[SMM Global Steel Company Special] POSCO Business Performance Report POSCO Holdings Inc. released its 2025 consolidated results, reporting revenue of 69.095 trillion won, operating profit of 1.827 trillion won, and net profit of 504 billion won. The details of the steel segment's 2025 performance are as follows. Data source: POSCO Annual Report POSCO (Standalone) Operating Performance Production and Sales Data source: POSCO Annual Report Earnings Overview ① 2025 revenue: 35.011 trillion won, down 2.545 trillion won YoY; ② 2025 operating profit: 1.78 trillion won, up 307 billion won YoY; ③ Operating profit margin: 5.1%, up 1.2% YoY. Performance Analysis On a full-year basis, although selling prices in 2025 declined compared to 2024, operating profit still rose as raw material and production costs fell by a larger margin. ① Carbon steel selling price dropped from 985,000 won/mt in 2024 to 926,000 won/mt in 2025, down approximately 59,000 won/mt. ② Key raw material cost index: fell from 100 in 2024 to 83.8 in 2025, down 16.2. Although annual growth was still achieved, it is worth noting that the sharp rise in LNG prices also significantly impacted costs, pushing up energy and maintenance expenses from 494 won/m³ in 2024 to 633 won/m³ in 2025. More detailed changes are as follows (unit: 1 billion won). Data source: POSCO Annual Report Ex-China Steel Operating Performance Details Data source: POSCO Annual Report Core Steel Business Operating Activities Decarbonisation ① Commenced construction of the HyREX (hydrogen reduction ironmaking) demonstration plant in Pohang (expected to be operational in 2028). ② Operating the Gwangyang Electric Arc Furnace (EAF, capacity of 2.5 million mt, operational from June) to quickly respond to market demand for low-carbon steel products. Building Two Pillars: Energy and Mobility ① Pohang Plant (Energy): Building a "model plant for energy-use steel," deepening capabilities in steel for hydrogen energy, LNG, and power grid applications (including PosMAC, e-steel, etc.). ② Gwangyang Plant (Mobility): Positioned as a "dedicated plant for new mobility," conducting R&D on Giga Steel, silicon steel (Hyper NO), and other low-carbon high-end materials. Cost Innovation 2030 Leveraging technology to reduce structural costs through technology-driven structural cost reduction, targeting fixed cost reductions of 50 billion Korean won in 2025 and 40 billion Korean won in 2026. Optimizing group-wide operating costs: such as optimizing power generation and waste heat recovery, and streamlining logistics and procurement. Overseas Expansion ① [US Louisiana: EAF Integrated Steel Mill] Total investment of $5.8 billion, with POSCO holding a 20% stake and a relatively small financial burden (capital-to-debt ratio of 50:50). Products will be directly supplied to North American automakers and POSCO's Mexico plant. Discussions are underway on battery materials supply chain and next-generation materials collaboration. ② [Strategic Partnership with US Cleveland-Cliffs] Combining POSCO's global network with Cleveland-Cliffs' domestic production assets. Goal: Capturing the North American high-value-added automotive sheet market through the integration of technology and marketing. ③ [India: Integrated Steel Mill Joint Venture] Establishing a 50:50 joint venture with JSW, India's largest steel manufacturer, with equal representation on the board of directors. Constructing an integrated steel mill with a capacity of 6 million mt, and conducting business collaboration in renewable energy (wind and solar) to supply power to the steel mill. Source: POSCO Annual Report Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. 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On April 13, Ye Jianhua, Director and Supervisor of the Industry Research Department of SMM Information & Technology Co., Ltd. (SMM), Feng Chundi, Expert of the Industry Research Department of SMM, and Wu Tao, Overseas Marketing Manager of SMM's Copper and Tin Division, visited ZCCM INVESTMENTS HOLDINGS PLC (ZCCM-IH). They were warmly received by Chitalu Kabalika, Industrial Metals and Minerals Investment Analyst at ZCCM-IH, Kambole Mwanakatwe, Precious Metals and Minerals Investment Analyst, among others. During this visit, both parties leveraged their respective core business strengths and conducted in-depth discussions on the compilation methodology of SMM's copper price and copper concentrates price indices, their influence on industry pricing, and the transmission mechanisms in international markets, exploring the reference value of these price indices for Zambian copper ore trade and mining project investment. Discussions also covered ZCCM-IH's copper mine asset operations, resource reserves, and capacity planning, among other topics, jointly exploring the local copper mining industry's supply-demand pattern, cost landscape, and medium and long-term development trends. In addition, both parties exchanged views on potential cooperation directions, including information sharing across the copper industry chain, joint analysis of market trends, and collaboration on ex-China mining resources. This exchange effectively connected the business synergies between both parties, deepened mutual understanding and industry consensus, and laid a solid communication foundation for subsequent positive interactions in copper industry data services, market research, and resource collaboration, as well as for exploring diversified cooperation opportunities and pursuing mutual benefits. Introduction to ZCCM INVESTMENTS HOLDINGS PLC ZCCM Investments Holdings Plc is a diversified mining investment holding company with a strategic focus on Zambia's mining and energy sectors. The group's investment portfolio covers commodities including copper, gold, amethyst, manganese, limestone, and electricity/thermal energy. VISION : "To be a world-class mining and energy investment company for the benefit of the Zambian people." MISSION : "To sustainably create tangible wealth for the Zambian people and all stakeholders." TAGLINE : "Unlocking national wealth value for all stakeholders." The above vision and mission reflect the company's renewed focus on the mining sector and the strategic theme of " Investing S.M.A.R.T.L.Y ." "SMARTLY" represents seven strategic pillars: ZCCM-IH is committed to Sustainability , deeply integrating Environmental, Social, and Governance (ESG) principles into its business model; the team proactively Managed related operations, driving portfolio and revenue growth through business Accretive value and agility; while ensuring investments are Risk mitigated , advancing projects in a Timely and efficient manner; upholding the goal