European Metal Recycling resumed phased operations at its scrap shredder in Camden, New Jersey, after a court overturned the temporary suspension of its licence. The facility had been idled following a fire and must meet additional safety requirements before fully restarting. EMR has introduced a new lithium-ion battery fire-risk framework, while local residents remain concerned about repeated fires and smoke exposure.

[SMM Daily Review: PPI Cools More Than Expected but Silver Prices Lack Momentum for Rebound, with Rate Hike Expectations and Geopolitical Risks Continuing to Weigh] SMM, July 16 - US June PPI cooled more than expected, but US Fed officials maintained a hawkish tone. Compounded by escalating geopolitical conflicts, rate hike expectations persisted, and silver prices lacked momentum for a rebound. The spot market saw weak supply and demand, with premiums continuing to decline.

[SMM Zinc Morning Meeting Summary: Market Demand Worries Resurface, LME Zinc Retreats from Highs] Overnight, LME zinc opened at $3,590.5/mt, briefly rose after the open to touch a high of $3,614/mt, then continuously pulled back from highs, hitting a low of $3,542.5/mt near the end of the session, and finally closed down at $3,551.5/mt, falling $27.5/mt, down 0.77%.··.

July 15, global mining giant Rio Tinto officially released its production and operating report for Q2 and H1 2026: In the core Pilbara region of Australia, production: H1 total Pilbara production was 162.3 million mt, marking the best half-year performance since the record year of 2018. The ongoing rollout of equipment efficiency improvements and logistics optimization plans across all mines helped offset short-term disruptions from cyclones and maintenance. Shipments: Q2 global iron ore sales totaled 88.8 million mt, up 5% YoY; quarterly Pilbara sales were 85.3 million mt, surging 7% YoY and up 18% QoQ, setting a peak for quarterly shipments since 2020. Cost side: The surge in diesel prices pushed up unit cash costs. It is estimated that for every $10/barrel increase in crude oil, Pilbara ore cash cost per mt rises by $0.15. The full-year Pilbara FOB cash cost guidance remains unchanged at $23.5–25/wmt. The full-year sales volume target remains unchanged: global iron ore of 343–366 million mt, Pilbara at 323–338 million mt. At the IOC iron ore operation in Canada, affected by pit modifications and replacement of train unloading equipment, Q2 production and sales fell 31% YoY. The full-year sales guidance of 15–18 million mt remains unchanged, with Canadian wildfires continuing to be a short-term variable of disruption. Major breakthrough at Simandou (Guinea) Construction completion of the SimFer mine and port infrastructure at Simandou exceeded 75%, and the full railway line completed commissioning for train operations in Q1. Raw ore production at the mine steadily resumed in Q2, with total H1 shipments of 4.2 million mt, all sent to China. Key industry characteristic: Simandou ore requires three-stage crushing in China, creating a 2–3 month lag from mine output to actual sales. As of month-end June, raw ore stockpiles awaiting crushing at the mine site stood at 7.6 million mt, with total system inventory at 9.6 million mt. The concentrated release of this growth in H2 will significantly increase global supply of low-alumina, high-grade iron ore.

SMM News, July 15: Metal market: As of the midday close, domestic base metals showed mixed performance, with SHFE copper rising 0.57%, SHFE aluminum edging down, SHFE lead falling 1.8%, SHFE zinc up 0.45%, SHFE tin up 1.36%, and SHFE nickel down 0.43%. Furthermore, aluminum casting most-traded futures edged down, alumina most-traded rose 0.89%, lithium carbonate most-traded fell 2.33%, silicon metal most-traded fell 0.35%, and polysilicon most-traded futures fell 1.04%. Ferrous metals all rose. Iron ore rose 1.13%, rebar rose 1.24%, hot-rolled coil rose 1.09%, and stainless steel rose 0.76%. Coking coal and coke: The most-traded coking coal contract rose 2.12%, and the most-traded coke contract rose 1.1%. Overseas base metal market: As of 11:42, LME metals nearly all rose. LME copper rose 0.28%, LME aluminum rose 0.49%, LME lead fell 0.32%, LME zinc rose 0.73%, LME tin rose 0.28%, and LME nickel edged up. Precious metals: As of 11:42, COMEX gold fell 0.8%, and COMEX silver fell 0.67%. Domestic precious metals: SHFE gold rose 0.18%; SHFE silver most-traded rose 1.03%. Furthermore, as of the midday close, platinum most-traded futures rose 2.35%, and palladium most-traded futures rose 3.6%. As of the midday close, the most-traded Europe shipping futures contract rose 2.78% to 2,572.5 points. As of 11:42 on July 15, some futures midday quotes: Spot and Fundamentals Copper: Today, Guangdong #1 copper cathode spot against the front-month contract: High-quality copper was quoted at 80 yuan/mt, flat with the previous trading day; standard-quality copper was quoted at a discount of 20 yuan/mt, flat with the previous trading day; SX-EW copper was quoted at a discount of 80 yuan/mt, flat with the previous trading day. The average price of Guangdong #1 copper cathode was 105,205 yuan/mt, up 1,100 yuan/mt from the previous trading day, and the average price of SX-EW copper was 105,095 yuan/mt, up 1,085 yuan/mt from the previous trading day. Spot market: Guangdong inventory ended a two-session rising streak