[Codelco: Company to Focus on Public-Private Partnerships to Boost Copper and Lithium Production]

Cheng Hehong, Chief Counsel of the China Securities Regulatory Commission (CSRC), delivered a keynote speech at the 2025 Tianjin Wudadao Financial Forum on June 5. We will expedite the research and formulation of the "Several Opinions on Further Strengthening the Protection of Small and Medium Investors in the Capital Market" Cheng Hehong stated that the next step is to effectively protect investors. The trust and participation of a broad base of investors form the foundation for the capital market to support and serve technological innovation. It is essential to synchronize the deployment, arrangement, and implementation of financing services for technology innovation enterprises with the protection of investors' legitimate rights and interests. We will strengthen the disclosure of information related to the technological innovation attributes and investment risks of technology innovation enterprises, and improve the corresponding investor suitability system and mechanisms. We will actively guide and support enterprises, issuers, their controlling shareholders, actual controllers, and relevant securities firms to voluntarily undertake and fulfill commitments to compensate investors in advance in accordance with the law. We will continue to enhance the refined service and management capabilities of the 12386 service platform, and collaborate to promote the establishment of a regularized working mechanism for special representative litigation. We will support the launch of pilot work on arbitration in the securities and futures industry. We will expedite the research and formulation of a comprehensive policy document on investor protection under the "Several Opinions on Further Strengthening the Protection of Small and Medium Investors in the Capital Market." Include high-quality enterprise science and technology innovation bonds in benchmark market-making categories Cheng Hehong stated that the next step is to strengthen comprehensive equity-debt linkage services. We will promote the high-quality development of science and technology innovation corporate bonds, explore the development of more science and technology innovation-themed bonds, and actively encourage eligible enterprises to obtain financing through science and technology innovation bonds, thereby helping to reduce the financing costs of technology innovation enterprises. We will include high-quality enterprise science and technology innovation bonds in benchmark market-making categories. We will support the issuance of Real Estate Investment Trusts (REITs) for projects in areas such as new-type infrastructure including artificial intelligence, data centers, and smart cities, as well as technology innovation industrial parks, to facilitate the revitalization of existing assets and support the digital transformation of traditional infrastructure. Promote the transition of fund share transfer business pilot programs to regular operations and expand the pilot program for physical stock distribution by funds to investors Cheng Hehong stated that the next step is to cultivate and expand long-term and patient capital. We will guide private equity funds to optimize their long-term performance evaluation mechanisms to better align with the development characteristics of technology innovation enterprises. We will support the development of private equity secondary market funds (S funds), promote the transition of fund share transfer business pilot programs to regular operations, expand the pilot program for physical stock distribution by funds to investors, and facilitate a virtuous cycle of "fundraising, investment, management, and exit." We will continue to guide the entry of medium and long-term funds into the market and continuously improve the "long-term capital for long-term investment" system. We will adhere to the basic legal principles of equity investment and promote the establishment and improvement of a fairer and more reasonable legal relationship between private equity investment funds and technology innovation enterprises, as well as their founding shareholders. The CSRC will revise and improve the Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets, and establish a sound system for punishing dishonesty and incentivizing integrity. Cheng Hehong stated that the next step is to build a more honest and friendly market environment. The high risks inherent in technological innovation also bring high risks to capital market activities that support and serve technological innovation. The greater the risk, the higher the required level of creditworthiness. In the process of the capital market supporting and serving technological innovation, it is necessary to further strengthen the construction of market integrity, and improve the integrity level of all market participants. The CSRC will revise and improve the Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets, further enrich the capital market integrity archive database system, establish a sound system for punishing dishonesty and incentivizing integrity, severely crack down on serious acts of dishonesty such as fraudulent issuance, false information disclosure, and the failure of intermediaries to fulfill their duties diligently, enhance market transparency, leverage the verification and gatekeeping role of intermediary service institutions, and improve the professional ethics of practitioners. With a highly credible capital market, it will support and serve the development of high-level technological innovation. This year, publicly listed firms in strategic emerging industries have disclosed over 140 asset restructuring cases, twice the number from the same period last year. Cheng Hehong stated that in the field of mergers and acquisitions and restructuring, publicly listed firms in strategic emerging industries have disclosed over 140 asset restructuring cases this year, which is twice the number from the same period last year. In the field of bond financing, as of the end of April 2025, a total of 1,327 science and technology innovation bonds have been issued on the exchange market, with an issuance scale of 1.35 trillion yuan. In the field of private equity funds, the proportion of private equity and venture capital funds invested in strategic emerging industries has continued to increase. Currently, there are over 100,000 ongoing projects with an invested principal of over 4 trillion yuan. The CSRC will provide greater support for the listing of high-quality unprofitable technology firms and actively and prudently promote the implementation of new cases under the fifth set of listing criteria for the Science and Technology Innovation Board. Cheng Hehong, the CSRC's chief lawyer, delivered a keynote speech at the 2025 Tianjin Wudadao Financial Forum on June 5, stating that the next step is to deepen the reform of the stock issuance registration system. Adhering to information disclosure as the core, market intermediary verification and gatekeeping as the basis, and strict supervision and accountability as the guarantee, the CSRC will continue to advance the reform of the issuance and listing systems for the Science and Technology Innovation Board and the ChiNext Market, further enhancing the system's inclusiveness and adaptability. It will provide greater support for the listing of high-quality unprofitable technology firms and actively and prudently promote the implementation of new cases under the fifth set of listing criteria for the Science and Technology Innovation Board. The CSRC will adhere to the complementary and differentiated development of the Science and Technology Innovation Board, the ChiNext Market, and the Beijing Stock Exchange, further optimizing differentiated arrangements to better coordinate and leverage the diverse functions of each board in supporting technology firms, and strive to cover the different financing needs of technology firms at various types and stages of development.

