South Korea’s LS Group recently saw its market value rise to around KRW 64 trillion, driven by growing demand for AI-related power infrastructure. Its subsidiary LS Cable & System, a major global high-voltage cable supplier, continues to benefit from investment in AI data centres, grid upgrades, and energy infrastructure. Public information shows orders for high-voltage transformers, cables, and ESS continue to grow across North America and Asia, with particularly strong expansion in Southeast Asia. Sales from subsidiaries in Vietnam and Indonesia have also accelerated. As AI data centre construction expands, market attention remains on copper demand linked to cables, power equipment, and grid upgrades.

SMM, April 22: The global new energy and AI industries maintained high prosperity, coupled with traditional consumer electronics entering a seasonal peak, driving a comprehensive recovery in demand for copper foil and high-speed connectivity products. In March 2026, China's copper foil exports hit a single-month record high. The power and ESS sectors maintained high prosperity with steadily growing orders; AI-related orders remained robust, with optimistic demand for copper foil across all specifications, and the operating rate of copper foil enterprises rose both YoY and MoM in March. Supported by these fundamentals, copper cable high-speed connectivity, as a core component of AI computing infrastructure, continued to see improving demand expectations. Combined with resonating capital sentiment in the sector, copper cable high-speed connectivity concept stocks strengthened overall on April 22. As of the close on the 22nd, the copper cable high-speed connectivity concept rose 2.29%. Among individual stocks, Far East Holdings hit the daily limit, while Hengtong Optic-Electric, ZTT, Shenlan Technology, Changxin Bochuang, Zhaolonginterconnect, and Kingsinno led the gains. News [State Council: Advancing Computing Power Layout and Edge Computing Power Development in an Orderly Manner, Improving Intelligent Computing Cloud Service System] The State Council issued the "Opinions on Promoting the Expansion and Quality Improvement of the Service Industry." It mentioned deepening the implementation of the Industrial Internet innovation and development project, advancing the industrial data foundation initiative, cultivating data cooperation consortia, and building a number of high-quality industry datasets. It also called for developing professional services such as data annotation and certification, exploring the establishment of classified and graded mechanisms for data rights confirmation, evaluation, and pricing. Computing power layout and edge computing power development will be advanced in an orderly manner, and the intelligent computing cloud service system will be improved. The application of urban information modeling platforms and building information modeling technologies will be accelerated. [China's Intelligent Computing Power Scale Reaches 1882 EFLOPS] Zhang Yunming, Vice Minister of the Ministry of Industry and Information Technology, stated on the 21st that computing power infrastructure has become a key foundation driving the development of artificial intelligence. As of month-end in March, China's intelligent computing power scale reached 1882 EFLOPS. At a press conference held by the State Council Information Office on the same day, Zhang Yunming said that recently, the Ministry of Industry and Information Technology has been making sustained efforts in key areas such as enabling small and medium-sized enterprises with inclusive computing power and computing-electricity coordination, and the computing power industry has shown a positive development trend. Industrial innovation has become stronger, with the in-depth implementation of the computing power foundation "open competition" initiative, the conduct of policy research and standard formulation for computing-electricity coordination, and the promotion of accelerated implementation of generation-grid-load-storage and green electricity direct connection. Network transmission has become smoother, with over 70 computing power corridors built around computing power hubs over the past two years, and the implementation of the metropolitan "millisecond computing" special initiative, among others. [National Advanced Computing Industry Innovation Center Qingdao Base Officially Launched] According to Sugon, on April 22, the National Advanced Computing Industry Innovation Center Qingdao Base was officially launched in Laoshan District, Qingdao. The National Advanced Computing Industry Innovation Center is a national-level industrial innovation platform established in 2018 with the approval of the National Development and Reform Commission (NDRC), aimed at achieving breakthroughs in core technologies in the field of advanced computing and fostering internationally competitive industrial clusters. The Qingdao base launched this time, co-built with the participation of Sugon, will leverage regional industrial advantages to create an advanced computing innovation platform integrating technology R&D, commercialization of research outcomes, and industrial incubation, further pooling industry resources, driving regional industrial intelligent upgrading, and injecting strong "computing power momentum" into the digital economy development of Qingdao and even Shandong Province. [Yuandong Holdings: Q1 2026 Net Profit of 96.6284 Million Yuan, up 110.36% YoY] Yuandong Holdings disclosed its Q1 2026 report on April 22. The company achieved total operating revenue of 5.325 billion yuan, up 9.26% YoY; net profit attributable to the parent company was 96.6284 million yuan, up 110.36% YoY. [Rickda: Achieved Small-Batch Delivery of 400G/800G Products and Is Driving Capacity Ramp-Up] Rickda released an investor relations activity record announcement. The company is a quality supplier capable of simultaneously providing comprehensive solutions for optical, electrical, microwave, high-speed data, and fluid connections. It has also deployed multiple products for AI applications, including power supply, high-speed transmission, and liquid cooling categories. High-speed copper cable connector-related products are primarily led by Suzhou Richuang Connection Technology Co., Ltd., with planned products mainly including AEC, DAC, and ACC high-speed copper cable products, high-speed board-to-board connectors, high-speed I/O connectors, and other product series. Currently, Richuang has achieved small-batch delivery of 400G/800G products and is driving capacity ramp-up, while multiple products with even higher speeds are also progressing as planned. [Tongguan Copper Foil: The Company's High-Frequency High-Speed PCB Copper Foil Can Be Widely Used in 5G Communication Equipment, High-Computing-Power Servers, and Other Network Equipment and Network Connectors] Tongguan Copper Foil stated on the investor interaction platform on March 23 that the company's high-frequency high-speed PCB copper foil can be widely used in 5G communication