1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The supply side is affected by factors such as the non - resumption of the Ningde Jianxiawo mine, and the production enterprises in Yichun and Qinghai receiving notices of mining right transfer review. In December, the domestic lithium carbonate production increased by 3% month - on - month, and in November, the imported lithium concentrate was 729,000 tons, a month - on - month increase of 11.9%. The total import of lithium carbonate in November was about 22,000 tons, a month - on - month decrease of 7.6% and a year - on - year increase of 15%. It is expected that the subsequent import of lithium salts from South America will supplement the supply [5][7]. - The downstream demand is strong, and the de - stocking trend continues. The terminal demand for energy storage continues to be good. The production schedule in January is expected to decline slightly, and the cathode production schedule in November increased by 2% month - on - month. With the continuous risk of mining certificates in Yichun, the production of lithium from ore continues to increase under the background of profit repair, and the cost center moves up. The expectation of the resumption of production of Ningde Jianxiawo within the year has failed. After the joint production cut of cathode material factories, the downstream production schedule is expected to decline, resulting in a small inventory accumulation. Attention should be paid to the disturbances at the Yichun mine end. When downstream purchases lithium carbonate, the inventory of traders accumulates, and the price is expected to continue to fluctuate [7]. 3. Summary According to Relevant Catalogs Weekly Viewpoint Supply - side situation - Production: According to Baichuan Yingfu statistics, last week's lithium carbonate production increased by 50 tons week - on - week to 24,400 tons, and the December production increased by 3% month - on - month. The Ningde Jianxiawo mine has not resumed production, and production enterprises in Yichun and Qinghai have received notices of mining right transfer review, affecting supply. In the third quarter, Australian mines achieved cost control, and the space for further cost reduction of Australian mines is extremely limited. Most mainstream Australian mines have basically reduced their capital expenditure for fiscal year 25 [5]. - Import: In November 2025, China imported 729,000 tons of lithium concentrate, a month - on - month increase of 11.9%. The top three countries in terms of import volume were Australia, Zimbabwe, and Nigeria. The import of lithium concentrate from Australia in November increased by 44% month - on - month, the import from Zimbabwe was 110,000 tons, a month - on - month decrease of 28%, and the import from Nigeria was 92,000 tons, a month - on - month decrease of 16%. In November, 22,055 tons of lithium carbonate were imported, a month - on - month decrease of 7.6%, and the import from Chile was 10,800 tons, accounting for 49% [5]. - Cost: The CIF price of imported lithium spodumene concentrate increased week - on - week. Some manufacturers producing lithium carbonate by purchasing external lithium ore faced cost inversion. Enterprises with their own ore and salt lakes had certain profit support, while lithium hydroxide manufacturers faced greater cost pressure [5]. Demand - side situation - Production schedule: The overall production schedule in January decreased month - on - month, and the production schedule of large - scale cell factories in November increased by 2% month - on - month [6]. - Production, export, and sales of batteries: In November, the total production of power and other batteries in China was 176.3 GWh, a month - on - month increase of 3.3% and a year - on - year increase of 49.2%. The total export of power and other batteries was 32.2 GWh, a month - on - month increase of 14.1% and a year - on - year increase of 46.5%. The sales volume of power and other batteries was 179.4 GWh, a month - on - month increase of 8.1% and a year - on - year increase of 52.2%. The trade - in policy and the extension of the new energy vehicle purchase tax on the policy side are also expected to continuously support the rapid growth of the sales volume of the new energy vehicle market in China [6]. - Inventory: This week, the lithium carbonate inventory showed a slight accumulation state. The factory inventory of lithium carbonate decreased by 849 tons, the market inventory decreased by 3,740 tons, and the futures inventory increased by 5,079 tons [6]. Key Data Tracking - Multiple data charts are provided, including the spot tax - included average price of lithium carbonate, weekly and monthly production of lithium carbonate, weekly and monthly inventory of lithium carbonate, average price of industrial - grade lithium carbonate, average price of imported lithium concentrate, production of power and other batteries, production of lithium carbonate from different raw materials, production and loading volume differences of domestic power batteries, production of lithium iron phosphate and ternary materials, import volume of lithium spodumene, average price of lithium iron phosphate for power use, import volume of lithium carbonate, and market price of ternary materials type 8 NCA. The data sources are Baichuan Yingfu, IFIND, and the Non - ferrous Metals Industry Service Center of Yangtze River Futures [9][10][12][14][18][21][24][25][27][31][33][38][39][41][43]

