[POSCO and SK On Form Lithium Alliance for Battery Cooperation] POSCO and SK On have signed a long-term lithium supply agreement, aiming to stabilize the battery materials supply chain. According to a statement released by the two companies on Wednesday, POSCO will supply up to 25,000 mt of lithium from this year until 2028 under the agreement. This supply is sufficient to produce batteries for approximately 400,000 EVs. The lithium will be produced by POSCO Argentina at the Salar del Hombre Muerto salt flat in Salta Province, Argentina, and supplied to SK On's EV battery projects in Europe and North America. SK On is also considering using the material for ESS. Source: https://pulse.mk.co.kr/ [Cornwall's Geothermal Revolution: Extracting Green Energy and Lithium from Granite] The UK's renewable energy sector has achieved a significant leap forward, with a pioneering mini power station in Cornwall officially commencing operation, successfully using underground hot granite to produce zero-carbon electricity and extract high-value battery-grade lithium. Led by Geothermal Engineering Ltd., the project innovatively combines green power generation with critical minerals extraction, is expected to revitalize the region's historic mining economy and supply electricity to thousands of households via the power grid. For East Africa, a region rich in geothermal potential (particularly the Kenyan Rift Valley), the dual extraction technology provides an attractive model. If African energy producers can adopt this approach, simultaneously obtaining electricity and high-profit minerals from geothermal wells, it will significantly enhance the economic feasibility of green energy projects across the continent. Source: https://streamlinefeed.co.ke/ [Zimbabwe Bans Lithium Exports: Global Supply Chain Crisis Emerges] Zimbabwe's recent decision to implement a comprehensive ban on lithium exports marks a watershed moment for the global critical minerals market, highlighting the growing influence of resource nationalism on international supply chains. This policy shift reflects a broader trend: mineral-rich countries are prioritizing domestic value creation over raw material exports, fundamentally altering the landscape of the global battery metals market. The impact extends far beyond a single country; its ripple effects will run through international supply chains, from EVs to renewable energy infrastructure. When countries with significant mineral reserves impose export restrictions, the resulting market dynamics can permanently alter the entire industry's price structures, investment flows, and strategic planning. Zimbabwe's recent decision to suspend mineral exports is a prominent example of this phenomenon. This southern African country, which supplied approximately 10% of the world's lithium resources in 2024, has effectively cut off external supply of its battery metal resources, forcing international buyers to scramble for alternative sources, while domestic processing capacity remains severely underdeveloped. Source: https://discoveryalert.com.au/ [Atlantic Lithium Acquisition Proposal Rejected: 2026 Strategic Value Preservation Strategy] When mature miners pursue mergers and acquisitions during market recovery periods, the core of their strategy shifts from acquiring distressed assets to preserving strategic value. The lithium industry exemplifies this dynamic—during phases of rebounding commodity prices, pre-production developers increasingly tend to reject acquisition proposals, prioritizing long-term value creation over immediate liquidity events. Furthermore, understanding broader critical minerals strategies is essential when assessing these complex market dynamics. Market participants observed that spodumene concentrate prices rebounded from a cyclical low of $800/mt in October 2025 to approximately $1,900/mt by February 2026, a 137.5% increase within four months. This rapid recovery has created a significant valuation gap between acquirers' offers and target companies' intrinsic value assessments. The case of Atlantic Lithium's rejected acquisition proposal demonstrates how pre-production lithium developers evaluate conditional non-binding acquisition offers based on the medium and long-term demand fundamentals in the EV and BESS sectors. Enterprises in the late-stage permitting phase generally believe that current market conditions do not fully reflect the full potential of their asset portfolios. Source: https://discoveryalert.com.au/ [Indian Company Deploys Non-Lithium Multi-Ion Battery System] Mumbai-based battery technology developer Gegadyne Energy stated that its delivery of the first non-lithium multi-ion chemistry battery packs to two of the world's largest material handling original equipment manufacturers marks a true "inflection point" for the forklift industry. Gegadyne has completed the first commercial deployment of its non-lithium multi-ion chemistry battery packs with Linde Material Handling India and the Godrej & Boyce Group. The company claims that this battery, with a cycle life exceeding 5,000 cycles, can be charged from 0% to 100% in 15 minutes, thereby "completely eliminating" dependence on the lithium supply chain. Designed for forklifts, cranes, and warehouse equipment, the battery operates effectively within a temperature range of -40°C to 65°C. Source: https://www.forkliftaction.com/

[SMM Silicon-Based PV Morning Conference Summary] Silicon Metal: Post-Chinese New Year, the market exhibited strong wait-and-see sentiment, with silicon enterprise offers remaining basically stable compared to pre-holiday levels. Yesterday, SMM assessed oxygen-blown #553 silicon in east China at 9,200-9,400 yuan/mt and #441 silicon at 9,300-9,600 yuan/mt. The most-traded futures contract fluctuated near 8,350-8,450 yuan/mt, while some futures-spot traders saw their spot-futures price spread quotes strengthen slightly. On the first trading day after the holiday, market activity was dominated by inquiries, with limited spot transaction volumes. Silicone: Yesterday's transaction price stood at 13,800-14,000 yuan/mt, holding steady from pre-holiday levels. During the Chinese New Year holiday, demand remained stagnant. Post-holiday, as downstream plants resumed operations and the first wave of rigid restocking demand gradually emerged, coupled with low operating rates on the supply side and the upcoming silicone monomer industry conference in Zhejiang from late February to early March, silicone prices are still expected to rise.

