On June 10, the Xiamen Municipal Development and Reform Commission issued a request for comments on the "Action Plan for the High-Quality Development of Xiamen's Hydrogen Energy Industry (2025-2027) (Draft for Public Comments)". The document states that in terms of technological innovation, efforts will be made to establish one national-level innovation platform. Leveraging scientific research strengths in catalysts, membrane electrodes, hydrogen storage materials, and other resources as sources of innovation, the focus will be on driving breakthroughs in core technologies for complete sets of electrolysis-based hydrogen production equipment, solid-state hydrogen storage materials and equipment, complete sets of hydrogen fuel cell equipment, hydrogen-powered vehicles, hydrogen backup power supplies, as well as corresponding key materials, parts, and system integration. This will result in a batch of technological achievements with independent intellectual property rights, maintaining international leadership in core technologies. In terms of industrial cultivation, active efforts will be made to attract and cultivate a group of leading enterprises with core competitiveness and related supporting enterprises, enhancing the rootedness and competitiveness of the industry chain. Hydrogen energy industrial parks will be planned and constructed in qualified areas such as the airport economic zone to promote the integrated development of the hydrogen energy industry's "production, storage, transportation, refueling, and utilization", achieving localized production of key technological equipment and parts and encouraging exports. By 2027, the output value of the hydrogen energy industry is expected to exceed 10 billion yuan. In terms of demonstration applications, innovative management mechanisms for hydrogen energy infrastructure will be established, and scenario innovations will be carried out to promote the large-scale and commercialized promotion and application of hydrogen energy. Led by applications in the transportation sector, by 2027, the scale of fuel cell vehicles in the city is expected to exceed 300 units, and a supporting infrastructure system for hydrogen energy will be initially established. Explorations will be made into the application of hydrogen energy in marine fuels, backup power supplies, off-grid ultra-fast charging, and other areas, forming a demonstration application chain for the hydrogen energy industry with local characteristics. The key tasks are as follows: To establish a source of technological innovation for the hydrogen energy industry. Strengthen the research and development of key core technologies, plan and construct innovation support platforms for the hydrogen energy industry, and improve the construction of hydrogen energy standards systems. To build an advanced manufacturing base for the hydrogen energy industry. Attract and cultivate leading enterprises in the hydrogen energy sector and plan hydrogen energy industrial parks. To orderly develop demonstration application scenarios for hydrogen energy. Gradually promote demonstration applications in the transportation sector and focus on expanding demonstration applications in multiple fields. To comprehensively optimize the development environment for the hydrogen energy industry. Coordinate the planning and construction of hydrogen energy infrastructure, establish a multi-channel hydrogen supply system, construct a mechanism for realizing the green value of hydrogen energy, and actively carry out international cooperation in the hydrogen energy field. The policies are as follows: The Xiamen Municipal Development and Reform Commission is requesting comments on the "Action Plan for the High-Quality Development of Xiamen's Hydrogen Energy Industry (2025-2027) (Draft for Public Comments)". To seize new opportunities in the development of the hydrogen energy industry, build a new growth engine for the new energy industry, and achieve a green and low-carbon transformation of energy, the "Action Plan for the High-Quality Development of Xiamen's Hydrogen Energy Industry (2025-2027) (Draft for Public Comments)" is now being opened to the public for comments. The public consultation period is from June 10, 2025 to June 20, 2025. You may contact us through the following methods: Tel: 0592-2893334. Email: fggjc@xm.gov.cn Attachments: 1. Xiamen High-Quality Development Action Plan for Hydrogen Energy Industry (2025-2027) (Draft for Public Comments).docx 2. Explanatory Notes on the Drafting.docx Xiamen Municipal Development and Reform Commission June 10, 2025