Investment Rating - The investment rating for the banking sector is "Positive" and is maintained [12]. Core Insights - In the first week of 2026, the banking sector continued to adjust, with a cumulative decline of 1.9% in the banking index, significantly underperforming the CSI 300 and ChiNext indices by -4.7% and -5.8% respectively. Despite this, the fundamental expectations for the sector remain unchanged, and the market's risk appetite has notably increased [2][6][19]. - The main banks are expected to maintain stable growth in performance throughout 2026. Following recent adjustments, the PB-ROE valuation attractiveness of bank stocks has further increased, suggesting a favorable timing for allocation [2][6][19]. Summary by Sections Market Performance - The banking sector's performance in the first week of 2026 showed a cumulative decline of 1.9%, with significant negative excess returns compared to the CSI 300 and ChiNext indices [6][19]. - Individual stocks such as Chongqing Rural Commercial Bank saw price recovery after management uncertainties were resolved, while stable performers like Hangzhou Bank led the city commercial bank sector [2][6][19]. Fundamental Analysis - The banking sector's performance has been influenced by structural concerns, particularly regarding real estate and retail asset quality. Despite these concerns, overall performance remains stable with steady growth [8][37]. - The LTV (Loan-to-Value) ratios for major banks are stable at 40%-50%, providing a safety margin despite rising asset quality pressures in mortgage loans [8][37]. Trading Dynamics - The increase in market risk appetite has continued to suppress bank stock valuations. Historically, January has seen excess returns for bank stocks, but this year, the rapid recovery in market sentiment has led to underperformance [9][38]. - The report recommends focusing on high-quality city commercial banks such as Hangzhou Bank, Nanjing Bank, and Jiangsu Bank, as well as dividend-oriented assets like Bank of Communications and China Merchants Bank [9][38]. Convertible Bonds - The prices of convertible bonds linked to bank stocks have generally followed the sector's adjustment, with the distance to mandatory conversion prices widening. The report highlights potential trading opportunities in convertible bonds for banks like Changshu Bank and Shanghai Bank, which have stable fundamental performance expectations [7][32].

Report Industry Investment Rating No relevant content provided. Core View of the Report - The non - farm payrolls in the US in December fell short of expectations, leading to an increase in interest - rate cut expectations and a rise in precious metal prices. The Fed cut interest rates by 25 basis points in December and initiated a reserve management - type balance - sheet expansion. With the weakening of US economic data, the central bank's gold purchases and de - dollarization trends remain unchanged, and the mid - term price centers of gold and silver are expected to move up. Due to concerns about potential US tariffs on platinum and palladium imports, their prices are expected to remain strong and volatile. It is recommended to pay attention to the US December CPI data to be released on Tuesday [11]. Summary by Directory 1. Market Review - US December non - farm payrolls fell short of expectations, increasing interest - rate cut expectations and providing liquidity support. Gold prices rose, with the US gold closing at $4,518 per ounce last Friday, up 4.1% for the week. The upper resistance level is $4,580, and the lower support level is $4,460. Silver prices also rose due to the same factors and the continued shortage of silver spot. The weekly gain was 10.4%, closing at $79.8 per ounce, with a lower support level of $76 and an upper resistance level of $83 [6][9]. 2. Weekly View - The non - farm payrolls in the US in December were lower than expected, and the precious metal prices continued to be strong. The Fed cut interest rates and expanded the balance sheet. The slowdown in the US employment situation and the weakening of economic data suggest that the mid - term price centers of gold and silver will move up. The prices of platinum and palladium are expected to remain strong and volatile. It is recommended to pay attention to the US December CPI data [11]. 3. Overseas Macroeconomic Indicators - The report presents multiple macro - economic indicators such as the US dollar index, real interest rates, yield spreads, gold - silver ratio, Fed balance - sheet size, and WTI crude oil futures prices, but no specific analysis or conclusions are provided in the given text [15][17][19]. 4. Current Week's Important Economic Data - The actual values and expected values of US December economic data are presented, including non - farm payrolls, unemployment rate, ADP employment, and ISM non - manufacturing PMI [24]. 5. Current Week's Important Macroeconomic Events and Policies - The US December non - farm payrolls were lower than expected, and the unemployment rate decreased. It is expected that the Fed will pause interest - rate cuts in January and from January to May, and may cut interest rates 1 - 2 times after the new chairman takes office. The US is discussing the option of acquiring Greenland [25]. 