On June 17, the share price of China Nonferrous Mining Corporation Limited (CNMC) rose. As of 14:29 on June 17, CNMC's shares increased by 2.03%, closing at HK$7.03 per share. On June 16, CNMC (01258) announced that its subsidiary, CNMC (Hong Kong) Holdings Limited, had signed the 2025 Gecamines Copper Cathode Purchase Agreement with Gecamines on June 16, 2025. The total contract value was approximately $67.03 million, involving the purchase of 7,000 metric tons of high-grade copper cathode processed by CNMC Huaxin Hydrometallurgy. CNMC (Hong Kong) Holdings Limited is a subsidiary of the company. Gecamines holds a 40% stake in the company's subsidiary, Kambove Mining, and is considered a connected person at the subsidiary level under the Listing Rules. Therefore, the transactions proposed under the 2025 Gecamines Copper Cathode Purchase Agreement constitute connected transactions of the company under Chapter 14A of the Listing Rules. According to CNMC's announcement, as one or more of the applicable percentage ratios in relation to the transactions proposed under the 2025 Gecamines Copper Cathode Purchase Agreement, when considered on a standalone basis, exceed 0.1% but are all below 5%, these transactions are subject to the reporting, annual review, and announcement requirements under Chapter 14A of the Listing Rules and are exempt from the requirement for independent shareholders' approval. Under Rule 14A.81 of the Listing Rules, if a series of connected transactions are all conducted within the same 12-month period or are interrelated, these transactions must be aggregated and treated as a single transaction. The transactions proposed under the 2025 Gecamines Copper Cathode Purchase Agreement are similar in nature to previous transactions and must be aggregated. When aggregated with previous transactions, all applicable percentage ratios for the transactions proposed under this agreement exceed 0.1% but are below 5%. Therefore, these transactions are subject to the reporting and announcement requirements under Chapter 14A of the Listing Rules and are exempt from the requirement for independent shareholders' approval. The key terms of the agreement include the agreement period from June 16, 2025, to December 31, 2025. Pricing: The price per metric ton for the copper cathode sold under the 2025 Gecamines Copper Cathode Purchase Agreement shall be determined by reference to the average price during the agreed quotation period (i.e., the month following the delivery month, hereinafter referred to as the "Quotation Period"). This price is calculated by deducting a discount of $425 per metric ton from the daily cash seller's quotation for Grade A copper on the London Metal Exchange during the Quotation Period, after fair negotiations between the contracting parties. Therefore, the total market value of the copper cathode is approximately $70,000,000 (before deducting the discount). Payment: The payment for the 2025 Gecamines Copper Cathode Purchase Agreement shall be made by CNMC (Hong Kong) Holdings Limited to Gecamines' designated account via telegraphic transfer within five (5) working days after the delivery of the copper cathode. Delivery Period: CNMC Hong Kong Holdings Limited is required to appoint a carrier to dispatch trucks to Gécamines' plant for cargo loading within ten (10) days from the date Gécamines provides the goods. Regarding the reasons for this transaction, the announcement by China Nonferrous Mining Corporation Limited (CNMC) indicates that the copper cathode purchased under the 2025 agreement will meet the demand for copper cathode from CNMC Hong Kong Holdings Limited and its customers. The Board believes that entering into this agreement is beneficial to the Group and aligns with the Group's business and commercial objectives. The agreement was negotiated on a one-off basis, taking into account the recent demand for copper cathode and the market supply and demand conditions at the time of signing. As of the announcement date, the Group has no plans to purchase copper cathode from Gécamines on an annual basis. If the Company plans to engage in continuous daily transactions with Gécamines in the future, it will comply with all applicable provisions of the Listing Rules. When commenting on CNMC's 2024 annual report and 2025 Q1 results, Minsheng Securities stated: "Historical best annual net profit attributable to shareholders, with expectations for sustained growth in self-produced copper." On April 25, 2025, the Company released its 2024 annual report and 2025 Q1 results. In 2024, the Company achieved revenue of $3.817 billion, up 5.8% YoY, and a net profit attributable to shareholders of $399 million, up 43.6% YoY. On a quarterly basis, the Company achieved a net profit attributable to shareholders of $85 million in 2024Q4, up 273.9% YoY and down 11.1% MoM; in 2025Q1, the Company achieved a net profit attributable to shareholders of $123 million, up 46% YoY and up 46% QoQ. The 2025Q1 results exceeded market expectations. The record-high net profit attributable to shareholders in 2024 was mainly due to the rise in copper prices. ① Production: Affected by the change of service providers and tight power supply in the DRC, the self-produced copper output declined slightly YoY. In 2024, the Company's production of blister copper and copper anode/copper cathode/sulphuric acid was 28.6/12.6/1.056 million mt, with YoY changes of +0.1%, -11.4%, and +10.5%, respectively. Among them, self-produced blister copper and copper anode/copper cathode were 7.77/81,500 mt, down 11.4% and 0.2% YoY, respectively. The total self-produced copper ore was 159,000 mt, down 6% YoY. The decrease in self-produced blister copper and copper anode output was mainly due to a 10.9% YoY decline in CNMC Nonferrous Mining's copper output to 68,000 mt, as the change of underground mining service providers in H1 