Macro News 1. On the 28th, He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met with Dan Simkowitz, Co-President of Morgan Stanley in the US, at the Great Hall of the People. He Lifeng stated that China is committed to promoting high-quality development through high-level opening up, and welcomes more US financial institutions, including Morgan Stanley, and long-term capital to continuously deepen mutually beneficial cooperation with China and actively participate in the construction and development of China's capital market. Simkowitz expressed that Morgan Stanley will continue to expand its presence in the Chinese market and provide high-quality services to facilitate investment cooperation between US and Chinese enterprises. 2. From the 27th to the 28th, Zhang Guoqing, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, conducted a survey in Shanghai on promoting the healthy development of the platform economy and market supervision. He emphasized the need to thoroughly implement the important instructions and directives of General Secretary Xi Jinping, implement the decisions and arrangements of the CPC Central Committee and the State Council, focus on promoting high-quality development, comprehensively strengthen governance capabilities in the field of market supervision, promote the construction of a sound ecosystem for the platform economy, and maintain a fair and orderly market environment. 3. On May 28th, Foreign Ministry spokesperson Mao Ning presided over a regular press conference. Mao Ning stated that China has decided to expand the scope of visa-free countries. From June 9, 2025, to June 8, 2026, a visa-free policy will be implemented on a trial basis for holders of ordinary passports from Saudi Arabia, Oman, Kuwait, and Bahrain. Individuals from these four countries holding ordinary passports who come to China for business, tourism, visiting relatives and friends, exchanges, visits, or transit for no more than 30 days may enter the country without a visa. 4. According to the National Disease Control and Prevention Administration, the upward trend of the COVID-19 epidemic nationwide has slowed down, and the epidemic has reached its peak or is showing a downward trend in most provinces. The dominant circulating strain is the sixth-generation sub-lineage NB.1.8.1 of the XDV variant, with no significant changes observed in its pathogenicity or clinical severity of the disease. Industry News 1. It has been learned from multiple informed sources that at a recent symposium on upstream and downstream enterprises in the China-EU semiconductor industry held by the Ministry of Commerce, the policy on rare earth export controls was explained, and communication with China-EU chip enterprises on rare earth export controls was strengthened to maintain the stability of the global industry chain. Another informed source indicated that this move implies that China may relax rare earth export controls targeting the industry chain of China-EU semiconductor enterprises. 2. The Office of the National Healthcare Security Administration conducted an investigation into cases of "ghost pharmacists" (pharmacists whose names are listed but who are not actually present) at designated retail pharmacies. Through screening and analysis, it was found that the names of some pharmacists (corresponding to the same ID numbers) appeared in the drug expense details of multiple designated retail pharmacies, suggesting possible violations such as pharmacist information being falsified or pharmacists engaging in "ghost pharmacist" practices. Designated retail pharmacies found to have engaged in violations such as falsified pharmacist information, "ghost pharmacists," or failure to provide pharmaceutical services as required will be subject to measures such as interviews, rectification within a specified time limit, suspension of the medical insurance service agreement, or termination of the medical insurance service agreement, depending on the severity of the violations. 3. The website of the Shenzhen Municipal Housing and Construction Bureau released the "Administrative Measures for the Allocation and Sale of Affordable Housing in Shenzhen (Draft for Soliciting Opinions)" and the "Administrative Measures for the Planning and Construction of Affordable Housing in Shenzhen (Revised Draft for Soliciting Opinions)". The drafts mention that allocation-and-sale-type affordable housing will be subject to strict closed-loop management, and it is prohibited to convert such housing into commercial housing in any way. 4. It has been learned from informed sources that DJI's robotic vacuum cleaner products have entered mass production and are expected to be launched in June. It is understood that DJI has been engaged in the R&D of robotic vacuum cleaners for more than four years, and the upcoming product is a robotic vacuum and mop combo. 5. The General Office of the People's Government of Fujian Province issued the "Implementation Plan for Special Actions to Boost Consumption in Fujian Province", which proposes supporting automobile consumption. It supports various regions in carrying out automobile consumption promotion activities and providing additional support through preferential car purchase policies. 6. The State Administration for Market Regulation recently issued the "Action Plan for Key Technological Innovations in Metrology and Testing". The Plan proposes that by 2030, more than 50 key metrological core technologies will be achieved, more than 20 new-generation international first-class metrological standards will be established, the self-controllable rate of core devices for newly established metrological standards will reach over 60%, and the leading rate in international metrological comparisons will reach 20%. 7. It was learned from the media briefing on promoting the trade-in of e-bikes in Guangdong that as of May 26, the sales volume of e-bikes traded in in Guangdong Province reached 174,000 units, ranking among the top in the country, with the trade-in volume being approximately three times that of the previous year. The cumulative subsidy funds used amounted to 87.08 million yuan, boosting new e-bike consumption by over 400 million yuan. Corporate News 1. Jiaying Pharmaceutical announced that it is under investigation by the China Securities Regulatory Commission for suspected violations of laws and regulations in information disclosure. 2. China Energy Engineering Group announced that it has won the bid for the 6×660 MW coal-fired power project in the Bingzhun Industrial Park of the China-Kyrgyzstan-Uzbekistan Railway, with a bid amount of approximately 14.586 billion yuan. 3. *ST Jilin Pharmaceutical announced that its shares will be delisted on May 29. 4. *ST Longjin announced that its shares will enter the delisting consolidation period starting from June 6. 5. ST Huaxi announced that it has signed a major contract for daily operations worth approximately 2.084 billion yuan. 6. Fuda Co., Ltd. announced that it plans to invest in the construction of a project for ultra-precision gears for electric drive systems in NEVs and a project for robotic transmission joint components. 7. Longgao Co., Ltd. announced that the restructuring of its controlling shareholder is undergoing the approval process for the assessment report. 8. Jiangsu New Energy announced that its future performance is related to multiple factors such as the natural resources at the project sites, and significant changes may bring about performance fluctuation risks. 