and fell again today, mainly due to reduced arrivals... Macro Front Domestic: [National Bureau of Statistics (NBS): H1 GDP rose 4.7% YoY; national economy operated within a reasonable range; new momentum grew rapidly] The National Bureau of Statistics (NBS) released data showing that, according to preliminary estimates, H1 GDP reached 69,570.4 billion yuan, up 4.7% YoY at constant prices. By industry, the value added of the primary industry was 3,152.2 billion yuan, up 3.7% YoY; the secondary industry was 25,047.3 billion yuan, up 3.9%; and the tertiary industry was 41,370.9 billion yuan, up 5.2%. By quarter, Q1 GDP grew 5.0% YoY and Q2 grew 4.3%. On a QoQ basis, Q2 GDP rose 0.9%. Overall, the national economy operated within a reasonable range in H1, with new quality productive forces cultivated and strengthened and high-quality development progressing toward new heights of quality. At the same time, we must recognize that external instabilities and uncertainties are mounting, the contradiction between strong supply and weak demand in China remains pronounced, and the foundation for economic improvement still needs consolidation. In the next phase, we will adhere to the principle of seeking progress while maintaining stability, improving quality and efficiency, intensify counter-cyclical and cross-cyclical adjustments, continue to expand domestic demand and optimize supply, enhance growth and revitalize existing assets, focus on building a strong Chinese market, accelerate the cultivation and strengthening of new momentum, step up efforts to stabilize employment, enterprises, markets, and expectations, and promote the effective improvement of quality and reasonable growth of quantity in the economy. [PBOC reverse repo operations achieved a net injection of 911.5 billion yuan on the day] The PBOC conducted 426.5 billion yuan of 7-day reverse repo operations and 1,400 billion yuan of 6-month outright reverse repo operations today. With 15 billion yuan of 7-day reverse repos and 900 billion yuan of outright reverse repos maturing today, the operations resulted in a net injection of 911.5 billion yuan on the day. US dollar: As of 11:42, the US dollar index extended the previous trading day's decline, falling 0.11% to 100.83. Data: A key turning point signal emerged in US inflation. June CPI recorded its first MoM decline in six years, while core inflation was basically flat, prompting the market to dramatically scale back bets on a July rate hike by the US Fed. On Tuesday, data released by the US Bureau of Labor Statistics showed that the June Consumer Price Index (CPI) rose 3.5% YoY, below market expectations of 3.8% and a significant pullback from the prior reading of 4.2%. Core CPI rose 2.6% YoY, also below expectations of 2.8% and the prior reading of 2.9%. (Wall Street See) According to CME "FedWatch": The probability of the US Fed holding rates steady in July is 84.5%, while the probability of a cumulative 25-basis-point rate hike is 15.5%. For September, the probability of holding rates steady is 42.2%, the probability of a cumulative 25-basis-point hike is 50%, and the probability of a cumulative 50-basis-point hike is 7.8%. (Jin10 Data APP) Fed Chairman Walsh stated that he places equal emphasis on the Fed's employment and inflation mandates—a point he has repeatedly stressed since assuming the role of Fed Chairman. "In the mandate you have given us, we do not favor one part over the other," Walsh told members of the House Financial Services Committee. "Price stability and full employment are not trade-offs. I am committed to achieving both. When later asked if he supported targeted measures to address the unemployment rate and employment opportunity gaps between Black and White Americans, Walsh stated: "The US must not leave anyone behind. Economic opportunity is critical to the trajectory of growth for the US over the next five to ten years, meaning every American needs the opportunity to be productive." (Jin10 Data APP) A CICC research note indicated that US June CPI fell 0.4% MoM on a seasonally adjusted basis, with YoY growth pulling back to 3.5%; core CPI was flat MoM and up 2.6% YoY, both below market expectations. The decline in energy prices was the main driver of cooling inflation. Looking ahead, as tensions escalate again between the US and Iran, the outlook for energy inflation remains uncertain. Meanwhile, the AI inflation effect is gradually materializing, with upstream hardware supply-demand mismatch, rising prices for software and related products, and AI capex boosting aggregate demand all potentially making core inflation stickier. For policy, the cooling inflation data in June supports the Fed holding rates steady at its July meeting, but recent remarks by Waller suggest [1] the Fed is reassessing the possibility of a "preventive rate hike." We maintain our base case of no rate hikes for the year, but flag that the bar for hiking has already fallen. If one or two hotter-than-expected inflation prints emerge, it could push the Fed to further discuss rate hike options. A CITIC Securities research note stated that US June CPI came in below expectations across the board, retail gas prices fell, core services inflation was flat MoM, and the second-round inflation effect was minimal. CITIC Securities believes US inflation is not sticky, noting that headline CPI YoY has