[Price Review] During the week, silver prices remained in the doldrums. In China, the Ag (T+D) contract on the Shanghai Gold Exchange broke below the support level of 18,000 yuan/kg, while LBMA silver prices kept probing lower after falling below $75/oz. From a macro perspective, escalating geopolitical conflict in the Middle East pushed oil prices to repeated new highs, while intensifying inflation concerns significantly cooled expectations for US Fed interest rate cuts and delayed the timing of the first cut to year-end. The simultaneous strength in the US dollar index and US Treasury yields became the core factors suppressing silver prices. On Wednesday local time, the US Fed announced that it would keep interest rates unchanged. In the statement released that day, it noted that the impact of the Middle East situation on the US economy remained uncertain and that uncertainty surrounding the US economic outlook was still elevated. In addition, speculative demand and ETF holdings continued to decline, and market sentiment kept cooling. As for the gold/silver ratio, because silver posted a deeper decline, the ratio continued to rise. As of March 18, the LBMA gold/silver ratio had climbed to 63, a recent high. [Important Data] Bullish: US preliminary March one-year inflation expectations came in at 3.4%, above expectations and unchanged from the previous reading Bearish: US API crude oil inventory for the week ended March 13 increased by 6.556 million barrels, above expectations and the previous reading US EIA crude oil inventory for the week ended March 13 increased by 6.156 million barrels, above expectations and the previous reading Data and macro releases to watch next week include: Continued hawkishness from the US Fed, the ECB rate decision, US inflation/employment data, COMEX silver delivery, together with the Boao Forum and geopolitical risks On March 19, the FOMC kept rates unchanged at 3.50%–3.75%, raised its 2026 PCE forecast to 2.7%, and expectations for US Fed interest rate cuts cooled sharply. US-Iran Situation: As of March 19, the military strikes by the US and Israel against Iran had entered their 19th day, with high-intensity confrontation, no sign of a ceasefire, and the conflict spreading to multiple Gulf countries. In terms of the current impact on precious metals, financial suppression outweighed safe-haven demand. Against the backdrop of surging inflation expectations, the US dollar and US Treasury yields continued to rise, the timing of US Fed interest rate cuts was delayed, and silver prices were suppressed. [Price Forecast] Silver prices are expected to maintain a fluctuating trend in the doldrums amid the interplay between macro disruptions and fundamentals. On the macro front, caution is still warranted over the risk of continued US dollar strength and heightened volatility from any further escalation in the US-Iran conflict. On the fundamentals side, as PV export rush orders gradually approached their end, rigid demand for raw material procurement by silver nitrate enterprises declined in late March, weakening support from industrial demand. In China's spot market, as investment demand and rigid industrial demand softened, coupled with replenishment from imported silver ingots, circulating supply of silver ingots in the spot market became ample, and suppliers generally lowered spot premium quotes to facilitate transactions. The abnormally high spot premiums in China's spot market will come to an end. At the same time, profitability on imported silver ingots will also decline sharply, and spot premium quotes in actual spot silver ingot transactions are expected to return to rational levels.

This week, lithium ore prices continued to follow lithium carbonate in a fluctuating downward trend. Supply side, the volume of cargoes available for circulation in the market gradually decreased recently, while mines outside China showed stronger willingness to make shipments amid fluctuations, with some mines outside China conducting several auctions during the week. Demand side, inquiries and procurement sentiment for lithium ore remained relatively strong, but due to the large recent market fluctuations, back-and-forth negotiations between upstream and downstream intensified, and wait-and-see sentiment persisted, though overall transaction activity improved. Overall market transaction prices continued to follow the fluctuating trend in lithium carbonate futures.

