Core Insights - The global hydrogen energy industry is experiencing a historic turning point, with China surpassing Japan in comprehensive patent competitiveness for the first time, marking a significant shift in clean energy technology leadership [1][2]. Group 1: Patent Competitiveness - China ranks first in four out of five key technology areas in hydrogen energy, including manufacturing, storage and transportation, safety management, and overall competitiveness [2]. - In the manufacturing sector, China holds 60% of global electrolyzer production capacity, significantly reducing green hydrogen equipment costs to one-fourth of those in Europe [2]. - China's patent score is 12.7 percentage points ahead of Japan, with an average of 27,000 patent applications per year over the past five years, double that of Japan [2][3]. Group 2: Policy and Market Support - The acceleration of policy support is evident, with the 2022 "Hydrogen Industry Development Medium- and Long-Term Plan" positioning hydrogen as a key component of the national energy system, aiming for a green hydrogen production target of 200,000 tons by 2025, which has already been exceeded in 2024 [3]. - Local governments have introduced 560 special policies to support hydrogen development, including innovative mechanisms like toll fee exemptions and non-chemical park hydrogen production [3]. - The demand market is robust, with China's hydrogen consumption reaching 28 million tons in 2023, accounting for 30% of global demand, driven by industrial applications such as Baowu Steel's hydrogen-based blast furnace [3].

| ○ 基金经理：柳军 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 累计任职时间：16年又3天 任职起始日期：2009-06-04 现任基金公司：华泰柏瑞基金管理有限公司 | | | 基金经理简介:柳军先生:中国国籍。监事.复旦大学财务管理硕士.2000-2001年任上海汽车集 团财务有限公司财务,2001-2004年任华安基金管理有限公司高级基金核算员,2004年7月加入 华泰柏瑞基金管理有限公司,历任基金率务部总监、上证红利ETF基金经理助理。2009年6月 | | | | | | | 现任基金资产 在管基金最佳 | | | 起任上证红利交易型开放式指数证券投资基金的基金经理。2010年10月起担任指数投资部副 总监。2011年1月至2020年2月任华泰柏瑞上证中小盘ETF基金、华泰柏瑞上证中小盘ETF联 | | | | | | | 总规模 | 任期回报 | | 接基金基金经理。2012年5月起任华泰和瑞沪深300交易型开放式指数证券投资基金、华泰柏 | | | | | | | 4232.91亿 ...

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Basic Materials, specifically gold, copper, aluminum, steel, and lithium sectors [2][3][6][7] Core Insights 1. **Gold Market**: - Consensus remains positive on gold, with potential prices reaching up to $6,000 [2][3] - Central bank buying continues to support gold prices, with minimal earnings impact from recent seismic activity at Kamoa mine estimated at less than 5% [3] 2. **Copper Supply**: - A shortage in copper concentrate is expected to persist, with supply increases projected between 100,000 to 1 million tons in 2025, insufficient to meet demand [6][8] - High operating costs at mining companies necessitate higher copper prices to incentivize new supply [6] 3. **Aluminum Sector**: - Aluminum margins remain healthy, with alumina prices stabilizing around Rmb3,000 per ton [2][6] - Hongqiao has relocated aluminum capacity to Yunnan, with plans for further expansion [7] 4. **Steel Industry**: - Weak sentiment in the steel market continues, with expectations of a crude steel production cut of 50 million tons to address supply-demand pressures [7] - Trade tensions and tariffs have negatively impacted steel exports, although some companies are exploring new markets [7] 5. **Lithium Market**: - The lithium market faces oversupply issues, with prices expected to decline unless production cuts occur [6][8] - Ganfeng anticipates a short-term drop in lithium prices due to tariff concerns and reduced costs for Australian miners [8] Additional Important Insights - **Zijin Mining**: - Zijin is optimistic about gold prices reaching $5,000 by 2026, driven by demand from electrification and power grid needs [7] - The company plans to maintain high capital expenditures to meet growth targets by 2028 [7] - **CMOC**: - CMOC's profits are closely tied to market price volatility, with a DRC cobalt export policy update expected soon [8] - The company is facing pressure on production costs due to higher sulfur costs and taxes [8] - **Market Sentiment**: - Overall market sentiment remains cautious, with trade tensions and macroeconomic factors influencing demand across various sectors [6][7][8] Conclusion The conference call highlighted a mixed outlook across the basic materials sector, with strong long-term potential for gold and copper, while challenges persist in the steel and lithium markets. Companies are adapting to market conditions through strategic capacity adjustments and exploring new opportunities amidst ongoing trade tensions.

