereinafter referred to as the "Notice"), raising the upper limit of equity asset allocation ratios to promote the entry of insurance funds into the market. Meanwhile, several insurance companies announced that they had increased their positions in ETFs on April 7 and 8, and would repurchase shares and increase equity allocations. Can the new regulatory rules truly mobilize the enthusiasm of insurance funds to enter the market? At a time when some insurance funds are using "real money" to support the market, what is the situation with other insurance funds entering the market, and what policy expectations do they have? After conducting multiple surveys within the industry, Caixin reporters learned that the industry is currently divided into optimists and conservatives. The optimists have already increased their positions to 80% and are very bullish on A-shares, while the conservatives still have concerns and are cautious about entering the market considering the safety cushion. Some industry insiders also believe that the new regulatory rules benefit only a few insurance companies and expect more supportive policies to be introduced. However, industry insiders also stated that the implementation of policies is a long-term process, and considering the inversion of liability costs and bond yields, it is inevitable for insurance funds to increase equity allocations. Optimists: Very bullish on A-shares, have increased positions to 80% A mid-sized property insurance company's asset management head told Caixin reporters, "We are currently very bullish on A-shares and have increased our positions by 20% in the past few days, raising our position from 60% to 80%." To cope with external environmental shocks, from April 7 to the pre-market session on April 8, messages supporting A-shares were intensively released, bringing strong confidence to the market. The central bank, the National Financial Regulatory Administration, and Central Huijin issued statements and policies to support the market, while insurance funds, central state-owned enterprises, and financial institutions also injected "real money" into the capital market by increasing ETF holdings, repurchasing shares, and increasing allocations. Caixin reporters learned from Wind data that, according to incomplete statistics, several insurance companies increased their stock holdings on April 7 and 8. Top-tier insurance companies such as China Life and Ping An of China increased their positions by millions of yuan in a single day, with the targets covering finance, technology, consumption, and other fields, complementing the direction of central state-owned enterprise holdings during the same period. (See the figure below) Another insurance fund equity allocation manager also told Caixin reporters that the current state is clearly bullish. He also felt the market changes in the past two days, "For more than a decade, the market has been calling for a stabilization fund. Although there have been practical operations, it has never been acknowledged. This time it has directly emerged. In the long run, it may act as a market maker for the index, the volatility of the CSI 300 will decrease, the Sharpe ratio will change, but it will not alter the long-term yield." Overall, some large-scale insurance funds have already increased their holdings of equity assets, while other large-scale insurance funds have expressed their intention to increase positions "at an appropriate time." China Pacific Insurance stated that it had increased its holdings of broad-based exchange-traded funds (ETFs) and other products on April 7 and will continue to increase its holdings of high-quality assets representing the future direction of China's economic development. Sunshine Insurance stated that it had continuously increased its holdings of equity assets on April 7 and 8. China Re Asset Management stated that it had recently increased its positions in ETFs and high-quality assets. New China Life Insurance stated that it would increase its allocation of bottom-line equity assets and equity investments in national strategic emerging industries. China Life Insurance stated that it would actively support the development of the capital market. PICC stated that it would steadily increase its investment scale in the A-share market and accelerate the implementation of long-term stock investment pilot projects for insurance funds. Ping An of China stated that it would increase its investment in strategic emerging industries, advanced manufacturing, new infrastructure, and value-type varieties. Conservatives: Current valuations are low enough, but there are concerns An investment head of a small and medium-sized life insurance company told Caixin reporters that the current valuations are low enough, but external risks have not yet been resolved. "Now that the equity of various companies has fallen for three years, there is no safety cushion, and entering the market will still be cautious." "After the policy relaxation, it does not mean that companies will immediately use the upper limit increase. The upper limit increase of 5 percentage points will, to a certain extent, increase the company's tolerance for equity thresholds, but insurance funds will still make prudent allocations according to the principles of safety, liquidity, profitability, and asset-liability matching," a securities analyst explained to Caixin reporters the current mentality of "conservative" insurance funds. Regarding the current A-share market, another life insurance company investment head told Caixin reporters, "In the long run, the stabilization fund cannot rely solely on the central government's funding. It should form a market stabilizer with funds such as social security funds, insurance funds, and public funds to ensure the sustainable and healthy development of the stock market." The above-mentioned head also stated that the characteristics of insurance funds are long-term and stable, and under the premise of pursuing safety, appropriate investment returns are sufficient. The current regulatory policy relaxation is beneficial to top-tier enterprises. Positive policies should also be introduced for small and medium-sized insurance institutions, such as encouraging small and medium-sized insurance institutions to invest in blue-chip stocks without occupying capital. Small and medium-sized insurance institutions can also be encouraged to jointly establish insurance asset management companies, which can reduce investment research costs and share investment research resources. Long-term insurance funds will inevitably increase equity allocations At 8:30 am on April 8, the National Financial Regulatory Administration issued the "Notice," relaxing the restrictions on the equity asset allocation ratios of insurance companies with sufficient solvency, with the upper limit reaching 50% of total assets. This policy has greatly boosted market confidence. Several industry insiders told Caixin reporters that the timing of the policy release has strong signaling significance. However, the new regulatory rules do not benefit every company. A life insurance company investment head also told Caixin reporters that the current regulatory policy relaxation is beneficial to top-tier enterprises, while small and medium-sized insurance institutions have not enjoyed the corresponding policies. The rare aspect is that the "Notice" was dated April 8 and released at 8:30 am on April 8. "Urgent drafting," an insurance professor told Caixin reporters. How much insurance funds can the policy actually drive into the market for allocation? From the policy effects driven by the "Notice," several industry securities analysts estimate that the upper limit of equity allocation in the insurance industry after the new regulatory adjustment is around 0.5-0.6 trillion yuan. Caixin reporters noted that the asset scale of insurance companies benefiting from the new regulatory rules to increase the allocation upper limit accounts for about one-third of the entire industry. "The introduction of the policy may not necessarily bring immediate effects, it is a long-term process," another securities chief analyst told Caixin reporters, "Because insurance funds invest in bonds, there is still an inversion between liability costs and bond yields. Fundamentally, insurance funds will inevitably increase the proportion of equity investments, especially long-term stable high-dividend stocks."