affected the production of sulphide ore. From a quarterly production perspective, Q2-Q4 had recovered to a level of 17,000-18,000 mt per quarter. In addition, although self-produced copper cathode production remained basically flat, the production of copper cathode from externally purchased oxide ore decreased, leading to a YoY decline in total copper cathode output, mainly due to production losses at Huaxin Hydrometallurgy and Huaxin Mabende caused by power shortages in the DRC. ② Sales: Production and sales were basically balanced. It is worth noting that cobalt production was only 633 mt, down 49.6% YoY, possibly due to the prolonged downturn in cobalt prices. ③ Unit Price: Rising copper prices contributed to profit growth. ④ Cost: Cost control was strong, with overall costs remaining stable. ⑤ Lightly Equipped with Excellent Asset Quality. In Q1 2025, the company's net profit attributable to shareholders increased significantly both YoY and QoQ, mainly due to the rise in copper prices and the normalization of copper production. ① Production: In Q1 2025, the company's production of blister copper and copper anode/copper cathode/sulphuric acid was 10.97/3.50/271,400 mt respectively. Among them, the production of blister copper and copper anode, and sulphuric acid was basically flat YoY, while the production of copper cathode increased by 8% YoY. This was mainly because the production of copper cathode at Huaxin Mabende and Huaxin Hydrometallurgy, two hydrometallurgical smelters in the DRC, increased by 49% and 20% YoY respectively. The increase in production was due to the company's efforts to ensure power supply through multiple measures such as constructing PV power generation and diesel power generation facilities. The self-produced blister copper and copper anode (CNMC Luanshya + CNMC Nonferrous Mine + Chambishi Hydrometallurgy)/copper cathode (CNMC Luanshya + Chambishi Hydrometallurgy + Gambowe Mining) were 21,400/21,700 mt respectively, increasing by 22.4% and decreasing by 3.7% YoY respectively. The total self-produced copper ore was 43,000 mt, up 7.7% YoY. The increase in self-produced blister copper and copper anode production was mainly due to the 26.7% YoY increase in copper production at Chambishi Copper Mine of CNMC Nonferrous Mine, as the low base caused by the replacement of mine service providers in the same period last year affected production, which has now returned to normal this year. ② Unit Price: In Q1 2025, the prices of copper and cobalt were 77,300 yuan/mt and 170,000 yuan/mt respectively, changing by +11.3% and -17.1% YoY, and increasing by 2.4% and 4.6% QoQ respectively. The long-term contract TC for 2025 was $21.25/mt. The vast majority of the company's smelter raw materials come from copper concentrates locked in through long-term contracts. However, due to successful negotiations on freight sharing, the decline in some of the TC was offset, so the impact of the decline in smelting processing fees on the company was less than that on domestic companies. Core Highlights: ① Endogenous Growth: CNMC Africa Mining, CNMC Luanshya, and Chambishi Hydrometallurgy, subsidiaries of the company, will research and promote the following projects in the next 3-5 years: the expansion of the Chambishi Southeast Orebody, the new mine of CNMC Luanshya, the mining and beneficiation project of the Samba Mine, and the production resumptions of the Gambowe West Orebody and MSESA Orebody, indicating significant endogenous growth potential. ② Outward Mergers and Acquisitions: At the group level, to address horizontal competition issues, the DRC company and Deziwa Copper Mine are expected to be injected into the publicly listed firm. ③ Scarcity of High-Dividend Copper Targets. Risk Warnings: Continuous decline in smelting processing fees, decline in copper prices, and geopolitical risks. Guosen Securities commented on CNMC Mining in its research report, stating: Core Mines: In 2024, CNMC Africa Mining produced approximately 68,200 mt of copper anode, down about 11% YoY; CNMC Luanshya produced approximately 44,400 mt of copper cathode, up about 2% YoY, and 4,159 mt of copper anode, down about 47% YoY; Gambowe Mining produced approximately 34,400 mt of copper cathode, up about 4% YoY. High Dividend Payout Ratio: The company plans to distribute a dividend of 4.2893¢ per share, with a total dividend amount of approximately $167 million, accounting for 42% of the company's net profit attributable to shareholders in 2024. The company has maintained a dividend payout ratio of over 40% for four consecutive years since 2020, with its dividend payout ratio and dividend yield ranking among the leading levels in the industry. The company's captive mine is expected to gradually increase its annual copper production to approximately 300,000 mt in the medium and long term. Risk Warnings: Risk of mineral product selling prices not meeting expectations, risk of the company's project construction progress not meeting expectations, and risk of changes in policies related to mineral resources in overseas countries.

The path for joint mergers and acquisitions (M&A) and restructuring in the highly anticipated polysilicon sector has begun to take shape. During this year's SNEC exhibition, Lan Tianshi, Co-CEO of GCL Technology (03800.HK), revealed in an exchange with media outlets such as Cailian Press that currently, leading enterprises in the industry are taking the lead in establishing a company operated by professional managers through a model of "direct capital contribution + debt". This company aims to achieve capacity exit and controlled output through acquisitions, and then repay liabilities through profits, thereby promoting the orderly exit of industry capacity. "In the future, participants may invest and repay debts with real money through equity or forms such as limited partnerships (LPs)," Lan Tianshi said.

