SMM News: Following our previous analysis of the transportation and wind power sectors, this installment shifts focus to the critical demand drivers in the consumer and construction domains: White Goods , Consumer Electronics , and Real Estate-related applications (Elevators and Power Tools). While these sectors individually consume less magnetic material per unit compared to New Energy Vehicles (NEVs), their sheer aggregate volume makes them indispensable pillars of the Neodymium-Praseodymium (Pr-Nd) market. However, data from early 2026 reveals a troubling trend of stagnation and structural contraction across these traditional strongholds. I. White Goods: The Dual Pressure of Production Slumps and Material Substitution In the white goods sector, Neodymium-Iron-Boron (NdFeB) magnets are primarily utilized in two key applications: compressors for inverter air conditioners and motors for drum and impeller washing machines . 1. Air Conditioners: A Sharp Contraction in Output and Dosage According to data from the National Bureau of Statistics (NBS), China’s cumulative air conditioner production for January-February 2026 stood at 40.118 million units , a staggering 35% year-on-year (YoY) decline compared to the 61.921 million units produced in the same period of 2025. (Reason: This drastic drop is attributed to a combination of factors: firstly, an unusually mild winter across major consumption regions significantly dampened heating demand, leading to a destocking cycle among distributors. Secondly, the real estate sector’s continued downturn has severely curtailed new housing completions, directly reducing the installation of centralized and split AC systems. Lastly, high inventory levels carried over from 2025 forced manufacturers to aggressively cut production schedules in Q1 2026 to avoid capital lock-up.) Looking at the full year, SMM forecasts a marginal growth of 0.96% for 2026, with total annual production projected at 271.095 million units . (Reason: The near-flat growth outlook reflects a mature market saturation where replacement demand, rather than new installations, drives volume. While export markets offer some resilience against domestic weakness, rising trade barriers and logistical costs in key regions like Europe and North America are expected to cap significant expansion.) Applying SMM’s calculation model: Inverter Penetration: 99% NdFeB Motor Penetration: 92% Specific Consumption: Assumed at 100g/unit for 2026. Based on these parameters, the total NdFeB consumption for the air conditioner sector in 2026 is estimated at 24,691 tons , representing a 23% decrease from the 29,163 tons consumed in 2025. The core driver of this decline is twofold: first, the persistently high prices of Pr-Nd since the second half of 2025 have accelerated the industry’s cost-reduction initiatives. Second, there is a clear technological shift towards minimizing rare earth usage. The average single-unit dosage has dropped from 120g/unit in 2025 to 100g/unit in 2026 , as manufacturers optimize motor designs and, in some lower-end models, substitute with ferrite magnets or induction motor technologies where efficiency standards allow. 2. Washing Machines: A Slow Erosion of Demand For January-February 2026, China’s cumulative washing machine production was 18.58 million units , a slight 0.3% YoY decline from the 18.51 million units in the same period of 2025. (Reason: The stability in production volumes masks underlying weakness. The slight dip is primarily due to weak consumer confidence impacting discretionary spending on home appliance upgrades. Furthermore, the export market for washing machines has faced headwinds from sluggish global economic growth and intensified competition from Southeast Asian manufacturing hubs, offsetting modest domestic recovery efforts.) SMM projects a full-year growth rate of 3.1% for 2026. (Reason: This modest recovery is underpinned by government-led "trade-in" subsidy policies aimed at boosting domestic consumption of energy-efficient appliances. Additionally, product innovation in the high-end segment, such as washer-dryer combos and smart features, is expected to stimulate some replacement demand, though the overall ceiling remains low.) Demand Calculation Logic: Drum Washer Penetration: 63% (High-end, 98% use NdFeB) Impeller Washer Penetration: 28% (Mid-range, 50% use NdFeB) Specific Consumption: 290g/unit for drum washers; 240g/unit for impeller washers. Under this model, the total NdFeB demand for washing machines in 2026 is estimated at 27,204.52 tons , a 0.2% decrease from 27,262 tons in 2025. The sector is experiencing a slow but steady erosion of demand. While high-end drum washers rely heavily on efficient NdFeB motors to meet stringent energy labels, the volatility of rare earth prices is prompting manufacturers to cautiously explore alternative motor designs or reduce magnet grades in non-critical applications. Consequently, the industry has adopted a strategy of gradual reduction rather than abrupt substitution, balancing performance requirements with cost control. Outlook: The trajectory for white goods in 2026 is undeniably pessimistic. Both production volumes and technical intensity (dosage per unit) are trending downward, creating a double drag on Pr-Nd demand. II. Consumer Electronics: Volume Resilience vs. Intensity Decline The consumer electronics sector, modeled by SMM, comprises four main segments: Mobile Phones , Tablets , Desktops/Laptops , and Smartwatches . These devices utilize NdFeB primarily for acoustic components (speakers/receivers) and haptic feedback motors, with emerging uses in magnetic charging interfaces. The specific consumption is generally low, ranging from 2-5g/unit , except for desktops which average 15g/unit . Market Performance (Jan-Feb 2026): Mobile Phones: 220 million units (+6.8% YoY). Micro-computer Equipment: 41.956 million units (-31% YoY). Breakdown: 21% Tablets, 27% Desktops, 52% Laptops. Smartwatches: 8.196 million units (+7.8% YoY). (Reason: The divergence in performance is stark. Mobile phone growth is driven by the global rollout of AI-enabled handsets and the replacement cycle for 5G devices, particularly in emerging markets. Conversely, the sharp collapse in micro-computer equipment reflects the post-pandemic normalization of demand; the massive stockpiling of devices during 2020-2022 has led to a prolonged digestion phase. Additionally, extended device lifespans due to improved hardware durability have further suppressed replacement rates for PCs and tablets.) 