9. China Flag Chemical announced that the company currently has the project approval procedures for chlorantraniliprole, but it has not yet officially commenced production. 10. ST United announced its intention to acquire 100% equity in Jiangxi Runtian Industry, a packaged drinking water company, and its stock will resume trading. 11. Shangwei Cable announced that the company's actual controller has been changed to Zhang Hua. 12. At the earnings briefing, executives of Huguang stated that the first prototype line for the humanoid robot project has been successfully implemented. 13. IntSig Information announced its intention to plan for the issuance of H shares and list them on the Hong Kong Stock Exchange. 14. China National Gold Group announced that its controlling shareholder intends to increase its stake in the company by 168 million to 335 million yuan. 15. Lier Chemical stated on its interactive platform that the 5,000 mt/year chlorantraniliprole production facility is under accelerated construction. Global Markets 1. The three major U.S. stock indices closed lower collectively, with the Dow Jones falling 0.58%, the Nasdaq declining 0.51%, and the S&P 500 index dropping 0.56%. Most popular Chinese ADRs closed lower, with the Nasdaq Golden Dragon China Index falling 0.71%. 2. WTI crude oil futures prices closed up 1.56% at $61.84 per barrel. Brent crude oil futures closed up 1.26% at $64.9 per barrel. 3. COMEX gold futures closed down 0.48% at $3,312.4 per ounce, and COMEX silver futures closed down 0.65% at $33.095 per ounce. 4. Nvidia reported revenues of $44.1 billion in the first fiscal quarter, up 69% YoY, and a net profit of $18.78 billion in the first fiscal quarter, up 26% YoY. Investment Opportunities Reference 1. Xiaomi YU7's pre-booking inquiries exceed those of SU7 during the same period, with the number of users leaving their information being about three times higher. According to media reports, Lu Weibing, Partner and President of Xiaomi Group, stated at the earnings call that Xiaomi YU7 has been well-received by users since its pre-release, becoming more popular and well-known than when Xiaomi SU7 was first unveiled. Lu Weibing revealed that after the technical release of YU7, the number of pre-booking inquiries exceeded those of SU7 during the same period. As of May 25, the number of users leaving their information for the "YU7 Technical Launch Event" was about three times that of the "SU7 Technical Launch Event" during the same period. YU7 has a broader audience than SU7, and we are very confident in YU7. YU7 is expected to be officially launched in July this year. Previously, Xiaomi Auto announced that it had raised its delivery target for 2025 to 350,000 units (up from 300,000 units). Driven by factors such as strong product competitiveness and the launch of new models, Xiaomi Auto's sales are expected to continue to accelerate. Guotai Haitong Securities stated that Xiaomi Group's YU7 was launched on May 22, and its sales after the new model's launch are worth looking forward to, with the industry chain expected to continue benefiting. 2. WeRide Enters Saudi Arabian Market, with Three Major Products Deployed Recently, WeRide, a global leader in autonomous driving technology, announced its market expansion strategy in Saudi Arabia, marking a further expansion of the company's global commercial footprint. As the first step in entering the Saudi market, WeRide has tested and deployed autonomous driving products such as Robotaxi, Robobus, and Robosweeper in key Saudi cities including Riyadh and AlUla, laying the foundation for subsequent large-scale commercial operations across Saudi Arabia. With the rapid development of artificial intelligence (AI) technology, autonomous driving is undergoing unprecedented changes. From intelligent perception to precise decision-making, and from efficient control to data-driven operations, AI has injected strong momentum into autonomous driving. Haitong Securities pointed out that previously, the main barriers to the development of large-scale autonomous driving models included computing power, data loops, etc., with leading autonomous driving enterprises mostly being top-tier technology companies. Following the release of Deepseek's faster inference model, latecomers (including vehicle manufacturers and solution providers) are expected to gain new opportunities, and the autonomous driving algorithm sector is expected to witness a flourishing landscape. Therefore, 2025 is expected to be a year of rapid penetration of high-level intelligent driving, with numerous opportunities emerging across the industry chain. 3. Three Departments, Including MIIT, Coordinate to Promote the Development of Advanced Computing Industry According to media reports, the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC), and the National Data Administration jointly issued the "Implementation Plan for the Digital Transformation of the Electronic Information Manufacturing Industry" to strengthen the construction of new-type information infrastructure. The plan coordinates the promotion of the development of the advanced computing industry, accelerates the integration of networks, data, computing power, and algorithms, drives innovative development in high-performance computing, intelligent computing, and cloud-edge-end collaborative computing, improves the network layout of edge computing centers, and builds a new-type information infrastructure that is highly reliable, high-performance, and widely connected. It promotes the deep empowerment of new-type information infrastructure in electronic information manufacturing applications, accelerating the large-scale application of advanced computing, 5G-A, gigabit optical networks, industrial internet, and AI in the electronic information manufacturing industry. Advanced computing encompasses three major areas: computing power, algorithms, and data, covering various computing methods such as cloud, edge, and end computing. As the core productivity in the digital economy era, computing power plays a crucial role in driving technological and industrial progress, accelerating the deep integration of digital technologies with the real economy, and its strategic and supportive roles are becoming increasingly prominent. Shanxi Securities believes that the demand for AI computing power from two major downstream sectors, the internet and intelligent computing centers, will continue to experience high growth, with rapid progress in localization procurement. 4. Musk's Brain-Computer Interface Company Completes New Round of Financing It is reported that Musk's brain-computer interface company, Neuralink, has raised $600 million in a round of financing, bringing the company's valuation to $9 billion. In recent years, the global brain-computer interface (BCI) technology has witnessed rapid development, with its application areas gradually expanding from the medical field to non-medical fields such as education and gaming. Meanwhile, the rapid evolution of emerging technologies like artificial intelligence (AI) is driving more breakthroughs in the application of BCI technology. According to PrecedenceResearch, the global BCI market size was approximately $2.62 billion in 2024 and is expected to reach $12.4 billion by 2034, with a compound annual growth rate (CAGR) of 17.4% from 2025 to 2034.