Group 1 - The core index, the China Securities National New Central Enterprises Modern Industry Leading Index, rose by 1.33% to 1166.46 points with a trading volume of 20.746 billion yuan [1] - Over the past month, the index has increased by 0.43%, but it has decreased by 4.56% over the past three months and by 5.29% year-to-date [1] - The index is customized by Guoxin Investment Co., Ltd., selecting 50 representative listed companies in fields such as new mobile technology, new energy, new materials, and high-end equipment from state-owned enterprises [1] Group 2 - The top ten weighted stocks in the index include China Telecom (9.94%), Hikvision (9.38%), China Mobile (9.3%), CRRC (7.34%), China Unicom (6.6%), China Shipbuilding (5.97%), Three Gorges Energy (5.35%), China Heavy Industry (3.59%), Baosteel (3.43%), and SMIC (2.99%) [1] - The index's holdings are primarily listed on the Shanghai Stock Exchange (68.55%) and the Shenzhen Stock Exchange (31.45%) [1] Group 3 - The industry composition of the index shows that information technology accounts for 30.35%, communication services for 29.67%, industrials for 24.19%, materials for 7.73%, utilities for 5.54%, healthcare for 2.03%, and consumer staples for 0.49% [2] - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December each year [2] - Weight factors are adjusted in line with sample changes, and temporary adjustments may occur under special circumstances [2]

Summary of Baosteel Co., Ltd. Conference Call Industry Overview - The steel industry experienced significant losses in the first half of 2024, but saw a rebound at the end of September due to policy drivers. However, it faced a weak supply-demand situation again by year-end [2][4] - In the first four months of 2025, industry profits showed some recovery, but the second half of Q2 is expected to face downward pressure on steel prices due to insufficient demand and trade war tariffs [2][4] Company Performance - Baosteel Co., Ltd. reported a total profit of 9.3 billion yuan for the entire year of 2024, with a profit of 3.29 billion yuan in Q1 2025, representing an 18% year-on-year increase, primarily due to lower raw material costs [2][5] - The company maintained its leading position in the domestic industry despite a challenging environment [4][21] Strategic Initiatives - Baosteel has increased its stake in Maanshan Iron & Steel Co., Ltd. to enhance product competitiveness and sales capabilities, transitioning from a 1+1+n strategy to a 2+2+m strategy focusing on automotive sheets, silicon steel, and high-end long products [2][6] - The Baowu Group aims to add nearly 30 million tons of new capacity through investments in Maanshan (16 million tons), Rizhao (9 million tons), and a joint venture in Saudi Arabia (planned 2.5 million tons DRI capacity) [2][7][8] Product Focus - The choice to focus on thick plates is driven by local demand in Saudi Arabia for marine engineering and shipbuilding, aligning with the country's 2030 vision for large-scale infrastructure development [8] - Baosteel's product lines include automotive and silicon steel, with good order intake in Q2 2025, although competition in low-grade silicon steel remains intense [10][11] Market Challenges - The steel market has been characterized by weak demand and price fluctuations, with cold-rolled product prices peaking in Q1 2025 before declining due to demand exhaustion and trade war impacts [12][19] - The company is actively responding to international tariffs and trade conflicts by exploring new markets and adjusting export structures to mitigate risks [14][21] Financial Outlook - Capital expenditures are expected to decrease significantly from 2026 onwards, potentially enhancing the company's ability to increase dividends [15][16] - The company aims to optimize existing capacity rather than expand further, focusing on improving efficiency and profitability [9][20] Collaboration and Competition - Baosteel is addressing competition with Maanshan by enhancing collaboration in marketing and sales, aiming to reduce reliance on intermediaries and improve overall profitability [17] - The company remains vigilant regarding international trade policies and their potential impacts on sales and market dynamics [13][14] Conclusion - Baosteel Co., Ltd. is navigating a challenging steel market with strategic investments, a focus on product optimization, and proactive measures to mitigate external risks, while maintaining profitability and preparing for future growth opportunities [21]

