Group 1: Liquidity and Performance of Rare Metal ETF - The rare metal ETF had an intraday turnover of 1.2%, with a transaction value of 10.24 million yuan [3] - Over the past year, the average daily transaction value of the rare metal ETF was 36.11 million yuan, ranking first among comparable funds [3] - The net asset value of the rare metal ETF increased by 13.41% over the past year [3] - The highest monthly return since inception was 24.02%, with the longest consecutive monthly increase being 3 months and an average monthly return of 7.60% [3] Group 2: Growth and Valuation of Rare Metal ETF - The rare metal ETF's scale grew by 5.45 million yuan over the past year, also ranking first among comparable funds [3] - The latest financing buy-in amount reached 1.70 million yuan, with a financing balance of 25.74 million yuan [3] - The valuation of the index tracked by the ETF is at a historical low, with a price-to-book ratio (PB) of 2.21, lower than 84.84% of the time over the past five years, indicating strong valuation attractiveness [3] Group 3: Export Controls and Market Dynamics - Since 2023, China has implemented export controls on various rare metals, leading to significant price increases for most of these metals [4] - The demand for rare earth materials in domestic sectors such as new energy vehicles and air conditioning is expected to grow at rates of 37% and 19%, respectively, by 2025 [4] - The domestic rare earth market may be entering a destocking phase, with overseas price increases likely to drive domestic prices up [4] Group 4: Top Holdings in Rare Metal Index - The top ten weighted stocks in the rare metal index include Salt Lake Co., Northern Rare Earth, and others, accounting for 54.9% of the index [4] - The individual weightings of these stocks vary, with Salt Lake Co. at 9.04% and Northern Rare Earth at 8.25% [6]

Core Viewpoint - The China Securities New Energy Index has experienced a decline in recent months, reflecting the overall performance of listed companies in the renewable energy sector [2]. Group 1: Index Performance - The China Securities New Energy Index fell by 1.29% to 1768.83 points, with a trading volume of 36.878 billion yuan [1]. - Over the past month, the index has decreased by 1.69%, by 10.68% over the last three months, and by 9.32% year-to-date [2]. Group 2: Index Composition - The index includes companies involved in renewable energy production, application, storage, and related equipment, with a base date of December 31, 2011, set at 1000.0 points [2]. - The top ten weighted companies in the index are: CATL (9.99%), Sungrow Power (5.53%), LONGi Green Energy (5.26%), China Nuclear Power (4.73%), Three Gorges Energy (3.69%), TBEA (3.52%), EVE Energy (3.15%), Huayou Cobalt (2.96%), Tongwei Co. (2.45%), and Ganfeng Lithium (2.13%) [2]. Group 3: Market and Sector Breakdown - The index's holdings are primarily listed on the Shenzhen Stock Exchange (58.70%), followed by the Shanghai Stock Exchange (40.87%) and the Beijing Stock Exchange (0.43%) [2]. - In terms of industry composition, the index is comprised of 73.71% in industrials, 14.26% in utilities, and 12.02% in materials [2]. Group 4: Index Adjustment Mechanism - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [3]. - Weight factors are generally fixed until the next scheduled adjustment, with special circumstances allowing for temporary adjustments [3].

Core Viewpoint - The company, Zhejiang Huayou Cobalt Co., Ltd., has maintained its long-term credit rating of "AA+" for both the company and its convertible bonds, with a stable outlook, as confirmed by the tracking rating report from United Ratings [1][2]. Group 1 - Previous rating results indicated a long-term credit rating of "AA+" for the company and "AA+" for the Huayou convertible bonds, with a stable outlook [1][2]. - The current rating results remain unchanged, with the company and its convertible bonds both rated "AA+" and a stable outlook [2]. - The tracking rating was conducted by United Ratings based on a comprehensive analysis of the company's operational status and industry conditions [2].

