In 1983, Goodenough and Thackeray developed lithium manganate (LiMn₂O₄, LMO) on the basis of the lithium cobalt oxide system. With a unique spinel structure and three-dimensional lithium-ion diffusion channels, LMO delivers excellent rate capability, along with simple production procedures and high safety performance. Its core advantage lies in abundant manganese resources and extremely low costs, which are far superior to cobalt-based precious materials, making LMO a key material for the cost reduction of lithium-ion batteries. After four decades of industrial iteration, LMO has been phased out of high-end passenger vehicle power batteries by ternary materials. However, relying on outstanding cost performance, it has firmly occupied segmented markets such as electric two-wheelers, power tools and low-speed electrical equipment. The industry currently presents a structural divergence, with tight supply of high-end modified LMO products and intense homogenized competition among low-end products. 1. Technical Origin: Distinct Performance Advantages and Incurable High-Temperature Defects LMO has a theoretical specific capacity of 148mAh/g and a practical mass-production capacity of around 120mAh/g, with a working voltage of approximately 4.0V. Japanese enterprises took the lead in commercializing LMO in the 1990s. Early manufacturers including Sanyo and Panasonic widely applied LMO to power tools and household devices that prioritize safety. In 2010, the Nissan Leaf adopted a modified LMO cathode system, becoming one of the early large-scale mass-produced pure electric vehicles. It entered the entry-level new energy vehicle market with its cobalt-free, high-safety and low-cost characteristics. Nevertheless, LMO has inherent technical bottlenecks, primarily weak high-temperature cycling stability. When the ambient temperature exceeds 55℃, manganese dissolution and disproportionation reactions easily occur, leading to rapid capacity decay. The dissolved manganese ions also damage the solid electrolyte interphase (SEI) film on the negative electrode, continuously impairing battery service life. The industry has adopted modification methods such as element doping and surface coating to optimize performance, which can only alleviate capacity attenuation rather than completely solve the problem. With the rapid popularization of high-energy-density ternary materials, LMO has gradually withdrawn from the mainstream passenger vehicle power battery track, and shifted to low-speed lithium batteries and consumer electronics fields that prioritize cost and safety over extreme energy density. 2. 2026 Market Status: Cost-Driven Pricing and Sustained Structural Differentiation Currently, LMO prices are highly correlated with lithium carbonate quotations, which account for 60% to 70% of the total production cost of LMO. Fluctuations in lithium carbonate prices directly drive synchronous adjustments in the LMO market. The overall operating rate of the industry remains stable, while internal differentiation is prominent. High-end modified LMO products with long-cycle and high-voltage performance enjoy stable demand and tight supply. By contrast, ordinary low-end LMO products face severe homogenization and fierce market competition, squeezing profit margins of small and medium-sized manufacturers, most of whom maintain slim profits or break-even operations. The demand structure is clear and stable. Electric two-wheelers serve as the largest downstream application scenario, accounting for over 60% of total demand and forming the fundamental support of the LMO industry. Demand for power tools remains rigid and steady. Benefiting from high safety and low cost, LMO demand in small and medium-sized energy storage sectors is expanding steadily, becoming a major growth driver for the industry. Overall downstream demand maintains stable operation without significant fluctuations. 3. Market Outlook: Consolidate Segmented Market Foundation and Expand Manganese-Based Material Layout In the short term, LMO prices will continue to fluctuate in line with lithium carbonate trends and downstream restocking rhythms. High-end modified products are expected to maintain structural premiums due to high production and technical barriers. In the medium term, the industry pattern will continue to optimize. Leading enterprises will dominate the market relying on advantages in technology, production capacity and cost, while backward low-end capacity will be gradually eliminated, further increasing industrial concentration. In the long run, conventional LMO is unlikely to re-enter the high-end passenger vehicle power battery track, but its rigid demand in four core segmented fields including electric two-wheelers, low-speed vehicles, power tools and small-to-medium energy storage will remain solid. Meanwhile, the manganese-based industry keeps iterating. Manganese elements continue to penetrate the mainstream new energy market through lithium manganese iron phosphate and ternary materials. The overall importance of manganese-based materials in the lithium battery industrial chain continues to rise.