6. Inventory - This week, the COMEX gold inventory decreased by 2,832.02 kg to 1,129,427.74 kg, and the SHFE gold inventory decreased by 51 kg to 97,653 kg. The COMEX silver inventory decreased by 312,057.22 kg to 13,677,468.74 kg, and the SHFE silver inventory decreased by 71,376 kg to 620,262 kg [13][30]. 7. Fund Holdings - As of January 6, the net long positions of gold CFTC speculative funds were 213,743 contracts, a decrease of 5,756 contracts from last week. The net long positions of silver CFTC speculative funds were 28,532 contracts, a decrease of 127 contracts from last week [13][34]. 8. Key Points to Watch This Week - On January 13 (Tuesday) at 21:30, the US December CPI annual rate unadjusted will be released; on January 14 (Wednesday) at 21:30, the US November retail sales monthly rate and November PPI annual rate will be released; on January 15 (Thursday) at 21:30, the US initial jobless claims for the week ending January 10 will be released [36].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company has opened its first "Gujing Liquor Shop" in Bozhou, Anhui Province, on December 12, 2025, marking its entry into the scattered liquor market. This transformation is seen as beneficial, as it allows the company to provide high-quality products at competitive prices to meet diverse consumer demands in a rational consumption environment [2][15]. - The new shop offers a variety of liquor options, including different types of Baijiu and local specialty wines, with flexible pricing starting from 2.9 yuan for 50ml to 29.9 yuan [6][15]. - The company aims to tap into the younger consumer demographic by lowering the barriers to purchase through community-based sales and offering unique low-alcohol products [2][15]. - The company has significantly increased its production capacity over the past decade, with output rising from 65,700 tons in 2014 to 128,000 tons in 2024, and plans to reach an annual capacity of 150,000 tons [18][23]. - The report anticipates that the company's earnings per share (EPS) will be 8.15 yuan and 8.44 yuan for 2025 and 2026, respectively, corresponding to price-to-earnings (PE) ratios of 17 and 16 times [23]. Summary by Sections Event Description - The opening of the "Gujing Liquor Shop" represents the company's first foray into the scattered liquor market, providing a range of products at flexible pricing [6][15]. Market Performance - The company is positioned as a leading Baijiu brand in Anhui, leveraging its strong brand recognition to innovate and connect with consumers [2][15]. Production Capacity - The company has expanded its production capacity significantly, which supports its entry into the scattered liquor market and aligns with consumer demand for high-quality products [18][23]. Consumer Demand - The report highlights a shift in consumer behavior towards rational consumption, with a growing preference for quality and brand over low prices in the liquor market [23].

Investment Rating - The report maintains a positive investment rating for the metal and mining industry, indicating a favorable outlook for investment opportunities [8]. Core Insights - The report highlights a significant increase in industrial metals driven by "Monroeism" sentiment, alongside expectations of interest rate cuts by the Federal Reserve and a trend of copper hoarding in the U.S. [2][5]. - Precious metals, particularly gold and silver, are experiencing a recovery phase, with a focus on the resilience of gold stocks amid geopolitical tensions and fluctuating interest rate expectations [4][5]. - The report emphasizes the importance of sector allocation, particularly in copper and aluminum, as they are expected to benefit from macroeconomic trends and supply-demand dynamics [5][6]. Summary by Sections Precious Metals - Gold stocks are showing signs of recovery, with a notable shift from a previous stagnation in performance relative to gold prices. The report anticipates continued upward pressure on gold prices due to ongoing recession fears and weak inflation and employment data [4]. - Silver is expected to outperform due to macroeconomic conditions and a favorable trading structure, with a recommendation to focus on silver stocks for their potential elasticity [4]. Industrial Metals - The report notes a strong performance in copper and aluminum, with copper prices rising by 4.3% and aluminum by 3.8% during the week. This is attributed to increased inventories and a favorable macroeconomic backdrop [5][24]. - The report suggests that the copper and aluminum sectors are well-positioned for a spring rally, driven by expectations of interest rate cuts and supply disruptions due to geopolitical factors [5][6]. Energy and Strategic Metals - The report identifies lithium as a key area for investment, with expectations of a supply-demand turning point and strong pricing trends. The strategic value of rare earths and tungsten is also highlighted, particularly in light of export controls and geopolitical tensions [6]. - The report emphasizes the importance of positioning in cobalt and nickel, with expectations of long-term price increases due to supply constraints and rising demand [6].