重要内容提示 前次评级结果：公司主体长期信用等级："AA+"，"华友转债"信用等级： "AA+"，评级展望：稳定。 本次评级结果：公司主体长期信用等级："AA+"，"华友转债"信用等级： "AA+"，评级展望：稳定。 根据中国证券监督管理委员会《上市公司证券发行注册管理办法》《公司债 券发行与交易管理办法》和上海证券交易所《股票上市规则》《公司债券上市规 则》的有关规定，浙江华友钴业股份有限公司（以下简称"本公司"）委托联合 资信评估股份有限公司（以下简称"联合资信"）对本公司在2022年已发行的A股 可转换公司债券（债券简称为"华友转债"，债券代码为"113641"）进行了跟 踪评级。 本公司前次主体长期信用评级结果为"AA+"，"华友转债"前次信用评级 结果为"AA+"，前次评级展望为"稳定"；评级机构为联合资信，评级时间为 2024年6月18日。 联合资信在对本公司经营状况、行业情况进行综合分析与评估的基础上，于 2025年6月17日出具了《浙江华友钴业股份有限公司公开发行可转换公司债券2025 年跟踪评级报告》，本次公司主体长期信用评级结果为"AA+"，"华友转债" 信用等级为"AA+"，评级展望为" ...

浙江华友钴业股份有限公司 公开发行可转换公司债券 2025 年跟踪评级报告 联合〔2025〕4571 号 联合资信评估股份有限公司通过对浙江华友钴业股份有限公司 主体及其相关债券的信用状况进行跟踪分析和评估，确定维持浙江 华友钴业股份有限公司主体长期信用等级为 AA+，并维持"华友转 债"的信用等级为 AA+，评级展望为稳定。 特此公告 联合资信评估股份有限公司 评级总监： | | | www.lhratings.com 1 二〇二五年六月十七日 跟踪评级报告 | 2 声 明 一、本报告是联合资信基于评级方法和评级程序得出的截至发表之日 的独立意见陈述，未受任何机构或个人影响。评级结论及相关分析为联合 资信基于相关信息和资料对评级对象所发表的前瞻性观点，而非对评级对 象的事实陈述或鉴证意见。联合资信有充分理由保证所出具的评级报告遵 循了真实、客观、公正的原则。鉴于信用评级工作特性及受客观条件影响， 本报告在资料信息获取、评级方法与模型、未来事项预测评估等方面存在 局限性。 二、本报告系联合资信接受浙江华友钴业股份有限公司（以下简称 "该公司"）委托所出具，除因本次评级事项联合资信与该公司构成评级 委托关系外， ...

Group 1 - The concept of the Russia-Ukraine conflict saw an increase of 1.72%, ranking fifth among concept sectors, with 46 stocks rising, including Zhuan Oil Co. and Beiken Energy reaching their daily limit [1] - Notable gainers in the sector included New Jin Power, Tongyuan Petroleum, and Haimer Technology, which rose by 16.77%, 15.98%, and 13.97% respectively [1] - The sector experienced a net outflow of 0.47 billion yuan from main funds, with 31 stocks receiving net inflows, and 7 stocks seeing inflows exceeding 50 million yuan [2] Group 2 - The leading stock in terms of net inflow was Huayou Cobalt, with a net inflow of 1.34 billion yuan, followed by COSCO Shipping Holdings and COSCO Shipping Energy with net inflows of 1.15 billion yuan and 928.09 million yuan respectively [2] - In terms of net inflow ratio, Yun Aluminum Co., PetroChina, and Shennong Seed ranked highest with net inflow ratios of 13.21%, 12.81%, and 9.05% respectively [3] - Stocks such as New Jin Power and Haimer Technology also showed significant trading activity, with turnover rates of 38.47% and 34.83% respectively [4] Group 3 - The stocks with the largest declines included Hesun Petroleum, Meino Biological, and Fengmao Co., which fell by 3.21%, 2.41%, and 2.06% respectively [1] - The overall market sentiment reflected a mixed performance across various sectors, with some concepts like brain-computer interfaces and combustible ice showing significant gains while others like recombinant proteins and weight loss drugs faced declines [2] - The trading environment remains volatile, with significant fluctuations in stock prices and fund flows across different sectors [2][3]