In 1983, Goodenough and Thackeray developed LMO (LiMn₂O₄) based on the LCO system. With its unique spinel structure and three-dimensional lithium-ion diffusion channels, LMO delivers excellent C-rate performance, along with a simple manufacturing process and high safety. Its most critical advantage lies in the abundant reserves and extremely low cost of manganese resources, far superior to the precious metal cobalt, making it an important material for the cost reduction of lithium batteries. After four decades of industry iteration, although LMO has been replaced by ternary cathode materials in the high-end passenger vehicle power battery segment, it has long been firmly rooted in niche markets such as electric two-wheelers, power tools, and low-speed equipment thanks to its cost-effectiveness advantage. The industry as a whole exhibits a structural pattern of tight supply for high-end modified products and involution-driven competition among low-end products.

[SMM Analysis: Silicon Carbon Track Undergoes Massive Expansion, Industry Competition on the Verge of Breaking Out] As global demand continued to climb, anode material, as one of the core materials of lithium batteries, saw multiple projects launched in May, with the silicon-based route becoming a key focus of strategic deployment.

According to the MIIT, two mandatory national standards, "Safety Requirements for PV Modules" and "Nameplate Marking Requirements for PV Modules," were officially released on May 25, 2026, and will be implemented on June 1, 2027. These standards will play a crucial role in regulating market competition, enhancing product safety compliance, and driving the upgrade of the solar industry.

"Tin" Leads the Future: Industrial Transformation and Value Reshaping in a New Cycle Conference Background Currently, the global tin industry stands at a historic turning point, where traditional cyclical logic has been completely disrupted and strategic value has become fully prominent. The tin market in 2026 presents an unprecedented complex pattern and profound transformation: I. Deep Restructuring of the Supply-Demand Pattern with Unprecedented Enhancement of Strategic Attributes The global tin resource static reserve-to-production ratio is only 14 years, with scarcity becoming increasingly prominent. The supply side faces "triple pressures": repeated setbacks in Myanmar's production resumptions, continued tightening of Indonesian policies, and elevated geopolitical risks in the DRC. Resource constraints have become the new normal. Meanwhile, the demand structure has undergone fundamental changes, and tin has become a strategic resource connecting traditional manufacturing with the digital future. II. Price System Breaking Historical Records with Industrial Ecosystem Facing Reshaping SHFE tin prices broke through 470,000 yuan/mt in early 2026, hitting a record high. This price breakthrough is not only a reflection of supply-demand imbalance but also a sign of value reassessment for the tin industry. Traditional trade models, risk management systems, and supply chain collaboration methods all urgently require innovative breakthroughs. III. Technology-Driven and Green Transformation Catalyzing a New Symbiotic Ecosystem Digitalization and intelligent technologies are deeply empowering the tin industry chain. The global green transformation requires the tin industry to upgrade toward low-carbonisation and circular economy. Recycled tin recovery and green smelting processes have become an inevitable path. All segments of the industry chain must shift from competition to collaboration, building an open, resilient, and innovative symbiotic system. Against this backdrop, August 19-21, 2026 the Changsha, Hunan -hosted 2026 SMM (16th) Tin Industry Chain Conference will bring together global industry elites for joint discussions. Ganzhou Yunsheng Tin Co., Ltd. will attend this grand event, discussing industry development trends with industry peers and jointly driving the tin industry to new heights. Click the to register immediately, witness and participate in this extraordinary and far-reaching industry event, and co-create a brilliant new chapter! Ganzhou Yunsheng Tin Co., Ltd. was registered and established in December 2017, with its registered address at the West Zone of the Industrial Management Area, Longling Town, Nankang District, Ganzhou City. The company's main businesses include tin metal processing and sales; non-ferrous metal powder and tin by-product production and sales; metal materials, timber construction and decoration, mineral products, and machinery equipment sales; and import and export business of goods and technologies. Since its official registration and establishment in 2017, the company currently focuses on tin ingot and mineral product sales, vigorously