[Jiyao Tongxing, a battery company under Geely Group: Expected to achieve a battery capacity of 70 GWh by 2027] Zheng Xin, Vice President and Chief Strategy Officer of Geely Holding Group, as well as CEO of Jiyao Tongxing, stated that Jiyao Tongxing will achieve a battery capacity of 70 GWh by 2027, with eight production sites in Tonglu, Quzhou, Jianhu, Ganzhou, Shangrao, Yingtan, Ningguo, and Zaozhuang. In terms of business model, Jiyao Tongxing will strive to explore vehicle-battery separation and battery swapping models, and establish a battery bank. Note from Xiaocai: Zhejiang Jiyao Tongxing Energy Technology Co., Ltd. ("Jiyao Tongxing" for short) is the main entity for Geely Holding Group's battery business. (Cailian Press) [Zhang Jinhua of China SAE: Strengthen OTA Upgrade Management and Clarify Corporate Safety Responsibilities] Zhang Jinhua, President of the China Society of Automotive Engineers (China SAE), pointed out in an article that with the accelerated integration of electrification, intelligence, and connectivity in the automotive industry, significant changes have occurred in the form of automotive products, and automotive software online upgrades (OTA upgrades) have been gradually widely applied in intelligent connected vehicle products. On the one hand, OTA upgrades can rapidly iterate product functions, optimize product performance, enhance user experience, and reshape product development models, becoming an important means for automotive producers to provide value-added services to consumers and enhance product competitiveness. On the other hand, unlike ordinary electronic consumer goods, automotive OTA upgrades, if lacking necessary supervision, may pose safety risks to vehicle operation and even endanger public safety. Zhang Jinhua stated that strengthening the management of automotive OTA upgrades and clarifying corporate safety responsibilities will provide important support for safeguarding the legitimate rights and interests of consumers and social public safety. (Cailian Press) [Li Auto: The refreshed car models will return to a monthly sales level of 50,000 units, and sedan products will be launched based on market demand] The management of Li Auto stated during the Q1 earnings call that after the launch of the refreshed Li Auto car models, weekly sales have exceeded 10,000 units. As of May, the market share in the market segment above 200,000 yuan is 14.7%. Li Auto is confident that the refreshed car models will soon return to a monthly sales level of 50,000 units. After Li Auto's extended-range and pure electric SUVs, as well as the Li Auto MEGA, support an annual revenue of 300 billion yuan, MPV and sedan products will be launched based on market demand to meet the needs of the domestic market as well as important overseas markets. (Cailian Press) [CATL Signs Strategic Cooperation Framework Agreement with Lanzhou for Zero-Carbon City] On May 29, CATL and the Lanzhou Municipal People's Government officially signed a strategic cooperation agreement. The two sides will deepen cooperation in three major areas: the construction of the aftermarket for new energy batteries, the electrification upgrade of comprehensive transportation, and the establishment of a zero-carbon city ecosystem. The two parties will also establish a zero-carbon urban ecosystem, integrating PV, ESS, and intelligent management technologies to create zero-carbon parks and build industries such as virtual power plants. They will construct city-level integrated demonstration stations for "PV, ESS, charging/swapping, and inspection". They will explore policies for the recycling of end-of-life batteries, jointly establish a battery recycling system and collaborative processing bases, and form a closed-loop value chain covering the entire life cycle. (Science and Technology Innovation Board Daily) [Zhonglun New Materials: BOPA film for solid-state batteries is in the early market promotion stage] Zhonglun New Materials stated on an interactive platform that the company's lithium battery film products, as the core substrate for pouch lithium battery aluminum-plastic films, have taken the lead in achieving localisation substitution and stable mass production. They have successfully entered the supply chain systems of domestic mainstream aluminum-plastic film producers such as Zijiang New Materials, PTL, and Crown. Recently, the company's R&D on BOPA film for solid-state batteries has achieved key breakthroughs. This product can be applied in the solid-state battery field through aluminum-plastic films and is currently in the early market promotion stage. (Finance News) [Lopal: Plans to increase capital investment by RMB370 million in its holding subsidiary Changzhou Liyuan] Lopal (603906.SH) announced that the company plans to use 80% of the funds raised from issuing H shares to increase capital investment in its holding subsidiary Changzhou Liyuan, with the amount equivalent to RMB369.7056 million. Of this, RMB55.5129 million will be credited to the registered capital, and the remaining RMB314.1927 million will be credited to the capital reserve. After the capital increase is completed, Changzhou Liyuan's registered capital will increase to RMB834.1276 million, and it will remain a holding subsidiary of the company. Changzhou Liyuan plans to use the increased capital to invest an additional $14 million in its holding grand subsidiary LBM NEW ENERGY (AP) PTE. LTD. This capital increase constitutes a related-party transaction and still needs to be submitted to the shareholders' meeting for approval. (Finance News) Related readings: [SMM Analysis] REPT Battero and Hyosung Heavy Industries reach a 2.5GWh ESS strategic cooperation [SMM Weekly Review] The lithium carbonate market remains weak, with supply-demand imbalance and weakening costs leading to continued price declines [SMM Analysis] Domestic lithium carbonate imports in April 2025 released April battery material import and export data released: Both spodumene and lithium carbonate imports increased, with the latter's exports surging! [SMM Special Report] Cobalt product quotes collectively decline, with refined cobalt falling by RMB6,200 and cobalt smelters' willingness to sell increasing [Weekly Observation] Spot price of refined cobalt falls [SMM Weekly Review of Refined Cobalt Market] [SMM Weekly Review] Lithium carbonate prices continue to decline, with the short-term market still under pressure [SMM Analysis] Can titanium-doped iron phosphate be the perfect upgrade for the high-end development path? [SMM Analysis] China's lithium hydroxide exports reached 4,222 mt in April, basically flat MoM [SMM Analysis] China's imports of cobalt intermediate products increased slightly in April [SMM Analysis] Both China's unwrought cobalt exports and imports surged in April 2025 [SMM Analysis] China's total spodumene imports amounted to 623,000 mt in April, up 16.5% MoM [SMM Analysis] Both China's artificial graphite imports and exports increased MoM in April [SMM Data] LiPF6 import and export data for April 2025 [SMM Analysis] Analysis of ternary cathode precursor exports in April [SMM Analysis] Ternary cathode import and export volumes for April released, with imports up 37% MoM and exports up 13% MoM [SMM Announcement] Adjustments to weekly lithium carbonate data points before and after the Labour Day holiday Driven by multiple positive factors! The auto parts sector surged with over 12 stocks hitting daily limits! [Hot Stocks] Refined cobalt prices slightly recovered, while Co3O4 prices continued to decline. The market awaits the aftermath of the DRC's June ban. [Weekly Observations] [SMM Industry Insights] Global cobalt industry chain changes and Chinese market outlook following the DRC's cobalt export ban - Key points from the special speech by Wang Cong, General Manager of SMM Industry Research Tariff suspension spurs lithium carbonate futures to rise over 3%. Can the expectation of a rush in exports help lithium carbonate "stand up"? [SMM Flash News] Retail sales growth of passenger vehicles in April hit a new decade-high, with auto production and sales exceeding 10 million units in the first four months! [SMM Special Report]

On May 22, the report on the filing of the tutoring for the initial public offering (IPO) and listing of Suzhou Kerun New Materials Co., Ltd. was released. The filing report revealed that Suzhou Kerun New Materials Co., Ltd. (hereinafter referred to as "Kerun New Materials") signed the "Tutoring Agreement for the Initial Public Offering of Suzhou Kerun New Materials Co., Ltd. and Minsheng Securities Co., Ltd." (hereinafter referred to as the "Tutoring Agreement") with Minsheng Securities Co., Ltd. (hereinafter referred to as "Minsheng Securities") on May 9, 2025, appointing Minsheng Securities as its tutoring institution for the IPO. It is understood that Kerun Group was established in Huai'an, Jiangsu, in 2008, with its headquarters located in Wujiang Development Zone, Suzhou. The company has completed three rounds of financing, with investors including Sinopec Capital, Lianhong, Sequoia, China General Technology, Jiaqiao Capital, Yutong, BAIC, Great Wall Capital, and many other well-known venture capital and industrial investors. The company's valuation is nearly 3 billion yuan. Kerun boasts 16 years of experience in the R&D and manufacturing of proton exchange membranes and is one of the earliest companies in China to achieve the industrialisation of perfluorinated proton exchange membranes. Kerun operates three major physical factories in Fujian, Huai'an, and Suzhou, and is one of only two companies in China that have achieved the entire industry chain from monomer to sulfonic acid resin to proton exchange membrane. Suzhou Kerun New Materials Co., Ltd. was established on April 10, 2019, with its headquarters located in Wujiang Development Zone, Suzhou. It is one of the top-tier enterprises in China's proton exchange membrane material industry. After more than a decade of scientific research and dedicated efforts, the company is committed to the industrialisation of core membrane materials for "flow battery energy storage + hydrogen energy". The company has established a layout covering the entire industry chain from "resin synthesis to membrane preparation to detection and application development", achieving domestic independent production of perfluorinated sulfonic acid proton exchange membranes. For three consecutive years, it has ranked among the top in the domestic industry in terms of shipments of perfluorinated sulfonic acid proton (ion) exchange membranes.