According to MiningNews.net, in Q1, Australia's exploration sector was experiencing a significant downturn, with key indicators such as financing, exploration investment, and corporate cash reserves showing stagnation or substantial declines. Consulting firm BDO described Q1 as "the most disheartening quarter in recent years" in its latest report. The poor start to 2025 was reflected in a sharp 19% drop in mineral exploration investment to AUD 635 million, the lowest level since Q2 2021. The average investment per company was AUD 860,000, the worst performance since Q1 2021. The average cash surplus of exploration companies fell by 3% to AUD 9.8 million. Only 26 companies were able to raise more than AUD 10 million, collectively raising AUD 1.57 billion, compared to 57 companies raising over AUD 2.17 billion in Q4 of the previous year. This marked the worst period in six years. Additionally, due to mergers and acquisitions, executive appointments, or the delisting of entities that had been suspended for an extended period, the number of companies listed on the Australian Securities Exchange (ASX) decreased by 17, leaving only 747. There were no initial public offerings (IPOs) during this period, the first time since 2020. Sherif Andrawes, Head of Natural Resources and Energy Research at BDO, stated that the company's analysis of the data revealed a "worrying" state of the exploration sector. Signs of capital discipline and cautious spending suggest that the situation may deteriorate further in the future, especially since the federal budget in May abolished support policies such as the Junior Minerals Exploration Incentive (JMEI), which may pose greater challenges for junior exploration companies. "The significant decline in financing and exploration expenditure indicates increased investor caution and rising market uncertainty," Andrawes said. "Our quarterly analysis shows a poor start to 2025. In previous quarters, exploration companies had demonstrated some resilience in the face of weak commodity prices, particularly for uranium and lithium." Financing for lithium companies dropped by 90% to AUD 68.95 million, while financing for uranium miners came to a complete halt. As a safe-haven asset, gold mining companies emerged as a bright spot. Among the 26 companies that raised funds, 16 were gold miners, particularly Predictive Discovery and Black Cat Syndicate. Gold mining companies raised AUD 621 million, more than double the amount raised in the same period last year. Copper mining companies raised AUD 122 million, and silver exploration companies raised AUD 120 million. "M&A activity in the sector has also increased, with major transactions including Gold Fields' acquisition of Gold Road Resources and Ramelius Resources' acquisition of Spartan Resources," Andrawes said. Given the current market volatility, BDO expects gold to continue to dominate the trend in H2 2025.

"In 2025, the overall end-use market demand is gradually recovering. Currently, our company has strong order demand in high-end consumer electronics, automotive, and industrial sectors, and we expect revenue to maintain rapid growth this year," said Chenjie Ruan, Chairman and General Manager of Southchip Semiconductor Technology, at today's (June 9) earnings conference. In Q1 this year, Southchip's net profit declined significantly. Data shows the company's Q1 revenue reached 685 million yuan, up 13.86% YoY, while net profit attributable to shareholders was 63.4926 million yuan, down 36.86% YoY, and adjusted net profit stood at 56.2623 million yuan, down 43.76% YoY. The company attributed the profit decline in its financial report mainly to increased R&D investment. Its Q1 R&D expenditure totaled approximately 124 million yuan, up 37.84% YoY. Ruan told the Sci-Tech Innovation Board Daily that Southchip will continue focusing on high-end consumer electronics, automotive electronics, industrial, AI, and communication sectors, with more new product codes expected to launch and enter mass production this year. As business scale expands further, revenue proportions from high-end consumer, automotive, and industrial sectors are projected to increase further in 2025. The Sci-Tech Innovation Board Daily noted that currently, Southchip is in rapid expansion phase in automotive sector . In 2024, its automotive business grew 179%, covering auto body control, smart driving, smart cockpit, and onboard charging. The company has launched multiple new products in these areas, including some high-end PMICs and driver chips for domain controllers. Ruan stated at the conference that in 2025, the company will introduce products for more sub-sectors, with automotive business expected to maintain rapid growth momentum and further increase its proportion. He expressed confidence in achieving fast growth and rising share for automotive electronics in coming years. Regarding core mobile device business, Ruan said, "This segment is expected to continue growing this year, driven by charging management, display power management, and lithium battery management businesses." In wearables market, Southchip already has chip products like DC-DC, Charger, lithium battery protection, and wireless charging applied in smartwatches/bands, TWS, and VR/AR end-use products. Ruan indicated the company will further strengthen product deployment in wearables market. In March this year, Southchip Technology proposed to change its initial public offering (IPO) investment project, the "Construction Project of the Testing Center," into the "Construction Project of the Chip Testing Industrial Park." The total investment for the planned chip testing industrial park project is approximately 4.67 times that of the original testing center project, amounting to 1.443 billion yuan. The project's planned construction period has been extended from three years to nine years. Regarding the latest progress of this project, Ruan Chenjie stated that the construction project of the chip testing industrial park has completed the registration of the implementing entity and the opening of a special account for the raised funds. Currently, the company is advancing the design phase of the park's construction. The first phase of the investment project is expected to commence production in 2027, gradually covering the company's capacity needs in the power management chip testing segment. In terms of mergers and acquisitions (M&A), in January this year, Southchip Technology announced its intention to acquire 100% equity of MCU producer Sunrise Micro for 160 million yuan in cash. Regarding the latest progress of this acquisition project, Ruan Chenjie stated that the company has completed the acquisition transaction of Sunrise Micro in Zhuhai so far and will continue to promote the integration of both parties in the M&A process. In response to investors' concerns about Sunrise Micro's new order situation, Ruan Chenjie said that the integration work between Sunrise Micro in Zhuhai and the company is progressing as planned. Currently, Sunrise Micro's business orders are in line with industry conditions. Regarding overseas business, Ruan Chenjie stated that expanding overseas markets is a long-term development strategy for the company. Currently, the company has established a presence in Singapore, South Korea, and other locations, targeting customers in high-end consumer electronics, automotive, and other sectors. This year, the company is expected to achieve new breakthroughs with key overseas customers.