Core Viewpoint - The extension of the cobalt export ban in the Democratic Republic of Congo (DRC) is expected to significantly impact the cobalt market, leading to supply shortages and potential price increases, with companies like Huayou Cobalt and Hanrui Cobalt seeing substantial stock price gains as a result [1][2]. Supply and Demand Overview - DRC's cobalt production in 2024 is projected at 220,000 tons, accounting for 75.9% of global supply, with a monthly export of 18,000 tons. If the export ban is extended to six months, it could reduce exports by 108,000 tons, which is equivalent to 84% of China's cobalt demand for 2024 [1]. - China's cobalt supply is expected to decrease by 38% to 104,000 tons, while demand will slightly increase by 2.3% to 131,000 tons, resulting in a shift from a surplus of 42,000 tons to a shortage of 27,000 tons [1]. Industry Chain Impact - **Upstream Mining**: Non-DRC production is becoming a scarce asset. Huayou Cobalt's Indonesian capacity of 30,000 tons is expected to generate 5 billion yuan in revenue by 2025, despite being 10% more expensive than DRC production [2]. - **Midstream Smelting**: Companies like Greeenmei and Zhongwei Co. are adapting their raw material sources to reduce costs and mitigate risks associated with DRC's export policies [3]. - **Downstream Demand**: The electric vehicle sector is increasing cobalt procurement by 50% year-on-year, while the 3C battery sector is expected to see an 8% increase in cobalt demand, indicating differing responses to market conditions [4]. Investment Landscape - Focus on non-DRC production and recycling sectors is recommended. Companies like Huayou Cobalt and Liqin Resources are positioned to benefit from reduced export risks, while recycling firms like Greenmei are expected to see a 120% increase in cobalt recovery by 2025 [5][6]. - The performance elasticity of companies is linked to their ability to increase non-DRC production, with a 10% increase in Indonesian capacity potentially raising profit margins by 3-5% [6]. Conclusion - The cobalt market is experiencing a short-term supply contraction due to administrative interventions, with a dual strategy recommended for investors: short-term trading opportunities in non-DRC production and long-term investments in cobalt recycling and low-cobalt battery technologies [7].

Core Viewpoint - The article highlights the transformation of Huayou Cobalt from a small vendor to a global leader in cobalt mining, emphasizing its strategic diversification and integration across the supply chain, which has allowed it to thrive even during market downturns in lithium and cobalt prices [1][2][33]. Group 1: Company Overview - Founded in 2002, Huayou Cobalt has evolved from focusing on copper and cobalt mining to becoming a comprehensive player in the lithium battery materials sector, establishing a global market presence [1][2]. - The company has developed five major industrial clusters: new energy, new materials, nickel in Indonesia, resources in Africa, and recycling [1][2]. - Huayou Cobalt's revenue has grown significantly, from 1.453 billion yuan in 2009 to an expected 60.946 billion yuan in 2024, marking a 40.94-fold increase [2]. Group 2: Strategic Development - The company has adopted a "three-step" strategy: enhancing overseas resource acquisition, expanding into new energy businesses, and creating an integrated lithium battery supply chain [14][15]. - Huayou Cobalt has invested nearly 100 billion yuan in external investments since 2008, with a notable acceleration in investment post-2020 [16][19]. - The company has six major projects underway with a total investment budget of 25.211 billion yuan, focusing on cobalt, nickel, and lithium materials [19][20]. Group 3: Market Position and Performance - Huayou Cobalt has become a key player in the cobalt market, with its production capacity reaching 39,000 tons, making it the largest cobalt smelting producer at that time [26]. - Despite a challenging market environment in 2024, the company achieved a net profit of 4.155 billion yuan, a 23.99% increase year-on-year, showcasing its resilience [33]. - The company has established long-term sales agreements with major clients, including LG Chem and Tesla, enhancing its market stability [44]. Group 4: Financial Health and Challenges - As of March 2025, Huayou Cobalt has a cash reserve of 19.055 billion yuan but faces a short-term debt of 29.876 billion yuan, indicating a financial gap [55]. - The company has experienced stock price volatility, with a significant drop from historical highs, raising concerns about its financial stability [51]. - The competitive landscape is intensifying, with rivals like Ganfeng Lithium and Zhongwei Co. also expanding aggressively in the nickel and lithium sectors [58].