equipment, high-computing-power servers, data centers, switches, and other network equipment and network connectors. [Xinhongye: Dedicated Technical Research Has Been Conducted in the High-Speed Copper Cable Connection Field for Intelligent Computing Scenarios] Xinhongye stated on the interaction platform on March 17 that the company pays close attention to the development trends of computing power data centers and the computing-power-and-electricity synergy industry, and will leverage its core business and technological advantages to continuously track industry dynamics and prudently evaluate opportunities for penetration and deployment in related fields. The current AI intelligent computing industry is trending toward the parallel development and synergy of optical and copper solutions. Leveraging its core copper cable technology advantages, the company has launched dedicated technical research in the high-speed copper cable connectivity domain for intelligent computing scenarios. Meanwhile, in line with the industry's technological evolution, the company maintains forward-looking technical research and market tracking in fiber optic-related fields, and is expected to steadily advance related deployments based on industry demand, technological development, and its own strategic planning. AI-Related Orders Remain Red-Hot with Optimistic Demand across All Copper Foil Specifications According to SMM, the operating rate of Chinese copper foil enterprises rose both YoY and MoM in March 2026. Downstream demand recovered rapidly after Chinese New Year, with both production and sales of lithium battery copper foil and electronic circuit copper foil climbing in March, bringing the overall industry operating rate close to 90%. End-use demand side, the power and ESS sectors maintained high prosperity with steady order growth. The traditional consumer electronics industry transitioned smoothly into peak season, AI-related orders remained red-hot, and demand across all copper foil specifications performed optimistically . Global New Energy and AI Industries Show High Prosperity — March Copper Foil Exports Hit a Single-Month Record High According to data from the General Administration of Customs, China's copper foil (HS codes: 74101100, 74102190) imports in March 2026 totaled 8,220.04 mt, up 11.88% YoY and up 27.59% MoM. China's copper foil exports in March 2026 totaled 6,663.48 mt, up 56.19% YoY and up 38.23% MoM. Statistics showed that both China's copper foil imports and exports rose to elevated levels in March 2026, with exports hitting a single-month record high. Global new energy and AI industries exhibited high prosperity, coupled with optimistic demand during the seasonal consumption peak. Voices from Various Parties A Huaxi Securities research report stated that external geopolitical risks persist at the current juncture, and market risk appetite may affect short-term market fluctuations. AI remains a key investment theme in the near term, with attention on domestically produced computing power and computing power leasing driven by supply-demand imbalance, as well as optical module and fiber optic cable segments with strong earnings certainty. Computing power supply-demand imbalance is intensifying, with computing power consumption expanding sharply and the three major cloud providers collectively raising prices. On one hand, the current supply-demand imbalance reflects robust demand in upstream chips and computing power leasing industries, with enhanced bargaining power driving price increases, benefiting domestic AI chip and computing power leasing producers. On the other hand, rising AI service costs will be transmitted to downstream application development, potentially accelerating downstream industry consolidation and improving computing power utilization efficiency. Changjiang Securities believed that geopolitical conflicts were accelerating the restructuring of global supply chains, enhancing China's irreplaceability as the "world's factory," and that related export chain and manufacturing leading assets may command a "scarcity premium." In terms of allocation, regardless of whether the Middle East conflict fluctuated, three main themes should be firmly pursued. First, the AI trend that conflicts could hardly alter — focusing on AI infrastructure such as computing power, storage capacity, and power equipment, as well as "HALO" asset opportunities. Second, the urgency of conflicts accelerating the energy revolution — focusing on new energy sectors such as lithium battery and hydrogen energy, as well as resource commodities including non-ferrous metals, oil, and coal. Third, sectors at cyclical bottoms where earnings were expected to gradually improve, such as chemicals, steel, and condiments. Data showed that the CSI A500 Index, closely tracked by A500 ETF South China, covered high-quality large- and mid-cap leading enterprises in A-shares, evenly distributed across core areas such as emerging manufacturing and consumption upgrading, with a focus on new quality productive forces. Investors could gain exposure through A500 ETF South China and its feeder funds in one step. A Huatai Securities research report believed that, with the rapid increase in demand for 800G and 1.6T optical modules in recent years and the approaching 3.2T era, the development opportunities for upstream core materials of optical modules were promising. It systematically reviewed the growth logic of two major industries — InP substrates and thin-film lithium niobate. InP substrates, as upstream core raw materials for optical chips, benefited from the rapid boost in demand from optical chip producers, with the industry showing an undersupply trend. Modulators made from thin-film lithium niobate, leveraging advantages such as low power consumption and high bandwidth, were expected to enter an adoption window in 3.2T pluggable solutions in the future, with broad growth potential across the industry chain. A Shanxi Securities research report indicated that NVIDIA made a $2 billion strategic investment in Marvell to cooperate on expanding the NVLINKFusion ecosystem. On March 31 local time, NVIDIA and Marvell announced a strategic partnership to connect Marvell with NVIDIA's AI factory and AI-RAN ecosystem through NVIDIA NVLINKFusion. Marvell would provide customized XPUs and NVLINKFusion-compatible expansion networks, while NVIDIA would provide supporting technologies, including Vera CPU, ConnectX NICs, Bluefield DPU, NVLINK interconnects, and SpectrumX switches, as well as rack-scale AI computing. Marvell is one of the world's leading ASIC custom service providers, with clients including AWS, Microsoft, and Google. It is a major global supplier of optical module DSP and EIC, and has focused on CPO deployment through the acquisition of CelestialAI. We believe that NVIDIA's strategic investment in Marvell is expected to enhance Marvell's design capabilities in memory semantics, high-speed SERDES, and super-node systems, and to facilitate the expansion of the NVLINKFusion ecosystem. NVIDIA's NVLINK