【Beijing Economic-Technological Development Area: Focusing on the Integration of Smart Cities and Intelligent Connected Vehicles】On April 7, the "Implementation Opinions on the Construction of Data Element Comprehensive Experimental Zone in Beijing (Draft for Soliciting Opinions)" was publicly released for public opinion. It proposes to support each district in developing its own characteristic applications. The core district will focus on urban emergency safety, Chaoyang District on innovative application scenarios, Haidian District on "artificial intelligence +", the sub-center on the implementation of unique scenarios, and the Economic-Technological Development Area on the integration of smart cities and intelligent connected vehicles, aiming to create a comprehensive application demonstration of smart cities.

[CITIC Securities: AI and Policies May Resonate, Rare Earth Industry Expected to Achieve High-Quality Development] A research report by CITIC Securities pointed out that, on the policy front, the draft for soliciting opinions on the detailed rules of the Rare Earth Management Regulations emphasizes that rare earth quotas will only be allocated to rare earth groups. We believe that rare earth resources may further concentrate in large rare earth groups in the future, import ore control may be further strengthened, and the rigid logic on the supply side of the rare earth industry will continue to be reinforced. The release of the draft for soliciting opinions on the Rare Earth Product Information Traceability Management Measures also contributes to the standardized development of the rare earth industry. On the demand side, 2025 is expected to mark the first year of mass production for humanoid robots, with the industry breaking through the critical point at a super-linear speed. High-performance NdFeB, as a key material for robot motors, is expected to fully benefit in the future. Rare earths are a national strategic resource, and total volume management and traceability systems help ensure the security of strategic resources, promote high-quality development of the industry, and continue to highlight the strategic allocation value of the rare earth permanent magnets sector.

[Steadily advancing "new energy + energy storage" project construction! Enping City, Guangdong Province solicits opinions on carbon peak plan] Enping City, Guangdong Province released the "Enping City Carbon Peak Implementation Plan (Public Version) (Draft for Soliciting Opinions)" on March 29th. The document proposes guiding the efficient and orderly construction of new energy storage power station projects, steadily advancing the construction of "new energy + energy storage" projects. It plans to comprehensively consider load and power access requirements, enhance the adaptability of the power grid to various types of distributed power access and load sending, and improve the city's ability to accommodate new energy power consumption. It aims to accelerate the utilization of renewable energies such as solar, hydro, and biomass in agricultural production and rural construction, and explore rural distributed energy storage, new energy grid connection applications.