of business **Longevity**, and ultimately delivering returns on investment and maximizing shareholder value (Yields). VALUES : The realization of our vision and mission is underpinned by the enterprise's deeply rooted core values. These principles guide all actions of the enterprise. The following values form the cornerstone of our corporate culture. ZCCM-IH Portfolio ZCCM-IH holds a unique strategic position in Zambia's mining and energy sectors, with core interests in both fields. The following is a list of enterprises covered by the ZCCM-IH portfolio: ZCCM-IH Growth Portfolio Future Outlook The ZCCM-IH Strategic Plan, 2020-2026 sets out the core direction for the company's development, helping the enterprise fully unlock asset value, maximize asset returns, and deliver tangible benefits to all shareholders. During this phase, the company focuses on three core strategic priorities: deepening engagement in the mining sector and advancing diversification of mineral product categories; innovating revenue generation models, developing diversified income streams, and unlocking the value of the existing asset portfolio; and strengthening operational management and financial control capabilities to build and continuously enhance long-term core shareholder value. The company is deeply committed to social responsibility, dedicated to creating sound and compliant business performance, sustainable development outcomes, and social benefits for shareholders, local communities, and Zambia as a whole. Leveraging the comprehensive strengths accumulated through over fifty years of deep engagement in the mining industry, combined with a professional and experienced core team, the company is expected to continue driving the implementation of its strategic plans and sustained growth, while consolidating existing development achievements. Scheduled to be held on October 13-14, 2026 in Lusaka, Zambia. You are welcome to participate! Conference Contact : Wu Tao: 18270916376 jennywu@smm.cn

Southern Battery JSC (PINACO) held its 2026 Employees’ Representative Conference on March 30 in Ho Chi Minh City, reporting strong business performance for 2025. Revenue reached VND 4,259 billion, up 11% year-on-year, while export revenue rose 25% to VND 1,012 billion. Battery output increased 14% to 2,382 thousand kWh, and pre-tax profit hit VND 150 billion. The company also maintained stable employment and continued expanding its market share and export footprint.

According to the investor relations activity record announced by Jintian Holdings on March 19 (March 10-12, 2026): 1. The Company’s 2025 earnings guidance and the reasons for the projected increase. Jintian Holdings replied: In 2025, the company implemented its “dual upgrade in products and clients” strategy, with product applications continuing to deepen in high-end fields; it stepped up expansion among clients outside China, and sales in markets outside China continued to grow; meanwhile, through digitalization initiatives, it improved operational and management efficiency, and the gross margin and profitability of its products improved YoY. The company expected net profit attributable to owners of the parent for 2025 to reach 700 million yuan to 800 million yuan, up 51.50%-73.14% YoY from the same period last year. 2. Progress of the company’s share repurchase. Jintian Holdings replied: From February 3, 2026 to February 28, 2026, the company had cumulatively repurchased 4,942,200 shares through centralized bidding, accounting for 0.29% of its current total share capital, with total funds paid of 56,676,944 yuan (excluding transaction costs). 3. The company’s industry position and competitive advantages. Jintian Holdings replied: The company had focused on the copper processing industry for 39 years and was one of the largest enterprises in China by scale and with the most complete industry chain. In 2024, the company achieved total production of 1.9162 million mt of copper and copper alloy materials, and its total production of copper semis ranked first globally. The company offered a wide range of copper products and could meet clients’ one-stop procurement needs for multiple categories of copper semis, including rods, tubes, plates and strips, and wires. Its copper products had been widely used in NEV, clean energy, communications technology, electrical power and equipment, chips and semiconductors, and other fields. At present, the company had developed a profound cultural heritage and outstanding organizational capability, with a significant market scale position and a global industrial footprint; it possessed leading manufacturing and R&D capabilities; it had built a specialized product matrix and formed a stable base of top-tier industry clients; and it had also established forward-looking green recycling technology barriers, laying a solid foundation for becoming a world-class base for copper products and advanced materials. 4. The capacity and business performance of the company’s rare earth permanent magnet products. Jintian Holdings replied: The company had entered the magnetic materials business in 2001. After more than 20 years of dedicated development, it had become one of the enterprises in China’s peer industry with relatively advanced technology and a well-developed product system. At present, the company had two magnetic material production sites in Ningbo and Baotou. Phase I of the Baotou site had commenced production, and the company’s annual capacity of rare earth permanent magnet materials had increased to 9,000 mt. The company was actively advancing the Phase II project at the Baotou site to further increase capacity to 13,000 mt. At the same time, through its newly established German subsidiary, the company accelerated its international expansion and increased its share in overseas markets. The company was among the first batch of enterprises to obtain a general export license for rare earth permanent magnet products, and it has continued to strengthen and advance export-related business. The company’s rare earth permanent magnet products are widely used in multiple high-end fields, including NEVs, wind power generation, high-efficiency energy-saving motors, robotics, consumer electronics, and medical devices. 