Scaleup technology encompasses an overall solution covering NVLINK SERDES, NVLINK chiplets, NVLINK switches, and rack-scale expansion architecture (including NVLINK SPINE, copper cabling systems, innovative mechanical architecture, power supply, and liquid cooling technologies). NVIDIA unveiled a complete copper-connected rack-scale solution at GTC 2026, including Rubin NVL72, Rubin Ultra NVL144, LPX 256, and ETL 256. Shanxi Securities believed that Marvell's participation is expected to expand the addressable market for copper connectivity. NVIDIA has positioned CPO as one of the most important transformations in Feynman-generation Scaleup technology, and combined with Marvell's silicon photonics technology, we believe the CPO penetration rate is expected to gradually increase. Soochow Securities' research report commenting on Fujida noted: a leading player in China's RF connector industry. The company specializes in the R&D, sales, and services of connectors, cables, cable assemblies, and microwave components, holding a leading position in China and non-China markets. Since its establishment in 1998, the company has been deeply engaged in the RF interconnect field. Backed by AVIC Optronics (its controlling shareholder), it has gradually expanded from traditional general-purpose RF connectors to high-end new product categories, including RF cables (aerospace applications), advanced ceramic products (chip integrated packaging applications), and RF links (active and passive microwave components). In 2025, the company achieved revenue of 881 million yuan and net profit attributable to the parent company of 78 million yuan, up 15.5% and 52.0% YoY, respectively. The company has positioned itself in five core tracks, with broad prospects for high-end connectors: 1) Demand in the defense informatization sector remained strong, with new products showing considerable potential. 2) The civil aerospace satellite sector has become a new growth engine. 3) The semiconductor equipment industry urgently needs high-end RF/electrical connectors. 4) The domestic supply chain for high-end electronic measurement instruments is embracing opportunities. 5) High-speed copper cables and quantum communication cable products are benefiting from the data center construction boom. Large-scale growth in data center infrastructure is boosting high-speed transmission products to gradually evolve toward system-level solutions. The company's high-speed copper cables have achieved product category expansion around 400G components, reaching an internationally leading level; meanwhile, in the quantum communication field, the company has deployed cryogenic superconducting cables, achieved initial small-batch supply, and is expected to gradually achieve commercialization. Recommended Reading:

An investor asked on the investor interaction platform: As a leader in the domestic copper processing industry, what applications or products does the company currently have in the high-speed copper cable connection field? What are the future plans? Jintian Co., Ltd. responded on the investor interaction platform on May 20, The company has a solid customer base and technical reserves in the high-speed copper cable connection field. The company's high-conductivity precision copper busbar products have entered the supply chain system of industry leaders in high-speed cable adapter components, IGBT, and other fields. Meanwhile, the company is actively laying out high-speed connection copper cables, developing new-type high-conductivity, low-impedance copper wires to meet the demand for connection cables with next-generation 800G transmission rates. The company will closely monitor and follow the market demand in the high-speed copper cable connection field. For other specific related information, please continue to follow the periodic reports. When asked "Are the company's products used in drones and low-altitude aircraft?" Jintian Co., Ltd. responded on the investor interaction platform on May 20, The company's products are gradually achieving deeper application in scenarios such as the low-altitude economy, rail transit, and marine engineering equipment. Among them, the high-precision easy-to-cut copper billet developed by the company, with good cutting performance and smooth processing surfaces, has been applied to the bearing components of drones. The company will closely monitor and follow the market demand in the low-altitude flight field, further improve the product series, and enhance the competitive advantage of the products. For other specific related information, please continue to follow the periodic reports. Jintian Co., Ltd. announced on the evening of May 6 that in April 2025, the company repurchased a total of 5,932,400 shares through centralized bidding transactions, accounting for 0.40% of the company's current total share capital. Jintian Co., Ltd. stated on the investor interaction platform on April 22, The company's main products are copper and copper alloy materials, rare earth permanent magnet materials, The company always attaches importance to R&D innovation, focusing on the material needs of emerging cutting-edge technology fields, and has successfully developed a batch of high-end copper-based advanced materials with independent intellectual property rights, actively promoting and completing the technical reserves of graphene-copper composite materials, ceramic copper clad laminates (CCL), and other cutting-edge technologies. Meanwhile, the company has started the R&D and project reserve work of some alternative materials. For specific information, please continue to follow the periodic reports. Jintian Co., Ltd. previously disclosed the Q1 2025 report, showing that in Q1 this year, the company achieved a total operating revenue of 27.285 billion yuan, up 9.89% YoY; net profit attributable to the parent company was 151 million yuan, up 38.55% YoY. Regarding the reasons for the increase in net profit, Jintian Co., Ltd. stated: It is mainly due to the upgrade of the company's product customers and the continuous optimization of technical management. Jintian Co., Ltd. disclosed its 2024 annual report on April 15, showing that in 2024, the company achieved a total operating revenue of RMB 124.161 billion, up 12.36% YoY; net profit attributable to shareholders of the listed company was RMB 462 million, down 12.29% YoY; and net profit excluding non-recurring gains and losses was RMB 339 million, down 10.14% YoY. In its 2024 annual report, Jintian Co., Ltd. introduced that in 2024, the company maintained its strategic focus, fully promoted the construction of new capacity projects, actively explored domestic and overseas markets, continuously deepened customer cooperation and product applications in high-end industries and emerging fields, and solidly and effectively advanced various operational management tasks. During the reporting period, the company achieved a main business income of RMB 112.990 billion, up 11.75% YoY. In 2024, the total production of copper and copper alloy materials