definitively passed its cycle peak and is expected to trend mildly downward in Q3, hit bottom in September, rise to a secondary peak around year-end, and then decline rapidly next March. CITIC Securities still expects the Fed to stay on hold for the full year, sees room for derivative-priced rate hike expectations to be revised further down, considers US Treasuries currently unsuitable for allocation-based opportunities—with short-dated bonds better than long-dated ones—and believes the US dollar index faces difficulty sustaining upward momentum but has support, while the technology-driven theme in US equities retains its appeal. On the data front: Today will see the release of figures including China's June total electricity consumption YoY, China's June total electricity consumption, the US June PPI annual rate, the US June PPI monthly rate, the US July New York Fed Empire State Manufacturing Index, the Eurozone May industrial output MoM rate, Canada's May wholesale sales MoM rate, and the Bank of Canada's interest rate decision as of July 15. Additionally, attention needs to be paid to: the National Bureau of Statistics (NBS) releasing the monthly report on residential selling prices in 70 large and medium-sized cities; the State Council Information Office holding a press conference on the state of the economy; the State Council Information Office holding a press conference to brief on the execution of monetary policy and financial statistics for H1 2026; the National Energy Administration releasing total electricity consumption data around the 15th of each month. Fed Governor Barr spoke on artificial intelligence at the Fed’s annual financial inclusion conference; 2027 FOMC voting member and Chicago Fed President Goolsbee participated in a fireside chat; Fed Governor Lisa Cook delivered remarks at the Fed’s annual financial inclusion conference; Fed Governor Bowman also spoke at the same conference; permanent FOMC voting member and New York Fed President Williams gave a speech; Fed Chair Warsh attended the Senate Banking, Housing, and Urban Affairs Committee hearing on the Fed’s Semi-annual Monetary Policy Report; Bank of England Governor Bailey spoke; the Bank of Canada announced its interest rate decision and monetary policy report, and Bank of Canada Governor Macklem and Senior Deputy Governor Rogers held a monetary policy press conference. ASML published its Q2 2026 financial report. Crude oil: As of 11:42, both benchmarks rose, with WTI up 1.02% and Brent up 1.32%. Despite improved risk sentiment from cooling inflation, the crude oil market remains driven by geopolitics. The US announced the reinstatement of a naval blockade on vessels transiting Iranian ports and coastal areas, with escalating Middle East tensions supporting oil prices. Meanwhile, the US and European refined product markets are historically tight, heightened Middle East strains have fanned fuel supply concerns, and high oil prices continue to pressure consumers. Goldman’s Privorotsky believes Brent around $85 itself is manageable, the real story is in refined products, distillates rather than crude oil are the true inflation signal, and heating oil futures have hit new highs since the conflict erupted, highlighting tightness in the product market, with any further disruption disproportionately hitting inflation. (Wall Street CN) Additionally, Iran’s Islamic Revolutionary Guard Corps said in a statement on the 15th that as long as the US continues attacks on Iran, the region will not export “a drop of oil” or natural gas. (Xinhua) Spot market overview: ► ► ► ► ► ► ► ► ► ► ► ► ► ►

SMM July 15: Metals Market: Overnight, base metals on both domestic and overseas markets broadly rose, with only LME lead, SHFE aluminum, SHFE lead, and SHFE nickel declining together. SHFE lead led the declines with a 1.45% drop, while LME tin led the gains with a 2.39% increase. SHFE tin rose 1.45%, LME copper gained 0.9%, and the % changes for other metals were within 1%. Alumina main contract rose 1.08%, while cast aluminum main contract fell 0.11%. Overnight, ferrous metals collectively rose. Rebar and iron ore both gained around 0.8%, with rebar up 0.88% and iron ore up 0.8%. Hot-rolled coil (HRC) rose 0.73%. Coking coal and coke saw coking coal rise 0.4% and coke rise 0.35%. Overnight in precious metals, COMEX gold rose 1.31% and COMEX silver rose 1.84%. Domestically, SHFE gold rose 0.89% and SHFE silver rose 1.98%. Overnight closing prices as of 6:44 a.m. on July 15: >> Click to view SMM Futures Data Dashboard Macro Front China: [China's H1 Imports and Exports Scale Surpassed 25 Trillion Yuan for First Time, up 16.9% YoY; Strong Foreign Trade Growth Momentum Expected to Continue in H2] The State Council Information Office held a press conference today (14th) to report on China’s foreign trade performance this year. At the conference, it was reported that China's foreign trade achieved double-digit growth in H1, maintaining a sound operational trend. With the rapid development of artificial intelligence, imports and exports of related products showed strong momentum. In H1, imports and exports of computing hardware such as electronic components and computer parts reached 5.13 trillion yuan, up 56.6% YoY. Smart products like AI glasses, AI translators, and mechanical exoskeletons are iterating rapidly, with various innovative products