[SMM Tin Morning Brief: The Most-Traded SHFE Tin Contract Opened Slightly Lower in the Night Session and Then Maintained a Fluctuating Trend, with the Spot Market Showing a Certain Degree of Stalemate]

Zhong Ke San Huan released its 2025 annual report. During the reporting period, in the face of a complex and ever-changing external environment and increasingly intense industry competition, the company proactively adopted effective measures such as cost reduction and efficiency improvement, achieving leapfrog growth in operating performance. Full-year operating revenue was 6.641 billion yuan, and net profit attributable to shareholders of the parent company was 91.3186 million yuan, up 660.50% YoY

Concluding our series, we shift focus to 2026's emerging NdFeB growth drivers: robotics, low-altitude economy, and electric two-wheelers. While viewed as the "second growth curve," we analyze their actual demand support amidst current macro and industry cycles to determine if they can offset traditional sector slowdowns.

[SMM Tin Morning Briefing: The Most-Traded SHFE Tin Contract Opened Slightly Higher in the Night Session and Hovered at Highs, While Downstream Enterprises Showed Relatively Strong Purchase Willingness]

[Lead-Acid Battery Enterprise Dynamics] Recently, Camel Group stated on the interactive platform in response to investor inquiries that the company focuses on a dual-cycle strategy for lead-acid and lithium batteries, continuously improving its green and sustainable circular economy industry. Due to intensified industry competition and rising procurement costs for raw materials from scrap batteries, the company enhanced its overall efficiency by adjusting the production and sales pace, optimizing processes, and focusing on high-value-added products. In H1 2025, the company achieved a production of 245,000 mt of lead and lead products; it procured 3,262 mt of scrap lithium batteries and sold 1,424 mt of recycled materials.

The China Photovoltaic Industry Association (CPIA) predicts that China's new PV installations are expected to pull back in 2026, ranging between 180 GW and 240 GW. During the 15th Five-Year Plan period, the average annual new PV installations are projected to reach 238 GW to 287 GW. Wang Shijiang, Deputy Director of the Electronic Information Department at the Ministry of Industry and Information Technology (MIIT), emphasized that the core task this year is to address the cut-throat competition in the PV industry.