5. The Company’s Business Development in the Chip Computing Power Sector. Jintian Co., Ltd. responded: With its outstanding electrical and thermal conductivity, copper has become a core material for advanced AI industry chip interconnects and heat dissipation in computing power facilities, and the transition of copper-based materials toward high value-added products has further accelerated. The company has a solid client base and technical reserves in the chip computing power sector, and it is also among the first companies globally to achieve large-scale supply of copper-based materials to leading enterprises in the above fields. Among them, the company’s high-precision special-shaped oxygen-free copper busbar products have been applied in multiple top-tier GPU cooling solutions of several global first-tier thermal module enterprises. Products independently developed by the company, such as copper heat pipes and liquid-cooling copper pipe & tube, have been supplied in batches for computing power server products of multiple top-tier enterprises. The company will closely monitor and follow market demand in the chip computing power sector, further improve its product portfolio, and enhance the competitive advantages of its products. 6. The Company’s Position Advantages and Business Achievements in the Secondary Copper Sector. Jintian Co., Ltd. responded: The company has continuously innovated new pathways for the green development of copper-based high-tech materials and has become one of the enterprises in China with the largest utilization of secondary copper and the highest comprehensive utilization rate. It is also one of the few companies in the global industry to achieve a closed-loop entire industry chain covering secondary copper recycling, purification, and deep processing. The company’s independently developed low-carbon secondary copper products significantly reduce carbon emissions while ensuring product performance, enabling it to provide downstream clients across the industry chain with high-quality, comprehensive one-stop green solutions for copper semis. In H1 2025, sales of the company’s green, high-end, low-carbon secondary copper products increased 61% YoY. Its product matrix now covers copper strip, copper wire, magnet wire, copper pipe & tube, copper busbar, copper billet, and more, and has been applied in fields such as high-end consumer electronics, the automotive industry, and electrical equipment. Specific applications include laptop cooling modules, mobile phone vibration motors, NEV power battery connections, and AC/DC power supplies. The products have achieved mass production in the products of multiple world-renowned clients, forming a new performance growth driver represented by “green low-carbon secondary copper products.” An investor asked on the investor interaction platform: Have the company’s copper billet products now become core supplies for top-tier enterprises such as DJI Innovation or EHang Intelligent?With the boom in the low-altitude economy’s payload flight market, have the company’s PEEK materials or high-strength copper alloys developed for drone motor bearings and airframe structural components seen explosive growth in orders? On March 19, Jintian Co., Ltd. stated on the investor interaction platform that the company had a solid client base and technical reserves in the low-altitude economy field. Among its products, high-precision free-cutting copper billet, with excellent properties such as high strength and wear resistance, had already been applied in airborne structural components of low-altitude aircraft. The company’s PEEK material products provide high-voltage drive stability technical solutions for the low-altitude economy’s payload flight market, and it had already carried out R&D cooperation with multiple top-tier enterprises in China. The company will closely monitor and follow market demand in the low-altitude economy field, further improve its product portfolio, and enhance its product competitive advantages. For specific related information, please refer to periodic reports. An investor asked on the investor interaction platform: Hello, Board Secretary. Recently, LME copper prices have risen sharply. Under the company’s strictly implemented hedging strategy, did this generate positive gains from closing positions during the reporting period, or was there a slight loss? Approximately how much was the amount? In addition, as the company’s revenue scale expanded, how well did net operating cash flow match net profit in 2025? Was there any cash flow strain caused by prepayments for raw material procurement? On March 19, Jintian Co., Ltd. stated on the investor interaction platform that the company’s copper processing products adopted a pricing model of “raw material prices + processing fee” and carried out hedging operations in strict accordance with the Hedging Management System to reduce the impact of raw material price fluctuations on the company’s net profit. At present, fluctuations in copper prices had a relatively small impact on the company’s operating performance. For specific related information, please refer to periodic reports. On March 18, when responding to investor questions on the interaction platform, Jintian Co., Ltd. stated that the company had continued to expand its technological leadership in high-voltage electromagnetic flat wire and had further advanced cooperation on new energy high-voltage electromagnetic flat wire projects with world-class OEMs and motor suppliers. As of H1 2025, the company had secured 23 new nominations for its 800V high-voltage platform for new energy drive motors, and had already achieved bulk supply for multiple projects, with the shipment share of high-voltage flat wire continuing to increase. For specific related information, please refer to periodic reports. On March 17, when responding to investor questions on the interaction platform, Jintian Co., Ltd. stated that, with its outstanding electrical and thermal conductivity, copper had become a core material for chip interconnection in the advanced AI industry and heat dissipation in computing power facilities. The company had a solid client base and technical reserves in the AI computing power field. Among its products, the company’s high-precision shaped oxygen-free copper busbar products had already been applied in multiple top-tier GPU cooling solutions of several first-tier thermal module enterprises worldwide. The company will closely monitor and follow market demand in the AI computing power sector, further improve its product portfolio, and enhance its competitive edge. For specific information, please refer to the periodic reports. On March 17, Jintian Co., Ltd. said in response to investor questions on an interactive platform that the company continued to expand its technological leadership in the high-voltage electromagnetic flat wire industry, with both the number of designated projects on high-voltage platforms and shipment volume continuing to grow. Among them, the company's 1,000V flat wire products for drive motors have become an industry benchmark