Macro News 1. On the afternoon of May 22, Chinese President Xi Jinping had a phone conversation with French President Emmanuel Macron at the latter's request. President Xi pointed out that during his visit to France in May last year, both sides agreed to carry forward the spirit of China-France diplomatic relations, which is characterized by independence, mutual understanding, foresight, and mutual benefit and win-win results, and to endow it with new connotations of the times. Since then, China-France cooperation has achieved many new developments. Both sides should strengthen strategic communication and build consensus. They should seize opportunities to deepen cooperation in traditional areas such as investment, aerospace, and nuclear energy, and expand cooperation in emerging areas such as digital, green, biomedical, and silver economy. They should also enhance people-to-people exchanges and promote friendship between the two peoples. 2. He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met with Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co., on the evening of the 22nd. He Lifeng expressed welcome to US enterprises, including JPMorgan Chase & Co., to continue deepening mutually beneficial cooperation with China and to contribute to the healthy, stable, and sustained development of China-US economic and trade relations. Jamie Dimon positively evaluated the outcomes of the US-China economic and trade talks and expressed his willingness to continue to deepen involvement in China's capital market, better serve multinational corporations expanding their businesses in China, and support Chinese companies in their overseas development. 3. Yesterday, the State Council Information Office held a press conference. Guo Wuping, spokesperson of the National Financial Regulatory Administration and Director General of the Policy Research Department, stated that the third batch of pilot reforms for long-term investment of insurance funds would be approved soon, with a scale of 60 billion yuan. Yan Bojin, Director General of the Issuance Supervision Department of the China Securities Regulatory Commission, stated that the fifth set of listing criteria for the Science and Technology Innovation Board would be implemented prudently to promote the implementation of new typical cases; the domestic listing environment for technology companies would be continuously optimized to support the return of high-quality red-chip technology companies for domestic listing; and a more flexible and precise counter-cyclical adjustment mechanism for new share issuance would be implemented. 4. He Yongqian, spokesperson of the Ministry of Commerce, presided over a regular press conference yesterday. A reporter asked about the US export controls on AI chips. He Yongqian stated that China firmly opposes this and will closely monitor subsequent developments by the US side, taking resolute measures to safeguard its legitimate rights and interests. 5. The People's Bank of China announced that to maintain ample liquidity in the banking system, it would conduct a 500 billion yuan Medium-term Lending Facility (MLF) operation today through fixed-quantity, interest-rate tendering, and multiple-price bidding, with a term of one year. 6. The Ministry of Commerce reported on China's outbound investment and cooperation in the first four months of this year. From January to April 2025, China's outbound direct investment across all industries amounted to 57.54 billion US dollars, up 7.5% YoY. Among this, outbound non-financial direct investment was 51.04 billion US dollars, up 5.6% YoY. Non-financial direct investment in countries participating in the Belt and Road Initiative was 12.78 billion US dollars, up 16.4% YoY. Industry News 1. The China Society of Automotive Engineers officially released the group standard "Determination Method for All-Solid-State Batteries," clearly defining all-solid-state batteries for the first time. The new standard stipulates that "all-solid-state batteries" must achieve ion transfer exclusively through solid electrolytes, establishing a strict technical demarcation from hybrid solid-liquid electrolyte batteries. 2. Last night, Xiaomi unveiled its first 3-nanometer flagship processor, the "Xuanjie O1," independently developed and designed by the company. The processor is integrated into Xiaomi's latest flagship smartphone and tablet products. Additionally, the Xiaomi YU 7 was officially launched at yesterday's event. The YU 7 is equipped with Xiaomi's Super Motor V6s Plus, delivering a maximum horsepower of 690PS. It accelerates from 0 to 100 km/h in 3.23 seconds, reaches a top speed of 253 km/h, and has a shortest braking distance from 100 to 0 km/h of 33.9 meters. 3. He Yongqian, spokesperson for the Ministry of Commerce, introduced that according to statistics from relevant departments, from September 2024 to April 2025, retail sales of home appliances maintained double-digit growth for eight consecutive months. In April, retail sales of home appliances and audio-visual equipment by enterprises above designated size increased by 38.8% year-on-year, ranking first among the 16 major categories of consumer goods in terms of growth rate. 4. In response to reports of HiPhi Auto's alleged "resurrection," Lanjing Auto called HiPhi's official customer service hotline. Staff members stated that there was no news at present, that the company had not yet announced information on resuming work and production, nor had it opened order bookings. Currently, the company is still undergoing restructuring. 5. Miao Bo, Deputy Director of the Science and Technology Department of the National Radio and Television Administration, stated at the 5th China (Beijing) Radio and Television Media Integration Development Conference on the 22nd that it is necessary to plan and promote the healthy and sustainable development of artificial intelligence in the radio, television, and audiovisual sectors with a higher stance, deeper understanding, broader perspective, and wider vision. 6. BYD's EV sales in Europe surpassed Tesla's for the first time, overtaking the US brand, which has long dominated the European EV market. According to data from market research firm Jato Dynamics, BYD registered 7,231 new EV sales in April, representing a 169% increase compared to the same period last year, placing BYD among the top 10 EV brands in terms of sales. 7. According to a report by CRIC Real Estate Research, as of the end of 2024, the total land reserves of the TOP 100 real estate enterprises amounted to 25.23 trillion yuan, a 13% decrease from the end of last year. Based on the TOP 100 real estate enterprises' total land reserve value rankings, the weighted average de-stocking period for the land reserves of the top 100 enterprises as of the end of 2024 was 6.93 years, a record high. 8. It is reported that the cryptocurrency exchange Kraken plans to allow non-US customers to trade popular stocks such as Apple, Tesla, and Nvidia in tokenized form through digital ledgers. The company stated that such "tokenized stocks" will make it easier for non-US investors to invest in US stocks. Company News 1. Xinhua Insurance announced that it would invest 10 billion yuan to subscribe for shares in private equity funds. 2. Daqian Ecology announced that Xinhua Publishing Group and Wang Zheng'an plan to jointly reduce their holdings by no more than 3.3% of the company's shares. 3. Nanjing Port announced that its holding subsidiary does not directly participate in import and export trade. 4. Zangge Mining announced that it had received a cash dividend of 1.539 billion yuan from its participating company, Julong Copper. 5. Laysen & Thorne announced that it had not signed any major contracts recently, and its production costs, sales, and other conditions were normal. 6. Tiantie Technology announced that it had signed a strategic cooperation framework agreement with Xinjie Energy, planning to cooperate in solid-state battery lithium metal anode materials and related fields. 7. Sany Heavy Industry announced that it had submitted an application for the listing and issuance of H shares to the Hong Kong Stock Exchange and published the application materials. 8. Changan Automobile stated in its investor relations activity record that it would launch 35 new digital and intelligent vehicles in the next three years and achieve solid-state battery vehicle installation verification by 2026. 9. Cao Peng, Chairman of the Technical Committee of JD Group and President of JD Cloud Business Unit, revealed that 14,000 intelligent agents had been put into "competition," with digital humans achieving sales performance exceeding 80% of human anchors. 10. 3S Bio announced that it had reached a cooperation agreement with Pfizer on Project 707, with uncertainty regarding the actual sales milestone payments and royalties received by the licensor. 11. Hongchuang Holding announced that it planned to purchase 100% of the equity in Hongtuo Industrial for 63.518 billion yuan. 12. Demashi announced that the company's actual controller would change from He Jianping to Pan Yi, and its shares would resume trading. Global Markets 1. The three major US stock indices closed with mixed changes. The Dow closed flat, the Nasdaq rose 0.28%, and the S&P 500 fell 0.04%. Most popular Chinese ADRs closed lower, with the Nasdaq Golden Dragon China Index falling 1.18%. 2. WTI crude oil futures closed down 0.6% at $61.20 per barrel; Brent crude oil futures closed down 0.72% at $64.44 per barrel. 3. COMEX gold futures closed down 0.56% at $3,295.1 per ounce, and COMEX silver futures closed down 1.39% at $33.18 per ounce. Investment Opportunities Reference 1. XPeng Motors plans to launch humanoid robots for industrial and commercial scenarios in 2026 According to media reports, at XPeng Motors' Q1 2025 earnings call, XPeng Motors Chairman He Xiaopeng stated that XPeng's physical world foundation large model would be fully applied in the AI automotive field in 2025, while a larger-scale cloud foundation large model and edge-side model were also under development. Next, XPeng Motors will advance from the R&D of L2+ assisted driving to higher-level autonomous driving technologies, specifically L3 and L4. The company aims to launch humanoid robots for industrial and commercial applications by 2026, leveraging data-driven evolution through mass production scenarios. Minsheng Securities believes that the inflection point for the industrialisation of humanoid robots has been established, with three key drivers opening up a trillion-yuan market. The humanoid robot sector is transitioning from thematic investment to growth investment, with 2025 expected to be the first year of global mass production. On the technology front, large models have broken through the versatility bottleneck, and DeepSeek's low-cost training paradigm is accelerating the deployment of AGI. On the industrial front, tech giants such as Tesla, NVIDIA, and Huawei are intensively deploying in this area. On the policy front, the government work report clearly states the need to cultivate future industries such as embodied intelligence and vigorously develop intelligent robots. 2. One of the emerging tracks in AI hardware, with overall demand radiating across all age groups It is reported that, as one of the emerging tracks in AI hardware, the AI toy market is growing rapidly. According to data from consulting firm IMARC Group, the market size reached $18.1 billion in 2024 alone, accounting for nearly 20% of the $108 billion global toy market in the same year. Northeast Securities believes that AI toys have endowed toys with the ability to "move," namely, triple capabilities of interaction, companionship, and education (Q&A). Overall demand is radiating across all age groups. AI is expected to become the core catalyst for the toy market after trendy IPs, with potential far exceeding that of the Z-generation during the boom of trendy toys. From a neutral perspective, the penetration rate of AI toys is expected to at least match that of trendy toys. It is projected that the domestic penetration rate will reach 29%, 41%, and 47% by 2026, 2028, and 2030, respectively, with the domestic market potentially approaching 85 billion yuan by 2030. 3. The increasingly diversified needs of companies going global, with policy guidance expected to open up new growth spaces for the industry According to media reports, as the financial service needs of companies going global become increasingly diversified, more and more domestic cross-border payment institutions are actively seeking higher-value overseas payment licenses as the foundation for upgrading their cross-border fund collection, payment, and exchange services. Guotai Haitong Securities pointed out that the plan proposed by the People's Bank of China and three other departments aims to enhance the functionality and global network coverage of the Cross-border Interbank Payment System (CIPS) and promote more banks to join CIPS. In addition, the State Council has deployed and implemented a strategy to upgrade pilot free trade zones and advance high-level opening up. Policy guidance is expected to support the cross-border payment industry in opening up new growth spaces. 4. The National Press and Publication Administration announces approval information for online games in May According to media reports, the National Press and Publication Administration announced the approval information for domestic online games in May, with a total of 130 games approved in May. So far this year, a total of 610 domestic games have been approved. In addition, the National Press and Publication Administration also released the approval information for imported online games in 2025, with a total of 14 imported games approved in May. Since the beginning of this year, a total of 44 imported games have been approved. In May, the issuance of game licenses proceeded at a steady pace, with the total number of domestic game approvals remaining above 100. Overall, the supply side continued to release, the trend of normalized license issuance remained firm, and the pace of industry recovery continued to advance. Wanlian Securities stated that, from the perspective of fund overweight allocations and valuation levels in the SW Media industry in Q1 2025, valuation levels have significantly recovered. The industry as a whole is still in an underweight allocation range, with significant room for improvement. Leading companies in the gaming and advertising & marketing sectors are the core focus of institutional attention. It is recommended to pay attention to gaming companies with abundant game license reserves and AI application layouts, as well as leading companies in the digital marketing and elevator media sectors.