was 1.9162 million mt, and the total sales volume was 1.8144 million mt, with the leading scale advantage continuously consolidated. Jintian Co., Ltd. also announced its 2025 business plan in its 2024 annual report: In 2025, the company will focus on the requirements of high-quality development, guided by the strategic goal of becoming a "world-class copper products and advanced materials base," and formulate targeted segmented strategic goals based on changes in market demand and the company's actual situation. From an international perspective and with international concepts, the company will introduce advanced technologies, enhance organizational capabilities, comprehensively improve management levels in procurement, production, sales, etc., strive to build a modern industrial system, and steadily advance towards the company's strategic goals. Meanwhile, the company has long adhered to an international strategic layout, serving global customers, leveraging high-quality global resources, and promoting leadership in products, talents, management, and services to provide customers with professional solutions and services. The company will continue to adhere to scientific and technological innovation as the leading force, accelerate the realization of high-level self-reliance and self-improvement in science and technology, accelerate the development of new quality productive forces, open up new areas and tracks for development, cultivate new growth drivers, enhance new competitive advantages, continuously deepen its presence in the NEV and chip semiconductor industries, and consolidate its industry influence; rapidly expand into the AI heat dissipation industry, achieve large-scale mass production, and create growth engines; focus on the R&D of robot products to form future competitiveness; and continuously promote the innovation of the company's low-carbon recycled products to build a low-carbon core competitiveness. Guosen Securities' research report commenting on Jintian Co., Ltd. showed that the unit gross profit of copper products increased. In 2024, with the rebound of the copper processing industry from the bottom and the company's proactive adjustments to its product and customer structures, the gross profit of copper products improved. In 2024, the gross profit of copper busbars was RMB 551/mt, up RMB 80/mt YoY; the gross profit of other copper products was RMB 2,273/mt, up RMB 287/mt YoY. Since hitting bottom in 2022, the company's gross profit of copper products has rebounded for two consecutive years. Affected by market factors, the company's profitability from rare earth permanent magnet products declined. In 2,024, the unit gross profit of rare earth permanent magnet products was 21,000 yuan/mt, down 20,000 yuan/mt YoY, and significantly lower than the average of 70,000 yuan/mt since 2017. The company gradually reduced the proportion of low-margin products: in 2,024, the company's copper product sales reached 1.814 million mt, down 41,000 mt YoY. Among them, sales of low-margin copper bars and strips decreased by 60,000 mt, while sales of other copper products increased by 20,000 mt. In terms of rare earth permanent magnet business, with the commissioning of the 4,000-ton project in Baotou, the company's sales of rare earth permanent magnet materials reached 5,134 mt in 2,024, up 49% YoY. The profitability of magnetic wire products grew rapidly. In recent years, the company's flat magnetic wire business has grown rapidly, with a capacity of 60,000 mt for new energy flat magnetic wires. The subsidiary Jintian Electromagnetic Technology achieved a net profit of 22.18 million yuan in 2024H1 and 54.69 million yuan in 2024H2. Another magnetic wire producer, Jintian New Materials, achieved a net profit of 15.64 million yuan in 2024H1 and 37.01 million yuan in 2024H2. Investment suggestion: The company has rapidly expanded in the past few years, establishing a scale advantage. In the future, it will further improve its product and customer mix, and further deploy capacity in Southeast Asia, fully benefiting from the incremental demand for copper semis and rare earth permanent magnet materials in the new energy market. We maintain an "Outperform" rating. Risk warnings: Risks of volatile copper prices and intensified market competition.

The market opened lower and closed higher throughout the day, with the ChiNext Index leading the gains. The total trading volume on the Shanghai and Shenzhen stock exchanges reached RMB 1.29 trillion, a decrease of RMB 174.9 billion from the previous trading day. On the futures market, hot topics rotated rapidly, with more stocks rising than falling. Over 3,800 stocks across the market advanced. In terms of sectors, military stocks continued to surge, with over 20 stocks, including AVIC Chengfei, hitting the daily limit. AI hardware stocks rebounded, with Walvax Biotech hitting the daily limit. The ST sector was active, with nearly 40 stocks, including ST Ruihe, hitting the daily limit. On the downside, PEEK material concept stocks adjusted, with Xinhan New Materials falling over 10%. By the close, the Shanghai Composite Index rose 0.28%, the Shenzhen Component Index rose 0.93%, and the ChiNext Index rose 1.65%. Sector Analysis In the sector, military stocks remained strong, with stocks such as AVIC Chengfei, Huawu Corporation, Haoneng Corporation, Lijun Corporation, Chengfei Integration, and Tongda Cable hitting the daily limit. Huatai Securities believes that the fundamentals of the military industry in 25Q1 may already be in a recovery trend. On one hand, starting from 2025, multiple countries have increased their defense budgets, leading to a significant increase in global military spending and a more active global arms trade market. On the other hand, 2025 marks the final year of the "14th Five-Year Plan," and previously pent-up demand is expected to be released rapidly. Since February 2025, the fundamentals of some enterprises have shown significant improvement, particularly in the aerospace and missile segments. Some upstream enterprises have seen notable improvements in their order volumes both year-over-year (YoY) and month-over-month (MoM), reflecting an increase in downstream demand on the balance sheet. Additionally, order data disclosed by some enterprises also indicate that the downstream sector is gradually entering a high-growth phase. Therefore, from a medium and long-term perspective, military stocks still hold allocation value. However, it should be noted that the military sector has surged with increased trading volume for two consecutive days amid event-driven catalysts, and short-term sentiment may be approaching a peak. Internal disagreements among individual stocks within the sector may intensify going forward, so it is advisable to focus on core front-runner stocks. AI hardware sectors, including CPO and high-speed copper cable connections, rebounded. New Flyoff and InnoLight Technology both rose over 10%, while Walvax Biotech and Cambridge Industries Group hit the daily limit. Other stocks, such