Macro News 1. A spokesperson for the Ministry of Foreign Affairs announced that He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, will visit the UK from June 8 to 13 at the invitation of the UK government. During the visit, he will hold the first meeting of the China-US Economic and Trade Consultation Mechanism with the US side. 2. In response to a reporter's question about China's export control measures on medium-heavy rare earth, a spokesperson for the Ministry of Commerce stated that rare earth-related items have both military and civilian applications, and implementing export controls on them is in line with international common practices. With the development of industries such as robotics and NEVs, the demand for medium-heavy rare earth in civilian applications is growing across countries. As a responsible major country, China fully considers the reasonable demands and concerns of various countries in civilian applications and reviews export license applications for rare earth-related items in accordance with laws and regulations. It has approved a certain number of compliant applications in accordance with the law and will continue to strengthen the review of compliant applications. China is willing to further strengthen communication and dialogue on export controls with relevant countries to facilitate compliant trade. 3. According to PBOC data, China's gold reserves stood at 73.83 million ounces (approximately 2,296.37 mt) at the end of May, up 60,000 ounces (approximately 1.86 mt) MoM, marking the seventh consecutive month of gold purchases. 4. Data shows that the PBOC conducted reverse repo operations totaling 930.9 billion yuan in the open market last week, while reverse repos totaling 1,602.6 billion yuan matured in the open market last week. Consequently, the PBOC achieved a net withdrawal of 671.7 billion yuan from the open market on a full-caliber basis last week. This week, reverse repos totaling 930.9 billion yuan will mature in the PBOC's open market operations. 5. According to statistics from the State Administration of Foreign Exchange, as of the end of May 2025, China's foreign exchange reserves stood at $3,285.3 billion, up $3.6 billion from the end of April, representing an increase of 0.11%. 6. In response to a reporter's question about Minister Wang Wentao's talks with European Commission Executive Vice President Valdis Dombrovskis, responsible for Trade and Economic Security, during his visit to France, the Ministry of Commerce stated that Minister Wang Wentao and Executive Vice President Dombrovskis held professional and in-depth discussions on the EV case, making significant progress towards a proper resolution of the case. Currently, price commitment negotiations between China and the EU on the EV case have entered the final stage, but efforts from both sides are still needed. Industry News 1. On June 6, Li Lecheng, Minister of the Ministry of Industry and Information Technology, chaired a meeting of the Ministry's Leading Group for the Integration of Informatization and Industrialization. The meeting called for the implementation of the "AI + Manufacturing" initiative to accelerate the intelligent upgrading of key industries and create an "upgraded version" of smart manufacturing. By focusing on industrial intelligence, the meeting aimed to deepen the industrial application of AI and drive the innovation and iteration of industrial datasets and large industrial models. 2. The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) issued the "Administrative Measures for the Development Planning of Central State-owned Enterprises", placing greater emphasis on industrial orientation. A three-tier planning system has been established, comprising the "Overall Development Plan for Central State-owned Enterprises + Key Task Planning + Enterprise Planning". Industrial optimization and adjustment have been identified as the key focus of this three-tier planning, with the aim of channeling state capital into critical industries and key sectors vital to national security and the lifeline of the national economy, as well as into public services, emergency response capabilities, and public welfare sectors that are crucial to the national economy and people's livelihoods, and further into forward-looking and strategic emerging industries. 3. The Shanghai Stock Exchange (SSE) held a symposium on high dividends, significant returns, and enhancing the value of publicly listed firms. Relevant officials from the SSE stated that in the future, the SSE will encourage publicly listed firms to further increase dividend payouts and frequency, and effectively utilize market value management tools such as share buybacks, mergers and acquisitions, and investor communications to continuously enhance the investment value of companies. 4. Last Saturday, a Boeing 737 MAX aircraft took off from Seattle, US, and landed in Hawaii before continuing its journey to China. This aircraft, originally a new plane awaiting delivery at Boeing's Zhoushan factory, was returned to the US in April. This marks the first time since April that Boeing has resumed aircraft deliveries to China. 5. The People's Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) are actively promoting the interconnection of the two regions' fast payment systems. The project is progressing smoothly, with some services expected to be launched by mid-year. Details will be announced in due course. 6. Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA), wrote that with the strengthening of national sales promotion subsidies for scrappage and renewal, the market has rebounded, significantly boosting the automotive market. Consequently, the pressure from price wars has relatively eased from January to mid-May. Due to competitive differentiation, the promotional efforts for new energy vehicles (NEVs) in May have rebounded significantly. In May 2025, the promotional discounts for NEVs dropped to a mid-to-high level of 11%, representing an increase of 1.3 percentage points compared to the same period last year and a 1.6 percentage point increase MoM. 7. Hong Kong SAR Chief Executive John Lee Ka-chiu attended and delivered a speech at the opening ceremony of the 16th Cross-Strait and Hong Kong-Macao Economic and Trade Cooperation Symposium hosted by the Chinese Manufacturers' Association of Hong Kong last Saturday. Lee stated that Hong Kong is actively developing the artificial intelligence (AI) industry and will establish a "Technology and Innovation Industry Guidance Fund" with a scale of HK$10 billion to strengthen the guidance of market funds and promote the development of strategic emerging and future industries such as AI and robotics. 