expanding upstream and downstream related industries. Its downstream coverage is extensive, including quality enterprise clients in solar PV, storage battery, electronic solder, tin chemicals, tinplate, tin plated copper wire, tin alloy, and other sectors. Business partners are primarily distributed across Shanghai, Jiangsu, Zhejiang, Jiangxi, Guangdong, Fujian, and other regions. Committed to achieving rapid, stable, and healthy development of the enterprise. Ganzhou Yunsheng Tin Industry Co., Ltd. has been engaged in the production and trade of tin and tungsten since 2005 and started tin ingot trade in 2016. Currently, its main business covers the tin raw material industry chain, including tin ore, tin ingots, crude tin, and secondary tin materials. Relying on the business of tin and tungsten production and trade, the company focuses on the trade projects of tin raw material industry chain including tin ore, tin ingots, crude tin, and secondary tin materials, and actively expands other new fields and projects. It has established strategic cooperative relationships with domestic mining companies, smelters, logistics and trade agents, service providers, and financial institutions in China. In the future development, the company will innovate trade models, optimize the structure of trade products, and improve the efficiency of the trade process to achieve mutual benefit and win-win results. With decades of deep engagement in the tin industry, the company has always adhered to the business principles of people-oriented management and integrity-based operations since its establishment, maintaining competitiveness in the fierce market competition and achieving rapid and stable development of the enterprise. Ganzhou Yunsheng Tin Industry Co., Ltd. was registered and established in December 2017, with its registered address at the West District of Longling Industrial Management Zone, Nankang District, Ganzhou City. The company's main business includes tin metal processing and sales; production and sales of non-ferrous metal powder and tin by-products; sales of metal materials, wood for building decoration, mineral products, and mechanical equipment; and import and export of goods and technologies. After its official registration in 2017, the company currently focuses on the sales of tin ingots and mineral products, and is vigorously expanding related upstream and downstream industries. Its downstream coverage is extensive, including high-quality enterprise customers such as solar photovoltaic, storage batteries, electronic soldering, tin chemicals, tinplate, tin-coated copper wire, and tin alloys. The business partners are mainly located in Shanghai, Jiangsu, Zhejiang, Jiangxi, Guangdong, and Fujian. The company is committed to achieving rapid, stable, and healthy development. Ganzhou Yunsheng Tin Industry Co., Ltd. has been engaged in the production and trade of tin and tungsten since 2005 and started tin ingot trade in 2016. Currently, its main business covers the tin raw material industry chain, including tin ore, tin ingots, crude tin, and secondary tin materials. Relying on the business of tin and tungsten production and trade, the company focuses on the trade projects of tin ore, tin ingots, crude tin, and secondary tin materials, and actively expands other new fields and projects. It has established strategic cooperative relationships with domestic mining companies, smelting enterprises, logistics and trade agents, service providers, and financial institutions. In the future development, the company will innovate trade models, optimize the structure of trade products, and improve the efficiency of the trade process to achieve mutual benefit and win-win results. The company has been deeply involved in the tin industry for decades. Since its establishment, it has always adhered to the business principle of "people-oriented and integrity-based", enabling the company to maintain its competitiveness in the fierce market competition and achieve rapid and stable development. Contact Information Liao Xiaoyun 13766335535 Long Press to Scan the QR Code to Register Now 2026 SMM (16th) Tin Industry Chain Conference

[Zinc Oxide Operating Rates Relatively Stable but Enterprise Profit Margins Narrow] Currently, the overall demand in the zinc oxide industry was relatively stable, but market price involution was prominent. Meanwhile, some enterprises saw rising production costs due to production processes and increased raw material costs, while product selling prices were suppressed by market competition, leaving limited upside room...

In 2025, the global NEV and new-type energy storage markets continued to boom. Chinese lithium battery enterprises, leveraging their technological expertise and scale advantages, continued to dominate the global supply chain.