as supporting materials for "megawatt flash charging" technology in the NEV sector, while client-related certification for 1,200V flat wire for drive motors was also progressing in an orderly manner. In addition, the company had a solid client base and sound technical reserves in the chip and semiconductor sector. The company will closely monitor and follow market demand in the chip and semiconductor sector, further improve its product portfolio, and enhance its competitive edge. For specific information, please refer to the periodic reports. On March 17, Jintian Co., Ltd. said in response to investor questions on an interactive platform that the company remained committed to advancing its internationalization strategy, and construction of its newly built Thailand production site was progressing smoothly. The company's copper semis products exported outside China had an overall relatively high gross margin. In H1 2025, revenue from its principal operations outside China was up 21.86% YoY and continued to maintain a solid growth trend. The steady growth of business outside China laid a solid foundation for the company to deepen the upgrading of its global product and client mix. For specific information, please refer to the periodic reports. Jintian Co., Ltd.'s 2025 earnings forecast showed that, based on preliminary estimates by its finance department, the company expected net profit attributable to owners of the parent for 2025 to reach 700 million to 800 million yuan, representing an increase of 237.9574 million to 337.9574 million yuan from the same period last year (statutorily disclosed data), up 51.50% to 73.14% YoY. Net profit attributable to owners of the parent excluding non-recurring gains and losses for 2025 was expected to reach 440 million to 528 million yuan, representing an increase of 101.4004 million to 189.4004 million yuan from the same period last year (statutorily disclosed data), up 29.95% to 55.94% YoY. Regarding the main reasons for the expected increase in results for the period, Jintian Co., Ltd. stated: In 2025, the company implemented its "dual upgrade of products and clients" strategy, with product applications in high-end fields continuing to deepen; it stepped up expansion among clients outside China, and sales in markets outside China continued to grow; meanwhile, through digitalization initiatives, it improved operating and management efficiency, and its product gross margin level and profitability improved YoY. On January 23, Jintian Co., Ltd. said in response to investor questions on an interactive platform that Phase I of its Baotou base had been put into operation, and the annual capacity of rare earth permanent magnets had been increased to 9,000 mt. The company is currently actively advancing Phase II of the Baotou base project, with the aim of further increasing capacity to 13,000 mt. The company has a solid client base and technical reserves in the robotics field, and some rare earth permanent magnets have already been applied in the robotics sector. The company will closely monitor and follow market demand in the robotics field, further improve its product portfolio, and enhance its product competitiveness. A performance preview commentary on Jintian Co., Ltd. for 2025 released by Aijian Securities showed that the share repurchase demonstrated confidence in long-term development, while capital structure optimization was advancing steadily. The company’s high-end copper-based materials were being introduced at an accelerated pace to clients outside China in the computing power cooling sector, with sales rising rapidly and profitability improving significantly. 1) In terms of profitability, processing fees for copper busbar used in computing power are relatively high, and product mix upgrades are expected to continue lifting the company’s gross margin level; 2) In terms of shipment progress, in H1 2025, sales of the company’s copper busbar products in the cooling sector increased 72% YoY, and its high-precision profiled oxygen-free copper busbar has entered GPU cooling solutions of multiple global first-tier cooling module enterprises. The company’s copper heat pipes, liquid-cooling copper pipe & tube, and other products have also achieved bulk supply in computing servers of multiple top-tier enterprises. Copper prices fluctuations had a limited impact on the company’s profitability. 1) The company adopts a “copper prices + processing fee” pricing model, with revenue and profit primarily derived from processing fees rather than copper prices themselves. Processing fees are negotiated between the company and clients based on factors such as product specifications and process complexity, and show a certain degree of historical stickiness; 2) The company effectively hedges copper prices through hedging, while fluctuations in upstream raw material prices are mainly borne by downstream customers, resulting in a relatively small impact on the company’s profit; 3) Rapid copper prices fluctuations may affect downstream ordering willingness in phases and lengthen order cycles, but copper application scenarios are characterized by rigid demand, so the impact on total demand is limited, only changing the pace of copper product orders, and the company’s overall operating stability remains strong. The company is actively expanding into the “aluminum as an substitute for copper” direction, with material substitution optimizing the gross profit structure while enhancing its ability to hedge against copper prices fluctuations. 1) On a per-mt basis, the absolute value of processing fees for aluminum products is usually lower than that of copper-based solutions (at the same performance level, processing fees for high-precision aluminum extrusion are about 10,000 yuan/mt, versus about 20,000 yuan/mt for copper semis); however, since the per-mt price of aluminum semis is significantly lower than that of copper, usually about one-fourth of the latter, the material cost base is lower, increasing the share of processing fees in total product value. The corresponding processing fee rate of aluminum-based solutions is about 13–14 pct higher than that of copper-based solutions, providing positive support to the company’s overall gross margin; 2) In terms of supply progress, the company’s electromagnetic flat aluminum wire and aluminum 3D bent busbars for vehicles have entered the certification and mass supply stage, while inner-grooved aluminum pipe & tube for air conditioners has already begun small-batch supply. Risk Warning: Risks of lower-than-expected downstream demand for new energy or capacity release, rising copper prices, and changes in trade policies outside China.