[Ganfeng Lithium: The company has established a full-chain layout in the solid-state battery sector] Ganfeng Lithium (002460.SZ) stated at an earnings briefing that it has established a full-chain layout in the solid-state battery sector, possessing R&D and production capabilities in key areas of solid-state batteries, including sulphide electrolytes and raw materials, oxide electrolytes, silicon carbon anodes, lithium metal anodes, battery cells, and battery systems, and is accelerating the commercialization of solid-state batteries. The high specific energy battery developed by the company in the solid-state battery sector has achieved an energy density of 420Wh/kg, and samples with an energy density of 500Wh/kg have been developed, which can pass stringent safety tests such as the 200°C hot box and nail penetration tests. The company is actively pursuing application innovations in the solid-state battery sector. In the NEV sector, it has signed a joint development agreement with a leading international automaker, and the development and on-vehicle verification of high specific energy lithium anode batteries are underway. (Financial Associated Press) [Shanghai's Special Action Plan to Boost Consumption: Expanding and Intensifying the Implementation of Trade-in Policies for Consumer Goods] The General Office of the Shanghai Municipal People's Government issued the "Special Action Plan to Boost Consumption in Shanghai". It mentions expanding and intensifying the implementation of trade-in policies for consumer goods. To promote automobile consumption, it will implement the national automobile scrappage and renewal subsidies and the city's automobile replacement subsidy policies. It will also implement the national home appliance trade-in subsidy policy, introduce new subsidies for the purchase of digital products such as mobile phones, tablets, and smartwatches (bands), and intensify support for green home appliance, furniture, and home improvement consumption. [Japan's Exports to the US Fall for the First Time in 4 Months, with Automobile Exports Down 4.8%] On May 21, the Japanese Ministry of Finance announced the preliminary trade statistics for April, showing that exports to the US fell 1.8% YoY to 1.7708 trillion yen, marking the first decline in four months. In terms of specific items, automobile exports fell 4.8%, and exports of manufacturing equipment such as construction and mining machinery and semiconductors also declined YoY. (Financial Associated Press) [Jinlongyu, with 2 Consecutive Daily Limit-ups: Solid-State Battery-Related Business Has Not Yet Generated Long-Term Stable Revenue] Jinlongyu (002882.SZ) announced that its stock price rose by more than 20% cumulatively in terms of the deviation from the daily closing price over two consecutive trading days on May 20 and May 21, 2025, constituting abnormal fluctuations in stock trading. The company has made certain progress in the R&D of solid-state battery and its key material-related technologies, and some materials have been sent to customers for evaluation. Recently, its subsidiary, Jinlongyu New Energy (Shenzhen) Co., Ltd., signed a procurement order for high-energy-density solid-state battery cells for drones with a customer. The order amount is relatively small and is not expected to have a significant impact on the company's profits for the current and future years. The company's research and development of solid-state battery and related key material technologies constitute cross-border investment. Although orders have been received, the relevant business has not yet generated long-term stable revenue and does not currently have a significant impact on the company's overall performance. (Cailian Press) [FAW Jiefang: Has Prioritized the Layout of Solid-State Batteries] FAW Jiefang stated on an interactive platform that the high specific energy, fast charging capability, and high safety characteristics of solid-state batteries offer broad application prospects in trunk line scenarios. The company has prioritized the layout of solid-state batteries. Focusing on pain points in the commercial vehicle industry, such as short lifespan and high costs, FAW Jiefang has initiated research on new solid-state battery material systems and key preparation process technologies. It plans to integrate these technologies into the next-generation new energy long-haul trunk line platform technology of Jiefang to build a competitive advantage in total vehicle ownership (TVO) throughout the life cycle, achieve technological leadership in the industry, and maintain product leadership. (Cailian Press) [He Xiaopeng: Sales to Double in 2025, Profitability Expected in Q4] He Xiaopeng, Chairman of XPeng Motors, stated at the 2025 Q1 earnings conference that the company is confident of achieving a YoY sales growth of more than double in 2025 and expects to achieve profitability in the fourth quarter, with full-year free cash flow turning positive on a large scale. (Science and Technology Innovation Board Daily) Related Readings: [SMM Analysis: Can Titanium-Doped Iron Phosphate Be the Perfect Upgrade for High-End Development?] [SMM Analysis: China's Lithium Hydroxide Exports Reached 4,222 mt in April, Basically Flat MoM] [SMM Analysis: Slight Increase in Cobalt Intermediate Product Imports in April] [SMM Analysis: Both China's Unwrought Cobalt Exports and Imports Saw Significant Growth in April 2025] [SMM Analysis: China's Domestic Spodumene Imports Totaled 623,000 mt in April, Up 16.5% MoM] [SMM Analysis: Both Artificial Graphite Imports and Exports Increased MoM in April] [SMM Data: LiPF6 Import and Export Data for April 2025] [SMM Analysis: Analysis of Ternary Cathode Precursor Exports in April] [SMM Analysis: Ternary Cathode Import and Export Data for April Released, with Imports Up 37% MoM and Exports Up 13% MoM] [SMM Announcement: Adjustments to Weekly Lithium Carbonate Data Points Before and After the Labour Day Holiday] Driven by Multiple Positive Factors! The Auto Parts Sector Experiences a "Surge in Limit-Up" with Over 12 Stocks Hitting Their Daily Limits! [Hot Stocks] Refined Cobalt Quotes Slightly Recover, While Co3O4 Prices Continue to Decline; the Market Awaits the Aftermath of the June DRC Ban [Weekly Observation] [SMM Industry Insights: Global Cobalt Industry Chain Changes and Chinese Market Outlook After the DRC Cobalt Export Ban - Key Points from the Special Speech by Wang Cong, General Manager of SMM Industry Research] Tariff Suspension Stimulates Lithium Carbonate Futures to Rise Over 3%; Can the Rush to Export Expectations Help Lithium Carbonate "Stand Up"? [[SMM Flash News] Passenger vehicle retail sales growth in April hit a new decade-high, with auto production and sales exceeding 10 million units in the first four months! [SMM Special Report] [SMM Analysis] Impact of US tariff adjustments on China after the "Geneva Talks" on new energy end-users [SMM Analysis] 2025 Shanghai Auto Show: Intelligence, Luxury, Electrification [SMM Analysis] Sibanye Stillwater's lithium mine project in Finland sees a 17% surge in costs, but the 2026 commissioning plan remains unchanged Lithium carbonate prices fell by over 25% YoY in Q1, with miners' performances diverging sharply. When will lithium prices rise? [SMM Special Report]