8. Amidst the 618 shopping festival promotions, national subsidy policies for home appliances in multiple regions, including Jiangsu, Chongqing, Hubei, and Guangdong, have been suspended or adjusted to a limited supply model. A reporter from Cailian Press learned through on-site visits that in Jiangsu Province, consumers wishing to use national subsidies offline need to queue up at merchants to "snatch" quotas, with digital products being in high demand and quotas hard to come by. Similarly, consumers in Guangdong Province also need to compete for coupons for redemption. According to data from the Ministry of Commerce, sales from trade-in policies have exceeded 1 trillion yuan. Industry analysts believe that the main reason for the current policy adjustment is the rapid depletion of national subsidy funds, which is a temporary phenomenon, and a new round of subsidies may be reintroduced. 9. Recently, a team led by professors Peng Jun and Zhang Xiaohong from Soochow University, in collaboration with the University of New South Wales in Australia and the White Horse Lake Laboratory in Zhejiang Province, achieved a significant breakthrough in the field of single-junction perovskite solar cells. The certified steady-state efficiency of their 0.1 cm² single-junction perovskite cell reached 27.3%, while that of the 1 cm² single-junction perovskite cell reached 26.9%, both setting new world records for their respective sizes. Corporate News 1. LONGi Green Energy announced that shareholder HHLR plans to reduce its stake by no more than 0.5% of the company's shares. 2. Desay SV announced that shareholders Huichuangtou and Shenhua Investment plan to reduce their stakes by 3% and 1.45% of the company's shares, respectively. 3. Royo announced that Langzi plans to reduce its stake by no more than 3% of the company's shares. 4. LB Group announced that it plans to repurchase between 500 million and 1 billion yuan worth of the company's shares. 5. Roborock announced that it plans to issue H shares and list them on the Hong Kong Stock Exchange. 6. *ST Haiyue announced that it has been investigated by the China Securities Regulatory Commission for suspected violations of information disclosure regulations. On the same day, the company also announced that it has received a decision to delist its shares, with the expected last trading date being July 4. 7. Vanke A announced that Shenzhen Metro Group plans to provide the company with a loan of no more than 3 billion yuan. 8. Sinowealth Electronics announced that its controlling shareholder is planning changes to the company's control, and trading in its shares has been suspended. 9. BlueFocus announced that it is planning to issue H shares and list them on the main board of the Hong Kong Stock Exchange. 10. Honghui Fruits & Vegetables announced that its controlling shareholder is planning changes to the company's control, and trading in its shares has been suspended. 11. Canadian Solar announced that shareholder Yuanhe Chongyuan plans to reduce its stake by no more than 3% of the company's shares. 12. Jiechuang Intelligence announced that it plans to purchase servers worth no more than 600 million yuan for its intelligent computing cloud services. Global Markets 1. The three major U.S. stock indexes closed higher collectively last Friday, with the Dow Jones Industrial Average rising 1.05% and gaining 1.17% for the week; the Nasdaq Composite rising 1.2% and gaining 2.18% for the week; and the S&P 500 rising 1.03% and gaining 1.5% for the week. Popular tech stocks generally rose, with Google and Tesla gaining over 3%, Amazon rising over 2%, and Nvidia, Apple, and Meta each rising over 1%, while Broadcom fell 5%. Cryptocurrency and automobile manufacturing sectors led the gains. 2. Starting on the morning of the 6th, federal agencies such as the U.S. Immigration and Customs Enforcement (ICE) deployed a large number of law enforcement officers to carry out operations targeting illegal immigrants in multiple locations across Los Angeles County, California, leading to numerous street confrontations, chaos, and clashes. On the 7th local time, law enforcement officers clashed with local residents for the second consecutive day. The most intense conflict on the 7th occurred in Paramount, approximately 30 kilometers south of downtown Los Angeles, an area predominantly inhabited by Latino immigrants. Hundreds of heavily armed federal law enforcement officers confronted and clashed with several hundred protesters. 3. According to a June 7 report by The Washington Post, the US State Department notified embassies and consulates worldwide on June 6 to resume visa processing for international students planning to study at Harvard University. This decision overturned the visa rejection order issued just the day before. Currently, no relevant information has been published on the US State Department's official website. Investment Opportunities Reference 1. Intelligent driving has become a focal point of competition among major automakers, with the demand for such core hardware continuously rising. Samsung has formed partnerships with Infineon and NXP to jointly develop next-generation automotive chip solutions. This collaboration will be based on Samsung's 5-nanometer process, with a focus on optimizing the co-design of memory and processors, and aims to "enhance chip security performance and real-time processing capabilities." Samsung is reportedly developing highly integrated SoC solutions in this field to achieve better energy efficiency ratios. Everbright Securities pointed out that in the era of domain controllers, heterogeneous SoC chips with high computing power, high performance, and high integration will become the core components of intelligent driving. In addition to domain controllers, intelligent driving SoC chips are also core components of front-view integrated machines. By 2025, the penetration rate of urban NOA in car models priced below RMB 150,000 will rapidly increase, driving up the demand for medium-to-high computing power chips. Additionally, from a technological perspective of intelligent driving, by 2025, new end-to-end technologies will focus on VLA and world models, with "parking lot to parking lot" intelligent driving functions becoming a focal point of competition among major automakers, posing higher requirements for chip computing power, solution provider capabilities, and OEM self-research capabilities. Against the backdrop of automotive OEMs such as BYD and Geely implementing "intelligent driving equity" strategies, third-party SoC producers are expected to benefit first, with the trend of "chip pre-embedding" bringing high growth certainty to the industry. 