Debt restructuring for real estate enterprises is expected to enter the "debt reduction era." Recently, Sunac China announced that holders of approximately 74% of the total outstanding principal amount of its existing debts had submitted letters to join the offshore debt restructuring support agreement. Country Garden also announced that it had reached a consensus with over 70% of its creditors on high-yield bonds in terms of offshore debt, aiming to complete the overall restructuring of offshore debt within this year. With Sunac and Country Garden successively announcing the progress of their offshore debt restructuring, the debt restructuring or reorganization of troubled real estate enterprises is accelerating. Since June, offshore debt restructuring plans of real estate enterprises such as CIFI and Golden Wheel Tiandi have basically been approved by creditors and will proceed to court hearings. Logan Group has released a debt restructuring plan, aiming to advance debt optimization efforts. At the same time, the debt restructuring model for real estate enterprises is shifting from extension to substantive debt reduction. Among them, Sunac's offshore debt restructuring plan is expected to reduce debt by approximately RMB 60 billion. Country Garden's offshore debt restructuring proposal is expected to reduce debt by up to $11.6 billion. CIFI's offshore debt restructuring is expected to reduce offshore debt by approximately $5.27 billion, equivalent to approximately RMB 37.9 billion. "If enterprises and investors can reach a consensus on the terms of debt restructuring involving 'debt reduction,' we believe that the short-term liquidity pressure on real estate enterprises will be alleviated, allowing them to devote more energy to asset revitalization and sales, which will have a positive impact on the stabilization of the entire industry," Shi Lulu, Director of Corporate Ratings, Asia Pacific at Fitch Ratings, told reporters. However, while reaching a restructuring agreement can alleviate external financing pressure, real estate enterprises still face challenges in internal operating cash flow. Shi Lulu believes that in the short term, the quality of existing projects and the ability to revitalize assets are important considerations for determining a real estate enterprise's endogenous cash flow and investor decisions. "Despite the continuous optimization and adjustment of policies by the central and local governments, the recovery of the real estate market may primarily be concentrated in first-tier cities and some strong second-tier cities. However, competition in these cities is intensifying, as most national state-owned real estate enterprises are also repositioning and focusing on developing in these cities," Shi Lulu said. "Whether restructuring real estate enterprises can replenish land in these cities will have a significant impact on their medium and long-term development." Acceleration of Debt Restructuring for Real Estate Enterprises Recently, leading real estate enterprises such as Sunac and Country Garden have successively announced the progress of their restructuring, with debt reductions often amounting to billions of dollars, signaling that the industry's debt resolution process has entered a critical stage. "Currently, Sunac has secured support from approximately 74% of all creditors, indicating that the offshore debt restructuring is substantially completed," a debt restructuring analyst said. When the court rules on a debt restructuring case, it is deemed approved if 75% of the creditors who participate in the vote cast affirmative votes. A source close to Sunac told reporters that once the offshore debt restructuring is successful, Sunac will become the first large-scale real estate enterprise in the industry to have its offshore debt basically cleared to "zero," significantly mitigating debt risks at the publicly listed firm level, with an estimated debt resolution of approximately 60 billion yuan. Sunac's offshore debt restructuring receiving a high level of support is not an isolated case. On June 5, Wu Bijun, Chief Financial Officer and Executive Director of Country Garden, stated at an online shareholders' meeting that consensus had been reached with over 70% of creditors on high-yield debt. In addition, CIFI Holdings has also made progress in its offshore debt restructuring. The company announced that it had secured the required statutory majority support from plan creditors at a plan meeting held on June 3, and it is expected that offshore debt will be reduced by approximately $5.27 billion after the restructuring. The next step is to seek court approval for the plan on June 26. On the same day, Logan Group announced the optimization and adjustment of its debt restructuring plan. Under the new restructuring plan, the 29 original credit enhancement assets of the underlying bonds will be used for the full conversion of the specific asset option, the asset-for-debt settlement mode (including in-kind debt settlement and trust debt settlement) under the asset-for-debt option, and the full debt retention option, maximizing the revitalization of credit enhancement assets. Meanwhile, the company's shareholders will raise additional cash and equity resources for the new restructuring plan. Liu Shui, Director of Corporate Research at the China Index Academy, told reporters that the acceleration of debt restructuring among real estate enterprises is attributed to two factors. First, distressed real estate enterprises are offering diversified restructuring methods, such as combining debt-to-equity swaps, debt maturity extensions, asset settlements, and cash payments, which can meet the needs of different creditors and improve the acceptability of the plans. Second, creditors' attitudes have shifted under the current market conditions. "The real estate market has been adjusting for a long time, and creditors are aware of the difficulty real estate enterprises face in repaying debts. Compared to bankruptcy liquidation and the continuous depreciation of assets, they are more inclined to accept restructuring plans to improve the debt repayment