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [10] Core Insights - The company is a leader in the fluorosilicone industry, with the third-generation refrigerant quota officially freezing in 2024, indicating a long-term upward trend for the industry [3][10] - Significant slowdown in capital expenditure for organic silicon, with demand maintaining high growth, suggesting a potential reversal from the industry's bottom [3][10] - The fluorinated polymer segment is expected to encounter structural opportunities [3][10] Company Overview - The company is a leading enterprise in China's fluorosilicone industry, focusing on creating a world-class fluorosilicone material industry chain [6][16] - It operates through subsidiaries, including Dongyue Green Cold Technology for refrigerants, Dongyue Silicon Materials for organic silicon, and Dongyue High Polymer Materials for fluorinated polymers [6][16] Refrigerants - The refrigerant market is experiencing a sustained upward trend, with a new business model forming due to the freezing of third-generation refrigerant quotas in 2024 [7][40] - The industry is transitioning from a state of oversupply to a balanced supply-demand situation, with a high concentration rate of 65% among the top three companies [7][47] - Prices for R32, R134a, R125, and R143a have increased significantly, with respective price increases of 265%, 107%, 71%, and 44% compared to early 2024 [7] Organic Silicon - The organic silicon industry is at the bottom of its cycle, with expectations for a gradual recovery supported by stable demand across traditional and emerging sectors [8] - The domestic organic silicon industry is transitioning from a phase of capacity expansion to a period of limited new capacity, alleviating supply-side pressures [8] Fluorinated Polymers - The fluorinated polymer sector is at a low point, but emerging demand is expected to drive growth, particularly in high-end applications [9] - The company is well-positioned in the production of PTFE, with advantages in high-end markets, while PVDF is benefiting from unexpected demand in lithium battery applications [9]

Investment Rating - The report maintains a "Positive" investment rating for the utility sector [8] Core Insights - The adjustment of coal power capacity prices in Tianjin exceeds expectations, with the fixed cost recovery ratio increasing to 70% from January 1, 2026, which is higher than the previously planned minimum of 50% [2][11] - The January 2026 proxy purchase electricity prices show a general decline across most provinces, with significant regional disparities; northern inland areas exhibit more resilience compared to coastal regions facing greater pressure [2][11] Summary by Sections Capacity Price Adjustment - Tianjin's coal power capacity price will rise from 100 yuan per kilowatt per year to 231 yuan, enhancing the fixed cost recovery ratio to 70% [2][11] - The adjustment is expected to yield an increase of approximately 0.035 yuan per kilowatt-hour in electricity pricing, although actual capacity fees may rise more significantly due to declining coal power utilization hours [11] Proxy Purchase Electricity Prices - January 2026 proxy purchase prices show a decline, with Guangdong and Jiangsu reporting average transaction prices of 372.14 yuan per megawatt-hour and 344.19 yuan per megawatt-hour, respectively, reflecting year-on-year decreases of 19.72 yuan and 68.26 yuan [11] - Northern inland regions, such as Inner Mongolia, show a year-on-year increase in proxy purchase prices, while coastal provinces like Guangdong and Jiangsu face declines exceeding 5 fen per kilowatt-hour [11] Investment Recommendations - The report recommends focusing on quality coal power operators such as Huaneng International, Datang Power, and Guodian Power, as well as hydropower companies like Yangtze Power and State Power Investment Corporation [11][16][17] - It also highlights the potential of new energy companies like Longyuan Power and China Nuclear Power, suggesting a favorable long-term outlook for the sector [11][20]

Investment Rating - The report maintains a "Positive" investment rating for the transportation industry [11] Core Insights - The 2026 National Civil Aviation Work Conference outlines a strategic plan for the aviation sector, emphasizing a shift from recovery to high-quality development, with a focus on reducing internal competition and improving pricing regulations [6][40] - The report highlights significant growth in the aviation sector, with a projected increase in passenger transport volume to 810 million in 2026, representing a 5% year-on-year growth [40] - The logistics sector is expected to benefit from Alibaba's increased investment in instant retail, particularly for SF Express and Same City, which are positioned to capture a growing share of the market [7][49] Summary by Sections Civil Aviation - The conference reviewed the achievements of the 14th Five-Year Plan, noting that China has become the world's largest aviation population with over 500 million people [20] - For 2026, the focus will be on high-level openness and clearer allocation of international air rights, alongside measures to curb excessive competition [25][40] - The report suggests investment opportunities in major airlines such as Hainan Airlines, Spring Airlines, China Xinhua Airlines, and Juneyao Airlines due to expected improvements in revenue [6][40] Logistics - Alibaba's strategy for Taobao Flash Purchase aims for market share growth, with a focus on high-value users and retail categories, which is expected to drive significant order volume increases for SF Express [7][49] - SF Express Same City has seen a 55% year-on-year increase in daily order volume during the New Year