By 2025, 1.6GW! Financial incentives! Henan's Zhumadian seeks public opinion on new energy storage development plan. The Zhumadian Development and Reform Commission of Henan Province has released the 'Zhumadian New Energy Storage Development Plan' (draft for soliciting opinions). The document sets clear development goals: by 2025, the scale of new energy storage in Zhumadian City will reach over 1 million kilowatts, striving to reach 1.5 million kilowatts. It encourages priority construction of centralized energy storage power stations to improve efficiency. It is recommended that the installed capacity of a single centralized energy storage power station should not be less than 100,000 kilowatts, with a duration of no less than 2 hours.

Guangzhou Baiyun District Government Releases 'Several Measures for Promoting High-Quality Development of New Energy Storage Industry in Baiyun District, Guangzhou (Trial) (Draft for Soliciting Opinions)' The Guangzhou Baiyun District Government has released the 'Several Measures for Promoting High-Quality Development of New Energy Storage Industry in Baiyun District, Guangzhou (Trial) (Draft for Soliciting Opinions)'. The document proposes to support the construction of a grid for power storage and storage release, and to strengthen the efficient coordination of 'intelligent equipment + scenario-based applications'. It encourages the adoption of 'energy storage + comprehensive smart energy mode' in the fields of transportation, commerce, and industry. For new energy storage projects on the user side that utilize more than two types of technologies including photovoltaic, energy storage, hydrogen energy, charging piles, and smart energy management, and with an installed capacity of over 1 megawatt, the investment entity will be supported with a subsidy of no more than 0.2 yuan/kWh based on the discharge amount from the month of grid connection and operation, for a maximum duration of 2 years, and a maximum subsidy of 3 million yuan for the same project.

The Ministry of Industry and Information Technology has released the latest 'Management Measures'" Recently, the Ministry of Industry and Information Technology released the "Management Measures for the Comprehensive Utilization of Power Batteries for New Energy Vehicles (Draft for Soliciting Opinions)" to the public for feedback. The "Measures" will effectively promote the recycling of resources and drive the high-quality development of the new energy vehicle industry. The "Measures" make arrangements for the responsibilities that should be undertaken by car manufacturers, battery manufacturers, and secondary utilization enterprises in the comprehensive utilization process of power batteries, further optimizing the division of responsibility for the recycling and utilization of power batteries.

Notice on Consultation of the Detailed Rules for Compensation of Charging and Discharging Loss Costs for Independent New Energy Storage Power Stations in Anhui Province in 2024 (Draft for Soliciting Opinions) Anhui Power Trading Center has issued a notice seeking opinions on the detailed rules for the implementation of long-term power trading in Anhui Province in 2024. The notice includes the draft for soliciting opinions on the compensation rules for charging and discharging loss costs for independent new energy storage power stations in Anhui Province in 2024. According to the draft, the compensation for charging and discharging loss costs for independent energy storage enterprises is settled at the end of each quarter, together with the electricity fees for the last month of each quarter. For independent energy storage enterprises with a charging and discharging efficiency of 80%, the loss electricity fees generated by charging and discharging are uniformly calculated as the total electricity fees for the loss electricity consumed by independent energy storage enterprises within the province. The total electricity fees for the loss electricity of the independent energy storage enterprises are calculated as the sum of the total charging fees and the total discharging fees for each month, and the sharing of the total electricity fees for the loss electricity of the independent energy storage enterprises is based on the actual settlement discharging quantity.

The Development and Reform Commission of Hangzhou City has issued a notice seeking public opinions on the "Strategic Plan for the Development of New Energy (Energy Storage) in Hangzhou under the Background of Carbon Peaking and Carbon Neutrality (Draft for Soliciting Opinions)". The document points out that efforts will be made to conduct wind energy resource survey and evaluation, clarify the scope and capacity of wind power development, promote the development and utilization of wind energy resources in low wind speed areas, and encourage the pilot demonstration of distributed wind power in industrial parks and rural areas with resource and land conditions. By 2025, the city's distributed wind power demonstration projects are expected to reach no less than 250,000 kilowatts. By 2035, the distributed wind power demonstration projects are expected to reach no less than 600,000 kilowatts, and distributed wind power projects will be established in various districts and counties (cities) except for the core urban areas.