On April 14, a delegation from SMM Information & Technology Co., Ltd. (SMM), including Ye Jianhua, Director and Supervisor of SMM's Industry Research Department, Feng Chundi, Expert at SMM's Industry Research Institute, and Wu Tao, SMM's Copper and Tin Overseas Marketing Manager, visited Chambishi Copper Smelter Limited (CCS) for exchange and survey. The delegation received warm hospitality from CCS's leadership. During the visit, both parties engaged in pragmatic communication based on their respective core businesses. Leveraging its core strengths in non-ferrous metal price index R&D, industry chain big data monitoring, copper market analysis and forecasting, in-depth industry research, and global non-ferrous resource connectivity, SMM shared insights on international copper market operating logic and price trend analysis with the enterprise, in the context of the current global copper smelting supply-demand pattern, raw material procurement landscape, and TC fluctuation trends. As a core copper smelting producer outside China, CCS provided a detailed introduction to its production and operation status, smelting process advantages, capacity release pace, raw material procurement, and product exports layout, and elaborated on the practical experience of ex-China copper smelters in production management, cost control, green production, and localized operations. Meanwhile, both parties exchanged views on common industry topics including development pain points of the copper smelting industry outside China, raw material supply security, finished product circulation and trade, industry policy changes, and low-carbon smelting development trends. They also reached preliminary consensus on future directions such as industry chain information sharing, market data exchange, joint market analysis, and industry resource coordination, laying a solid foundation for deepening regular exchanges and promoting high-quality collaborative development of the copper smelting industry chain. Introduction to Chambishi Copper Smelter Limited (CCS) Chambishi Copper Smelter Limited (CCS) is the first large-scale modern pyrometallurgy copper smelting enterprise invested by China overseas, entirely self-designed and constructed. Located in the Zambia-China Economic and Trade Cooperation Zone, the company has 170 Chinese staff and 1,600 Zambian employees. The company has always focused on its vision of "building an internationally first-class smelting enterprise with enduring prosperity," upheld the corporate spirit of "self-transcendence, continuous breakthroughs, and pursuit of excellence," benchmarked against first-class standards with meticulous craftsmanship, and continuously strengthened and optimized enterprise management, with its comprehensive competitiveness steadily improving. As of the end of 2024, the company had produced over 3.3 million mt of copper products and 8.7 million mt of sulphuric acid, with cumulative sales revenue of approximately $21 billion, effectively driving local economic development in Zambia and becoming a shining pearl along the Belt and Road! Enterprise History and Development Achievements (Pursuing Excellence, Benchmarking Against the Best and Forging Ahead) To extend the industry chain and retain more added value locally, in 2006, China Nonferrous Metal Mining (Group) Co., Ltd. cooperated with Yunnan Copper to introduce the advanced ISA copper smelting process to Zambia, with shareholding ratios of 60% and 40% respectively. From the design stage, the Company drew on successful experience in China and incorporated the characteristics of Zambian raw materials to re-optimize and re-innovate the key processes and technologies of the ISASMELT process, strengthening system integration. This resulted in multiple innovative achievements, including "Integration Innovation and Application of ISASMELT Furnace" and "Comprehensive Automated Control System," which were awarded the First Prize for Scientific and Technological Progress by China Nonferrous Metals Industry Association (CNIA) in 2010. The ISASMELT furnace campaign life broke world records multiple times, with the second campaign reaching 218 weeks and the third campaign reaching 244 weeks, establishing an international benchmark. In 2021 and 2022, the Company's copper production exceeded the designed capacity of 250,000 mt for two consecutive years, making history. In 2024, production further surpassed 260,000 mt, setting a new historical record. In September 2013, the Company was honored with the title of Advanced Collective of Central State-Owned Enterprises. In July 2021, it was successfully selected as a Benchmarking Enterprise under the administration of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). Process Flow (Dedicated and Professional, Striving for Excellence to Drive Development) The Company adopts the internationally advanced and mature process of "oxygen-enriched top-blown submerged bath smelting, electric furnace settling and separation, PS converter blowing, and anode furnace pyrometallurgy refining" to produce copper anode, and employs the "double-conversion double-absorption" process to produce sulphuric acid. Adhering to the concept of sustainable development, the Company has built a slag flotation recovery system with a daily processing capacity of 1,500 mt of furnace slag, and a bismuth recovery system with a daily processing capacity of 6 mt of flue