Investment Rating - The investment rating for the non-ferrous metals industry is "Positive" (maintained) [5] Core Views - The report highlights that copper prices are expected to remain volatile in the short term due to mixed economic indicators from the US, with a recent decline in copper prices following lower-than-expected CPI data [5] - Aluminum prices are supported by continuous inventory depletion and tight spot supply, while alumina prices have seen a slight decline [5] - Lithium prices are under pressure at the bottom, with a slight increase in carbonate lithium prices, but the market is awaiting further production cuts from mining sources [5] - Cobalt prices have seen a slight increase, with attention on potential policy changes in the Democratic Republic of Congo that could impact supply [5] Summary by Sections 1. Industry Overview 1.1 Important Information - US May CPI was reported at 2.4%, slightly below expectations, indicating potential economic impacts [9] - Recent geopolitical tensions, including Israeli airstrikes on Iran, may affect market stability [9] 1.2 Market Performance - The non-ferrous metals sector outperformed the Shanghai Composite Index, with a weekly increase of 3.79% [11] - The sector's performance was led by magnetic materials, gold, and cobalt, while copper, lithium, and aluminum lagged [11] 1.3 Valuation Changes - The PE_TTM for the non-ferrous metals sector is 19.13, with a slight increase of 0.59 [18] - The PB_LF for the sector is 2.21, reflecting a 0.07 increase [18] 2. Industrial Metals 2.1 Copper - Copper prices saw a decline of 1.44% in London and 1.17% in Shanghai, with significant inventory reductions [23] - The copper smelting profit margin has worsened, indicating financial pressures on producers [23] 2.2 Aluminum - Aluminum prices increased by 1.88% in London and 1.79% in Shanghai, supported by inventory depletion [34] - The profit margin for aluminum producers improved significantly due to rising prices [34] 2.3 Lead and Zinc - Lead prices increased slightly, while zinc prices saw a decline, with mining profits narrowing [48] 2.4 Tin and Nickel - Tin prices remained stable, while nickel prices experienced a slight decline, with profitability for domestic nickel enterprises shrinking [61] 3. Energy Metals 3.1 Lithium - Lithium carbonate prices increased by 0.75%, while lithium hydroxide prices decreased [72] - The profitability of lithium refining remains negative, indicating challenges in the sector [72] 3.2 Cobalt - Cobalt prices have seen a slight increase, with domestic refining margins improving [84]

Investment Rating - The industry rating is "Recommended" [3] Core Views - The report indicates that the price of tin in Shanghai has increased week-on-week, supported by expectations of tight overseas supply [10][16] - Nickel prices have decreased due to an oversupply of pure nickel, with domestic production expected to decline but still not improving the oversupply situation [21][23] - Cobalt prices are under pressure with low operating rates at smelters and weak demand from downstream manufacturers [24][29] - Antimony prices have decreased domestically while maintaining historical highs in Europe, with significant price differences between domestic and overseas markets [30][34] - Lithium carbonate prices have increased slightly, but the market is expected to remain weak due to high inventory levels and cautious demand from downstream manufacturers [7][8] Summary by Sections Tin Industry Update - The price of tin in Shanghai has risen to 264,400 CNY/ton, with a decrease in inventory levels [10][11] - Supply constraints are expected due to transportation bans and production issues in Myanmar [10][16] Nickel Industry Update - The LME nickel price is reported at 14,970 USD/ton, with a decrease in inventory levels [21] - The Philippines is considering a ban on nickel ore exports, which could tighten supply for Chinese smelters [21][23] Cobalt Industry Update - Electrolytic cobalt prices are at 234,500 CNY/ton, with weak demand and low smelter operating rates [24][29] - The market is cautious due to uncertainties in Congo's export policies [29] Antimony Industry Update - Domestic antimony ingot prices are at 207,500 CNY/ton, with a significant price gap compared to European prices [30][34] - Export controls from China are expected to impact global supply and pricing dynamics [30][34] Lithium Industry Update - Battery-grade lithium carbonate prices have increased to 60,700 CNY/ton, but the market outlook remains weak due to high inventory levels [7][8] - Supply from lithium mines is stable, but demand from downstream manufacturers is cautious [7][8]