The current spot rhenium metal market in China is characterized by divergence between upstream and downstream segments of the industry chain, two-way bargaining in supply and demand, and high-level price consolidation. Overall market performance is jointly influenced by multiple factors, including macro investment sentiment, the pace of stockpiling across the industry chain, overseas supply chain risks, and China’s supply and demand fundamentals. I. Upstream: Stable Price Range, Faster Producer Shipments In China’s upstream rhenium metal market, mainstream producers maintained stable raw material quotations, with the core price range controlled at around 28,000. Only a few producers raised raw material quotations to around 30,000. The overall price structure remained clearly tiered, with no wild swings. From the circulation side of the market, upstream producers recently showed stronger willingness to sell, and shipment frequency increased significantly. II. Midstream: Concentrated Scheduled Production, Low Acceptance of High-Priced Ammonium Perrhenate Midstream smelters and rhenium processing enterprises are currently in scheduled production, with pre-holiday order deliveries relatively concentrated. Most producers are scheduled to complete deliveries in March and April. From the cost side and purchasing sentiment, midstream processing enterprises generally showed low acceptance of high-priced ammonium perrhenate. The procurement side is more inclined toward rational bargaining and resists rushing to buy amid continuous price rise at high levels. This sentiment directly constrained the upside room for ammonium perrhenate prices. III. Downstream: Cooling Investment Sentiment, Steadily Recovering Industrial Demand Downstream demand showed clear structural divergence, with investment demand and industrial demand moving in opposite directions, becoming the core factor affecting short-term market sentiment. On the one hand, previously active investment demand gradually cooled, market investment sentiment weakened, and retail investors showed panic-driven exit sentiment. Low-price sell-offs began to appear in the market one after another, and some holders chose to sell below market prices in order to recover funds quickly, which to some extent impacted short-term transaction prices in the spot market. On the other hand, industrial demand showed a healthy trend of steady return and continued growth. As the core support for rigid demand in the rhenium metal market, the recovery in industrial demand provided a solid fundamental floor for the market and offset part of the bearish impact brought by investment-driven selling. IV. Outlook Considering the macro market environment and the supply and demand fundamentals of the industry chain, the core logic of the current rhenium market in China is clear: bullish and bearish factors are intertwined and in competition, jointly keeping prices in a high-level consolidation range. The specific influencing factors and market outlook are as follows: In the short term, affected by the international macro situation, investment enthusiasm in the energy sector remained elevated and diverted market funds, while overall investment sentiment in the nonferrous metals sector pulled back significantly. This sentiment gradually transmitted to the niche rare metal rhenium market, suppressing investment-side enthusiasm. In addition, around the Chinese New Year, upstream and downstream producers across the industry chain had already completed phased restocking, leaving market inventory in a relatively ample state. Raw material prices therefore lacked the momentum for a sharp increase, and short-term upside room for prices is limited. In the long term, competition in the international critical minerals sector intensified, and critical minerals consultations between the US and Chile continued to advance. The trend toward exclusive cooperation in global critical minerals supply chains became increasingly evident, directly leading to reduced stability in import channels for ammonium perrhenate from outside China, while external supply risks continued to rise; the supply of ammonium perrhenate showed a tightening trend, providing support for prices.

[SMM Magnesium Weekly Review: Weak Supply and Demand Dominated Magnesium Price Trends, with Structural Divergence Across Segments] This week, trends across various products in China’s magnesium industry chain diverged, while the overall market maintained a core tone of stability with rangebound fluctuations. The stalemate in market supply and demand became more pronounced, with insufficient momentum for a unilateral market move. The upstream dolomite market remained stable. Although a top-tier enterprise in the Wutai region suspended production, ample raw material inventory in place and timely capacity replenishment in major producing areas, coupled with the steady pace of just-in-time procurement by primary magnesium enterprises, kept prices stable without fluctuations. As the core product, magnesium ingot prices in China’s main producing areas consolidated at high levels, and mainstream transaction prices remained stable. Market transactions showed mediocre performance, producers had strong sentiment to hold back sales, and under the pattern of weak supply and demand, quotations fluctuated rangebound. On the foreign trade side, FOB quotations loosened slightly. As ocean freight rates pulled back, inquiries from outside China recovered somewhat, and there were expectations for more long-term orders. Supported by raw materials and boosted by incoming foreign trade orders, the magnesium powder market saw firm quotations and held up well. Industry operating rates gradually recovered in March, and support from the demand side became increasingly evident. Magnesium alloy market prices overall remained stable. On the supply side, with top-tier enterprises resuming operations and newly added capacity gradually coming online and releasing volume, downstream buyers mainly focused on just-in-time restocking, presenting a pattern of strong supply and weak demand. Prices are expected to remain in the doldrums going forward. Looking across the entire industry chain, there have been no major changes in current market fundamentals, and in the short term, the market will still likely be dominated by steady fluctuations and localized marginal adjustments.