rate. Additionally, some creditors, after the continuous transfer of debts of distressed real estate enterprises, have lower holding costs. If the cash recovery value of the restructuring plan is more attractive, they are more willing to accept it." Debt-to-Equity Swaps and Debt Reduction Become Mainstream It is worth noting that this year, the debt restructuring of real estate enterprises has moved from maturity extensions and deferred payments into the deep waters of debt reduction and burden alleviation. According to the offshore debt restructuring plans of Sunac, Country Garden, and CIFI Holdings, a significant reduction in debt principal has become a core feature. This shift may be driven by severe debt pressures. Data from CRIC shows that the scale of debt maturities for real estate enterprises in 2025 will reach 525.7 billion yuan, further climbing from 482.8 billion yuan in 2024. "The scale of debt maturities for real estate enterprises this year is higher than that in 2024, posing greater debt repayment pressures. As multiple real estate enterprises advance their debt restructuring, the trend of increasing debt reduction ratios is gradually emerging," pointed out a research report by Orient Securities. "This year, the debt reduction ratios in the debt restructuring of many real estate enterprises are significantly higher than the levels in 2023," Zhang Bo, President of the 58 Anjuke Research Institute, told reporters. In the first five months of this year, the total sales of the top 100 real estate enterprises declined on a YoY basis, while the sales decline of distressed real estate enterprises was even more pronounced, directly leading to changes in the original cash flow forecasting models for these enterprises. "Under the new model, the future cash inflows of distressed real estate enterprises are expected to continue to decrease. This cash flow gap renders extension strategies ineffective. Only by reducing debt through debt reduction can the interests of creditors be maximized," Zhang Bo said. Liu Shui further explained that considering the decline in the absolute scale of the new home market over the long term and the fact that the market is still bottoming out in the short term, with asset depreciation pressures remaining, simply extending the repayment period may lead to issues of repeated overdue payments and secondary extensions, and cannot thoroughly resolve the debt crisis. "Therefore, debt-to-equity swaps and principal reductions can achieve a reduction in the company's debt scale, delay the overall debt repayment pressure, and debt-to-equity swaps also simultaneously increase net assets, which is conducive to repairing the company's balance sheet and creating conditions for an improvement in the company's fundamental business performance," Liu Shui said. Multiple industry analysts have pointed out that in the future, under the pressure of unstable new home sales and asset depreciation, real estate enterprises with greater debt repayment pressures will accelerate their debt restructuring processes, and increasing debt reduction ratios may become a widespread trend. Policy Environment Provides Support for Real Estate Enterprises' Debt Restructuring Behind the acceleration of real estate enterprises' debt restructuring lies the simultaneous improvement of the policy environment and market financing conditions. At the policy level, Li Yunze, Director of the National Financial Regulatory Administration, stated at a State Council Information Office press conference on May 7 that the government will expedite the introduction of a series of financing systems tailored to the new model of real estate development to help sustain and consolidate the stability of the real estate market. "This means that more supporting policies will be continuously implemented in the future, and loan support for enterprises will be continuously increased," Liu Shui said. It is expected that the "white list" policy for real estate project financing will continue to be refined to facilitate the substantial allocation of funds and improve the financial positions of enterprises. At the same time, the urban real estate financing coordination mechanism plays a positive role in ensuring the smooth construction and delivery of projects, stabilizing the confidence of financial institutions, alleviating the financial pressure on enterprises, promoting risk isolation and resolution, and driving improvements in market expectations, which is conducive to the smooth progress of debt restructuring work. A real estate industry analyst pointed out that it is expected that the role of policy support will become increasingly apparent. For example, the 4 trillion yuan financing white list and the acquisition and storage of existing housing and idle land by real estate enterprises will play a certain role in promoting the asset liquidation and debt repayment of distressed real estate enterprises. At the market level, financing costs for real estate enterprises have declined. Data from the China Index Academy shows that in May this year, the total bond financing of real estate enterprises was 28.88 billion yuan, up 23.5% YoY. The average interest rate for bond financing was 2.35%, down 0.43 percentage points YoY and 0.41 percentage points MoM. "In terms of institutional innovation in the future, tools such as tiered design of convertible bonds, service trusts, and optimization of M&A financing will be used to reshape the logic of debt restructuring for real estate enterprises. However, challenges such as the sustainability of sales recovery and slow credit repair still need to be addressed," said Zhang Bo. In fact, although the debt restructuring of real estate enterprises has accelerated, industry risks have not yet been fully cleared. Liu Shui believes that the success of a real estate enterprise's restructuring does not mean it is out of the woods. Successful debt restructuring will help mitigate risks, but for enterprises to truly emerge from the crisis, they still need the support of a market recovery. Only after their fundamentals improve can they avoid repeated extensions or restructuring.