As Xiaomi officially unveiled its 3nm chip, Hanxing Venture Capital, a venture capital firm under Xiaomi, made a move. A reporter from the Science and Technology Innovation Board Daily noticed that, recently, Hefei Yinshi New Material Technology Co., Ltd. (hereinafter referred to as Yinshi New Material) underwent industrial and commercial changes, adding Hanxing Venture Capital Co., Ltd., Qiangbang New Material (001279), and Hefei Baohe District Science and Technology Innovation Seed Fund Partnership (Limited Partnership) as shareholders. Its registered capital increased from RMB 1 million to approximately RMB 1.1167 million. The reporter learned that Hanxing Venture Capital, as a wholly-owned subsidiary of Xiaomi Group, is primarily responsible for Xiaomi Group's strategic and financial investments. Regarding this investment, an informed source told the reporter from the Science and Technology Innovation Board Daily that the company invested in by Hanxing Venture Capital is a "solid-state battery" enterprise. Currently, solid-state batteries are becoming the development direction in the NEV sector, prompting Xiaomi to go all out in this technological field. Hanxing Venture Capital invests in a solid-state battery company that was established less than half a year ago. Data from FinT Venture Capital Tong shows that Yinshi New Material was established in December 2024 and recently completed its angel round of financing. In terms of timing, this financing occurred less than half a year after the company's establishment. Why did Yinshi New Material, which has only been established for half a year, gain the favour of Hanxing Venture Capital? A reporter from the Science and Technology Innovation Board Daily learned from an informed source that this is because the company is a solid-state battery enterprise. "The company's founder, Wang Xiaolong, is a seasoned expert in the field of new materials and has been conducting research in this area. Currently, Yinshi New Material already holds a technological patent," the source said. A reporter from the Science and Technology Innovation Board Daily noticed that, on May 9 this year, Yinshi New Material completed a technological achievement transformation with Yanshan University, acquiring the invention patent from inventors Zhang Long and Zhang Zhixia. The technological achievement transformation documents indicate that the patent is for an oxygen-doped sulphide solid electrolyte and its preparation method. An individual from the lithium battery industry chain told a reporter from the Science and Technology Innovation Board Daily that in recent years, solid-state batteries have become a market focus, but currently, small-batch mass production is still dominated by semi-solid-state batteries. "As one of the technological routes, all-solid-state lithium-ion batteries represent a development direction. In particular, CATL has recently expressed clear optimism about the sulphide solid-state battery technological route, and Huawei has also applied for patents for sulphide solid-state batteries, shifting market attention from the oxide route to the sulphide route," the industry chain individual said. However, in terms of technological breakthroughs, sulphide solid electrolytes among inorganic solid electrolytes are sensitive to air and exhibit poor electrochemical stability with cathodes and lithium metal. Therefore, it is necessary to achieve simplified preparation processes and highly reproducible performance characteristics through technological optimization. In the field of solid-state batteries, Xiaomi has already made strategic arrangements. Data from Cailian Press's Venture Capital Channel shows that Xiaomi has invested in several companies related to solid-state batteries, including WELION New Energy, Ganfeng LiEnergy, Faanlate, and Tianmu XianDao . Among these companies, WELION New Energy provided NIO with a 150kWh semi-solid-state battery pack in 2024. Additionally, WELION New Energy has collaborated with Huayou Cobalt, Enjie Co., Easpring Technology, and Ronbay Technology to jointly advance the industrialisation of solid-state battery technology. It is evident that, beyond continuous investment in technology, Xiaomi's layout in the solid-state battery field has extended to the industrial ecosystem. This investment in Yinshi New Materials is not only a choice for technological synergy but also closely related to Hefei's industrial ecosystem. Why Hefei? In addition to the bets placed by Xiaomi's funds, a reporter from the Science and Technology Innovation Board Daily noted that among the shareholders of Yinshi New Materials is the Hefei Baohe District Science and Technology Seed Fund Partnership (Limited Partnership). Equity penetration reveals that the actual controller of this fund is the Hefei Baohe District Science and Technology Seed Fund Partnership (Limited Partnership), holding a 99.9001% stake. The latter is backed by the Binhu Financial Investment Group, a state-owned enterprise authorized by the Hefei Baohe District People's Government and funded by the Baohe District State-owned Assets Supervision and Administration Commission. Prior to this angel round investment, the Hefei Baohe District Science and Technology Seed Fund had also invested in several angel round projects, including Qingci Technology, Yilian Litong, Kaixu Feihang, Kasen Aviation, and Synaire. An investor familiar with Hefei's industrial development told the Science and Technology Innovation Board Daily reporter that due to the establishment of NIO and BOE, Hefei has a manufacturing gene in its industry, and correspondingly, its layout in the solid-state battery field is also relatively advanced. "Several companies within Hefei, such as Gotion High-tech and Acrel, are making efforts in solid-state battery technology. At the same time, the industry chain is gradually being perfected, covering areas from material R&D to battery production." The Science and Technology Innovation Board Daily reporter learned that as one of the industry leaders, Gotion High-tech released the all-solid-state battery "Golden Stone Battery" in Hefei in 2024, with an energy density of 350Wh/kg. After completing a tens of millions angel round financing, Huacai (Hefei) New Energy Technology also established a solid-state battery electrolyte production line. In May, the first 5GWh all-solid-state battery production line at CATL's Hefei factory officially began production... The aforementioned investor stated that historically, every major breakthrough in the energy sector has given rise to a batch of industry giants. For example, BYD has emerged in the market with its LFP battery technology, while CATL has achieved great success in the era of ternary lithium batteries. Therefore, enterprises that can take the lead in gaining an advantage in the next round of battery technology transformation are expected to occupy an important position in the new energy market, and solid-state batteries are the next "treasure". From the perspective of technical performance, reliability and durability are important indicators for evaluating whether a technology has broad application potential. Solid-state battery technology demonstrates potential and advantages in this regard: Firstly, the energy density of solid-state batteries can easily reach 500Wh/kg, which is nearly double that of Tesla's current battery technology. Secondly, the volume of solid-state batteries is only half that of traditional lithium batteries, which means that under the same volume or weight constraints, solid-state batteries can provide a longer driving range, easily achieving a 1,000-kilometer driving capability. Thirdly, solid-state batteries also offer a fundamental improvement in safety, effectively avoiding potential safety issues within traditional lithium batteries. Moreover, the service life of solid-state batteries can be as long as 20 years, which largely meets consumers' expectations for the reliability and durability of battery products. However, despite the advantages of solid-state batteries in terms of energy density and safety, their commercialization still needs to overcome cost and supply chain bottlenecks. "As the industry says, moving from the 'technological tipping point' to the 'performance explosion point' requires not only technological iteration but also relies on the formation of industry chain synergy and economies of scale. Currently, high costs and an imperfect raw material supply chain are the pain points for the development of solid-state batteries," the investor concluded.