2026 Full-Year Forecast: SMM anticipates a 1% growth for mobile phones and micro-computers combined, and a 5% growth for smartwatches. (Reason: The muted outlook for computing devices stems from persistent macroeconomic uncertainty and corporate IT budget tightening. For smartwatches, growth is fueled by increasing health-monitoring capabilities and deeper ecosystem integration with smartphones. However, the entire sector faces a cloud of uncertainty due to escalating geopolitical tensions affecting supply chains and rising memory chip prices, which may force OEMs to revise production targets downward later in the year.) Demand Estimation: Mobile Phones: 3,109.8 tons Micro-computers: 2,018.9 tons Smartwatches: 125.06 tons Total 2026 Demand: 5,253.76 tons , a 3% decline from 5,421.19 tons in 2025. The primary driver for this decline is the continuous, albeit slow, reduction in specific consumption. As miniaturization advances and alternative magnetic materials improve, the amount of NdFeB required per device is shrinking. Despite the relatively low single-unit dosage, the massive scale of the consumer electronics industry ensures it remains a significant consumer of NdFeB. Moreover, this sector is characterized by highly standardized supply chains, where major OEMs maintain binding agreements with certified magnet suppliers, making demand relatively stable but resistant to price-driven spikes. III. Real Estate Related: Elevators and Power Tools The final segment covers industries tightly coupled with the real estate cycle: Elevators and Handheld Power Tools . 1. Elevators: Policy Support vs. Structural Headwinds In January-February 2026, elevator production reached 150,000 units , a 7.1% YoY increase . (Reason: This short-term surge is largely attributable to the acceleration of projects that were delayed in late 2025, as developers rushed to meet pre-delivery deadlines before stricter regulatory inspections took effect. Additionally, government mandates for retrofitting old residential communities with elevators in urban renewal zones provided a temporary boost to order books.) However, SMM forecasts a full-year contraction of -3% for 2026. (Reason: The long-term outlook is grim due to the fundamental slowdown in new residential construction starts, which remain at multi-year lows. The debt crisis plaguing major property developers continues to stall new project launches, directly impacting the demand for new elevator installations. While the retrofit market offers some support, it is insufficient to offset the collapse in new building commissions.) Calculation: Energy-saving Elevator Penetration: 90% Specific Consumption: 6 kg/unit (for energy-saving models). Total 2026 Demand: 7,222.6 tons , a 1.3% increase from 7,125.3 tons in 2025. (Reason for Growth: The slight increase in total tonnage despite falling production volumes is entirely driven by the rising penetration of energy-saving elevators. Stricter national energy efficiency standards (GB standards) are forcing manufacturers to adopt permanent magnet synchronous motors (PMSM) over traditional asynchronous motors, thereby increasing the average NdFeB dosage per unit even as the total number of units declines.) 2. Handheld Power Tools: A Direct Casualty of Property Slump Production of handheld power tools in Jan-Feb 2026 was 29.566 million units , down 0.24% YoY . SMM projects a -3% decline for the full year 2026. (Reason: The downturn is inextricably linked to the stagnation in the global and domestic real estate markets. Reduced renovation activities and a slowdown in infrastructure projects have dampened demand for professional-grade tools. Furthermore, high inventory levels in distribution channels across North America and Europe, resulting from over-ordering in 2024, have led to a prolonged period of destocking.) Definition & Scope: According to the National Bureau of Statistics, handheld electric tools refer to portable motor-driven tools operated by hand, including electric drills, grinders, sanders, saws, and screwdrivers . These products are highly sensitive to housing turnover and renovation rates. Demand Calculation: NdFeB Penetration: 60% Specific Consumption: 80g/unit Total 2026 Demand: 9,134 tons , a sharp 13.4% drop from 10,548 tons in 2025. The significant contraction in this sector underscores the deep correlation between the property market and industrial metal demand. As the real estate sector remains in a prolonged adjustment phase, the downstream demand for power tools—and consequently NdFeB—faces sustained pressure. Conclusion The analysis of white goods, consumer electronics, and real estate-related sectors paints a picture of structural weakness for 2026. While niche policy drivers (like energy-saving elevator mandates) provide isolated pockets of growth, the overarching trends are defined by production saturation, inventory destocking, and aggressive material substitution . The combined effect of lower production volumes and reduced single-unit dosages creates a formidable headwind for Pr-Nd prices. In the final installment of this series, we will pivot to the future: examining the burgeoning demand from Low-Altitude Economy (eVTOLs), Robotics (Industrial and Service), and the relentless expansion of Electric Two-Wheelers . These emerging sectors may hold the key to offsetting the declines observed in traditional industries and reshaping the long-term demand curve for rare earth magnets.

SMM News: As of March 20, 2026, the market price for Praseodymium-Neodymium (Pr-Nd) metal in China stabilized temporarily at 890,000–910,000 RMB/ton. This article utilizes the SMM Pr-Nd Terminal Demand Calculation Model to dissect the demand logic for 2026 across three core sectors—New Energy Vehicles (NEVs), Internal Combustion Engine (ICE) vehicles, and Wind Power—explaining the current supply-demand dilemma facing the NdFeB magnet and broader Pr-Nd markets.

Apple (AAPL.O) released the latest 14-inch and 16-inch MacBook Pro models featuring the all-new M5 Pro and M5 Max chips, delivering transformative performance gains and artificial intelligence capabilities to the world’s leading professional laptops. With M5 Pro and M5 Max, MacBook Pro features a new CPU with the world’s fastest CPU cores, a next-generation GPU with a neural accelerator built into every core, and higher unified memory bandwidth; its AI performance improved by up to 4 times over the previous generation and by 8 times compared with M1 models. The new MacBook Pro is available in Space Black and Silver, will begin accepting pre-orders tomorrow (March 4), and will officially go on sale on March 11 (Wednesday).

According to a report by Reuters cited in MiningWeekly, a study released by the Cobalt Institute on Wednesday forecasts that cobalt demand will grow faster than supply, easing the cobalt surplus situation in 2024 and shifting to a deficit in the early 2030s. The report was compiled by Benchmark Minerals Intelligence. In the short term, the future of the cobalt market will depend on developments in the Democratic Republic of the Congo (DRC), the world's largest cobalt producer. At the end of February, the country decided to implement a four-month temporary export ban. Cobalt is a crucial material for the production of lithium batteries used in electric vehicles (EVs).