as TFC Communication, Linktel Technologies, Zhaolong Interconnection, and Tera Photonics, also led the gains. On the news front, a spokesperson for the US Department of Commerce stated on Wednesday that President Trump plans to lift restrictions imposed during the Biden administration on the export of advanced artificial intelligence (AI) chips. From a market perspective, the AI hardware sector, represented by CPO, includes some technology heavyweights with relatively high earnings certainty. The previous adjustments were more driven by sentiment expectations. Today, under the aforementioned event-driven catalysts, the traces of capital inflow and allocation are evident. Therefore, the subsequent trend is worth monitoring. If the rebound can continue, it will have a strong driving effect on both the index and short-term sentiment. The concept of magnetic levitation compressors is gradually gaining traction, with individual stocks such as Shandong Zhanggu, United Precision, Baida Seiko, Xinlei Co., Ltd., Hanbell Precise Machinery, Jintongling, and Moon Environment hitting the daily limit up. On the news front, recently, the President of Danfoss's magnetic levitation compressor business stated, "In the next three years, the demand for magnetic levitation compressors in China's data centers is expected to at least double." In 2024, Danfoss Turbocor's data center-related business in China tripled, and it is expected to grow by around 50% this year. As a relatively new topic concept in the current futures market, it is more likely to gain favour from short-term active funds. If it is further strengthened in the future, attention could also be paid to whether it extends and diffuses towards data centers and computing power directions. Individual Stocks At the individual stock level, although the number of stocks that fell sharply today was not large, most high-priced stocks fell into adjustment. The number of consecutive daily limit-up stocks in the market dropped to 4 today. Chongqing Three Gorges Paints Co., Ltd., which previously had 6 consecutive daily limit-ups, eventually fell by more than 4%, while Jingjin Electric, which previously had 4 consecutive 20CM daily limit-ups, fell by more than 10%. In addition, popular high-priced stocks such as QuanZhu Technology, Hongbo Co., Ltd., Hongbaoli, Zhongxin Fluorine Material, Xinhan Advanced Materials, and Hongbaoli also suffered heavy losses. It can be seen that in an environment with a lack of incremental funds, the market's willingness to chase high prices is low. On the other hand, nearly 100 stocks in the market still rose by more than 9% today, and the overall short-term heat was not low, but it was mainly centered around two lower-tier topics: military industry and compressors. Overall, compared to clustering in high-priced stocks, funds currently prefer to tap into potential in low-priced stocks. Therefore, it is still more appropriate to look for low-absorption opportunities amidst the rotation of hot topics in subsequent responses. Outlook Analysis Today's market opened low and closed high throughout the day, with all three major indices closing in the red, basically reversing the bearish candlesticks left yesterday. Most individual stocks rose, with fewer falling. However, it should be noted that trading volume contracted again today, and hot topics in the futures market remained relatively scattered, lacking an absolute core leading the gains. Therefore, for the future market outlook, if there is no continuous influx of incremental funds, it is still expected to maintain a structure of oscillating higher. CITIC Securities stated in a recent research report that with the end of the earnings reporting season and the release of favorable policies, there is still room for risk appetite to rebound in May. It is recommended to focus on two major directions: first, the AI technological revolution and China's self-reliance in technology (new quality productive forces, advanced manufacturing, national defense and military industry, etc.); second, high-quality domestic circulation consumer assets that benefit from policy support for expanding domestic demand, with expected fundamental improvements and cost-effective valuations. Market News Focus 1. CPCA: National passenger vehicle market retail sales reached 1.791 million units from April 1-30, up 17% YoY Caijing.com.cn, May 8 - According to data released by the China Passenger Car Association (CPCA), from April 1-30, retail sales in the national passenger vehicle market reached 1.791 million units, up 17% YoY and down 8% MoM. Cumulative retail sales since the beginning of the year reached 6.918 million units, up 9% YoY. From April 1-30, retail sales in the national new energy passenger vehicle market reached 922,000 units, up 37% YoY and down 7% MoM. The retail penetration rate of the new energy vehicle market was 52.3%. Cumulative retail sales since the beginning of the year reached 3.342 million units, up 37% YoY. 2. Ministry of Commerce: China is willing to strengthen cooperation with all countries to promote the healthy and sustainable development of cross-border e-commerce Cailian Press, May 8: Starting from May 2, the US officially canceled the tax exemption policy for small-value parcels from China, prompting some retailers in certain countries to adjust or even suspend their business operations in the US. In response, the spokesperson of the Ministry of Commerce stated that cross-border e-commerce directly meets the personalized needs of consumers in various countries, boasting unique advantages such as high efficiency, fast delivery, and cost savings. The recent cancellation of the tax exemption policy for small-value parcels from China by the US will harm the interests of enterprises and consumers in both countries, and we firmly oppose this move. I would like to emphasize that the cancellation of the tax exemption policy for small-value parcels from China by the US cannot change the momentum of the rapid development of cross-border e-commerce. We are willing to strengthen cooperation with all countries to jointly create a fair and predictable policy environment and promote the healthy and sustainable development of cross-border e-commerce.

[SMM Analysis: Copper Wire and Cable Enterprises' Operating Rates Exceed Expectations in April, with Different Paths for Large and Small Enterprises amid Market Surge] According to SMM, the operating rate of copper wire and cable enterprises in April 2025 was 81.31%, up 7.71 percentage points MoM and 7.89 percentage points YoY, 2.51 percentage points higher than the projected operating rate. Specifically, in April, large copper wire and cable enterprises...

On April 23, at the CCIE 2025 SMM (20th) Copper Industry Conference & Copper Industry Expo - Main Forum, hosted by SMM Information & Technology Co., Ltd., Tong Qingping, Chief Scientist and PhD of China Nonferrous Metal Mining (Group) Co., Ltd., analyzed the current development status and high-quality development trends of China's copper processing industry.