dust, continuing to recover metals such as copper, cobalt, and bismuth from smelting slag and flue dust. Social Responsibility (Cooperation and Sharing, Giving Back to Society with Strong Responsibility) The Company actively practices its core values of "Dedication, Cooperation, and Sharing," consistently focusing on its core business of copper pyrometallurgy smelting, engaging in extensive cooperation with upstream and downstream clients, and sharing development achievements with employees and local communities. Since its establishment, the Company has cumulatively paid over $300 million in various taxes and fees in Zambia, created over 5,000 employment opportunities, and cooperated with more than 300 local suppliers, contributing to Zambia's green, harmonious, and shared development. The Company actively fulfills its social responsibilities by increasing investment in social welfare programs for local communities in Zambia, covering infrastructure, education, healthcare, and sanitation. These efforts include sponsoring the renovation of clinics in Kalulushi, supporting the Bushifire Orphanage, donating the construction of classrooms at Buyantashi School, Luato Market, Kankuko Bridge, Chibuluma Community Tennis Court, Chimfunshi Chimpanzee Rescue Center, and Modern Stars Football Club, among others. With a cumulative investment of over $4 million, the Company has earned high praise from local government and warm welcome from the public, establishing a strong corporate image. The Company actively promotes employee localization and continuously achieves skills transfer. The company invested over 5 million Kwacha, and externally carried out technical and non-technical training programs in electric welding, electrical power, pneumatics, technical control, management supervision, and equipment maintenance through the China-Zambia Vocational and Technical College, the TEVETA Fund, and other channels. Internally, through mentorship programs and other approaches, the company conducted business training in masonry, fitting, and other skills. The localization rate of the company's employees reached over 92%, the skills of local employees were significantly enhanced, and technical expertise was exported to the DRC. Vision and Outlook (Staying True to Our Original Aspiration, Building Tomorrow with a Shared Destiny) Innovation-driven development knows no bounds. Over the past decade and more, the company has upheld a sense of survival crisis and market competition awareness, adhered to innovation-driven development, and achieved high-quality growth. In 2021, the company's information technology infrastructure was completed and successfully put into use, with a commitment to building an automated, digitalized, and intelligent factory. In August 2023, the company's anode furnace pyrometallurgy refining system technical renovation project was completed and put into operation. In November 2024, the company's three-year action plan for technology-empowered safety and environmental protection was officially finalized, focusing on technology empowerment and fostering new quality productive forces, propelling the company's high-quality development to a new level. Through collaborative development, benchmarking against first-class standards, technological innovation, and increased production and efficiency, the company continues to advance toward its corporate vision of "becoming an evergreen, world-class smelter." The conference is scheduled to be held on September 15–16, 2026 in Lusaka, Zambia. You are cordially invited to participate! Conference Contact : Wu Tao: 18270916376 jennywu@smm.cn

China Northern Rare Earth disclosed its 2025 annual report on April 18, which stated: 2025 was a pivotal year for the reshaping of the global rare earth industry landscape, a pivotal year for the strategic elevation of China's rare earth industry, and a pivotal year for the company to achieve historic breakthroughs in its business development. Over the past year, the company implemented national industrial policies and enhanced its capacity to serve national strategies. Production of major products hit record highs , with operating revenue reaching 42.563 billion yuan, up 29.11% YoY; net profit attributable to shareholders of the publicly listed firm reaching 2.251 billion yuan, up 124.17% YoY. The company maintained its industry-leading position in revenue, profit, output value, and market capitalization, successfully concluding the "14th Five-Year Plan" period. It effectively safeguarded the security and stability of China's rare earth industry chain and supply chain, and elevated China's rare earth industry to a new level of high-quality development. The explanation of operating revenue changes disclosed in China Northern Rare Earth's announcement stated: In 2025, amid an overall rise in rare earth market prices, the company seized market opportunities and coordinated the advancement of the "Five Unifications" scientific production model. Production and sales of major products, including smelting and separation products, rare earth metals, rare earth new materials, and rare earth permanent magnet motors, all achieved YoY growth. The main business disclosed in China Northern Rare Earth's 2025 annual report stated: Adhering to the development philosophy of "optimizing and expanding rare earth raw materials, refining and strengthening rare earth new materials, and specializing and