constantly emerging. According to customs statistics, in H1, China's total goods trade import and export value was 25.47 trillion yuan, up 16.9% YoY. Of this, exports were 14.73 trillion yuan, up 13.4% YoY, marking the 11th consecutive quarter of growth; imports were 10.74 trillion yuan, up 22.1% YoY, with the growth rate 8.7 percentage points higher than that of exports. In June alone, imports and exports totaled 4.78 trillion yuan, up 24.2% YoY, marking 17 consecutive months of growth. From the export perspective, the product structure further optimized. In H1, China's exports of mechanical and electrical products were 9.36 trillion yuan, up 20.1% YoY, accounting for 63.5% of total export value, 3.5 percentage points higher than the same period last year. Exports of high-tech products reached 3.26 trillion yuan, up 39% YoY. (CCTV News) >> Click for Details SMM compiled import and export data for some metal industry products based on figures released by the General Administration of Customs, details as follows: >> Click for Detailed Import and Export Data US Dollar Side: As of the overnight close, the US dollar index fell 0.38% to 100.93. The US inflation data released on Tuesday came in below expectations, leading traders to scale back bets on US Fed rate hikes. Data released by the US Labor Department on the 14th showed that, dragged down by falling energy prices, the US Consumer Price Index (CPI) increase pulled back in June, though inflationary pressure remained significant. The data showed that while the US June CPI YoY increase slowed to 3.5% from May's 4.2%, it was still significantly above the US Fed's 2% inflation target. The Labor Department stated that the decline in energy prices was the biggest factor pulling back the CPI increase for the month, offsetting price increases in other areas like housing and food. Heather Long, chief economist at Navy Federal Credit Union, said inflationary pressure eased somewhat in June, but the slowing inflation trend may be short-lived as military confrontation between the US and Iran heats up again. (Xinhua News Agency) (Jin10 Data APP) After June inflation data came in below expectations, the CME "FedWatch" tool showed that the probability of a Fed rate hike this month fell to 17%, compared to 42% yesterday. The June CPI data showed a 0.4% MoM decline and a 3.5% YoY increase, indicating a milder price trend than economists predicted. Even excluding the significant drop in oil prices last month, the inflation figures were better than expected. Peter Cardillo of Spartan Capital noted, "This data exceeded our expectations, and even if it hasn't completely eliminated the possibility of a rate hike this month, it has significantly reduced that probability." According to FedWatch data, the market broadly expects at least one rate hike within the year. (Jin10 Data APP) A CITIC Securities research report stated that the US June CPI was broadly lower than expected, retail oil prices fell, core services items showed zero MoM growth, and second-round inflation effects were minimal. CITIC Securities believes US inflation stickiness is weak, the headline CPI YoY has confirmed it passed its peak for this round, and Q3 will generally show a mild pullback, hitting bottom in September, before rising to a secondary high at year-end and rapidly declining next March. CITIC Securities still expects the US Fed to hold steady all year, sees further downside room for rate hike expectations priced into derivatives, believes US Treasuries are currently unsuitable for tactical allocation opportunities (short-end bonds are better than long-end bonds), thinks the US dollar index has difficulty surging sustainably but has support, and views the tech-driven theme in US equities as still attractive. According to CME "FedWatch": The probability of the US Fed maintaining rates unchanged in July is 84.5%, and the probability of a cumulative 25-basis-point rate hike is 15.5%. The probability of the Fed keeping rates unchanged through September is 42.2%, the probability of a cumulative 25-bps hike is 50%, and the probability of a cumulative 50-bps hike is 7.8%. (Jin10 Data APP) Macro Side: Data to be released today include China’s Q2 GDP YoY rate, China’s June total retail sales YoY, China’s June industrial production above designated size YoY, China’s June total electricity consumption YoY, China’s June total electricity consumption, US June PPI YoY, US June PPI MoM, US July NY Fed Empire State Manufacturing Index, Eurozone May industrial production MoM, Canada May wholesale sales MoM, and the Bank of Canada interest rate decision as of July 15. Additionally, the NBS will release its monthly report on residential sales prices in 70 large and medium-sized cities. The State Council Information Office will hold a press conference on national economic performance and another press briefing on the implementation of H1 2026 monetary policy and financial statistics data. The National Energy Administration will release total electricity consumption data around the 15th of each month. Fed Vice Chair for Supervision Barr will speak on AI at the Fed's annual Financial Inclusion Conference. 