Guided by the "dual carbon" goals, the PV industry is accelerating into a new phase of high-quality development characterized by "safety + greenness". On June 10th, the "Safety and Green Technology Seminar", hosted by Zhongjian Materials, was successfully held in Shanghai. At the event, the highly anticipated "double-beam alloy steel frame" was unveiled, becoming an innovative solution to address extreme weather conditions and enhance module safety. Representatives from state-owned enterprises, EPC companies, leading module manufacturers, as well as experts and scholars, gathered to discuss the future development path of the PV industry driven by "hard technology". Safety First: The Double-Beam Alloy Steel Frame Makes a Grand Appearance With the increasing frequency of extreme weather events, the severity of power plant safety incidents is escalating. Amidst the ongoing trends of larger and thinner modules, there is an urgent need for breakthroughs in the mechanical strength of PV systems, and the industry is in dire need of higher safety-level load standards. Deng Ruhua, Technical Manager of Zhongjian Materials, systematically introduced the company's latest R&D achievement—the double-beam alloy steel frame—in response to the climate challenges and structural bottlenecks faced by the industry. Based on three generations of technological iterations, this product utilizes high-strength zinc-aluminum-magnesium alloy steel, significantly enhancing corrosion resistance and structural strength. Its "Dragon Head" structure on the A-side effectively prevents dust accumulation, the load-bearing beam on the B-side offers strong load-bearing and cushioning capabilities, and the reinforcing beam on the C-side optimizes the bifaciality and enhances tear resistance. The frame's appearance is highly consistent with traditional aluminum frames, compatible with existing module production and installation processes, offering excellent adaptability and substitutability. With a front-side ultimate load capacity of up to 10,000 Pa, it can withstand typhoons of up to Category 17. Its carbon emissions are reduced by 61.8% compared to aluminum frames, achieving a dual improvement in greenness and safety. Currently, the product has passed multiple extreme environment tests, including IEC63556, and is particularly suitable for harsh application scenarios such as "desert, gobi, and wasteland", high winds and snow, and severe hailstorms. Wind-Resistant Modules Demonstrated in Multiple Locations, Zero-Loss Performance Attracts Attention Qiu Guohui, Vice President of Jolywood and General Manager of the Application BU, introduced that the "Wind-Resistant Module" featuring a "single-glass + transparent backsheet + double-beam alloy steel frame" design has been successfully applied in 19 provinces across the country, with a total installed capacity of 168 MWp. After enduring multiple rounds of extreme weather conditions, including strong typhoons, hailstorms, and heavy snowfall, only one module suffered external damage, while the rest remained intact, fully demonstrating the high safety and reliability of the "Wind-Resistant Module" and attracting significant attention from power plant investors. Mr. Qiu also pointed out that the dust-prevention design of the double-beam alloy steel frame can enhance the power generation efficiency of the Wind-Resistant Module, further increasing power generation revenue for power plant investors. Dr. An Chao, R&D Technical Director of Jolywood Optoelectronics, noted that the steel frame, with its superior strength performance (front-side load capacity of 8,100 Pa, back-side load capacity of 3,200 Pa) and good compatibility, has proven its reliability in multiple Jolywood projects, with cumulative shipments and orders approaching 400 MW. Aluminum frames are becoming a critical pathway to meeting the requirements for high-quality development. Technology and insurance drive the solidification of green foundations. Dr. Liu Jie from Baosteel Central Research Institute introduced the green application of BaoXM® zinc-aluminum-magnesium coated steel sheets in PV frames, which not only enhances corrosion resistance but also helps address carbon tariffs. This material exhibits excellent formability and self-healing capabilities at cut edges, making it widely applicable in coastal and extreme climate zones. Baosteel offers a variety of high-coating products with specified corrosion resistance lifespans, ensuring long-term and stable supply. Lu Peijian, Deputy General Manager of PICC Suzhou Branch, pointed out that natural disasters currently account for over 60% of the risks in PV power plants. He highly praised the risk-resistance capabilities of steel-framed modules and expressed his intention to promote the transformation of insurance from "post-event compensation" to "risk reduction + capital synergy," supporting the steady development of the industry. Relying on its experience serving top-tier enterprises such as LONGi, PICC Suzhou provides comprehensive, one-stop risk protection for the industry. Strategic Signing to Elevate Collaboration At the event, Zhongjian Materials signed strategic cooperation agreements with PowerChina Guiyang Engineering Corporation and PowerChina Sichuan Engineering Corporation, as well as a 500MW steel frame project agreement in Shizuishan, Ningxia, with Saifute New Energy, demonstrating customers' high recognition of Zhongjian's products and technological approach. Zhang Haichao, Member of the Party Committee and Deputy General Manager of PowerChina Guiyang Engineering Corporation, stated that complex environments such as high altitudes and high wind pressures impose higher safety requirements on structural materials. The technological breakthrough in Zhongjian's double-beam steel frames provides more efficient and reliable structural solutions for the corporation. This strategic cooperation will usher in a new chapter of complementary advantages and synergistic development between the two parties. Returning to Essentials, Ushering in the Era of "Tough Competition" At the end of the seminar, Lin Jianwei, the founder of Jolywood Group, delivered a speech. He noted that although the PV industry is in a phase of rapid development, it is experiencing anxiety due to cut-throat competition, with intensified cost-reduction and capacity competition. However, the core of future industry competition will no longer be mere scale expansion but rather a return to product quality, technological innovation, and value creation, ushering in the era of "tough competition." Taking Zhongjian's steel frames as an example, he recounted the seven-year innovation journey spanning three generations: from project initiation in 2018 to achieving hundred-megawatt-scale applications in 2024, and plans to advance to gigawatt-scale promotion in 2025. Lin Jianwei emphasized that the core innovation of Zhongjian's steel frames lies in the "double-beam" structure. By pioneering the "double-beam" structural design and process optimization, they have successfully addressed pain points such as the easy deformation of aluminum frames, combining high safety with cost advantages. It is expected that within five years, this technology will become a mainstream solution, significantly enhancing module quality and reliability. He called on the industry to build consensus and, supported by professionalism, technology, and ecological collaboration, jointly construct a safer, greener, and higher-quality PV ecosystem. The PV industry has broad prospects, with the power and scale of modules continuing to increase. Developing more reliable, safe, and green system solutions has become a common goal for the industry. Zhongjian Materials will continue to lead the new era of steel frames with cutting-edge technology, contributing to the global energy transition. The future is here; let's join hands as peers to create a bright future together!

According to data from SMM, the operating rates of copper billet producers reached 50.61% in May 2025, down 4.36% MoM, indicating a weakening trend in the industry's operations. By scale, the operating rate of large enterprises was 53.42%, that of medium-sized enterprises was 49.54%, and that of small enterprises was 35.87%.