differentiating end-use application products," the company is capable of producing 11 major categories, over 100 varieties, and more than 1,000 specifications of rare earth products. The company's products are mainly divided into rare earth raw material products, rare earth new material products, and rare earth end-use application products. Among them, the company's rare earth raw material products include rare earth salts, rare earth oxides, and rare earth metals, which serve as the primary raw materials for downstream rare earth new material and new material product processing enterprises. Rare earth new material products include rare earth magnetic materials, polishing materials, hydrogen storage materials, catalytic materials, and rare earth alloys. The company's rare earth end-use application products mainly include rare earth permanent magnet high-efficiency energy-saving motors, solid-state hydrogen storage cylinders, and hydrogen-powered two-wheelers. Regarding the business plan for 2026, China Northern Rare Earth stated in its 2025 annual report: 2026 is the opening year of the "15th Five-Year Plan" period and a critical year for the company to advance high-quality development and accelerate its transformation into a world-class leading rare earth enterprise. The company will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, take forging a strong sense of community for the Chinese nation as the main theme, fully implement the spirit of the 20th National Congress of the Communist Party of China and its successive plenary sessions, implement the spirit of General Secretary Xi Jinping's important speeches and instructions on Inner Mongolia and the rare earth industry, as well as the decisions and deployments of the Inner Mongolia Autonomous Region, Baotou Municipality, and other higher-level authorities. The company will maintain the general principle of seeking progress while ensuring stability, fully and accurately implement the new development philosophy, shoulder its responsibilities and mission, steadily improve operational quality and efficiency, build a comprehensive all-element and all-category industrial system, promote the deep integration of technological innovation and industrial innovation, accelerate the pace of deepening reform, enhance the level of modern governance, continuously strengthen core functions and enhance core competitiveness, accelerate the building of a world-class leading rare earth enterprise, achieve a good start for the "15th Five-Year Plan" period, and make new and greater contributions to the construction of the "two rare earth bases." Key production and operating targets for 2026 (these targets are planning targets only; whether they can ultimately be achieved is subject to uncertainty and do not constitute substantive commitments by the Company to investors; investors and relevant parties should maintain sufficient risk awareness and understand the differences between plans, forecasts, and commitments): achieve operating revenue of over 44 billion yuan and total profit of over 3.5 billion yuan. On the premise of meeting operating targets, ensure that employee income moves in tandem with the enterprise's economic performance and labor productivity. Centering on the work targets, the following key initiatives will be carried out: 1. Stabilize production, promote sales, and improve quality and efficiency, demonstrating a new outlook of a strong start. Based on the national rare earth total volume control indicators, organize and arrange production schedules scientifically. Make every effort to ensure stable and high output from Phase I of the green smelting upgrade and renovation project. Enhance the capability of full-element rare earth extraction and separation. Optimize rare earth metal production processes to improve product quality and capacity scale. Release newly added magnetic material alloy capacity, with per-mt product costs reaching industry-leading levels. The polishing segment will leverage resource and capacity advantages, implement transformation toward high-end and precision products, and enhance product competitiveness. Rare earth additives will focus on high value-added product development to ensure stable product supply. Monitor mainstream product price trends and maintain market stability. Achieve production-sales balance for rare earth lanthanum-cerium products while actively digesting inventories. Strengthen procurement and sales channel development for rare earth Pr-Nd products to enhance market control. The functional materials segment will seize policy and market opportunities to secure orders. Rare earth permanent magnet motors will target frontier fields to achieve new breakthroughs in sales. Refine cost management and implement comprehensive measures to deepen cost reduction, quality improvement, and efficiency enhancement. Optimize financing methods to provide low-cost funding support for the Company's development. 