According to MiningWeekly , citing Reuters, a research report released by the Cobalt Institute on Wednesday predicted that cobalt demand would grow faster than supply, with the surplus in 2024 easing and turning into a shortage in the early 2030s. The report was completed by Benchmark Minerals Intelligence . In the short term, the future of the cobalt market will depend on the actions of the DRC, the world's largest cobalt producer. At the end of February, the country decided to implement a temporary four-month export ban. Cobalt is a key material for lithium battery production in EVs. At the end of February, cobalt prices fell to their lowest level in nine years. To address the market surplus, this central African nation implemented an export ban. Since then, cobalt prices have risen by 60% to $16/lb. Aside from the uncertainty brought about by the DRC's export ban, global cobalt supply is expected to grow at an average annual rate of 5% over the next few years, with the DRC's share of the global market decreasing from 76% last year to 65% before 2030, as Indonesia's cobalt production rapidly increases, with its share rising from 12% to 22%. Meanwhile, driven by the development of the EV market, global cobalt demand (excluding government inventories) is projected to grow at an average annual rate of 7%, reaching 400,000 mt by the early 2030s. In 2024, global cobalt consumption will reach 222,000 mt. Before 2030, the proportion of cobalt used in EVs will increase from 43% in 2024 to 57%, as the growth in demand from smartphones, laptops, superalloys, and other industrial uses slows down. The report stated that in 2024, the cobalt market would have a surplus of 36,000 mt, accounting for 15% of demand, compared to 25,000 mt in 2023.

On April 16, at the AICE 2025 SMM (20th) Aluminum Industry Conference & Aluminum Industry Expo - Main Forum , hosted by SMM Information & Technology Co., Ltd. (SMM), SMM Metal Exchange Center, and Shandong Aisi Information Technology Co., Ltd., and co-organized by Zhongyifeng Jinyi (Suzhou) Technology Co., Ltd. and Lezhi County Qianrun Investment Promotion Service Co., Ltd., Luo Yu, member of the Standing Committee of the CPC Lezhi County People's Government Committee and Deputy County Magistrate, shared the planning and development of Lezhi County's aluminum industry. Where is Lezhi? The First Stop East of Chengdu · The Golden Section Point of Chengdu-Chongqing ► County Overview Lezhi County is located in the central part of the Chengdu-Chongqing region and is the hometown of Marshal Chen Yi, a founding father of the People's Republic of China. ►Location: Gateway to Chengdu's Eastward Expansion, Hub Connecting Chengdu and Chongqing In terms of location, Lezhi's relationship with Chengdu and Chongqing is similar to Kunshan's with Shanghai and Suzhou, or Dongguan's with Guangdong and Shenzhen. ► Position: Driving High-Quality Integrated Development in the Central Chengdu-Chongqing Region ►Position: A Place Where Multiple National and Provincial Strategies Overlap Lezhi is located at the golden section point of the straight-line distance between Chengdu and Chongqing, and is at the intersection of the Chengdu-Chongqing Twin-City Economic Circle, the Chengdu Metropolitan Area, and the Chengdu Plain Economic Zone, known as the "three-circle overlap." ►Transportation Advantages: A Three-Dimensional Transportation Network Integrating Highways, Railways, and Air Travel Highways: Railways: Lezhi is the only county-level city in China where two high-speed railways with a designed speed of 350 km/h intersect and share a station in a crossover configuration. Aviation: Distances from Lezhi County to nearby airports: 50 km to Tianfu International Airport, 105 km to Shuangliu International Airport, 169 km to Jiangbei International Airport, and 138 km to the newly planned Bishan International Airport. It is at an important node of the main corridor connecting the international airports of Chengdu and Chongqing, offering convenient direct flights nationwide and global connectivity. ►Surrounding Industrial Landscape What does Lezhi do? Concentrating the county's efforts on developing the aluminum-based materials industry ►Focusing on the Development of the Aluminum-Based Materials Industry The overall scale of the domestic aluminum semis market is expanding, with sustained growth in market demand. From a national perspective: In 2024, China's aluminum semis production reached 67.831 million mt, showing continuous growth over the past five years. From a provincial perspective: In 2024, Sichuan Province's aluminum semis production reached 2.5105 million mt, up 20.5% YoY, ranking 9th nationwide. From a demand perspective: The proportion of industrial aluminum extrusion continues to rise, with production reaching 11.49 million mt in 2024, accounting for approximately 44%. The Sichuan and Chongqing region is a key aluminum production area and aluminum processing production site in China. The processed products mainly include aluminum extrusions, aluminum plate/sheet and strip, aluminum rods and wires, and aluminum castings. Benefiting from a relatively complete industrial system, the region also boasts strong end-use consumption capacity for aluminum. However, compared to the capacity and production of aluminum processing, the capacity and production of aluminum in the Sichuan and Chongqing region are insufficient. Taking 2023 as a reference, the region's aluminum processing production was approximately 4.09 million mt, accounting for 8.7% of the national total, while the total aluminum production was only about 1.5 million mt, accounting for 3.53% of the domestic total, making it a net aluminum-importing region. In February 2023, Sichuan and Chongqing jointly formulated and issued the "Work Plan for the Collaborative Development of the Sichuan-Chongqing Aluminum Industry Chain." The plan proposes that by 2025, the output value of the Sichuan-Chongqing aluminum industry should reach 400 billion yuan, a group of leading enterprises and specialized and innovative enterprises should be cultivated, and a top-tier high-end aluminum material manufacturing base in the country should be established, aiming to create the strongest high-end aluminum material manufacturing base nationwide. The two regions will jointly promote the supporting of the industry chain, facilitate green and low-carbon development, build an industrial service system, and collaborate in seven aspects to form an "internal circulation" of aluminum industry enterprises in Sichuan and Chongqing, promoting the coordinated and rapid development of the aluminum industry in the region. In terms of market demand, the Sichuan and Chongqing regions regard the development of the aluminum industry as an important support for building two trillion-yuan industrial clusters in electronic information and automotive industries. ♦Automotive Industry •In recent years, 45 well-known automobile manufacturers, including FAW, Toyota, Changan, Great Wall Motors, Seres, Hyundai, and Lifan, have established operations in Sichuan and Chongqing. •In 2024, the annual automobile production in Sichuan and Chongqing reached 3.43 million units, up 4.1% YoY, accounting for 10.9% of the national total, with an output value exceeding 600 billion yuan. •The automobile ownership in Chengdu and Chongqing both exceeded 6 million units, ranking first and third in the country, respectively. This indicates a robust demand for lightweight aluminum extrusions and other parts in the automotive industry in Sichuan and Chongqing. ♦3C Electronics Industry •As one of the world's largest electronic information manufacturing clusters, the Chengdu-Chongqing region has gathered a large number of upstream and downstream enterprises in the electronic information industry chain. In 2023, the cluster's over 2,000 enterprises above designated size achieved a revenue of 17.1 trillion yuan, accounting for 11.3% of the national total. Two-thirds of the world's iPads, 50% of laptops, 10% of smartphones, and 15% of smart projectors are manufactured