period, indicating strong demand in the instant retail sector [53] - The report anticipates that SF Express will improve its profitability in Q4 2025 as it shifts focus to high-value services and reduces discounts on capacity [55] Passenger Transport - Domestic passenger volume has shown a 3% year-on-year increase, while international passenger volume has increased by 5% [58] - The average load factor for domestic flights has improved by 2.1 percentage points, and for international flights, it has increased by 3.3 percentage points [66] - The report notes a decline in oil prices, which is expected to positively impact operational costs for airlines [66] Maritime Transport - The report indicates a stabilization in oil shipping rates, with VLCC-TCE rates rising by 50.3% to $60,000 per day [9] - The container shipping index has seen a slight decline, but rates for routes to Europe and the US continue to rise due to seasonal demand [9]

Investment Rating - The investment rating for the industry is "Positive" and maintained [15] Core Insights - There are concerns in the market regarding the demand for soda ash, primarily driven by domestic needs and the impact of the real estate sector. However, the actual situation may differ significantly from these concerns [3][24] - Soda ash has a wide range of end applications, driven by global consumption. It is primarily used in the production of glass, sodium bicarbonate, and detergents, with significant applications in construction materials, photovoltaics, food industry, and daily chemicals [8][27] - Despite a low direct export ratio of about 5%, many downstream consumer products have substantial indirect export exposure, indicating that the actual external demand for soda ash may be higher than perceived [8][29] Summary by Sections Application Perspective - Although the direct export ratio of soda ash is low, many downstream consumer products are heavily oriented towards exports. For instance, automotive glass has an export ratio of about 10%, photovoltaic glass around 15%-20%, and sodium bicarbonate approximately 30% [8][29] Total Demand Perspective - The domestic apparent demand for soda ash is significantly lower than its production value and other bulk chemicals. It is estimated that about 67.0% of soda ash is directly or indirectly exported, with a potential indirect export ratio of around 39.6% to 33.6% when compared to other bulk chemicals like MDI and TDI [9][45] Price Dynamics - Soda ash prices are strongly linked to global markets, with prices generally ranging from 1000 to 2000 RMB per ton. The pricing is influenced by global supply and demand dynamics rather than solely domestic factors [10][53] Impact of Domestic Real Estate - The impact of domestic real estate on soda ash demand is limited, with only about 20% of soda ash consumption being directly tied to real estate construction. The demand from emerging markets and sectors like photovoltaics is expected to offset any declines from the real estate sector [11][58] Investment Recommendation - The report recommends a long-term investment opportunity in the leading natural soda ash company, Boyuan Chemical, which has significant cost advantages and growth potential. The company has a strong dividend payout history and is expected to maintain robust cash flow [12][69][71]

Investment Rating - The investment rating for the company is "Buy" and it is maintained [9] Core Insights - In the AI era, the short video giant Kuaishou is actively embracing new technologies, launching AI-native video products that lead industry development. The company is undergoing a value reassessment as it fully utilizes AI to reshape its core business commercialization chain [3][5] - The AI-native product, Keling AI, is positioned to lead the industry with its technical and product capabilities, while the OneRec recommendation model enhances user engagement and reduces operational costs, validating its revenue growth logic [5][6] - The market is expected to recognize Kuaishou's unique value proposition, leading to a potential revaluation of its stock as the AI commercialization process accelerates [19] Summary by Sections Introduction - Kuaishou, listed as the "first short video stock" in 2021, has gained market attention due to its unique monetization model in advertising, e-commerce, and live streaming. The company is transitioning from high-speed growth to stable growth in its e-commerce business, leading to a market valuation of around 10x PE [5][19] Keling AI - Keling AI is leading the AI video sector with its superior model performance and product capabilities. The market for AI-generated videos is projected to exceed $100 billion, with Keling achieving stable monthly revenues of over 100 million yuan and a quarterly revenue growth rate of over 20% [7][30] Main Business - Kuaishou's short video business is being comprehensively reshaped by AI, with a rebound in performance expected in Q1 2025. The company is enhancing its algorithm capabilities and commercial efficiency through the OneRec system, which is expected to improve advertising revenue significantly [8][62] Commercialization - Keling AI's user base consists mainly of professional and business users, with 70% of its revenue coming from overseas. The product is designed to cater to professional film and short video production needs, demonstrating strong growth in user numbers and video generation [53][59]