As anticipated by Caixin Global yesterday, with the release of the US Treasury's 20-year bond auction data in the early hours of today, the US stock market collectively plunged against the backdrop of soaring US bond yields. By the close of trading, the S&P 500 fell 1.61% to 5,844.61 points; the Nasdaq Composite Index dropped 1.41% to 18,872.64 points; and the Dow Jones Industrial Average declined 1.91% to 41,860.44 points. All three major indices recorded their largest daily declines in a month . (Daily chart of the S&P 500 Index, source: TradingView) Long-term Treasuries were the hardest hit in the sell-off. The yield on the 20-year US Treasury bond surged 13 basis points to 5.12% during the day, while the 30-year Treasury yield rose to 5.09%; the 10-year Treasury yield also climbed to a nearly three-month high of 4.60%. The US dollar weakened simultaneously against major currencies, a phenomenon colloquially known as the "triple whammy" of stocks, currencies, and bonds. Market consensus is that the results of this 20-year US Treasury auction were quite poor, though not yet as disastrous as this week's Japanese government bond auction. The highest accepted yield for this issuance reached 5.047%, approximately 1.2 basis points higher than the pre-auction yield of 5.035%, marking the largest tail spread in nearly six months. Meanwhile, the bid-to-cover ratio also declined to 2.46 from the average of 2.57 over the past six months. George Saravelos, head of foreign exchange research at Deutsche Bank, stated that under such overall conditions, it is difficult for the US stock market to maintain resilience. Saravelos explained, "From 2023 to 2024, as the market continuously raised its expectations for US economic growth, it was entirely reasonable for US Treasury yields and the stock market to rise in tandem. But the situation is vastly different now. It is hard to argue that negative drivers such as rising capital costs would be beneficial to risky assets." He also pointed out that the most concerning aspect of the market's reaction to the bond auction was the simultaneous weakening of the US dollar. This suggests that "foreign investors are simply unwilling to continue financing the US twin deficits at current price levels." Performance of Popular Stocks Apart from Google, which just concluded its developer conference, US tech giants collectively declined on Wednesday. Apple fell 2.31%, Microsoft dropped 1.22%, Amazon declined 1.45%, Nvidia fell 1.92%, Google-A rose 2.79%, Tesla dropped 2.68%, Meta fell 0.25%, and Advanced Micro Devices declined 1.28%. Chinese ADRs also weakened, dragged down by market sentiment, with the Nasdaq Golden Dragon China Index falling 0.72% on Wednesday. By the close of trading, Alibaba fell by 1.25%, JD.com by 0.88%, Baidu by 4.32%, Pinduoduo by 1.01%, Bilibili rose by 0.39%, NIO by 0.51%, NetEase by 0.38%, Futu Holdings by 0.76%, Li Auto rose by 3.08%, and EHang Holdings fell by 4.9%. XPeng Motors, which released positive financial results and expects to achieve profitability in Q4, rose by 13%. WeRide, which reported positive progress in its Robotaxi business, rose by 21.42%. Corporate News [Moderna Withdraws Application for Combined COVID-19/Flu Vaccine] On Wednesday, US time, vaccine manufacturer Moderna announced the withdrawal of its marketing authorization application for a combined COVID-19 and flu vaccine. The company stated that it would resubmit the application later this year, accompanied by efficacy data from large-scale trials of its standalone flu vaccine, which are expected to be released this summer. By the close of trading on Wednesday, Moderna fell by 7.82%. [He Xiaopeng: Sales to Double in 2025, Profitability Expected in Q4] According to a report by the Science and Technology Innovation Board Daily, He Xiaopeng, Chairman of XPeng Motors, stated at the company's Q1 2025 earnings call that the company is confident of achieving a YoY increase in sales of more than 100% in 2025 and expects to achieve profitability in the fourth quarter, with full-year free cash flow turning positive on a large scale. [JPMorgan Establishes "Geopolitical Risk War Room"] JPMorgan announced on Wednesday the official launch of its "Center for Geopolitics" and released research reports on the Russia-Ukraine conflict, the situation in the Middle East, and global military rearmament. The "Center for Geopolitics" will release new reports quarterly in the future, covering hot topics such as populism and artificial intelligence. Executives from the department will also participate in various events and host closed-door meetings for clients. [UnitedHealth Accused of Paying Nursing Homes to Reduce Hospital Referrals] UnitedHealth, the largest US healthcare group embroiled in ongoing controversy due to the "Luigi shooting incident," was reported by the media on Wednesday to have secretly paid incentive fees to nursing homes to encourage them to reduce hospital referrals for seriously ill elderly patients. UnitedHealth also stated in a mid-day announcement that the report contained "significant factual errors" and emphasized that the US Department of Justice had already conducted an investigation and decided not to pursue charges against the company. By the close of trading on Wednesday, UnitedHealth fell by 5.78%. [Nike to Raise Prices on Multiple Products Starting This Week] According to US media reports, Nike will raise prices on a large number of footwear, apparel, and equipment products starting this week. Among them, the price of shoe models priced between $100 and $150 will increase by $5, while sneakers priced above $150 will see a $10 price hike. According to informed sources, the price adjustments will take effect no later than June 1, but some products may already reflect the changes at the retail level this week. In response to media inquiries, Nike avoided mentioning the word "tariffs," stating only that the company regularly evaluates its business conditions and makes price adjustments as part of its seasonal planning. [Navitas Semiconductor's Stock Price Doubles After Announcing Collaboration with NVIDIA] As of press time, US power semiconductor company Navitas Semiconductor's stock price surged over 190% in after-hours trading on Wednesday. This follows the company's announcement of a collaboration with NVIDIA to develop the next-generation 800-volt high-voltage DC (HVDC) power supply architecture to support NVIDIA's "Kyber" rack-level system. Through the HVDC architecture, NVIDIA aims to improve end-to-end power efficiency by up to 5% and reduce maintenance costs by 70%.

[Cui Dongshu: National Passenger Vehicle Industry Inventory Reached 3.5 Million Units at the End of April 2025] Cui Dongshu, Secretary General of the China Passenger Car Association, stated in an article that the national passenger vehicle industry inventory reached 3.5 million units at the end of April 2025, an increase of 150,000 units MoM and 120,000 units compared to April 2024, indicating a continuous rise in industry inventory throughout 2025. The current policy initiatives have brought about overall optimism among producers, with high production levels after the Chinese New Year and relatively active wholesale activities by manufacturers, leading to the re-establishment of industry inventory. April reached a historical high for the end of April. As sales gradually transition into the off-season from May to July, sales are expected to decline over the next three months. Therefore, based on the inventory at the end of April 2025 and future sales projections, the existing inventory is estimated to support future sales for 57 days, slightly increasing the overall inventory pressure compared to 55 days at the end of April 2023 and 52 days at the end of April 2024. [Rio Tinto and Codelco to Collaborate on Developing the Maricunga Salt Lake Lithium Project, Planning to Invest Up to $900 Million in the Joint Venture] Rio Tinto and Codelco announced on May 19 the signing of a binding agreement to form a joint venture to develop and operate the Maricunga salt lake lithium project in Chile. The transaction is expected to be completed by the end of Q1 next year. According to the agreement, Rio Tinto will acquire a 49.99% stake in Maricunga Salt Lake Ltd. Codelco holds the licenses and mining concessions for the Maricunga salt lake through this company. Rio Tinto stated that it will invest an initial $350 million in Maricunga Salt Lake Ltd. for subsequent research and resource analysis to advance the project until the final investment decision. Once the decision to proceed with the project is made, Rio Tinto will invest $500 million in the company to cover construction costs. If the joint venture achieves the goal of delivering the first batch of lithium by 2030, Rio Tinto will also inject an additional $50 million into the company. (Financial Associated Press) [Wuhan Landian: Currently, the Company's Low-Power Equipment Boasts Stability and High Precision] Wuhan Landian released a record of investor relations activities. Low-power battery testing equipment is mainly used for testing 3C consumer electronics battery cells and battery materials. Common consumer electronics batteries currently include laptop batteries, mobile phone batteries, drone batteries, and other consumer batteries. The main customers for the company's low-power battery testing equipment are 3C battery producers, universities, and research institutes. The demand for low-power battery testing equipment is correlated with the production of consumer electronics batteries. With the continuous growth of the national economy and residents' consumption levels, the market demand for consumer electronics products continues to expand, leading to more diversified demands for various consumer electronics batteries. The overall consumer battery market is showing a steady upward trend. Currently, the company's low-power equipment boasts advantages such as good stability and high precision, but its market share among enterprises remains relatively low. In terms of competition, it faces rivalry from companies like Shenzhen Neware and Rui Neng