[SMM Silicone Weekly Review: The Center of Market Transactions Shifted Slightly Lower, and Downstream Wait-and-See Sentiment Increased] This week, the quotation range for mainstream quotations in China’s silicone DMC market was 13,800-14,300 yuan/mt, down 100 yuan/mt WoW. Overall market trading sentiment remained weak, with increased back-and-forth negotiations between upstream and downstream. As raw material support still persisted, midstream players remained cautious in procurement sentiment, and wait-and-see sentiment in the market was strong.

SMM News, March 19: Data Brief: As of Thursday, March 19, copper inventories in SMM's major regions nationwide fell 8.85% WoW from last Thursday, while total inventories increased 176,700 mt YoY from the same period last year, with all regions posting destocking. By region, copper cathode inventories in Shanghai continued to decline, as arrivals of domestic material gradually decreased after the end of delivery, while warehouse withdrawals gradually exceeded warehouse inflows amid consumption support; in Jiangsu, inventories also continued to destock, as demand in northern China recovered, arrivals of domestic material decreased, and local consumption rebounded; in Guangdong, inventories also trended downward, supported by a marked recovery in downstream demand and slightly tighter supply. Looking ahead, on the supply side, imported material continued to arrive at ports, but arrivals of domestic material decreased due to the end of delivery; on the demand side, the sharp pullback in copper prices clearly stimulated downstream procurement. Based on the overall supply-demand pattern, supply is expected to remain tight next week while consumption steadily rebounds, and weekly copper cathode inventories are expected to continue destocking.

Today, spot #1 copper cathode in North China was quoted at a discount of 40 yuan/mt to a premium of 40 yuan/mt against the front-month contract, with the average premium/discount at parity, up 60 yuan/mt from the previous trading day. The average transaction price was 95,645 yuan/mt, down 3,375 yuan/mt from the previous trading day.

The current domestic rhenium spot market in China is characterized by differentiation across the industrial chain, two-way supply-demand game, and high-level consolidation. Overall market conditions are jointly driven by multiple factors, including macro investment sentiment, inventory restocking cycles, overseas supply chain risks, and domestic fundamental supply and demand. I. Upstream: Stable Price Range, Accelerated Shipments Major domestic upstream rhenium producers maintain stable raw material quotations, with the mainstream price range around 28,000. Only a small number of suppliers offer prices as high as around 30,000, forming a clear tiered price structure without major fluctuations. Recently, upstream producers have shown stronger willingness to sell, with a notable increase in shipment frequency. II. Midstream: Scheduled Production, Low Acceptance of High-Priced Ammonium Perrhenate Midstream refineries and rhenium processors are currently operating under scheduled production. Order deliveries are concentrated, with most manufacturers scheduled to fulfill orders in March and April.In terms of cost control and purchasing sentiment, midstream processors generally show low acceptance of high-priced ammonium perrhenate. Buyers tend to negotiate rationally and resist chasing high prices, which directly caps the upward room for ammonium perrhenate prices. III. Downstream: Cooling Investment Sentiment, Steady Recovery in Industrial Demand Downstream demand exhibits significant structural divergence between investment demand and industrial demand, which has become the key factor affecting short-term market sentiment. On the one hand, previously active investment demand has cooled, accompanied by panic selling among retail investors. Increasing low-price sell-offs have emerged in the market as holders offload at discounted prices to accelerate capital turnover, weighing on short-term spot transaction prices. On the other hand, industrial demand has steadily recovered and maintained growth. As the core rigid support for rhenium, the recovery of industrial demand provides a solid fundamental floor, offsetting part of the negative impact from investment-driven sell-offs. IV. Market Outlook Based on the macro environment and industrial supply-demand fundamentals, the domestic rhenium market is in a balanced game between bullish and bearish factors, keeping prices in high-level consolidation. Short-term Outlook Affected by the international macro environment, investment enthusiasm in the energy sector remains high, diverting capital away from non-ferrous metals. The overall weakening investment sentiment in the non-ferrous sector has spilled over to the niche strategic metal rhenium, suppressing investment demand.In addition, most market participants completed phased restocking around the Spring Festival, leaving inventories at relatively sufficient levels. As a result, raw material prices lack upward momentum, with limited room for significant gains in the short term. Long-term Outlook Geopolitical competition over critical minerals is intensifying. Progress in critical minerals negotiations between the U.S. and Chile, along with rising exclusive cooperation in global critical minerals supply chains, has reduced the stability of overseas ammonium perrhenate import channels and raised external supply risks.The expected tightening in ammonium perrhenate supply will provide strong support to market prices.