2027 FOMC voting member and Chicago Fed President Goolsbee will participate in a fireside chat. Fed Governor Lisa Cook and Fed Governor Bowman will speak at the Fed's annual Financial Inclusion Conference. FOMC permanent voting member and New York Fed President Williams will deliver remarks. Fed Chairman Walsh will testify before the Senate Banking, Housing, and Urban Affairs Committee on the "Federal Reserve's Semi-Annual Monetary Policy Report." BOE Governor Bailey will speak. The Bank of Canada will announce its interest rate decision and monetary policy report, and BoC Governor Macklem and Senior Deputy Governor Rogers will hold a monetary policy press conference. ASML will release its Q2 2026 financial results. Crude Oil Side: Overnight, oil prices on both sides of the Atlantic rose together, with WTI crude up 2.16% and Brent crude up 2.21%. The geopolitical conflict between the US and Iran heightened concerns about supply disruption risks. However, news last night indicated that US President Donald Trump abandoned his idea of imposing a 20% compensation fee on cargo transiting through the Strait of Hormuz just a day after it was widely criticized as impractical. (From Wall Street CN APP) American Petroleum Institute (API) data showed that last week, US API crude oil inventories fell by 564,000 barrels, following a decline of 399,000 barrels the previous week. API Cushing crude oil inventories rose by 238,000 barrels last week, compared to a decrease of 69,000 barrels previously. Gasoline inventories fell by 1.664 million barrels (prior: -2.929 million barrels), while distillate inventories rose by 2.259 million barrels (prior: -1.801 million barrels). (From Wall Street CN APP) Foreign media reported, citing sources, that Iran had begun secretly moving oil tankers through the Strait of Hormuz over the past few days, before the escalation of hostilities and the US announcement that it would re-impose a blockade on Iranian ports. Vessel tracking data shows that over the past week, a total of six US-sanctioned very large crude carriers (VLCCs) sailed through the Strait of Hormuz into the Gulf of Oman with their Automatic Identification System (AIS) transponders turned off. These six tankers can collectively transport 12 million barrels of crude oil. These vessels, along with other Iran-linked ships, completed their voyages after the US revoked the license on July 7 that allowed Iran to temporarily sell crude oil. Besides these six Iranian VLCCs, a significant number of US-sanctioned vessels linked to Tehran have departed from the Strait of Hormuz since July 7. These ships are part of the 57 million barrels of crude oil that Iran successfully exported between the two rounds of US naval blockades. (Jin10 Data APP)

Samsung SDI announced on July 14 that it has met all evaluation criteria in the Indoor Large Scale Fire Test (Indoor LSFT) conducted by global safety certification body UL Solutions. Indoor LSFT is a safety test that forcibly burns a module inside a UPS battery rack and verifies whether the fire spreads to adjacent racks or systems.

In early July 2026, CAAM and the China Passenger Car Association (CPCA) branch successively released data on the auto market for June and H1 2026. CAAM stated that in H1, China’s auto industry operated steadily overall, with cumulative declines in production and sales narrowing month by month. Market flows showed three main divergences: first, domestic demand was under significant pressure, with double-digit declines in sales; second, exports exceeded expectations, providing stable support...... SMM has compiled the relevant data on the auto market for June and H1 2026 for readers' reference. In the automotive sector, CAAM: June Auto Production and Sales Rise MoM; H1 Declines Narrow Further Compared with First Five Months In June, auto production and sales reached 2.76 million and 2.81 million units, up 5.5% and 6.9% MoM respectively, but down 1.2% and 3.2% YoY. January-June, auto production and sales totaled 14.993 million and 15.017 million units, down 4.0% and 4.1% YoY respectively, with the declines narrowing further compared with the first five months. CAAM: NEV Production and Sales in June See Steady Growth; NEV Sales Account for 49.6% of Total New Vehicle Sales in H1 In June, NEV production and sales reached 1.598 million and 1.643 million units, up 26% and 23.6% YoY respectively. NEV sales accounted for 58.5% of total new vehicle sales. January-June, NEV production and sales totaled 7.438 million and 7.446 million units, up 6.7% and 7.3% YoY, and NEV sales accounted for 49.6% of total new vehicle sales. CAAM: June Auto Exports Exceed 1 Million Units for the First Time in History; NEV Exports Up 1.6x YoY In June, auto exports reached 1.037 million units, up 11.6% MoM, soaring 75.1% YoY, marking the first time monthly exports surpassed 1 million units. January-June, auto exports totaled 5.096 million units, up 65.3% YoY. In June, NEV exports were 523,000 units, up 17.2% MoM, and up 1.6x YoY; exports of conventional fuel vehicles were 514,000 units, up 6.4% MoM and 32.7% YoY. January-June, NEV exports reached 2.355 million units, up 1.2x YoY; conventional fuel vehicle exports totaled 2.741 million units, up 35.5% YoY. Regarding the auto market in H1, according to CAAM analysis, China's auto industry operated steadily overall, with cumulative declines in production and sales narrowing month by month. Market flows exhibited three key divergences: First, domestic demand was clearly under pressure, with sales dropping by a double-digit percentage; exports