Co., Ltd. [Sanfu New Tech: Plans to Invest 620 Million Yuan in the Industrialisation Project of Key Materials for High-Safety Dry Electrode Batteries and High-Frequency Electronic Information Composite Materials] Sanfu New Tech (688359.SH) announced that it plans to invest 620 million yuan in the industrialisation project of key materials for high-safety dry electrode batteries and high-frequency electronic information composite materials. Construction is expected to commence in June 2025, with the project scheduled for completion by the end of 2027. The project implementation entities are the company's subsidiaries, Jiangxi Bangyue and Jiangxi Bangxiang. The main products include current collectors, tabs, and high-frequency electronic information composite materials for lithium battery materials. The project may face challenges such as prolonged production cycles, slow yield ramp-up, as well as external environmental factors like macroeconomic fluctuations and adjustments in industry policies. (Science and Technology Innovation Board Daily) [Musk: Tesla Expects to Have Hundreds of Thousands, or Even a Million, Fully Autonomous Vehicles by the End of 2026] Tesla CEO Elon Musk stated that Tesla is currently testing "thousands" of autonomous vehicles in preparation for their launch next month. This summer, Tesla will deploy autonomous vehicles on the roads of Austin, Texas. It is expected that by the end of 2026, there will be hundreds of thousands, or even a million, fully autonomous vehicles. [Beijing Proposes to Revise the Operational Service Standards for Parking Lots, with Charging Facilities in Public Parking Lots Expected to Account for No Less Than 10%] The local standard of Beijing, "Operational Service Standards for Parking Lots (Garages)", is open for public comment. According to the draft for comment, existing public parking lots and P+R parking lots with power supply conditions should be equipped with public charging facilities at a ratio of no less than 10%. For the EV charging infrastructure in parking lots that serve the public, it is advisable to set up different proportions of super-fast and fast charging facilities tailored to different service targets. In response to the increasing proportion of motorcycles year by year, the city will guide qualified parking lots to fully utilize the corner spaces within the lots to set up motorcycle parking spaces. (Finance Link) Related Readings: [SMM Analysis] Both China's Unwrought Cobalt Exports and Imports Saw Significant Growth in April 2025 [SMM Analysis] Domestic Spodumene Imports Totaled 623,000 mt in April, Up 16.5% MoM [SMM Analysis] Both Imports and Exports of Artificial Graphite Saw MoM Increases in April [SMM Data] Import and Export Data of LiPF6 in April 2025 [SMM Analysis] Analysis of Export Situation of Ternary Cathode Precursors in April [SMM Analysis] Import and Export Volumes of Ternary Cathode in April Released, with Imports Up 37% MoM and Exports Up 13% MoM [SMM Announcement] Adjustments to Weekly Data Points Related to Lithium Carbonate Before and After the Labour Day Holiday Driven by Multiple Favorable Factors!The auto parts sector has witnessed a dramatic surge in "limit-up" trends, with over 12 stocks hitting their daily limits! [Hot Stocks] Refined cobalt prices have slightly recovered, while Co3O4 prices continue to decline. The market awaits the follow-up to the June DRC export ban. [Weekly Observations] [SMM Industry Insights] Global Cobalt Industry Chain Changes and Chinese Market Outlook Post-DRC Cobalt Export Ban - Key Points from the Special Speech by Wang Cong, General Manager of SMM Industry Research Tariff suspension spurs lithium carbonate futures to rise over 3%. Can the expectation of a rush in exports help lithium carbonate "stand up"? [SMM Flash News] Retail sales growth of passenger vehicles in April hits a decade-high, with auto production and sales exceeding 10 million units in the first four months! [SMM Special Report] [SMM Analysis] Impact of US tariff adjustments on China's new energy end-users after the "Geneva Talks" [SMM Analysis] 2025 Shanghai Auto Show: Intelligence, Luxury, Electrification [SMM Analysis] Sibanye Stillwater's Finnish lithium mine project sees a 17% cost surge, but the 2026 commissioning plan remains unchanged Lithium carbonate prices fell over 25% YoY in Q1, with miners experiencing mixed performances. When will lithium prices rise? [SMM Special Report] [SMM Analysis] In April 2025, SMM's total domestic lithium carbonate production fell 7% MoM but increased 40% YoY Salt Lake Potash's net profit in Q1 increased over 22% YoY, aiming to achieve a 200,000 mt/year lithium chemicals production capacity by 2030

Macro News 1. Xi Jinping, General Secretary of the Communist Party of China Central Committee, President of the People's Republic of China, and Chairman of the Central Military Commission, recently emphasized during a field trip in Henan that, in the new era and on the new journey, Henan should earnestly implement the strategic plans of the CPC Central Committee on accelerating the rise of the central region, ecological protection and high-quality development of the Yellow River Basin, adhere to the general principle of pursuing progress while ensuring stability, comprehensively deepen reform and opening up, focus on building a modern industrial system and a strong agricultural province, improve people's livelihoods and strengthen social governance, enhance ecological and environmental protection, and promote cultural prosperity, striving to write a new chapter in advancing Chinese-style modernization in central China with high-quality development and efficient governance. 2. On the 19th (local time), US President Trump held separate phone calls with Russian President Putin and Ukrainian President Zelenskyy to discuss issues such as the ceasefire negotiations between Russia and Ukraine. Foreign Ministry spokesperson Mao Ning stated that, on the issue of the Ukraine crisis, China supports all efforts conducive to peace. We support direct dialogue and negotiations between Russia and Ukraine, and support a political solution to the crisis. We hope that all parties can reach a fair, lasting, and binding peace agreement acceptable to all parties involved through dialogue and negotiations. 3. On May 19th, Pan Gongsheng, Governor of the People's Bank of China, chaired and spoke at a symposium on financial support for the real economy. The meeting emphasized the need to intensify support for key areas such as scientific and technological innovation, boosting consumption, private and micro enterprises, and stabilizing foreign trade. It called for making full use of existing and incremental policies to improve the quality and efficiency of financial support for the real economy, and to support economic restructuring, transformation, upgrading, and the replacement of old growth drivers with new ones. 4. According to data from the Ministry of Finance, from January to April, the national general public budget revenue was 8,061.6 billion yuan, down 0.4% YoY. Among this, national tax revenue was 6,555.6 billion yuan, down 2.1% YoY; non-tax revenue was 1,506 billion yuan, up 7.7% YoY. From January to April, stamp duty revenue was 161.4 billion yuan, up 18.9% YoY. Among this, stamp duty on securities transactions was 53.5 billion yuan, up 57.8% YoY. 5. The National Health Commission held a press conference yesterday. An Zhijie, a researcher from the Chinese Center for Disease Control and Prevention, introduced that currently, the pertussis epidemic situation nationwide is stable, with the number of reported cases down by more than 80% YoY. An Zhijie also stated that recently, the COVID-19 epidemic has shown a slight upward trend in some countries and regions, but there has been no significant change in the clinical severity of the disease. Industry News 1. The State Council Information Office will hold a press conference at 3 p.m. on May 22, 2025. Qiu Yong, Vice Minister of the Ministry of Science and Technology, Zhu Hexin, Vice Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange, and relevant officials from the National Financial Regulatory Administration and the China Securities Regulatory Commission will introduce the relevant situation of science and technology finance policies and answer questions from reporters. 2. The Cyberspace Administration of China (CAC) and two other departments jointly issued the Key Points for Further Promoting the Large-Scale Deployment and Application of IPv6 in 2025. The Key Points specify that by the end of 2025, China will have fully established a globally leading IPv6 technology, industry, infrastructure, application, and security system. The number of active IPv6 users will reach 850 million, the number of IPv6 connections in the Internet of Things (IoT) will reach 1.1 billion, the proportion of IPv6 traffic in fixed networks will reach 27%, and the proportion of IPv6 traffic in mobile networks will reach 70%. 3. The National Energy Administration (NEA) released data on electricity consumption across society in April. In April, electricity consumption across society was 772.1 billion kWh, up 4.7% YoY. Electricity consumption for urban and rural residents' daily lives was 93.6 billion kWh, up 7.0% YoY. From January to April, cumulative electricity consumption across society was 3,156.6 billion kWh, up 3.1% YoY, with power generation from industrial enterprises above designated size reaching 2,984 billion kWh. 4. Regulatory authorities have recently initiated a new round of surveys on some leading quantitative private equity firms. This survey focuses on two aspects: one is the overall operational status of quantitative trading under the current market environment; the other is the application of AI models in quantitative strategies. 5. It has been learned from the State Grid Corporation of China that China has independently developed a high-proportion new energy large power grid operation and control system, marking that China has taken the lead in solving the world-class challenge of integrating ultra-large-scale new energy into large power grids. It is understood that currently, the proportion of installed new energy capacity in China has exceeded 40%. To ensure the safe and stable integration of large-scale new energy into large power grids, China has independently developed a new energy large power grid operation and control system. 