》Check SMM copper quotes, data, and market analysis 》Click to view the historical price trend of SMM spot copper According to SMM data, the operating rates of copper billet producers reached 50.61% in May 2025, down 4.36% MoM, indicating a weakening trend in the industry. By scale, the operating rate of large enterprises was 53.42%, that of medium-sized enterprises was 49.54%, and that of small enterprises was 35.87%. Market Review in May: Weak Demand and Slow Inventory Drawdown After the Labour Day holiday, the early onset of the off-season was evident. Most enterprises reported that the actual downtime during the holiday increased by about 1 day compared to last year. Coupled with the sustained highs in raw material prices, the willingness of end-users to restock decreased, and they only made just-in-time procurement, leading to a significant reduction in demand for brass billets. The days of raw material inventories of SMM's sample enterprises in May decreased by 0.5 days MoM to 6.98 days, and the days of finished product inventories also decreased slightly by 0.3 days MoM to 8.68 days. Despite enterprises' proactive efforts to reduce inventories, the drawdown speed of finished product inventories remained slow amid weak demand, with some enterprises still facing high inventory pressure. Outlook for June: Operating Rates May Continue to Decline, Industry Competition Intensifies SMM expects the operating rate of copper billet producers to further decline to 47.11% in June, down 3.51 percentage points MoM. As the traditional off-season deepens, market demand is expected to continue to contract, and enterprises are generally pessimistic about order expectations in June. In particular, order growth in traditional application areas is sluggish, and the phenomenon of " cut-throat competition " in the industry is intensifying. Some enterprises are resorting to sales promotions to stimulate orders, but the effect is limited , and finished product inventories remain high. In addition, the current high copper prices are further suppressing downstream procurement demand. Against the backdrop of high raw material costs and tight supply , enterprises are adopting a more cautious restocking strategy, mainly operating with low inventories. SMM analysis suggests that enterprises' raw material inventories may continue to decline in June, while finished product inventories are unlikely to see significant improvement, and the industry will still face significant pressure in the short term.