2. Optimize layout and add momentum, shaping new advantages in industrial development. Efficiently advance the construction of key projects and accelerate the construction of Phase II of the green smelting upgrade and renovation project. Promote the Northern Jinlong separation production line to achieve trial production within the year. Promote stable and smooth production at the Jinmeng rare earth secondary resource project. Build a full-category industrial system and accelerate the implementation of joint venture and cooperation projects. Promote stable production and full production at the Northern Magnetic Material digital green technology empowerment project, and expand segmented application fields of rare earth permanent magnet materials. Strengthen the promotion and application of solid-state hydrogen storage materials and expand new applications in the rare earth catalysis field. Enhance the level of digital and intelligent management, deepen the construction of information management and control systems, continue to advance the in-depth application of business systems such as human resources, discipline inspection, and engineering projects, and further consolidate the digital form of business operations. Build a procurement-sales collaborative management platform to form a closed-loop business process covering "procurement, production, inventory, sales, and finance," achieving business-finance integration. Advance the construction of green smelting smart factories, progressively cultivate major production units to build smart factories, and continuously improve the CNC rate of key processes and the digitalization rate of production equipment. 3. Coordinating internal and external efforts to tackle key challenges, empowering innovation to seek new breakthroughs. Increase high-quality scientific and technological supply and strengthen R&D investment intensity. Focus on project deployment and research breakthroughs in areas such as cost reduction in smelting and separation, quality improvement in metal electrolysis, development of new rare earth materials, and expansion of new rare earth applications, developing new products, new processes, and new equipment. Conduct high-value patent cultivation and standards development and revision in key areas across the entire industry chain. Improve the "1+2+N+4" rare earth industry technology innovation platform system, launch high-level rare earth innovation platform projects, and comprehensively optimize and integrate technology innovation resources. Further leverage the role of the industrial transformation center, streamline the pathway for commercializing research outcomes, and enhance the quality and efficiency of technology transfer. Deepen the integration of industry, academia, and research, and promote the establishment of joint laboratories with renowned universities in China. Carry out "Three Firsts" application work in areas such as NdFeB alloy production equipment, rare earth permanent magnet motors, rare earth polishing fluids, and rare earth functional additives, and achieve substantive results. Further leverage the functions of the company's collaborative innovation centers across various industrial sectors, strengthen resource coordination and centralized management, and implement organized research. Focus on tackling key common technologies, promote close interaction and coordinated development among subsidiaries, and drive the output and transfer incubation of major scientific and technological achievements. Introduce the technology readiness level evaluation system into the entire R&D management process to establish quantitative assessment channels. Continue to strengthen the recruitment and cultivation of scientific and technological talent, providing full support in terms of compensation, research funding, and living benefits. 4. Deepening and substantiating reforms to stimulate new vitality in enterprise development. Enhance the company's management and control effectiveness, improve the board of directors' construction and authorization system, explore the formulation of management systems for the performance of duties by full-time and part-time chairpersons, and elevate the board's standardized performance and scientific decision-making capabilities. Optimize the company's management and control matters, processes, and authorities to improve decision-making efficiency. Promote the optimization and integration of subsidiaries. Implement the requirements of the "doubling" initiative for specialized, refined, distinctive, and innovative enterprises, and cultivate additional such enterprises. Deepen the reform of the three systems, improve the cadre assessment and evaluation system, and strengthen the rigid implementation of assessment results. Optimize the selection and appointment mechanism, intensify competitive recruitment and market-oriented hiring, implement "3+6" contract-based management, and firmly establish a talent selection orientation that prioritizes actual performance and practical contributions. Closely align with the company's development and actual business needs, scientifically evaluate organizational structures, reasonably reduce management layers, and enhance management effectiveness. Leverage new projects and production lines to establish shared employment mechanisms, promoting dynamic position integration and workforce optimization. Deepen the reform of the compensation distribution system, build a "same-level, broad-grade" compensation system based on position value and performance contributions, strengthen the linkage between subsidiary performance and the company's overall profitability, and drive a close connection between employee income and enterprise profitability as well as individual contributions. 