As the lead industry continues to develop, the supply imbalance in the raw material sector is intensifying. In terms of lead concentrates, the tight supply situation is worsening. Additionally, due to the historically relatively high prices of gold and silver, smelters' demand for high-grade lead concentrates has increased. Meanwhile, the domestic processing fees for lead concentrates have continued to hit new lows. In terms of scrap, according to the SMM survey, in recent years, the generation of scrap batteries has not matched the processing capacity for scrap batteries. The capacity of secondary lead is in a state of oversupply. In 2024, the new capacity of secondary lead continued to increase, while the domestic supply of scrap was limited. Moreover, there was a loss of scrap in exports. Coupled with the traditional off-season in the lead-acid battery market in the first half of the year, with battery scrap volumes at a low point for the year, the supply imbalance has intensified. To enable industry peers to have a clearer and more intuitive understanding of the global market distribution of lead ingot raw material industries, SMM, in collaboration with Zhejiang Gang Lianjie Logistics Technology Co., Ltd., is proud to launch the "2025 Global Lead Ingot Raw Material Enterprise Resource Distribution Map". After annotation and typesetting, it will be printed and distributed to upstream and downstream customers in the industry. It aims to provide an authoritative, comprehensive, and professional overview of the lead ingot raw material industry, establish a communication bridge between enterprises across the industry chain, break down information barriers between upstream and downstream sectors, and jointly promote the healthy and green development and upgrading of the lead industry. Zhejiang Gang Lianjie Logistics Technology Co., Ltd., is an AAAA-level comprehensive service logistics enterprise affiliated with the Ningbo Zhoushan Port Group system. It is a joint venture established by Zhejiang Seaport Logistics Group and Box Technology (Shenzhen) Co., Ltd. It has obtained China Quality Management System Certification, with the number: 00124Q37205ROM/3302, and is a state-controlled enterprise. Relying on the brand advantages of Ningbo Zhoushan Port, the company adheres to the principle of taking Ningbo Zhoushan Port as the main body and closely revolves around the strategic business layout of Ningbo Zhoushan Port to provide customers with modern and comprehensive logistics services. The company has opened an Anhui branch in 2023, established a Malaysian subsidiary, and will open a German subsidiary in Wilhelmshaven, Germany, by the end of 2024. Currently, the Thai company has completed its registration and is in further planning. The company can provide logistics services centered on Malaysia and Thailand, radiating to various Southeast Asian countries, including but not limited to door-to-door cargo pick-up, warehouse (warehousing and in-warehouse operations), ocean freight booking, import and export customs clearance, etc. In terms of business performance, the company has ranked first in import agency volume at Ningbo Port for two consecutive years (2023 and 2024) and first in non-ferrous metal agency volume at Ningbo Port. It has also been honored with the "Top Ten Import Freight Forwarding Enterprises" award for two consecutive years in 2023 and 2024. Domestically: In terms of import business, the company provides full-chain import logistics services, covering international multimodal transport, port customs clearance, bonded customs declaration, transportation, warehousing, etc., covering almost all bulk raw materials: such as non-ferrous metals, plastic pellets, agricultural and sideline products, pulp, grain, recycled materials, hazardous goods, cold chain, bulk cargo, petroleum and petrochemical products, food, minerals, etc. Overseas: Zhejiang Gang Lianjie (Malaysia) Logistics Technology Co., Ltd. (a subsidiary), located in Selangor, Malaysia, 20 kilometers away from Port Klang West, 23 kilometers away from Port Klang North, and 34 kilometers away from the Port Klang Bonded Free Trade Zone. It is mainly engaged in international freight forwarding for imports and exports, with Malaysia as the center to radiate throughout Southeast Asia, and carries out related businesses. Contact Information Chen Dong (Imports) 13901649539 Zhu Yong, Overseas Project Leader and General Manager of the Malaysian Subsidiary 18501669898 Chen Lei (Imports) 13857876948 Shi Qihao (Imports) 13777188184 Contact Person for SMM Map Co-production Tian Cheng 19521491689 tiancheng@smm.cn

In the first quarter of 2025, PT Merdeka Battery Materials Tbk. (MBMA), a subsidiary of Merdeka Copper Gold, demonstrated strong performance in its nickel business despite ongoing low nickel prices. The SCM mine achieved year-on-year growth in ore production while significantly reducing costs. A major operational highlight was the AIM acid plant setting a quarterly production record of 168,738 tons of acid. MBMA also made two key advances in its downstream strategy: in December 2024, PT ESG New Energy Material produced its first batch of MHP nickel, marking Merdeka’s official entry into the battery-grade materials sector; in January 2025, construction began on the PT Sulawesi Nickel Cobalt (SLNC) HPAL plant, which is expected to produce 90,000 tons of MHP nickel annually and aims to begin operations within 18 months. PT ESG and PT SLNC together form the foundation of Merdeka’s integrated battery materials value chain, positioning the company as an emerging player in the global electric vehicle battery supply chain. However, unaudited quarterly revenue fell 7% year-on-year to USD 504 million, mainly due to a USD 79 million drop in nickel-related income.