On May 16, at the 2025 SMM (6th) Silver Industry Chain Innovation Conference , hosted by SMM Information & Technology Co., Ltd. (SMM), co-organized by Ningbo Haoshun Precious Metals Co., Ltd. and Quanda New Materials (Ningbo) Co., Ltd., and strongly supported by sponsors including Fujian Zijin Precious Metals Materials Co., Ltd., Huizhou Yian Precious Metals Co., Ltd., Jiangsu Jiangshan Pharmaceutical Co., Ltd., Zhengzhou Jinquan Mining and Metallurgical Equipment Co., Ltd., Hunan Shengyin New Materials Co., Ltd., Zhejiang Weida Precious Metals Powder Materials Co., Ltd., Guangxi Zhongma Zhonglianjin Cross-border E-commerce Co., Ltd., Suzhou Xinghan New Materials Technology Co., Ltd., Yongxing Zhongsheng Environmental Protection Technology Co., Ltd., IKOI S.p.A, Hunan Zhengming Environmental Protection Co., Ltd., Kunshan Hongfutai Environmental Protection Technology Co., Ltd., and Shandong Humon Smelting Co., Ltd., SMM silver analyst Wang Huilin discussed the topic of "Evolution of Silver Supply and Demand and Price Outlook." 1. Current Status of Silver Mine and Refined Silver Supply In 2024, global silver-bearing mineral reserves totaled 640,000 mt in metal content. Silver associated with polymetallic ores accounts for more than two-thirds of the world's silver mineral resources. The self-sufficiency rate of domestic silver concentrates is approximately 50%, with imported silver concentrate processing trade being the main trade mode. In 2024, the total imports of silver concentrates reached nearly 1.68 million mt, with silver mine resources in South America being the primary source of domestic silver concentrate imports. Distribution of Domestic Refined Silver Production In 2024, SMM 1# silver production exceeded 17,000 mt, with large-scale silver smelting capacity concentrated in Henan, Yunnan, Shandong, and other regions. SMM 1# silver production is expected to continue to record positive growth in 2025. The main sources of mineral silver supply are by-products associated with lead concentrates and copper concentrates. ►SMM Analysis • Normalization of lead smelting losses, prioritization of by-product revenue Lead smelters prioritize high silver-content raw materials for comprehensive recovery to increase profit output and offset losses from lead treatment charges (TC). • Decline in silver recovery from imported copper ores The continuous decline in imported copper ore TC in 2025 has affected the supply of copper smelting raw materials, with the main YoY decline in refined silver production in the first half of 2025 coming from precious and rare metal recovery in copper smelters. Distribution of Recycled Silver Recovery Capacity According to SMM estimates, with the construction of new silver recovery capacity, the estimated annual production of recycled silver in 2025 has exceeded 5,000 mt. ►SMM Analysis • Traditional recycled silver recovery capacity: Distributed in Hunan, Zhejiang, and Guangdong, with raw materials mainly consisting of metallurgical slag and other electronic and electrical materials. • High-value precious and rare metal recovery capacity: Recovery of catalysts and various silver-based new materials containing platinum, rhodium, palladium, etc., with comprehensive recovery of multiple precious and rare metals. • Emerging recycled silver recovery capacity: Able to rely on the rapid development of the PV industry chain, with a focus on solar cells, silver paste, wiping cloths, etc. The increase in recycled silver from the PV industry component recycling market brings long-term supply pressure. It analyzed this from the perspectives of the expected market size and growth rate of PV silver recycling from 2022-2050, as well as the estimated proportion of waste component sources. 2. Industrial Demand and Future Trends of Silver The two end-use sectors with the most significant growth in silver end-use consumption are PV and NEVs. The analysis incorporates data on PV installed capacity and projections from 2010-2030, solar cell production and projections from 2020-2030, the expected share of different solar cell technologies from 2024-2030, and NEV sales data from 2015-2025E. ►SMM Analysis Despite the current technological trends of silver reduction and substitution, the silver paste consumption per GW for mainstream Topcon solar cells remains at 11-13 mt/GW. Therefore, it is estimated that silver consumption from domestic solar cell production will exceed 6,000 mt in 2025. Silver's industrial demand has a wide range of end-use applications, with consumption demand outside of PV and NEVs remaining relatively stable. The industrial demand for silver is gradually increasing, with global industrial demand accounting for approximately 62% of total demand in 2025. Among the global silver consumption demand, China is the major silver consumer. In 2025, domestic silver consumption demand is expected to reach approximately 19,000 mt, accounting for over 40% of global consumption demand. 3. Current Development Status of Silver Nitrate, Silver Powder, and Silver Paste in China 3.1 Silver Nitrate Market - Changes in Domestic Silver Nitrate Capacity and Expectations for New Projects ►SMM Analysis Ø The rigid demand for silver nitrate driven by PV installations and other new energy sectors is the primary factor driving the expansion of silver nitrate capacity. Ø With qualifications prioritized, after the concentrated release of capacity, the commissioning progress of newly approved projects has slowed down. Following the rapid expansion of silver nitrate capacity, industry competition has intensified, and operating rates have declined. ►SMM Analysis Ø The growth in silver nitrate production is correlated with the expansion of downstream silver powder and silver paste. However, the growth in silver nitrate production has not kept pace with the progress of capacity investment, leading to a decline in the industry's overall operating rate. 3.2 Silver Powder Market - Domestic Demand for Silver Powder In 2022, silver powder localisation occurred, and the demand for imported silver powder weakened. ►SMM Analysis Ø The substitution process of domestically produced silver powder has accelerated. Imported silver powder still holds certain advantages in technical parameters, with Japan's DOWA being the world's largest supplier of silver powder for PV silver paste. Ø The import of domestic high-end silver powder products still primarily comes from Japan, the US, and South Korea. Domestic silver powder capacity is mainly distributed in regions such as Hunan, Jiangsu, and Hubei. In 2025, there are still expectations for the expansion of domestic silver powder capacity, with an increase close to 20%, primarily driven by new projects in Hunan and Hubei. Monthly Supply-Demand Balance of Silver Paste Estimated Based on Solar Cell Production • Produce based on sales, with short inventory cycles and high long-term storage costs. •The formulation of silver paste needs to be customized according to user requirements, typically containing 90-92% silver, with the remaining portion consisting of organic carriers, glass oxides, and a small amount of other additives. 4. Silver Supply-Demand Balance and Price Outlook Supply-Demand Balance Table for Silver Ingots (Domestic) China has consistently been a silver exporter. In 2024, the net exports of unwrought silver with a purity of ≥99.99% from China were 3,982 mt. From January to November 2025, the exports of unwrought silver with a purity of ≥99.99% from China were 3,606 mt. Supply and Demand in the Silver Spot Market – SMMTD Premiums and Discounts Data Points Medium and long-term silver prices are expected to fluctuate upward, with bullish factors outweighing bearish ones. 》Click to view the special report on the 2025 SMM (6th) Silver Industry Chain Innovation Conference