Group 1 - The core index, the CN Materials Composite Index, reported at 3281.67 points, with a 2.51% increase over the past month, 1.68% over the past three months, and a 6.63% year-to-date increase [1] - The index is designed to reflect the overall performance of different industry securities from Chinese mainland enterprises, classified according to the China Securities Index industry classification standards [1] - The top ten holdings of the CN Materials Composite Index include Zijin Mining (6.39%), Wanhua Chemical (2.21%), and others, indicating a concentration in specific companies [1] Group 2 - The market distribution of the CN Materials Composite Index shows that the Shanghai Stock Exchange accounts for 49.23%, Shenzhen Stock Exchange for 42.38%, and Hong Kong Stock Exchange for 7.82% [2] - In terms of industry composition, non-ferrous metals represent 41.47%, chemicals 37.94%, and other sectors such as non-metallic materials and steel also contribute to the index [2] Group 3 - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December, and can also be adjusted under special circumstances [3] - Adjustments to the index samples occur when there are changes in industry classification due to special events or when companies are delisted [3]

Core Viewpoint - Baosteel Co., Ltd. has achieved a significant technological breakthrough by launching four new non-oriented silicon steel products, which are crucial materials for industries such as humanoid robots and low-altitude aircraft [2][3]. R&D Investment and Achievements - In 2024, Baosteel plans to invest 25.044 billion yuan in R&D, with a total of 73.2 billion yuan invested over the past four years [2][5]. - The company has nearly 10,000 R&D personnel, accounting for 21.7% of its total workforce, and has received approximately 12,867 authorized patents, with 41.2% being invention patents [6][8]. - Baosteel's R&D team has successfully developed the B10AHV900M non-oriented silicon steel, which is 0.1 mm thick and has achieved an iron loss value below 9 W/kg, a first in the industry [3][4]. Financial Performance - In Q1 2024, Baosteel reported a net profit attributable to shareholders of 2.434 billion yuan, a year-on-year increase of 26.37%, despite a 9.82% decline in revenue to 72.88 billion yuan [8][10]. - The company has maintained a strong profitability record, with cumulative profits of approximately 2525.54 billion yuan since its listing in 2000, and has never reported an annual loss [9][10]. Market Position and Strategy - Baosteel's non-oriented silicon steel products are expected to enhance its competitiveness in the domestic market, which has historically relied on imports for similar products [4][5]. - The company is actively pursuing digital transformation and energy-saving initiatives, with a focus on integrating smart applications into its operations [7][8].