6. A new round of interest rate cuts on deposits is on the horizon, with multiple banks, including the Industrial and Commercial Bank of China (ICBC), Bank of China (BOC), and China Construction Bank (CCB), lowering interest rates on various products such as demand deposits, time deposits, and notice deposits. As the "interest rate cut trend" in bank deposits continues, certificate of deposit (CD) products, once regarded as "powerful tools for attracting deposits," are gradually falling out of favor. Recently, several banks have simultaneously lowered interest rates on time deposits and CD products. Currently, CD products are on the verge of fully entering the "1% era." Corporate News 1. GigaDevice announced its plan to issue and list H shares. 2. TINAVI Medical Technologies announced that Advanced Manufacturing Fund and its concerted actors intend to reduce their combined shareholding in the company by no more than 3%. 3. Huili B announced that its shares may be delisted. 4. NovaSense announced that its shareholders intend to transfer a combined 3.4% of the company's shares. 5. *ST Yushun announced a trading halt for verification due to abnormal stock price fluctuations. 6. National Silicon Industry Group released a draft report on major asset restructuring, proposing to acquire a 46.7354% stake in Xinsheng Jingtou, among others. The second phase of the National Integrated Circuit Industry Investment Fund will become a shareholder holding more than 5% of the company's shares. 7. ST Huaxi announced that its controlling shareholder and actual controller, Li Renchao, had been detained and a case had been filed against him. 8. Jiuding Investment announced that management remuneration is typically realized gradually over several years after investment, leading to significant volatility in the company's performance. 9. Xichang Electric Power announced that due to adjustments in the time-of-use electricity prices mechanism, it is expected to reduce the company's net profit for 2025 by approximately 5.4 million yuan. 10. Ancai Hi-Tech announced that the selling price of its PV glass products in Q1 2025 decreased by approximately 30% compared to the same period last year. 11. Yulong Co., Ltd. announced that its shares will be delisted and removed from trading on May 27. 12. Huamao Technology announced that it is planning to acquire equity in Fuchuang Youyue, and its shares have been suspended from trading starting from the 21st. 13. Hongjing Technology announced that it has signed a service contract for an intelligent computing project worth 597 million yuan. 14. Chaohongji announced that it is planning to issue H shares for listing on the Hong Kong Stock Exchange. 15. Demai Shi announced that its controlling shareholder is planning changes to the company's control, and its shares have been suspended from trading. 16. Suzhou Longjie stated on an interactive platform that the prices of some of its new and hot-selling products have increased. 17. Rockchip announced that its shareholder, Runkexin, plans to reduce its stake in the company by no more than 2%. Global Markets 1. The three major US stock indices closed lower collectively, with the Dow Jones falling 0.27%, the Nasdaq dropping 0.38%, and the S&P 500 declining 0.39%. Most popular Chinese ADRs fell, with the Nasdaq Golden Dragon China Index closing down 0.65%. 2. WTI crude oil futures rose by 2.5% to $63.60 per barrel. News emerged that US intelligence had discovered that Israel was planning to attack Iranian nuclear facilities. 3. COMEX gold futures closed up 1.83% at $3,292.6 per ounce, while COMEX silver futures closed up 2.32% at $33.26 per ounce. Investment Opportunities Reference 1. The "Healthcare Robotics" Collaborative Development Conference is set to convene, with Huawei and Zhiyuan Robotics to collaborate The Embodied Intelligent Healthcare Robotics Collaborative Development Conference, themed "Reshaping the Future of Healthcare with Intelligent Technology," will be held on May 21. Meanwhile, the Science and Technology Innovation Board Daily learned that Huawei, Zhiyuan Robotics, and Zhongjian Technology will collaborate on healthcare humanoid robots, with cooperation in areas such as computing power, large model platforms, data collection, solutions, and application scenarios. Against the backdrop of an accelerating aging population, the embodied intelligent healthcare robotics industry is becoming an important force in promoting the implementation of the Healthy China strategy, ushering in unprecedented opportunities. Founder Securities believes that the elderly care robot industry is entering a period of explosive growth in technological integration and scenario implementation. The R&D, application promotion, and ecosystem co-construction of elderly care robots provide more intelligent, efficient, and humanized elderly care solutions for groups such as the elderly, opening up a new future for "AI + elderly care." 2. Microsoft Plans to Establish an "Agent Factory," with Institutions Projecting the Global AI Agent Market to Reach $47.1 Billion by 2030 According to media reports, based on an internal Microsoft memo, the company is developing a new "Tenant Copilot" service. This new service aims to assist tenants in establishing a Copilot that can "converse, think, and work like the tenant themselves," and is expected to be announced at Microsoft's developer conference next week. Additionally, Microsoft also plans to establish an "Agent Factory" to help enterprise customers develop methods for managing AI Agents alongside human employees. According to MarketsandMarkets' forecast, the global AI Agent market is expected to grow from $5.1 billion in 2024 to $47.1 billion in 2030, with a compound annual growth rate (CAGR) of 44.8%. Shanghai Securities stated that the commercialization of AI Agents is continuously evolving both domestically and overseas, with a vast market potential. On the B-side, companies such as Microsoft, Google, Salesforce, Zoom, Baidu, Alibaba, Tencent, and ByteDance are continuously increasing their investments to drive the commercialization of AI Agents. On the C-side, remarkable AI Agents are emerging both domestically and overseas. 3. Shanghai's First Urban Low-Altitude Sightseeing Route Takes Off, with Institutions Reporting Gradual Implementation of Low-Altitude Economy Market Applications According to media reports, Shanghai's first customized urban low-altitude sightseeing route took off from the outdoor platform on the fifth floor of Global Harbor, passing by iconic Shanghai landmarks such as Shanghai Stadium, Lupu Bridge, Nanpu Bridge, Lujiazui, and Yangpu Bridge (on the Pudong side) before returning along the same route, with a total flight time of approximately 15 minutes. Guoyuan Securities stated that the current low-altitude economy sector is characterized by deepening policies and accelerating scenario implementation. On the policy side, the state has incorporated the low-altitude economy into its top-level design for the first time, including it in the preparation of the national "15th Five-Year Plan." Multiple regions, including Shenzhen and Hefei, are promoting industrialization through substantial subsidies and pilot expansions. Meanwhile, financial support is also increasing, with special bonds for the low-altitude economy providing strong support, the establishment of multiple low-altitude industry investment funds, and a gradual rise in investment preferences for low-altitude industry enterprises in the primary market. On the technology side, the airworthiness certification process for eVTOLs is accelerating, with AI drones achieving breakthrough applications in agriculture, logistics, tourism, and other scenarios. The low-altitude infrastructure network is being densely laid out to support large-scale operations of the low-altitude economy. On the market side, the low-altitude zone at the China International Consumer Products Expo has seen a surge in popularity, with multiple eVTOL producers delivering products or securing large orders, indicating the gradual implementation of low-altitude economy market applications. 4. As a typical example of "self-indulgent consumption," this type of economy is now entering a stage of high-quality development. As people's living standards improve, the demand for emotional consumption continues to grow. As a typical example of "self-indulgent consumption," the pet economy has seen consumption demand extend from basic food to high-end and service-oriented products. According to the "2025 China Pet Industry White Paper" by Petu, it is projected that by 2027, the consumer market size for pets (dogs and cats) in urban areas will surpass the 400 billion yuan mark, reaching 404.2 billion yuan, with a compound annual growth rate (CAGR) of 12.6% from 2015 to 2027. With the development of the social economy and changes in people's lifestyles, pets have transitioned from their traditional role as guardians of the home to becoming members of the family, giving rise to and fueling the growth of the pet economy. From pet food and supplies to medical care and services, the consumer market surrounding the entire life cycle of pets continues to expand, becoming a significant growth point in the global consumer sector. In recent years, China's pet industry has gone through stages of enlightenment, growth, and rapid development, and is now entering a stage of high-quality development. The market size continues to expand, domestic brands are emerging, new retail models are rising, and the concept of scientific pet care is deeply rooted in people's minds. Huaan Securities points out that, overall, China's pet industry is developing in a professional and diversified direction, with immense market potential, a continuously improving industry chain, and broad prospects for the future.