With the continuous recovery of the global economy and the emergence of new technologies, the demand for non-ferrous metals has surged. Particularly, aluminum, copper, and nickel, which are considered critical metals in the energy transition, will continue to play significant roles in lightweighting, computing power enhancement, and new energy transformation, with broad growth prospects. Meanwhile, niche metals like cobalt and lithium experience fluctuating demand due to technological iterations. It is important to note that geopolitical conflicts and cyclical fluctuations remain risks that miners must face. Currently, top-tier enterprises in the industry have benefited from capacity integration and technological innovation. This also indicates that future competition in the metal industry will not only be about resource acquisition but also about technological iteration and policy adaptability. At the same time, in response to the global urgent need for environmental protection and sustainable development, the non-ferrous metals industry is gradually focusing on green production, improving resource utilization efficiency through technological innovation and industrial upgrading, and contributing more to the sustainable development of the global economy. Emerging technologies are driving a significant increase in the demand for non-ferrous metals. Currently, the rapid development of green transportation, low-altitude economy, artificial intelligence (AI), and other emerging technologies has greatly boosted the demand for non-ferrous metals. Among them, aluminum, with its lightweight characteristics, has become a core material in the fields of new energy vehicles and ship lightweighting, replacing steel. Meanwhile, with the vigorous development of the photovoltaic industry and the transformation and upgrading of the construction industry, the demand for solar panel mounting brackets and construction aluminum extrusions is also rising. According to Guolian Securities, the growth rate of aluminum supply is expected to significantly pull back by 2025, and the national supply-demand gap for aluminum is projected to reach 400,000 mt and 470,000 mt in 2025 and 2026, respectively. This supply-demand gap will gradually push up aluminum prices. Copper plays the role of "new oil" in the emerging computing power era. With the continuous surge in AI computing power demand, the demand for high-speed copper cables has also increased significantly, becoming the "neural network" connecting the digital world. Additionally, nickel, as a key element in the energy transition, is increasingly widely used in the power battery sector, with a significant trend towards high nickel content. Institutions predict that by 2030, the proportion of nickel used in batteries will reach 60%. Despite the significant increase in demand for non-ferrous metals, the supply chains of metals like copper and aluminum are also facing numerous challenges. From a macro perspective, the tariff policies of the Trump administration have led to a series of trade barriers, causing related enterprises to face additional tariffs or fees and increasing market uncertainty. Additionally, geopolitical conflicts, increasingly stringent environmental regulations, and labor issues are also challenges that cannot be ignored, as these factors may cause delays or interruptions in the mining and smelting processes. CITIC Securities research reports mention that in the context of global trade conflicts, the role of policies is becoming increasingly important. With the introduction of a series of tariff policies in the US, such as the cancellation of export tax rebates for aluminum semis, it is expected to promote deep-seated changes in the domestic industry and optimize the capacity of the copper and aluminum processing industries. However, it is worth noting that tariff policies have not changed the global supply-demand relationship but have only increased the cost of entering the US market. Therefore, enterprises need to closely monitor changes in tariff policies and take corresponding measures based on actual conditions. Taking steel and aluminum as examples, the Trump administration has already imposed tariffs on steel and aluminum products from countries like China. However, since China's steel exports have significantly decreased, the impact on China is relatively small. For the aluminum industry, although the US is one of Canada's major export markets, Canada's aluminum capacity has also been affected by tariff policies. However, since US demand has not decreased, enterprises need to find new suppliers or adjust product structures to cope with changes in tariff policies. The way for miners to break through the cycle. With the deepening of global economic integration, many Chinese publicly listed mining firms have actively disclosed their overseas business situations, particularly showing strong momentum in overseas mining acquisitions. However, in the process of globalization, these enterprises face numerous risks and challenges. Political risk is the primary consideration for overseas mining investments. Since mineral resources are mostly concentrated in politically unstable underdeveloped regions such as Central Asia, Africa, and South America, this brings significant uncertainty to mining investments. Additionally, geopolitical risks cannot be ignored. For example, when Chinese enterprises control mineral resources in South America or other regions through Canada, they may be forced to withdraw due to geopolitical changes, resulting in the loss of previously invested resources. The cyclical nature of mining development is also an important factor that enterprises must face. During the growth phase of mining, enterprises can seize market opportunities and achieve substantial profits by buying low and selling high; but if the market is at a high point, a downturn may come at any time, and enterprises need to have strong risk resistance to cope with market fluctuations. The risks inherent in the metal market itself also cannot be ignored, mainly including market risk and price risk. Market risk stems from the uncertainty of demand, and enterprises may face a situation of overcapacity and insufficient market demand; price risk is closely related to the volatility of metal prices, as metal prices are influenced by various factors such as the futures market, and daily price fluctuations can pose significant challenges to enterprises. To effectively cope with these risks, mining enterprises need to adopt a series of strategies. In terms of price risk management, enterprises can fully utilize tools like the futures market for hedging and locking in future sales prices, thereby reducing the impact of price fluctuations on business operations. Meanwhile, in financial management, mining enterprises need to maintain financial stability and ensure diversified financing channels. During price decline cycles, enterprises' cash flow may be severely impacted, so maintaining sufficient liquidity is crucial. Large mining enterprises usually reserve committed bank credit lines to cope with cyclical changes and ensure access to funds