grew beyond expectations, providing a stable support. Second, the passenger vehicle market underperformed, edging down slightly; the commercial vehicle market continued its improving trend, with sales maintaining growth. Third, the shift from old to new economic drivers continued, with the traditional internal combustion engine vehicle market shrinking further while NEV maintained steady growth. Meanwhile, the China Passenger Car Association also released June passenger car market data. June retail sales of passenger cars in China reached 1.602 million units, down 23.2% YoY and up 6.1% MoM; year-to-date cumulative retail sales totaled 8.701 million units, down 20.2% YoY. In June 2026, China's domestic passenger car market showed a recovery trend characterized by "overall pressure, MoM strengthening, and extreme structural divergence." For passenger NEV, June retail sales reached 1.007 million units, down 9.4% YoY and up 6.0% MoM; January–June passenger NEV retail sales totaled 4.704 million units, down 14.0% YoY. June retail sales of conventional internal combustion engine passenger vehicles were 600,000 units, down 39% YoY and up 6.3% MoM; among these, ordinary hybrid models fell only 7% YoY while rising 24% MoM, a standout performance trend. In terms of NEV exports, June passenger NEV exports stood at 499,000 units, up 152.7% YoY and up 17.6% MoM , accounting for 56.9% of total passenger vehicle exports, an increase of 15.9 percentage points compared to the same period last year. Among these, pure EVs made up 58.7% of NEV exports (vs. 63.1% a year earlier), and A00+A0-class pure EVs—the core focus—accounted for 53.8% of pure EV exports (vs. 51.2% a year earlier). Riding on the growing scale advantage of China's NEVs and market expansion demand, an increasing number of Chinese-manufactured NEV-branded products are going global, with their recognition outside China steadily rising. Narrow plug-in hybrids represented 37.7% of NEV exports (vs. 33.4% a year earlier), while extended-range models comprised 3.6% of NEV exports (vs. 3.5% a year earlier). Despite some recent external disruptions, domestic narrow plug-in hybrid exports to developing countries are surging with bright prospects. The China Passenger Car Association noted that the core characteristics of the June auto market were "collapsing domestic sales of internal combustion engine vehicles, NEV firmly dominating, and exports surging strongly." The core pressure behind the decline in China's domestic auto market was internal combustion engine vehicles, with retail sales dropping 39% under the impact of high oil prices. In June, conventional internal combustion engine vehicles accounted for a 37.2% share, and their YoY decrease represented 78% of the total decline in passenger vehicles. Among these, ordinary hybrid models saw retail sales fall 7%, pure internal combustion engine vehicles fell 42%, and the internal combustion engine vehicle structure experienced further divergence. High oil prices, consumption transformation, and other factors accelerated the "oil-to-electric replacement" process. This month, the new energy retail penetration rate held at a historical high of 62.8%. The electrification transformation of joint-venture brands accelerated. In June, sales of new energy joint-venture car models grew 45% YoY, while internal combustion engine vehicle sales fell 39% YoY. Exports continued to be the core growth driver for the industry. In June, new energy exports accounted for 57% of total exports, a new high, while internal combustion engine vehicle export growth of 33% was also strong, resulting in superb dual growth of both oil and electric vehicles in China's going-global efforts. Currently, the domestic auto market is characterized by intense competition for existing stock, and divergence within the industry continues to intensify. The new energy market has bid farewell to all-round growth, showing a polarized trend of "explosive growth in high-end EVs and pressure on low-end economy car models," with markets in counties and townships and entry-level models declining too sharply. At the same time, the "new car effect" has become short-lived, significantly weakening its ability to boost the market. Pressure on the channel side remains prominent, the industry's pace of passive destocking has accelerated, and dealers are generally suffering losses with escalating operational risks. Overall, the MoM strengthening of the auto market in June was merely a structural recovery; electrification iteration and overseas exports have become the core pillars of the industry's long-term growth. Characteristics of the passenger car market in June 2026: 1. Total volume was under pressure with major structural divergence; "cold internal combustion engines, hot pure electric" became the biggest focus. The core reason for the domestic retail decline was the "collapse of internal combustion engines," which drove the new energy retail penetration rate to quickly exceed 60% and reach 62.8%, with the pace of electrification replacement surpassing expectations. 2. Mini EVs were under pressure, A-segment cars shrank, and entry-level consumption urgently needed support, with expectations for the introduction of economy EV standards. 3. Exports showed explosive growth, with new energy accounting for 57% of exports (a new high), and both new energy and self-owned brand dual-driven going global became the core growth engine. 