in the Chengdu-Chongqing region. This demonstrates that the rapid development of the 3C electronics industry inevitably leads to a huge demand for aluminum heat sinks, aluminum frames, and casings. On July 19, 2024, Lezhi County held the Eighth Plenary Session of the 15th County Party Committee, clarifying that it would rely on the rapidly growing market prospects of NEVs and consumer electronics to focus on developing lightweight aluminum extrusions for automobiles and aluminum extrusion components for 3C electronics, forming automotive parts and electronic information industry clusters, and building a distinctive aluminum-based material industry hub in central Sichuan and Chongqing. ► Fen'an Aluminum's Southwest Base Top 5 Aluminum Extrusion Manufacturers in China Top 10 Leading Aluminum Extrusion Brands in China Top 20 Industrial Aluminum Extrusion Manufacturers in China China Manufacturing Champion Enterprise One of the Largest Aluminum Extrusion Product R&D and Manufacturing Enterprises in China 110 patents, including 46 invention patents The Lezhi Base has an annual production capacity of 200,000 mt of new-type high-end aluminum alloy extrusions Representative Products: What Does Lezhi Offer? We are fully committed to supporting enterprises in investing, establishing businesses, and growing in Lezhi ►Park Platform Approved as a provincial-level economic development zone by the Sichuan Provincial Government in January 2019 Park Overview: Planned area of 11.38 sq km, built-up area of 7.81 sq km, encompassing two parks (Xijiao and Wenfeng), with 230 existing industrial enterprises ►Industrial System 1. Aluminum-Based Materials Industry: Focuses on the finished aluminum semis industry, with a priority on attracting enterprises specializing in lightweight automotive aluminum extrusions and 3C electronic aluminum components. 2. Electronic Information Industry: Primarily attracts electronic information enterprises specializing in electronic components, intelligent terminals, camera modules, and aluminum structural components for 3C electronic products. 3. Smart Logistics Industry: Centered around Shanghai Yunda, focuses on attracting logistics supporting projects such as express delivery, e-commerce logistics, urban and rural distribution, and cold chain warehousing. ►Investment Policies Eight Supportive Policies for the Aluminum-Based Materials Industry 1. Support for Building Industrial Ecosystems and Strengthening Industrial Chains: 20% subsidy for fixed asset investments 2. Support for Public Service Platform Construction: 1 million yuan subsidy 3. Support for Enterprises in Attracting Talent and Maintaining Employment Stability 4. Support for Trade Entity Operations 5. Encouragement of Technological Innovation by Enterprises: Maximum reward of 5 million yuan 6. Support for Enterprise Brand Creation 7. Strengthening Financial Service Support 8. Support for Enterprises in Expanding Markets ►Cost Advantages Costs of Water, Electricity, and Gas Resources ►Cost Advantages ►Service Mechanism We sincerely invite: You to invest and establish businesses in Lezhi, become partners in Lezhi's urban development, and experience the "Lezhi Service" and "Lezhi Efficiency" to achieve optimal development and maximum profits. We solemnly promise: To "be present when needed, not interfere when not, act promptly, and ensure tasks are completed effectively," fully guaranteeing project construction and supporting enterprise development. 》Click to view the special report on the AICE 2025 SMM (20th) Aluminum Industry Conference & Aluminum Industry Expo

Macro News 1. On May 6, the State Council Information Office announced that it would hold a press conference at 9 a.m. today. Officials from the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission will introduce the "package of financial policies to support market stability and expectations" and answer questions from journalists. 2. From May 4 to 7, the 58th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB) was held in Milan, Italy. Lan Fo'an, Minister of Finance and China's Governor to the ADB, attended and delivered a speech, and also held a series of bilateral talks. Lan pointed out that China is both a beneficiary and contributor to economic globalization, with its contribution to global economic growth maintaining at around 30% in recent years. In the first quarter of this year, China's GDP increased by 5.4% YoY, achieving a good start. China will adopt more proactive macro policies and is confident in achieving the growth target of around 5% for 2025. 3. On May 6, Foreign Ministry spokesperson Lin Jian hosted a regular press conference. Lin stated that over the past few years, exchanges between China and EU legislative bodies have encountered some setbacks due to well-known reasons. Under the current circumstances, both sides agree that strengthening dialogue and cooperation between China and the EU is of great importance. After mutual consultations, China and the European Parliament have decided to simultaneously and comprehensively lift restrictions on mutual exchanges. 5. According to Indian media reports, India has cut off water flowing to Pakistan from the Baglihar Dam on the Chenab River, claiming that it will not allow "a single drop" of water from the Indus River to flow to Pakistan. The Chenab River has dried up sharply. Industry News 1. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that the demand for the Hong Kong dollar continues to rise, primarily driven by stock-related demand, and that no abnormal activities have been observed in the Hong Kong dollar. 2. The Shenzhen Stock Exchange recently revised the "Guidelines for the Evaluation of Members' Client Trading Behavior Management at the Shenzhen Stock Exchange." It is understood that this revision adds references to higher-level rules, improves the content of member evaluations, and includes two new evaluation aspects: "members' management of algorithmic trading" and "members' management of margin trading and securities lending." Additionally, the original evaluation of "members' collaborative self-regulatory supervision" has been expanded to include key monitoring of securities management and enhanced risk warnings for client trading. 3. The Ministry of Industry and Information Technology and the Standardization Administration of China recently jointly issued the "Guidelines for the Construction of the National Intelligent Manufacturing Standard System (2024 Edition)." This guideline further focuses on the integrated application of new technologies such as artificial intelligence in the manufacturing industry, adding standardization content in five areas, including intelligent equipment, industrial software, and new models of intelligent manufacturing. 4. It is reported that Apple AI is expected to launch some of its features for the first time in mainland China with the iOS 18.6 system, with technical support provided by Alibaba and Baidu. Specifically, Baidu's ERNIE Bot large model will serve as the core cloud-based intelligent engine for the Chinese version of Apple AI, while Alibaba will be responsible for providing a review mechanism to ensure local compliance of AI-generated content. 5. The Food Safety Office of the State Council and five other departments jointly issued the "Comprehensive Governance Plan for the Abuse of Food Additives". The Plan calls for comprehensive strengthening of source governance in areas such as the production of edible agricultural products, and the import inspection of food and food additives. It also emphasizes the need to strengthen supervision over the production and sales of food additives, as well as their use in food production, processing, and catering services. The Plan aims to crack down on illegal activities where chemical products are passed off as food additives, and to carry out comprehensive governance of the abuse of food additives throughout the entire process from farm to table. 