at critical moments. Additionally, when dealing with price decline cycles, mining enterprises tend to broaden financing channels rather than supplementing income by diversifying business sectors like other industries. Because the core business of mining enterprises is directly related to metal prices, during price declines, other business sectors often cannot compensate for the losses of the core business. Therefore, mining enterprises need to flexibly adjust strategies according to their characteristics to navigate cycles and achieve sustainable development. Financial institutions assist mining enterprises in sustainable development. In the development of the aluminum industry, the funding gap has always been a key factor constraining industry development. Facing this challenge, close cooperation among the government, industry, and financial institutions is particularly important. As the largest bank in Singapore and Southeast Asia, DBS Bank has accumulated rich experience in the metals and mining sector and provides comprehensive financial services to related enterprises with its full range of financial products. Specifically, DBS Bank's financial services cover areas such as listing, bond issuance, project financing, trade financing, foreign exchange, and commodity futures hedging, forming a comprehensive service system. In the aluminum sector, DBS Bank has provided professional financial advisory and project financing services for several important projects. For example, the first alumina project invested by Chinese enterprises in Indonesia and the first HPAL nickel smelting project jointly invested by Chinese enterprises and Indonesian partners have both benefited from DBS Bank's deep expertise and rich experience in this industry segment. Notably, the first high-pressure acid leaching (HPAL) smelter jointly established by Chinese enterprises in Indonesia—PT Halmahera Persada Lygend. DBS Bank launched a $625 million syndicated project financing for this project. As the lead arranger of the syndicate, DBS Bank participated in the project early on, designing a feasible financing structure to appropriately address the challenges of the project development phase and the risks of benchmark price fluctuations—both inherent characteristics of smelting projects. This syndicated financing not only helped the project as the world's first successful and scaled HPAL project to land, injecting strong momentum into Indonesia's nickel industry, but also provided guarantees for Chinese enterprises to "go global" and master key strategic resources. Additionally, DBS Bank plays a pivotal role in promoting investment cooperation in non-ferrous metals between China and ASEAN countries. China and ASEAN are not only important investment partners but also close trading partners. As Asia's financial center and trade hub, Singapore can effectively provide multifaceted support and services for Chinese enterprises investing in Southeast Asia's metals and mining sectors. Leveraging its headquarters advantage in Singapore and extensive business network in Southeast Asia, DBS Bank continues to provide comprehensive financial services to meet the diversified needs of clients in the metals and mining sectors, further deepening cooperation and exchanges between China and ASEAN countries in the field of non-ferrous metals. Looking ahead, DBS Bank will continue to leverage its professional advantages to provide customized financial service solutions for mining enterprises, helping them navigate cycles and achieve sustainable development. Zhang Yongming, Managing Director and Global Head of Metals and Mining at DBS Bank.

Polaris Energy Storage Network learned that on April 16, the list of winning candidates for the energy storage system equipment procurement of the 1.8 million kW wind and solar power hydrogen storage integrated project in Qitai County, State Development and Investment Corporation, was announced. The first winning candidate is Hefei Gotion High-tech Power Energy Co., Ltd., with a bid price of 459.9 million yuan, equivalent to a unit price of 0.46 yuan/Wh. The second winning candidate is CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd., with a bid price of 422.8 million yuan, equivalent to a unit price of 0.423 yuan/Wh. The third winning candidate is Beijing HyperStrong Technology Co., Ltd., with a bid price of 477.7 million yuan, equivalent to a unit price of 0.478 yuan/Wh. According to the tender announcement, the bid inviter for this project is Changji State Development and Investment Qixin Energy Co., Ltd., and the project construction site is located in Qitai County, Changji Prefecture. The procurement capacity of the energy storage equipment for this project is 250MW/1000MWh. The procurement includes but is not limited to: battery cabins (including batteries, battery management systems (BMS), fire extinguishing systems, thermal management systems (including temperature and humidity control), cloud monitoring and early warning systems, power cables and communication cables within the container, and other related supporting facilities), power cables and communication cables between the container and the PCS, converter and step-up systems (Power Conversion System (PCS), box transformers, and related supporting facilities), energy management systems (EMS), self-powered systems for energy storage, connection cables between the battery cabin and the PCS (single-core, fire-resistant copper cables), and the selection, design, manufacturing, provision of drawings and documents, ex-factory testing, supply, packaging, shipping, on-site delivery, on-site installation guidance, on-site debugging, assistance in acceptance, responsibility for grid connection tests up to the full capacity stage, and a two-year warranty period service (the overall equipment quality assurance period is 24 months from the date of acceptance, with a 5-year warranty for the batteries), as well as the provision of special tools and instruments, and necessary spare parts packages. The DC energy storage system design plan should meet the total capacity of 250MW/1000MWh for this project. Bidders may propose a more suitable configuration plan based on their product characteristics, with a grid connection voltage level of 35kV. Bidders are required to have at least two energy storage system integration projects (including battery prefabricated cabins, PCS, and EMS) with a single capacity of no less than 200MWh (LFP battery) since January 2022, and at the same time, have a cumulative capacity of no less than 2GWh of energy storage system supply contracts (including at least battery cabins, and using battery cells of 300Ah or above).

SMM Morning Meeting Summary: US Fed's Hawkish Stance Leads to Copper Prices Jumping Initially and Then Pulling Back. On April 16, spot prices of SMM #1 copper cathode against the SHFE copper 2505 contract were reported at a premium of 70-120 yuan/mt, with an average premium of 95 yuan/mt, up 55 yuan/mt MoM. Today, it is expected that unmatched delivery warrants will gradually flow out, and suppliers' shipments may continue to face price pressure amid a strong backwardation.