4. Passive destocking characteristics were evident, channel inventory declined relatively rapidly, listed dealers were all in the red, and dealer survival pressure continued to intensify. 5. The breakthrough of self-owned brands in the high-end segment stood out, with passenger car retail penetration rates in consumer markets such as 200,000-300,000, 300,000-400,000, and above 400,000 all exceeding 50%. June Delivery Data for New Force Automakers Released: Leap Motor Charges Ahead – How Are Automakers’ Annual Targets Progressing? In early July, several domestic new force automakers successively announced their June delivery data, with many delivering impressive results: In June, Leap Motor continued its unstoppable momentum, delivering 93,376 units globally, up 95% YoY. Its H1 cumulative deliveries reached 356,487 units. According to previous media reports, Leap Motor's full-year 2026 sales target is 1 million units, and its current target completion rate is around 35.65%. This year, Leap Motor's new car deliveries have been climbing steadily, and its outstanding performance has kept it firmly at the forefront among new force automakers. In July, Leap Motor continued its momentum by launching a car purchase event, "Summer Deals: Save This Summer." During the event, customers who place orders can enjoy limited-time comprehensive benefits worth up to 61,279 yuan, bundled with four lifetime free warranty services, premium services, and more, offering a sincere benefits package to bring users a more relaxed car ownership experience. As of June 18, 2026, Leap Motor's cumulative global deliveries surpassed 1.5 million units, marking an important milestone in the brand's development. In June, NIO delivered 40,597 new vehicles, a single-month high for 2026, up 62.9% YoY. Among them, the NIO brand delivered 21,908 new vehicles, up 50.1% YoY; the Le Dao brand delivered 11,743 new vehicles, up 83.5% YoY; and the firefly brand delivered 6,946 new vehicles, up 76.7% YoY. As of now, NIO has cumulatively delivered 1,188,715 new vehicles. In H1 2026, NIO delivered a total of 191,123 new vehicles, reaching a record high, up 67.4% YoY. All three brands achieved record-high deliveries in H1. According to public information, NIO previously stated that it hopes to maintain an annual sales growth of 40%–50%. Based on this, its 2026 sales target is 456,000 to 489,000 vehicles. As of now, its full-year sales completion rate is around 39.08%–41.9%. Meanwhile, as of now, NIO has been profitable for two consecutive quarters, entering the third phase of high-quality development. Its multi-brand strategy is steadily advancing, and synergistic efforts are driving rapid sales growth. In June, XPeng Motors delivered 40,126 new vehicles, up 15.9% YoY; cumulative deliveries in Q2 reached 103,295 units. During the same period, the 10,000th XPeng GX rolled off the production line, global cumulative deliveries of the XPeng X9 surpassed 60,000 units, and the first SUV in the MONA series, the XPeng MONA L03, will make its China debut and start pre-sales on July 2, further enriching XPeng's product lineup and steadily advancing its global expansion. In H1 2026, XPeng Motors cumulatively delivered 165,977 vehicles, achieving a sales target completion rate of approximately 27.66%–30.18% against its 2026 goal of 550,000 to 600,000 units. Notably, global cumulative deliveries of the XPeng X9 have now exceeded 60,000 units, setting a new record for the fastest delivery pace among new energy MPVs. In June, Li Auto delivered 30,895 new vehicles. In H1 2026, Li Auto delivered a total of 193,472 vehicles. As of June 30, 2026, Li Auto's cumulative deliveries reached 1,733,687 units. In March this year, Li Auto's Chairman Li Xiang set a target of over 20% YoY sales growth for 2026, corresponding to 487,600 units for the full year. Currently, Li Auto's delivery completion rate for H1 stands at around 39.68%. In July, the new-generation Li Auto L6 will officially hit the market. Xiaomi Auto's June deliveries continued to exceed 30,000 units, with its H1 sales at approximately 180,000 units, representing a completion rate of roughly 32.73% against the 550,000-unit sales target it announced in January 2026. BYD, a globally renowned EV enterprise, reported NEV sales of 403,472 units in June, up 5.46% YoY. Its YTD production reached 1.8141 million units, down 15.11% YoY, while cumulative sales stood at 1.8085 million units, down 15.72% YoY. Passenger vehicle production was 396,400 units and sales were 397,300 units. Notably, in June, BYD's markets outside China maintained rapid growth, with passenger vehicle and pickup exports reaching 174,897 units, up 95% YoY. In H1, BYD's cumulative sales reached 1,808,511 units, and its cumulative NEV sales surpassed 16.9 million units. According to publicly available information, its previously set sales target ranged from 5 million to 5.5 million units, against which its current completion rate is roughly between 32.88% and 36.17%. Judging from the June report cards of BYD and these NEV startups, BYD and Leap Motor delivered outstanding performances. BYD's sales once again exceeded 400,000 units, while Leap Motor continued to refresh its delivery records, with global deliveries surpassing 90,000 units, securing its top spot in deliveries