6. Reporters have learned that Pony.ai's Robotaxi fleet will be integrated into the Uber platform in the second half of this year. The cooperation will first be implemented in the Middle East and gradually expanded to the global market. On the same day, WeRide announced an expanded strategic partnership with Uber, planning to add 15 new international cities over the next five years to deploy autonomous driving Robotaxi services, covering international markets in Europe, the Middle East, and other regions. Corporate News 1. CATL announced that it has repurchased 6.641 million shares, using a total of 1.551 billion yuan in funds. 2. Shinhint Group announced that the repeated changes and uncertainties in US tariff policies will adversely affect the company's hair products and textile and apparel export businesses. 3. Huafon Test announced that a shareholder intends to transfer 2.9% of its shares through an inquiry-based transfer. 4. NationalChip Technology announced the successful internal testing of a new anti-quantum cryptographic chip product. 5. Dison announced that its controlling shareholder reduced its stake in the company by 575,300 shares on May 6. 6. Changchuan Technology announced its intention to jointly invest with a professional investment institution to establish Hangzhou Changyue Technology Co., Ltd., a joint venture primarily engaged in the localisation of high-end packaging and testing equipment. 7. Seres released its production and sales report for April 2025, showing a 12.99% YoY increase in NEV sales in April. 8. Huayi Group announced its intention to acquire a 60% stake in 3F for 4.091 billion yuan in cash, expanding its business in the field of fluorine-containing fine chemicals. 9. Insigma Technology announced its subscription of 33 million yuan to participate in the investment of an equity investment fund, which focuses on investments in areas such as artificial intelligence, robotics, and embodied intelligence. 10. ST Xinchao announced that it was placed under investigation by the China Securities Regulatory Commission for failing to disclose its periodic report (2024 annual report) within the specified time limit. 11. *ST Hengli announced that it was under investigation by the China Securities Regulatory Commission (CSRC) for failing to disclose periodic reports within the prescribed time limit. 12. Zitian Technology announced that it was under investigation by the CSRC for failing to disclose periodic reports within the prescribed time limit. 13. *ST Jingang announced that its shares may be delisted due to the share price falling below 1 yuan. 14. Kangxi Communication announced the termination of the planning for a major asset restructuring, which will be changed to a strategic investment. 15. Xiangshan Share announced that shareholders Zhao Yukun and Chen Bo intend to reduce their holdings by no more than 6% of the company's shares. 16. Tongyu Heavy Industry announced that the actual controller will change from the State-owned Assets Supervision and Administration Commission of Zhuhai Municipality to the State-owned Assets Supervision and Administration Commission of Shandong Province, and its shares will resume trading. 17. Tianmao Group announced that it was under investigation by the CSRC for suspected failure to disclose periodic reports on schedule. 18. Kinlita announced that it was under investigation by the CSRC for failing to disclose its 2024 annual report within the statutory time limit. Global Markets 1. The three major U.S. stock indices closed collectively lower, with the Dow Jones Industrial Average down 0.95%, the Nasdaq down 0.87%, and the S&P 500 down 0.77%. Most large-cap tech stocks declined, with Meta falling over 2%, and Tesla and Intel each dropping over 1%. Pharmaceutical stocks led the declines, with SRPT falling over 26% and Eli Lilly falling over 5%. Palantir fell over 12%, marking its worst single-day performance in a year. Nuclear power concept stock CEG rose over 10%, marking its largest single-day gain since February 21. Most popular Chinese ADRs rose, with the Nasdaq Golden Dragon China Index closing up 0.42%. WeRide rose over 31%, and Pony.ai rose over 47%. The three major European stock indices closed with mixed results, with the German DAX Index down 0.41%. 2. International crude oil futures closed up over 3%, with WTI crude oil futures for June rising 3.43% and Brent crude oil futures for July rising 3.19%. 3. COMEX gold futures closed up 3.53%, hitting a new daily high of $3,440 per ounce; COMEX silver futures rose 2.96%, closing at $33.435 per ounce. Investment Opportunities Reference 1. Another new product is set to launch, with institutions saying this niche sector is expected to become a smart collaborative and computing terminal in the future. Industry media reported that, according to exclusive information from an insider, Zijing Unknown and Star Creation Vision (the parent company of Baodao Optical) signed a strategic cooperation agreement and launched a co-branded product—the NSVExBleeqUp AI sports photography glasses, which will enter mass production and be launched in June. After the launch, the product will be available in Baodao Optical's offline stores under Star Creation Vision. Zijing Unknown is an AR glasses brand invested in by Alibaba. Cinda Securities analyzed that smart glasses products are evolving from the stage of basic hardware stacking to the direction of intelligent assistance and intelligent assistants, and are expected to become smart collaborative and computing terminals in the future.With overseas tech giants such as Meta, Apple, and Amazon, as well as numerous domestic participants like Xiaomi, Huawei, ByteDance, and the "Four Dragons" of AR (PICO, Rokid, XREAL, and INMO) continuously iterating new products; models such as GPT, Llama, Grok, Deepseek, Doubao, and Tongyi Qianwen undergoing continuous updates and upgrades; and waveguide technology continuing to innovate in materials, processes, and technical pathways, the uptake of AI glasses may occur more rapidly than we anticipated. Wellsenn predicts that global sales of AI glasses are expected to reach 5.5 million units in 2025, up 135% YoY. 2. Lenovo Tech World Focuses on Super Agents, Ushering in a Wave of Large-Scale Deployment of AI Agents Lenovo Tech World is about to be unveiled! The conference features a 12-hour, all-day live broadcast, including a highly informative main forum that unveils the "grand" world of super agents, and four sub-forums with a super-high AI content focus on cutting-edge technologies such as computing power, agents, and embodied intelligence. Immerse yourself in hands-on experiences at the AI-themed exhibition, gain a comprehensive understanding of hybrid AI, and delve into the world of super agents. As interactive AI products, agents are beginning to rapidly land in the market. First-generation products like Cursor and Glean have already achieved annual recurring revenue (ARR) exceeding 100 million US dollars, demonstrating significant growth potential and introducing new pricing models based on actual delivery outcomes, task completion rates, and other indicators. AI agent products are forming an evolutionary path of infrastructure and application synergy characterized by "upgrades in underlying model capabilities + prosperity of intermediate tools + commercial scenario deployment." In the future, AI agent applications will need to further enhance planning capabilities, possess better memory, and have stronger multimodal understanding capabilities to unlock their monetization potential. According to grandviewresearch's estimates, the global AI agent market size was approximately 5.4 billion US dollars in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 45.8% from 2025 to 2030. Increased demand for automation, advancements in natural language processing (NLP) technology, and the growing need for personalized customer experiences are key factors driving the development of the AI agent industry. Additionally, the widespread adoption of cloud computing enables enterprises to deploy AI agents at lower costs. Cloud computing allows enterprises to scale AI agent applications with lower infrastructure investments, thereby promoting their widespread deployment across various industries. 