2. Another low-orbit satellite successfully launched, with institutions stating that China's commercial aerospace industry has completed the "from 0 to 1" phase. Recently, China successfully launched the Internet of Satellites Low-Orbit Group 04 satellites into their predetermined orbits using a Long March 6A carrier rocket at the Taiyuan Satellite Launch Center, with the launch mission achieving complete success. Western Securities stated that the progress of the satellite Internet industry is accelerating, with potential for valuation expansion. The satellite Internet industry is a core component of new quality productive forces. From a policy perspective, policies and regulations in areas such as terminal-to-satellite direct connectivity, satellite network coordination, and access for private satellite enterprises have been successively introduced in the past two years, with a relatively complete top-level policy framework for the satellite industry now in place. From the product and user perspectives, the number of Tiantong package subscribers has exceeded 2 million, with over 16 million terminal devices in use. Moreover, Huawei's public testing of satellite internet is expected to commence in the second half of 2025 (H2), with the user base for satellite internet access in China gradually being established. Fu Chenshuo from CITIC Securities stated that with breakthroughs achieved in satellite manufacturing, rocket launches, ground equipment, and operational services, China's commercial aerospace industry has completed the "0 to 1" phase and is on the verge of entering a rapid development stage. 3. Indonesia Considering Procurement of China's J-10 Fighter Jets: Institutions Say China's Military Trade Ushers in a New Cycle According to media reports, on June 5 local time, the Indonesian military announced that the Indonesian government is conducting a feasibility assessment on the procurement of China-made J-10 fighter jets. Taufanto, the Deputy Minister of Defense of Indonesia, stated that this move aims to enhance the modern combat capabilities of the Indonesian Air Force while also considering cost-effectiveness within the national defense budget. Taufanto pointed out that the performance of China's J-10 fighter jets in the India-Pakistan conflict is one of the key factors influencing Indonesia's consideration of this model. Additionally, compared to similar Western fighter jets, the J-10 is more competitively priced and its technical configuration meets Indonesia's demand for "cost-effective advanced equipment." Taufanto revealed that Indonesia is currently focusing on reviewing the compatibility of the J-10 with its existing national defense system, after-sales maintenance support, and specific procurement terms. The procurement scope may not be limited to fighter jets but could also include China-made warships, frigates, and other weaponry. Shenwan Hongyuan stated that amid geopolitical conflicts, the attention on China's military trade will continue to rise. The intense conflict between India and Pakistan has drawn significant attention to China's military-industrial foreign trade products, with their maturity expected to gain high international recognition, thereby continuously promoting the opening up of the international market for China's military trade products and ushering in a new cycle for China's military trade, thus expanding the market space and valuation of the entire industry. 4. Volcano Engine's Motive Power Conference to Be Held, ByteDance Recently Launches Multiple AI Products The 2025 Volcano Engine Motive Power Conference - Spring will be held from June 11 to 12, focusing on cutting-edge fields such as large models and AI cloud-native technologies. Topics include agent development, multimodal understanding, deep thinking, AI cloud-native, and more. Recently, there have been continuous advancements in ByteDance's AI sector. On May 20, Volcano Engine launched the Doubao Voice Podcast Model, enabling the instant conversion of text content into a two-person dialogue-style podcast without complex editing, allowing hot topics to be instantly transformed into engaging podcasts. On the same day, Volcano Engine unveiled the Large Model Ecosystem Square - MCPServers. On May 8, Volcano Engine released the DiskANNRaBitQ vector algorithm engine, which, through the deep integration of the DiskANN algorithm and the ExtendedRaBitQ vector quantization technology, achieves an 115% improvement in query performance compared to the HNSW algorithm in high-performance vector retrieval scenarios, reduces memory resource consumption by 90%, and lowers the overall cost of the user's vector database by 75%, accelerating the application of AI technology across various industries. On May 7, Volcengine launched China's first intelligent database assistant, DBCopilot, which covers three core scenarios of data storage, management, and acquisition through AI technology. Guotai Haitong Securities stated that ByteDance has become a leading force in China's AI development, with its models and applications advancing in tandem, continuously bringing fresh blood to the development of China's AI ecosystem, and also reflecting the current vibrant state of AI development in China.

The State Council Information Office will hold a press conference at 10:00 a.m. on Tuesday, June 10, 2025. Deputy Secretary General Xiao Weiming of the National Development and Reform Commission (NDRC), along with relevant officials from the Ministry of Education, the Ministry of Civil Affairs, the Ministry of Finance, the Ministry of Human Resources and Social Security, and the National Health Commission, will introduce policies on further safeguarding and improving people's livelihoods, and answer questions from journalists.

[Wang Xia, President of the Automotive Industry Chamber of Commerce of the China Chamber of International Commerce: Mergers and Acquisitions in the Automotive Industry Are an Inevitable Phenomenon as the Industry Approaches Maturity] At the "2025 China Auto Chongqing Forum" held in Chongqing, Wang Xia, President of the Automotive Industry Chamber of Commerce of the China Chamber of International Commerce, stated that compared to price wars, the technological competition in China's EV industry appears more positive. Following performance competitions in driving range, charging speed, and functional competitions in "refrigerators, TVs, and large sofas," the advent of solid-state batteries, large models, AI integration into vehicles, and intelligent driving equity has followed in quick succession. "However, unexpected incidents such as battery fires, autonomous driving malfunctions, and hidden door handle traps also remind us from time to time that safety must always be the bottom line in the new technology competition." Wang Xia believes that mergers and integrations are the inevitable result of "cut-throat competition" and an important means to manage it. In accordance with the laws of market economy development, mergers and acquisitions are an inevitable phenomenon as the industry approaches maturity.