5. Striving for Excellence in Management to Elevate Modern Governance to New Heights. Strengthened strategic security management, enhanced information resource integration, and actively participated in the formulation of national industrial policies. Strengthened financial management by rigorously implementing comprehensive budget management, further reinforcing capital control, and establishing a capital risk prevention and control system. Enhanced financial informatization by building a standardized, efficient, and well-adapted financial shared services system. Strengthened risk and compliance management by improving the compliance management system to ensure that business development and compliance management advanced in tandem. Established a legal affairs shared system to reduce legal service costs for subsidiaries and strengthen the company's overall legal risk prevention and control capabilities. Improved the comprehensive risk management system and optimized risk management across the entire process of strategy, operations, and management. Strengthened safety and environmental protection management, guided by the "10000" safety vision, to enhance intrinsic safety levels. Effectively carried out safety management of relevant parties. Rigorously implemented environmental protection accountability, improved integrated traceability management of solid waste across production, sales, transportation, and utilization, and enhanced emergency response capabilities. Strengthened talent management by reinforcing training and empowerment, implementing targeted training by level and category, and improving the competency of key personnel. Deepened specialized cultivation of high-level talent and strengthened the deep integration of talent development with the company's strategic growth. Innovated the training model for industrial workers, built a platform for skills inheritance and innovation, simultaneously consolidated talent reserves, optimized talent structure, and enhanced talent effectiveness. Strengthened market capitalization management by establishing a scientific market capitalization management philosophy, improving the ESG management system, and comprehensively leveraging measures such as information disclosure, investor relations management, cash dividends, mergers and acquisitions, and ESG on the basis of enhancing the company's value creation capabilities, to improve market capitalization management performance and maintain the company's position as the largest by market capitalization in the rare earth industry. When discussing potential risks, China Northern Rare Earth mentioned product price risk: Affected by internal and external factors such as macro economic conditions, cyclical industry fluctuations, changes in rare earth market supply and demand, intensified market competition, and geopolitical disruptions, prices of major rare earth products may fluctuate and decline, posing product price risk. Countermeasures: The company will closely monitor market conditions, strengthen market forecasting and analysis, innovate marketing models, adjust marketing strategies, improve product quality, vigorously expand markets, and increase product market share. While maintaining and expanding the marketing base for Pr-Nd products, the company will intensify marketing efforts for La-Ce products, optimize service quality, and improve client satisfaction. Leveraging the role of a major rare earth group, the company will stabilize confidence, stabilize expectations, and stabilize market operations, adopting comprehensive measures to overcome unfavourable factors and striving to mitigate the impact of product price risk on the company's operating performance. Looking back at the SMM Pr-Nd oxide price trend in 2025: the average price of Pr-Nd oxide on December 31, 2025 was 606,500 yuan/mt, compared with the average price of 398,000 yuan/mt on December 31, 2024, representing an increase of 52.39% in 2025. In comparison, the annual daily average price of Pr-Nd oxide in 2025 was 491,576.13 yuan/mt versus 391,871.9 yuan/mt in 2024, indicating a YoY increase of 25.45% in the daily average price in 2025. Driven by expectations of supply reduction due to partial shutdowns at separation plants, upstream suppliers raised their quotes rapidly, low-priced spot cargo in the market tightened quickly, pushing rare earth prices up for three consecutive days. According to SMM pricing, on April 20, the price of Pr-Nd oxide was 815,000-818,000 yuan/mt, with an average price of 816,500 yuan/mt, up 1.74% from the previous trading day. As the price of Pr-Nd oxide rose, wait-and-see sentiment in the market intensified, while downstream magnetic material enterprises had limited acceptance of high-priced metals, and purchasing enthusiasm declined. In the short term, supported by strong confidence among upstream suppliers to hold prices firm, Pr-Nd product prices are expected to hover at highs. For more information on rare earth fundamentals, technical aspects, and policy developments, please attend the ~ SMM Rare Earth Forum Contact: Wang Haiqiao Contact: 19818727891

[Demand Continues to Recover, Zinc Oxide Production Keeps Rising] High prices suppressed downstream order-taking, and some enterprises saw continued accumulation of finished product inventories, with inventory pressure increasing. Production starts rose WoW during the week, mainly driven by the gradual recovery of orders across downstream sectors, which boosted overall production capacity utilization of enterprises...