3. Say Goodbye to Windows for Good! Huawei's HarmonyOS PC Version to Be Released This Month At Huawei's PuraX launch event in March, Yu Chengdong, Executive Director of Huawei, Chairman of the Terminal BG, and Chairman of the Intelligent Automotive Solution BU, announced that Huawei's terminal products are fully entering the HarmonyOS era, with HarmonyOS PCs to be launched in May this year. It was also reported that after April, all Huawei laptops shipped may adopt the HarmonyOS operating system, replacing the previous Microsoft Windows operating system used in Huawei laptops. The official launch of HarmonyOS PC is expected to take the lead in opening the door to the government and enterprise market. Unlike the traditional X86 computer architecture, HarmonyOS PC may have the comprehensive capability of self-developed chips and self-developed systems working in tandem. Zheshang Securities believes that the operating system, as a fundamental software, supports the operation of application software. As the world's third-largest mobile operating system and a distributed operating system that supports multiple terminals, HarmonyOS is expected to take the lead in breaking through the market. 4. News suggests WHO plans to officially recommend anti-obesity drugs for the first time to treat adult obesity, with institutions optimistic about the rising penetration of anti-obesity drugs According to media reports, a draft memorandum indicates that the World Health Organization (WHO) plans to officially recommend the use of anti-obesity drugs for the first time to treat adult obesity. This move marks a significant policy shift for the global health agency in addressing the growing obesity crisis. Caitong Securities expressed optimism about the rising market penetration of anti-obesity drugs. With the significant price reductions of anti-obesity drugs from Eli Lilly and Novo Nordisk, the market accessibility of GLP-1 drugs has improved notably, making these drugs more affordable for a larger number of patients. This will directly drive the rapid growth in demand for GLP-1 active pharmaceutical ingredients (APIs), especially among self-paying patient groups. Despite recent plans by both Novo Nordisk and Eli Lilly to expand their capacities, due to the enormous clinical demand in the anti-obesity drug market and the rising patient penetration brought about by price reductions from top-tier enterprises, the demand for GLP-1 drug APIs is expected to continue growing. In terms of market size, Founder Securities estimates that the domestic GLP-1 anti-obesity drug market is expected to exceed 37.852 billion yuan by 2030, indicating a broad market prospect.

The CLNB 2025 (10th) New Energy Industry Expo, hosted by SMM, will be grandly held at the Suzhou International Expo Center from April 16 to 18, 2025. During the exhibition, there will be 1 main forum and 10 sub-forums, attended by government leaders, academicians from the Chinese Academy of Sciences and the Chinese Academy of Engineering, domestic and overseas scientists, foreign guests from dozens of countries, and leading entrepreneurs from various industries. Join us in Suzhou to witness the gathering of industry leaders, discuss core technologies, listen to expert insights, interpret market trends, and focus on key issues. This year's expo covers 6 major exhibition areas, with over 1,300 domestic and overseas exhibitors showcasing the entire industry chain of batteries, including power batteries, consumer batteries, energy storage, raw materials, materials, equipment, battery recycling, as well as new energy vehicles, power tools, electric drives, and the low-altitude economy in the power exhibition area, providing you with a one-stop exhibition experience. Click to fill out the registration form and register immediately to discuss the future development of the new energy industry with industry elites. We look forward to your arrival and joining SMM in opening this grand feast of the new energy industry. At this year's New Energy Industry Expo, Wudi Jinhaibay Lithium Technology Co., Ltd. will make a grand appearance, discussing industry cooperation, sharing development opportunities, and jointly painting a bright future for the new energy industry with peers. Extending the Circular Economy Chain, Building the Capital of Lithium Battery Materials. Wudi Jinhaibay Lithium Technology Co., Ltd., located in the Binzhou Lubei Chemical Industry Park, one of the first batch of chemical industry parks in Shandong Province, is a subsidiary of the state-owned Shandong Lubei Enterprise Group. Established in September 2016, the company covers an area of 115 acres, with fixed assets of 300 million yuan and 260 employees, including a R&D team of over 30 senior engineers and postgraduates. The company's main business is the R&D, production, and sales of battery-grade lithium carbonate. With strong technical capabilities, the company holds multiple national invention patents and utility model patents, including the continuous lithium precipitation process technology for battery-grade lithium carbonate. Supported by the powerful technical backing of the Lubei Lithium Battery Materials Research Institute, the company adopted the mature domestic sulfuric acid production process and resin tower purification technology, investing 300 million yuan to build a 20,000 mt/year lithium carbonate new materials project in March 2018. The first phase of the project was completed and put into production in August 2019. Currently, the company produces 10,000 mt of battery-grade lithium carbonate annually. The company's battery-grade lithium carbonate products, low in sodium and calcium and without EDTA additives, are widely used in lithium-ion battery cathode materials, electrolyte materials, and other industries, with a sales network covering the entire country. The by-product lithium slag is fully utilized by Lubei Group's listed company for the production of sulfuric acid and cement, achieving comprehensive resource utilization and clean production, and becoming an important part of the Lubei circular economy system's new energy chain. In 2022, the company achieved sales revenue of 720 million yuan and profits and taxes of over 90 million yuan. During the "14th Five-Year Plan" period, the company will adhere to the concept of green development, focus on creating new momentum with new materials, form upstream and downstream connections with Lubei Group's existing industries, further extend the Lubei circular economy industry chain, build a high-end new materials industry base in Lubei, and create the capital of lithium battery materials, making positive contributions to regional economic development. Battery-grade lithium carbonate (Li2CO3): Basic information: Battery-grade lithium carbonate is usually a white powdery crystal with a molecular weight of 73.89, a density of 2.11 g/cm³, and a melting point of 732°C, with high purity and good chemical stability. Purity standards: Battery-grade lithium carbonate requires a high lithium carbonate content, generally not less than 99.5%, with strict limits on the content of various impurities. For example, the content of metal impurities such as sodium (Na), potassium (K), iron (Fe), calcium (Ca), copper (Cu), and lead (Pb) needs to be controlled at very low levels to ensure its performance and safety in battery applications. Application fields: Lithium-ion battery cathode material production. LCO battery: Lithium cobalt oxide is the earliest commercialized lithium-ion battery cathode material, and battery-grade lithium carbonate is an important raw material for synthesizing lithium cobalt oxide. LCO batteries have high energy density and good charge-discharge performance, widely used in 3C electronic products such as mobile phones and laptops. LFP battery: Rapidly developed in recent years, with advantages such as high safety, long cycle life, and relatively low cost, widely used in electric