among NEV startups. NIO and XPeng Motors both surpassed the 40,000-unit delivery mark in June, each delivering commendable performances. However, the above-mentioned automakers still face a certain gap between their current sales achievements and their annual sales targets, with Li Auto posting the highest completion rate of 39.68%. Nevertheless, hopes remain for the September-October peak season in H2, and with a flurry of favorable auto policies emerging recently, the subsequent performance of automakers is still worth looking forward to. Policy side, on July 2, the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology issued an announcement on adjusting the preferential vehicle and vessel tax policies for energy-saving vehicles and NEVs. It was mentioned that starting January 1, 2027, the policy of halving vehicle and vessel tax for energy-saving vehicles will be abolished, as will the policy of exempting pure electric commercial vehicles, plug-in hybrid electric vehicles (including range-extended), and fuel cell commercial vehicles from vehicle and vessel tax. For the above-mentioned types of vehicles newly acquired by taxpayers or already acquired before the implementation of this announcement, vehicle and vessel tax shall be levied in accordance with the Vehicle and Vessel Tax Law of the People's Republic of China, its implementing regulations, and other relevant provisions. Furthermore, on June 29, the China Automotive Power Battery Industry Innovation Alliance and the Zhongguancun Energy Storage Industry Technology Alliance jointly released the "Initiative for Standardizing Supplier Payment Practices for Power and ESS Battery Enterprises," which proposes standardized initiatives across multiple stages including order confirmation and changes, delivery and acceptance, payment and settlement, and contract terms. After the initiative was released, many power battery and ESS battery companies along China’s industry chain, including CATL, EVE, and Gotion High-tech, actively responded. An official from the Equipment Industry Division I of the Ministry of Industry and Information Technology commented that 11 key battery enterprises actively responded to the initiative and proposed relevant implementation measures, demonstrating their responsibility and commitment. The Ministry of Industry and Information Technology will give full play to the inter-departmental coordination mechanism, promptly resolve issues in implementation, and adopt multiple measures to promote the building of a collaborative and win-win development ecosystem for the entire industry chain of power and ESS batteries, fostering the healthy and sustainable development of the industry. Looking ahead to H2, CAAM expects that the program of large-scale equipment upgrades and consumer goods trade-ins will continue to be implemented in an orderly manner, consumption in the automotive aftermarket is expected to usher in new growth opportunities, the supply of new products from enterprises will continue to be enriched, market prices will remain relatively stable, and the overall economic performance of the industry will improve further. At the same time, it should be noted that the external situation is complex and changing, uncertainties continue to increase, the problem of insufficient domestic demand remains prominent, and the industry still faces significant pressure. It is necessary to stabilize policy expectations, strengthen guidance and supervision, closely monitor changes in the international situation, effectively respond to risks and challenges, and steadily explore international markets.

[Shennan Dian A: Expects H1 2026 Net Profit of 18 Million–21 Million Yuan, Compared with a Loss of 21.7395 Million Yuan in the Prior-Year Period] Shennan Dian A announced that it expects net profit attributable to shareholders of the listed company for the period from January 1, 2026 to June 30, 2026 to be between 18 million yuan and 21 million yuan, compared with a loss of 21.7395 million yuan in the same period last year; net profit after deducting non-recurring items is expected to be between 8 million yuan and 11 million yuan, compared with a loss of 28.327 million yuan in the prior-year period. In the integrated energy services segment, Phase I of the standalone ESS project of Shennan Dian Xiwan Energy (Zhongshan) Co., Ltd. entered commercial operation in June 2025, with all performance indicators performing well, driving simultaneous increases in both revenue and profit for the segment. In the power generation and sales segment, since August 1, 2025, Guangdong Province raised the capacity tariff for gas-fired generating units, further improving the profit margin of the company’s power generation business and helping its marginal contribution achieve a YoY increase. Income from external equity investments also increased. During the reporting period, the profits of the associate enterprises in which the company holds stakes achieved growth, and the investment income recognized under the equity method increased accordingly.

[SMM Analysis] In H1 2026, the core conflict in the LFP cathode material market was not just a simple shift in the supply-demand relationship, but rather a profound tussle involving the top-down transmission of cost pressure and the reshaping of the benefit distribution pattern across the industry chain.