Refined Cobalt: This week, spot refined cobalt prices generally fluctuated around 430,000 yuan/mt. During the week, prices briefly surged on news of procurement by overseas traders and export controls in the DRC, but later pulled back into the fluctuation range as macro sentiment weakened and downstream procurement follow-through proved insufficient. In terms of supply, ex-factory prices at mainstream smelters remained stable, traders' spot-futures price spread quotations were steady, and there were no significant changes in the structure of cargoes circulating in the market. In terms of demand, affected by weak cost pass-through, downstream enterprises still showed low acceptance of high-priced raw materials and only maintained a pace of just-in-time stockpiling, with no significant increase seen in actual transactions. Fundamentally, the DRC's export control policy further increased uncertainty over cobalt intermediate products exports, while the pattern of structural tightness in China's raw material supply remained unchanged, continuing to provide bottom support for cobalt prices. Cobalt Intermediate Products: This week, cobalt intermediate product prices continued to hold steady, and the market remained in a pattern of "prices quoted but no trading." In terms of supply, the impact of the DRC's export control policy continued to unfold, market concerns over whether miners could ship smoothly intensified, suppliers' bullish expectations heated up, and they continued to withhold quotations, leaving extremely scarce spot cargoes available in the market. In terms of demand, although smelters still had willingness to procure raw materials, constrained by cobalt salt prices that struggled to catch up, and with downstream orders yet to become clear, enterprises maintained a cautious wait-and-see stance, and actual transactions remained sluggish. Overall, ongoing disruptions in the DRC's export process continued to cast doubt on the timing of bulk arrivals at port, and the structurally tight raw material situation in China may further intensify. Once downstream orders are gradually finalized and procurement demand restarts, intermediate product prices are still expected to have upward momentum. Close attention should be paid to the progress of DRC exports and the pace of downstream demand recovery. Cobalt Sulphate: This week, spot cobalt sulphate prices continued to remain stable. In terms of supply, supported by tight raw materials, most smelters held firm on quotations in the range of 95,000-98,000 yuan/mt. During the week, the DRC's export control document strengthened traders' expectations for a rise in future cobalt salt prices, and low-priced shipments in the market decreased significantly. In terms of demand, most enterprises remained concerned about future orders, and with their own raw material inventory relatively sufficient, they prioritized inventory consumption and only maintained sporadic just-in-time procurement, mainly at low prices. Overall, the market remained in the inventory digestion stage in the short term, with continued bargaining between sellers and buyers, and prices were mainly driven by rangebound adjustments. However, the DRC raw material supply issue has yet to be resolved, and cost support still exists. Once downstream inventories are depleted and procurement restarts, cobalt sulphate prices are expected to regain upward momentum.

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.