A reporter exclusively learned from China Reform Holdings Corporation Ltd. (hereinafter referred to as "China Reform") that China Reform announced the issuance of 23 billion yuan in special bonds to support investment in major projects under the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins." The "implementation of major national strategies and the development of security capabilities in key areas" refers to the implementation of major national strategies and the development of security capabilities in key areas. The "program of large-scale equipment upgrades and consumer goods trade-ins" refers to large-scale equipment upgrades and consumer goods trade-ins. Since 2024, China has vigorously implemented the policies related to the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins" to stimulate domestic demand potential and provide support for promoting economic rebound and improvement. The Central Economic Work Conference at the end of 2024 clearly stated the need to "intensify and expand the scope of the implementation of the 'program of large-scale equipment upgrades and consumer goods trade-ins' policy" and "provide greater support for 'implementation of major national strategies and the development of security capabilities in key areas' projects." According to a reporter from Caixin, since 2024, to drive central state-owned enterprises to make every effort to stabilize growth, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) decided to support China Reform in issuing 300 billion yuan in special bonds for stabilizing growth and expanding investment in batches to inject capital into relevant central state-owned enterprises. The first batch of 30 billion yuan in special bonds was implemented in 2024, and this is the second batch of special bonds being issued. It is understood that the special bonds for stabilizing growth and expanding investment are mainly used to support investment in projects under the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins," including investment in major equipment upgrades and technological transformations, major scientific and technological innovation projects, and major strategic emerging industries. In recent years, the proportion of direct financing in China's social financing structure has been relatively low, with social financing overly relying on bank credit, which is prone to accumulating systemic risks. As an effective way of allocating financial resources in the past, indirect financing has shown certain limitations in serving the development of the real economy under the power transformation in the stage of high-quality development. As a national-level capital operation platform, China Reform, as learned by a reporter from Caixin, has currently established 10 actively managed funds, including the China State-owned Capital Venture Capital Fund, the Central State-owned Enterprise Operation Fund, the Science and Technology Innovation Fund, the Double Hundred Fund, the State-owned Enterprise Reform Science and Technology Fund, the Comprehensive Reform Pilot Fund Group, and the China Reform High-level Talent Fund. By contributing 29.3 billion yuan in paid-in capital to these funds, it has driven the raising of over 87 billion yuan in funds and led the investment in over 100 projects, driving over 90 billion yuan in social capital. Recently, under the direct guidance of SASAC, a special fund for the development of strategic emerging industries of central state-owned enterprises and the China Reform Venture Capital Fund have been established, with a total scale of 60 billion yuan, to provide greater support for central state-owned enterprises to accelerate the development of strategic emerging industries and future industries. A representative from China Reform told a reporter from Caixin that China Reform continues to provide long-term and stable financial support to science and technology innovation enterprises. As of the end of April 2025, it has invested a cumulative total of over 346 billion yuan in strategic emerging industries, deploying a number of leading enterprises in fields such as semiconductors, memory chips, new energy batteries, and biotechnology. "We have increased investment in the 'bottleneck' areas of key core technologies in strategic emerging industries, with cumulative investment in original technology source projects exceeding 67 billion yuan, achieving full coverage of investment in the first batch of 29 central state-owned enterprises that are original technology sources. The amount invested in projects of central state-owned enterprises with long industry chains is nearly 40 billion yuan," said China Reform Holdings Corporation. A reporter from Cailian Press also learned that China Reform Holdings Corporation has supported major reforms of state-owned enterprises through direct investment services, implementing the deployment requirements of the SASAC. It has invested over 260 billion yuan in a market-oriented and professional manner to support the establishment of new central state-owned enterprises, the diversification of equity in central state-owned enterprises, strategic restructuring, specialized integration, and the prevention and resolution of risks in relevant enterprises. For example, it has participated in the establishment of new central state-owned enterprises such as PipeChina, China Green Development Group, and China Electrical Equipment Group, supported the restructuring of Ansteel Group and Bensteel Group, participated in the equity diversification reform of China Eastern Airlines Group, and supported the return of core assets of central state-owned enterprises such as China Telecom, China Mobile, and CNOOC to A-share IPOs. It has become an important shareholder of central state-owned enterprises and their affiliated enterprises, appointed directors to the enterprises it holds shares in, and played a "key minority" role in decision-making on major issues. Since 2023, amid a relatively sluggish capital market and weak investor expectations, China Reform Holdings Corporation has strengthened counter-cyclical investment and provided support by actively increasing its holdings or announcing share purchases, firmly safeguarding the value of publicly listed firms of central state-owned enterprises and playing the role of a "stabilizer" for the value of central state-owned enterprises. It has made concentrated investments in publicly listed firms of central state-owned enterprises in the technology sector on the secondary market on a "large-scale, high-proportion, and long-term" basis, investing in a cumulative total of 341 publicly listed firms of central state-owned enterprises involving 77 central state-owned enterprise groups. Actively becoming an active shareholder of 10 publicly listed firms controlled by central state-owned enterprises through market-oriented means and appointing directors, it has played a key role as an active shareholder in governance optimization, mechanism innovation, strategic synergy, and other aspects through targeted strategies. It has collaborated with central state-owned enterprises to carry out mergers and acquisitions in strategic emerging industries on the secondary market, vigorously promoting the strengthening and extension of the industry chains of central state-owned enterprises and enhancing their control and competitiveness. On April 7, the A-share market experienced a significant decline. A reporter from Cailian Press learned that, as an important strategic force in maintaining the stability of the capital market, China Reform Holdings Corporation immediately took action, firmly optimistic about the development prospects of China's capital market, and announced that it would increase its holdings of stocks of central state-owned enterprises, technology innovation stocks, and ETFs through special relending for stock repurchases and shareholding increases, with an initial amount of 80 billion yuan, demonstrating the responsibility and commitment of the operating company.