In mid-March, US copper prices surged strongly, hitting a record high, while SHFE copper also steadily broke through the 80,000 yuan/mt mark. The robust market performance greatly boosted investor enthusiasm. Looking back at this round of market trends, the driving factors are numerous and complex. Since the beginning of this year, the supply of copper mines and raw materials has remained tight, gradually transmitting downstream and prompting initial production cuts at smelters. The "stockpiling" frenzy triggered by US tariff policy risks has driven US copper prices to continuously refresh highs, subsequently pushing up LME and SHFE copper prices. Although the weakening overseas macro environment has limited the upside potential of copper prices, the resilience of short-term fundamentals is sufficient to drive further price increases. However, if the implementation of tariff policies falls short of expectations, copper prices may return to fundamental pricing, potentially leading to a high-level pullback. Investors should pay attention to risks. At the March US Fed meeting, the Fed announced that it would maintain the federal funds rate target range between 4.25% and 4.50%, a decision highly in line with market expectations. The Fed's slowing pace of balance sheet reduction has continuously improved market liquidity expectations, leading to a stabilization of risk assets such as US stocks and Bitcoin, while the US dollar index has remained at low levels, sustaining the trend of monetary easing. Meanwhile, the US government announced plans to impose a 25% tariff on imported copper, sparking strong concerns about a significant rise in future import costs. Global suppliers, aiming to avoid potential risks, have accelerated the transportation of copper semis into the country, significantly boosting demand expectations in the US market and driving a rapid rise in US copper prices. Domestically, demand-side performance in the first three months has been positive, with the copper market showing active demand and resilient production. Signs of domestic demand gradually "taking over" from external demand have begun to emerge. After the conclusion of the Two Sessions, the clear tone of proactive fiscal policy and moderately loose monetary policy has sent a strong signal of macro policy intensification to stabilize growth, greatly enhancing market confidence. Additionally, the domestic asset revaluation wave triggered by DeepSeek continues to ferment, continuously improving market expectations and effectively driving further economic recovery. A series of follow-up measures to boost consumption are accelerating, and the introduction and implementation of the "Special Action Plan to Boost Consumption" are expected to inject a strong stimulus into the consumer market, forming a more robust support. Supply side, disturbances in the smelting sector have become increasingly significant in the short-term impact on copper prices. With spot TC for copper concentrates at historically low levels, a major domestic smelter announced production cuts at its smelter with an annual capacity of approximately 470,000 mt. From a long-term perspective, the domestic government has tightened regulations on new copper smelters, aiming to effectively curb capacity issues. In the future, only a few large enterprises are expected to meet the stringent entry thresholds, which undoubtedly means that domestic refined copper supply will gradually tighten. China's copper smelting industry is highly dependent on imported concentrates. Relevant data shows that domestic copper concentrate production in 2024 was only 1.64 million mt in metal content, while domestic refined copper production reached 13.24 million mt, with a copper mine self-sufficiency rate of only 12.4%. Entering 2025, copper concentrates are constrained by multiple factors such as production disruptions, declining grades, and rising exploration costs, and the tight supply issue has not been substantially alleviated. Several miners have successively cut production or lowered their 2025 production guidance. According to data from miners with updated annual reports, the 2025 production guidance increase is only 210,000 mt, a 47% decrease compared to the 2024 increase. We have revised down the 2025 mine supply growth rate to 1.5%, slightly lower than the 1.8% growth rate in 2024. Demand side, copper consumption in 2025 will continue to exhibit high resilience, with the accelerated long-term green energy transition further exacerbating the supply-demand imbalance in the copper market. Each gigawatt of solar or wind power installed capacity requires nearly 5.5 mt of copper, three times the amount used in fossil fuel infrastructure. Strong demand from emerging fields such as NEVs (80 kg of copper per vehicle), AI computing centers (1.36 mt of copper cables per server), and UHV power grid construction is expected to drive the proportion of new energy copper usage to exceed 20% in 2025 and over 30% by 2030, highlighting the urgency of expanding copper production. In the short term, during the traditional peak demand season of "Golden March and Silver April," downstream purchase sentiment has improved significantly MoM, with tight spot supply in the market. As copper prices continue to rise, downstream purchase willingness has gradually weakened, with strong fear of high prices, and most purchases are based on rigid demand. However, if copper prices pull back, downstream purchase enthusiasm is expected to rebound quickly. Global consumption growth in 2025 is expected to reach 3.4%, with demand growth outpacing supply growth, providing solid support for copper prices. In summary, tight raw material supply continues to pressure the supply side, and the effects of smelter production cuts continue to ferment, leaving copper prices with some room for further increases. (Source: Futures Daily) To learn more about the dynamics of the copper industry chain, you are welcome to attend the CCIE 2025 SMM (20th) Copper Conference and Copper Industry Expo, hosted by SMM, which will be grandly held in Nanchang, Jiangxi from April 22-25, 2025. CCIE 2025 SMM (20th) Copper Conference and Copper Industry Expo ~ Over 3,000 industry elites, representatives from upstream and downstream enterprises in the copper industry chain, government officials, industry associations, third-party equipment, logistics and warehousing, and academic experts will gather together. The conference covers the entire industry chain, including mining, smelting, copper processing, trade, recycling, and end-use applications. At the conference, more than 100 exhibitors will showcase the latest copper processing and smelting equipment, high-quality raw material suppliers, and new-type copper-based materials, highlighting the innovation and vitality of the copper industry. The conference features a variety of exciting activities: the main forum focuses on global copper market trends, raw material supply, policy impact analysis, and market direction interpretation. Sub-forums delve into industry hot topics in areas such as electrical power transmission and distribution, secondary copper, new copper-based materials, hardware and plumbing, and ESS. During the conference, there will also be a two-day field trip to 12 representative enterprises in the copper industry with a cumulative capacity of 1 million mt. Sharing cutting-edge technologies and valuable experiences, the event aims to upgrade the copper industry chain and promote high-quality industry development. CCIE 2025 SMM (20th) Copper Conference and Copper Industry Expo Helps you grasp the industry pulse, expand your network, and seek business opportunities! SMM cordially invites you to gather in Nanchang, Jiangxi from April 22-25, to unite in the new era and jointly plan for new development!