Investment Rating - The report maintains an investment rating of "Positive" for the steel industry, consistent with the previous rating [2]. Core Viewpoints - The overall profit from blast furnace steel production is considered satisfactory, and the profit recovery for general steel companies may accelerate [3]. - Despite facing supply-demand contradictions, the steel industry's overall profit is expected to decline, but with the implementation of various "stability growth" policies, steel demand is anticipated to remain stable or slightly increase [4]. - The report highlights that general steel companies, which are less affected by export tariffs, may see significant performance improvements due to the marginal recovery in demand from the real estate and infrastructure sectors [4]. Summary by Sections 1. Market Performance - The steel sector declined by 0.94% this week, underperforming the broader market, with specific declines in special steel (0.28%), long products (0.36%), and flat products (1.21%) [3][11]. 2. Supply Data - As of May 23, the average daily pig iron production was 2.436 million tons, a week-on-week decrease of 1.17 tons, but a year-on-year increase of 6.71 tons [28]. - The capacity utilization rate for blast furnaces was 91.3%, down 0.44 percentage points week-on-week, while electric furnace utilization increased by 2.93 percentage points to 59.5% [28]. 3. Demand Data - The consumption of five major steel products was 9.046 million tons, a week-on-week decrease of 92,000 tons, reflecting a 1.01% decline [37]. - The transaction volume of construction steel by mainstream traders was 95,000 tons, down 1.47 tons week-on-week, marking a 13.33% decrease [37]. 4. Inventory Data - Social inventory of five major steel products was 9.606 million tons, a week-on-week decrease of 331,000 tons, or 3.33% [45]. - Factory inventory increased slightly to 4.38 million tons, up 0.99 tons week-on-week, but down 6.67% year-on-year [45]. 5. Price Trends - The comprehensive index for general steel was 3,452.2 yuan/ton, down 33.36 yuan/ton week-on-week, a decrease of 0.96% [51]. - The comprehensive index for special steel was 6,652.6 yuan/ton, down 3.32 yuan/ton week-on-week, a decrease of 0.05% [51]. 6. Profitability - The profit for rebar from blast furnaces was 88 yuan/ton, down 15 yuan/ton week-on-week, a decline of 14.56% [59]. - The average profit margin for 247 steel companies was 59.74%, an increase of 0.4 percentage points week-on-week [59]. 7. Investment Recommendations - The report suggests focusing on regional leading companies with advanced equipment and environmental standards, as well as companies benefiting from the new energy cycle and those with strong cost control [4].

Investment Rating - The report maintains a "Buy" rating for several steel companies including Baosteel, Hualing Steel, and Nanjing Steel, among others [5]. Core Viewpoints - The report indicates that pig iron prices are gradually declining, leading to a slight recovery in steel profits. The raw material costs are expected to ease further, which may enhance the profitability of steel companies [5]. - Economic data from January to April shows a continued weakness in the real estate sector, while automotive production maintains year-on-year growth. The potential for crude steel production regulation is increasing amid uncertain external demand and weak domestic recovery [5]. Price Trends - As of May 23, steel prices have decreased, with Shanghai's 20mm HRB400 rebar priced at 3160 CNY/ton, down 40 CNY/ton from the previous week. Other steel products also saw price declines [3][11]. - The report details specific price changes for various steel products, indicating a general downward trend in prices over the past week [12]. Production and Inventory - As of May 23, the production of five major steel products increased to 8.72 million tons, a rise of 40,900 tons week-on-week. However, the total inventory of these products decreased by 331,000 tons to 9.5954 million tons [4]. - The apparent consumption of rebar is estimated at 2.4713 million tons, reflecting a decrease of 131,600 tons week-on-week [4]. Profitability Analysis - The report notes an increase in profits for plate products, with long-process rebar, hot-rolled, and cold-rolled margins changing by 0 CNY/ton, +23 CNY/ton, and +69 CNY/ton respectively compared to the previous week [3]. Investment Recommendations - The report recommends several companies for investment: 1. General steel sector: Baosteel, Hualing Steel, Nanjing Steel 2. Special steel sector: CITIC Special Steel, Yongjin Co., and Xianglou New Materials 3. Pipe materials: Jiuli Special Materials, Wujin Stainless Steel, Youfa Group - It also suggests paying attention to high-temperature alloy stocks like Fushun Special Steel [5].

Group 1 - The supervisory board of Baoshan Iron & Steel Co., Ltd. held its 54th meeting of the 8th supervisory board, which was conducted in accordance with relevant laws and regulations [1][2] - The meeting was convened based on a proposal from supervisors Zhu Yonghong and Qin Changdeng, and was held on May 23, 2025, through written voting [1] - All seven supervisors attended the meeting, and a unanimous decision was made to approve the proposal regarding the implementation of the 2025 targeted poverty alleviation project in Yunnan and the allocation of funds [1]