At the CLNB 2025 (10th) New Energy Industry Chain Expo - Battery Materials Forum hosted by SMM Information & Technology Co., Ltd., Chief Scientist of Sichuan Development Longmang Co., Ltd. and Professor at Central South University, Guorong Hu, shared insights on the topic "Technical Progress and Opportunities of LFP Materials."

Huayang Group: Automotive Electronics, Precision Die Casting, and Other Core Businesses Accelerate, Achieving Record High Net Profit in 2024. According to the 2024 annual report disclosed by Huayang Group on the evening of March 28, in the face of intense competition and rapidly changing industry trends, the company focused on the central tasks of "orders and delivery" in 2024, driven primarily by R&D innovation and cost competitiveness. This resulted in dual high growth in both operating revenue and net profit, with operating revenue exceeding 10 billion yuan and net profit reaching a record high.

In the upcoming year of 2025, we anticipate that the global economy will face a series of complex and volatile challenges. With the conclusion of the US presidential election, the uncertainty of global trade policies is expected to further increase, presenting new issues for international trade cooperation. In the realm of geopolitics, ongoing conflicts and tensions show no significant signs of easing, posing threats not only to global security but also significantly impacting resource allocation and industrial layout. Against this macro backdrop, industrial relocation and supply chain restructuring have become key topics that we must closely monitor. At the industrial level, the trend of protectionism in mineral resources is on the rise, directly affecting the stability of global copper concentrate TCs. With the rapid expansion of global smelting capacity, the profit margins of copper smelters are further compressed, and the challenges faced by the industry are becoming increasingly severe. In the field of secondary copper raw materials, the advancement of Environmental, Social, and Governance (ESG) standards and the "dual carbon" goals have significantly increased market attention to secondary copper. However, the "reverse invoicing" policy implemented in 2024 and the "Fair Competition Regulations" have had a profound impact on the secondary copper industry. Looking ahead to 2025, the changes in the landscape of the secondary copper industry will have a critical impact on the entire copper industry chain. Additionally, with the cancellation of tax subsidies and other incentives, the space for copper cathode trade is expected to further narrow. We predict that the procurement ratio of copper processed materials between traders and smelters will show a more pronounced differentiation. In this context, the "CCIE 2025 SMM (20th) Copper Conference and Copper Industry Expo" meticulously prepared by SMM will be grandly held in Nanchang, Jiangxi from April 22-25, 2025. Shengjing Bank Co., Ltd. will make a splendid appearance at this conference. We will move forward with the times, aim at our goals, and strive with determination and courage! Click the registration form to sign up immediately, and we look forward to meeting you at the conference. Booth number: D5. Shengjing Bulk - A financial professional service provider specializing in bulk commodities. Shengjing Bank, headquartered in Shenyang, Liaoning Province, is a state-owned city commercial bank in Shenyang and the largest and most powerful headquarters bank in northeast China. On December 29, 2014, our bank was successfully listed on the Main Board of the Hong Kong Stock Exchange (stock code: 02066). With excellent product services, outstanding management capabilities, and superior business performance, Shengjing Bank has won high praise from the market, being selected as one of China's top 20 banks in Forbes' "World's Best Banks" ranking, ranked 146th in the "Top 1000 World Banks" list by The Banker magazine, and honored as one of the "Top 500 Chinese Enterprises," "China's Most Regionally Competitive City Commercial Bank," and "Top 100 Hong Kong Stocks." Spot commodity financing product - "Yun Cang Loan." "Yun Cang Loan" is a spot financing financial product launched by Shengjing Bank for bulk commodity customers. Applicants only need to pledge the spot commodities stored in the warehouses of Shanghai Port Group Logistics to our bank and establish corresponding short hedging positions at Jianxin Futures Co., Ltd. to apply for short-term working capital loans. Product advantages: Wide range of collateral: Six basic metals including copper, aluminum, lead, zinc, nickel, and tin. Multiple forms of collateral: Covering semi-finished products and raw materials such as copper rod, aluminum billet, and copper concentrates. High collateral ratio: The pledge rate is up to 90% (90% of the cargo value). Low financing cost: Interest is calculated daily, with no minimum loan term and no supervision fee. High operational efficiency: Pledge and loan on the same day; repayment and release of pledge on the same day. Low entry threshold: Established for more than 2 years, with an annual turnover of more than 100 million yuan and no consecutive losses. Flexible model: Supports full-scenario financing such as prepayment financing, spot pledge, and selling goods for repayment. Shanghai Branch Bulk Finance Department. SMM Conference Contact: Yao Ma, 18321395342, mayao@smm.cn.