vehicles, energy storage, and other fields. Battery-grade lithium carbonate is one of the key raw materials for preparing lithium iron phosphate. Ternary material battery: Ternary materials generally refer to lithium nickel cobalt manganese oxide or lithium nickel cobalt aluminum oxide, combining the advantages of lithium cobalt oxide, lithium nickel oxide, and lithium manganese oxide, with high energy density and good comprehensive performance, also an important application direction in electric vehicles and other fields, and its production is inseparable from battery-grade lithium carbonate. Lithium-ion battery electrolyte additive: As an electrolyte additive, battery-grade lithium carbonate can improve the ionic conductivity of the battery, enhance the charge-discharge performance, and to some extent improve the safety and service life of the battery. Other application fields: Also has certain applications in industries such as glass, ceramics, and medicine. For example, in glass manufacturing, lithium carbonate can be used as a flux to lower the melting temperature of glass and improve its quality; in the medical field, lithium carbonate can be used to treat mental illnesses. Industrial-grade lithium carbonate (Li2CO3): Basic information: Industrial-grade lithium carbonate is usually a white powdery crystal with a molecular weight of 73.89, a density of 2.11 g/cm³, and a melting point of 720°C. Purity standards: The main component content is between 99.2%-99.5%, but with more impurities compared to battery-grade lithium carbonate. Application fields: Glass and ceramic industry: In glass manufacturing, lithium carbonate can be used as a flux to lower the melting temperature and viscosity of glass, improve the processing performance of glass, and enhance its strength, transparency, and corrosion resistance. In ceramic production, lithium carbonate can be used as an additive to improve the sintering performance and microstructure of ceramics, enhancing their strength, hardness, and heat resistance. Aluminum industry: In the aluminum production process, adding industrial-grade lithium carbonate can lower the melting point and viscosity of the electrolyte, improve the conductivity of the electrolyte, thereby reducing the energy consumption and production costs of aluminum. In addition, lithium carbonate can also reduce the volatilization of hydrogen fluoride in the electrolyte, lowering environmental pollution. Refrigerant industry: As an additive in refrigerants, industrial-grade lithium carbonate can improve the refrigeration effect and stability of refrigerants, while reducing their corrosiveness and toxicity. For example, in some new environmentally friendly refrigerant formulations, lithium carbonate is an important component. Cement industry: In cement additives, lithium carbonate can act as a coagulant, shortening the setting time of cement and improving its early strength, suitable for projects with special requirements for cement setting time. Other fields: Can be used to prepare various lithium salts such as lithium chloride and lithium bromide, which are widely used in air conditioners, dehumidifiers, batteries, and other fields. In the medical field, lithium carbonate can be used to treat certain mental illnesses and as an intermediate in drug synthesis. In analytical chemistry, it can be used as an analytical reagent for component analysis and detection. It also has certain applications in the semiconductor, optical communication, and rare earth electrolysis industries. For example, in the preparation of semiconductor materials, lithium carbonate can be used as a dopant to improve the performance of semiconductors. Lithium hydroxide monohydrate (LiOH•H2O): Basic information: A highly corrosive white crystalline powder, slightly soluble in ethanol, easily soluble in water, with a melting point of 471°C and a density of 1.51 g/cm³. Application fields: Battery field: An inevitable choice for producing high-nickel ternary cathode materials, with increasing demand for lithium hydroxide monohydrate due to the rapid development of the new energy vehicle industry. Can be used as an additive in alkaline battery electrolytes to increase storage capacity and extend battery life. Chemical industry: Lithium-based grease prepared with lithium hydroxide has advantages such as long service life, oxidation resistance, and high-temperature stability, widely used in the lubrication of machinery, automobiles, and other equipment. Can be used as catalysts and additives in the petrochemical industry, for example, in the petroleum refining process, lithium hydroxide can be used as a component of catalysts to promote chemical reactions. Can be used to produce new refrigerants such as lithium bromide absorption solutions for refrigeration machines. Metallurgical field: In the metallurgical industry, lithium hydroxide monohydrate can be used for metal purification, alloy preparation, and metal surface treatment. For example, in the production of aluminum-lithium alloys, lithium hydroxide can be used as an additive to improve the performance of the alloy. Other fields: Can be used as an analytical reagent, oxidizer, etc., in chemical experiments and analysis and detection. In ceramic and glass production, it can be used as an additive to improve product performance, such as enhancing the corrosion resistance of glass and the sintering performance of ceramics. Used in the treatment of certain nuclear fuels and the separation of radioactive substances. Sodium sulfate (Na2SO4): Basic information: A white, odorless, bitter-tasting white monoclinic crystal or powder, with a relative density of 2.68, a melting point of 884°C, and a boiling point of 1,404°C. Exposed to air, it easily absorbs moisture to become hydrated sodium sulfate, transforming into hexagonal crystals at 241°C. Easily soluble in water, with an alkaline aqueous solution, soluble in glycerol, but insoluble in ethanol. Application fields: Industrial field: Widely used in the chemical, paper, glass, textile, printing and dyeing, and cement industries. Medical field: In traditional Chinese medicine, sodium sulfate has the effects of purging accumulation, softening hardness, moistening dryness, clearing heat, and reducing swelling, and can be used externally to clear heat and reduce swelling. In modern medicine, it can be used as an analytical reagent, such as a dehydrating agent, digestion catalyst in nitrogen determination, and interference inhibitor in atomic absorption spectroscopy. Other fields: Used as a filler in synthetic detergents, reducing surface tension and increasing the solubility of detergents. In sulfate galvanizing, it can be used as a buffer to stabilize the pH of the plating solution. It is a diluent for food coloring and an agent for caramel coloring production. [CLNB 2025—Hot Registration in Progress] CLNB 2025 (10th) China International New Energy Industry Expo April 16-18, 2025 Suzhou International Expo Center Contact Us

【With a total investment of RMB 5.8 billion, another cylindrical battery project is to be established in Sichuan!】On April 24, the Key Industrial Cooperation Promotion Conference of Suining City in the Guangdong-Hong Kong-Macao Greater Bay Area was held in Shenzhen. During the event, Shehong City signed an agreement with Chongqing Tianhui Energy Technology Co., Ltd. (hereinafter referred to as "Tianhui Energy") for a cylindrical battery production site project with an investment of RMB 5.8 billion. It is reported that the project is planned to be constructed in two phases, mainly focusing on the construction of production lines for cylindrical lithium-ion batteries and large cylindrical batteries. The project, from initial negotiations to official signing and commencement of construction, took less than one month. With a planned total investment of RMB 6 billion, it will primarily produce "18650", "32140", and "46,160" type cylindrical lithium batteries, which are mainly applied in power tools, electric vehicles, drones, mobile power supplies, laptops, smartphones, etc.

Wingtech Technologies (600745.SH) released its 2024 annual report and Q1 2025 results. In 2024, due to significant impairment losses, Wingtech Technologies incurred a loss of RMB 2.833 billion. However, in March this year, Wingtech Technologies divested its loss-making integrated business to focus on its semiconductor business, resulting in an 82.29% YoY increase in net profit for Q1. Wingtech Technologies currently has one outstanding convertible bond with a balance of RMB 8.6 billion. According to the Q1 2025 report, Wingtech Technologies achieved operating revenue of RMB 13.099 billion in Q1, with a net profit attributable to shareholders of publicly listed firms of RMB 261 million, up 82.29% YoY. The semiconductor business emerged as the highlight in Q1, generating revenue of RMB 3.711 billion, up 8.40% YoY, with a gross profit margin climbing to 38.32%, up over seven percentage points YoY, and contributing a net profit of RMB 578 million. Public information indicates that Wingtech Technologies is a semiconductor enterprise integrating R&D, design, and manufacturing, primarily providing global customers with R&D and design services for semiconductor power devices and analog chips, as well as wafer fabrication, packaging, and testing services. It also offers R&D and manufacturing services for end-use products such as mobile phones, tablets, laptops, AIoT devices, and automotive electronics. The company's concurrently released annual report shows that Wingtech Technologies' net profit attributable to shareholders in 2024 was a loss of RMB 2.833 billion, down 339.83% YoY. In terms of loss amount, it ranked first in the A-share semiconductor sector and was the only company in the sector last year with losses exceeding RMB 1 billion. Regarding the reasons for the losses, the company stated that at the end of last year, Wingtech Technologies was included in the Entity List by relevant US departments. Suppliers and customers interpreted and implemented the expansion of the Entity List, which had a comprehensive adverse impact on the product integration business of the publicly listed firm. There were signs of impairment in the product integration business assets of companies within the consolidated financial statements at the end of 2024. The company conducted impairment tests on relevant assets in accordance with accounting standards and subsequently recognized impairment losses, totaling RMB 949 million. However, Wingtech Technologies has divested its loss-making integrated business through multiple equity transfers of its subsidiaries this year. Following the transfer of equity in three subsidiaries—Jiaxing Yongrui, Shanghai Wingtech Electronics, and Shanghai Wingtech Information—to Luxshare ICT (Shanghai) Co., Ltd. (referred to as "Luxshare ICT") in January 2025, the company announced a major asset sale plan in March, proposing to transfer 100% equity in six subsidiaries, including Kunming Wingtech, Huangshi Wingtech, and Shenzhen Wingtech, as well as the business asset package of three companies, including Wuxi Wingtech, to Luxshare Precision and its wholly-owned subsidiary, Luxshare ICT. The preliminary estimated transaction consideration is approximately RMB 4.608 billion. Regarding the equity transfer in March, Wingtech Technologies stated that before this transaction, the company's main businesses included two segments: product integration and semiconductor businesses. After the completion of this transaction, the company will divest its product integration business and focus on its semiconductor business. In June last year, China Chengxin International Credit Rating Co., Ltd. downgraded Wingtech Technologies' rating from AA+ to AA. The rating report cited the stagnation of the optical business, obstacles to product diversification and industry chain extension, leading to asset impairment and disposal losses. The scale of goodwill remained high, and the decline in the performance of acquired subsidiaries increased the risk of goodwill impairment. The company's share price remained persistently low, significantly below the conversion price, posing a risk of convertible bond conversion failure. In terms of assets and liabilities, as of the end of Q1 2025, Wingtech Technologies' total assets were RMB 70.742 billion, including RMB 21.498 billion in goodwill. Total liabilities were RMB 35.71 billion, with an asset-liability ratio of 50.48%. Among these, current liabilities were RMB 23.238 billion, primarily consisting of notes payable and accounts payable totaling RMB 11.907 billion. In terms of cash flow, in Q1 2025, Wingtech Technologies' net cash flow from operating activities was RMB 2.523 billion, a significant increase of 1,195.83% YoY in net inflow. This was mainly due to a 6.81% YoY increase in cash received from the sale of goods and provision of services to RMB 17.264 billion, coupled with a 6.98% YoY decrease in cash paid for the purchase of goods and acceptance of services to RMB 12.727 billion, demonstrating significant improvements in operating cash flow management. Currently, Wingtech Technologies has one outstanding bond, namely the "Wingtech Convertible Bond," with a current balance of RMB 8.597 billion, a remaining term of 2.25 years, and a coupon rate of 1.5%. Today, the "Wingtech Convertible Bond" opened higher and fluctuated, eventually closing up 0.10% at RMB 109.275, with the latest conversion premium rate at 41.63%.