Group 1: Investor Relations Activity Overview - The company guarantees the authenticity, accuracy, and completeness of the announcement content, assuming legal responsibility for any misrepresentation or omissions [2] - The investor relations activity is categorized as "Other," specifically the Hubei Listed Companies 2025 Investor Collective Reception Day [3] - The event will take place on June 12, 2025, via a remote network format, allowing investors to participate through various online platforms [3] Group 2: Key Participants - Attendees include investors participating in the Hubei Listed Companies 2025 Investor Collective Reception Day [3] - Company representatives include Chairman Xu Honglin, Director and Secretary Zhang Qing, and Director and Financial Officer Chen Ming [3] Group 3: Response to Raw Material Price Fluctuations - The company primarily uses iron, copper, tin, and neodymium-iron-boron rare earth materials as raw materials, which significantly impact product pricing [4] - To mitigate risks from raw material price fluctuations, the company employs a pricing strategy based on raw material costs plus processing fees, aiming to maintain stable profit margins [4] - In 2023, the company initiated hedging activities for copper and tin to protect against price volatility, effectively reducing operational risks [4] - The cost of raw materials for iron-based powder metallurgy parts and ferrite permanent magnets constitutes a lower percentage of total costs, resulting in minimal impact from price fluctuations [4]

Group 1 - The core viewpoint of the article emphasizes the importance of futures and derivatives in enhancing risk management for real enterprises, particularly in the context of the construction materials industry [1][4] - The training organized by Zhengzhou Commodity Exchange (ZCE) provided comprehensive learning opportunities for the business team of Kaisheng Resources, covering fundamental principles, hedging strategies, and practical applications of risk management [1][2] - Kaisheng Resources, a subsidiary of China National Building Material Group, has expanded its procurement categories from soda ash to include quartz sand, natural gas, tin ingots, and precious metals, indicating a strategic shift towards utilizing futures for risk management [1][3] Group 2 - The training session was well-received by participants, who found the content practical and beneficial for understanding futures and derivatives, thus enhancing their risk management capabilities [3][5] - Hebei Zhengda Glass Co., as a case study, demonstrated the effectiveness of futures in risk management, utilizing strategies such as spot-futures combinations and cross-period arbitrage to optimize profits and expand their customer base [2][3] - The ZCE aims to provide customized solutions for state-owned enterprises, focusing on improving service quality and addressing challenges in participating in the futures market [4][5]

Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Views - **Alumina**: The market is under pressure due to inventory accumulation and falling spot prices. It is advisable to short at high prices in the medium to long term. The short - term (1 - 3 months) probability of the Guinea Axis mine remaining shut is high, but the long - term risk of permanent closure is uncertain [3]. - **Electrolytic Aluminum**: The fundamentals show sufficient supply and gradually weakening demand. Low inventory and continuous de - stocking support prices in the short term, with a possible short - term upward trend, but a bearish view in the medium term [5]. - **Cast Aluminum Alloy**: The cost is strongly supported, but there is an oversupply and expected weakening demand. The futures contract has a BACK structure. Short - term unilateral operations should be cautious, and positive spreads can be considered [5][6]. 3. Summary by Related Catalogs Alumina - **Price Forecast**: The latest price is 2895 yuan/ton, with a monthly price forecast range of 2800 - 3200 yuan/ton. The current 20 - day rolling volatility is 0.4309, and the historical percentile (3 - year) is 0.9309 [2]. - **Risk Management Strategies**: For inventory management with high product inventory, short the main alumina futures contract at 3200 yuan/ton with a 75% hedging ratio; for raw material management with low raw material inventory, long the main alumina futures contract at 2700 yuan/ton with a 50% hedging ratio [2]. - **Core Contradictions**: The Guinea Axis mine has not resumed production, and port inventory shipping is restricted. The market is under pressure due to inventory accumulation and falling spot prices [3]. - **Leveraging Factors**: The Guinea government has revoked some mining licenses [4]. - **Negative Factors**: New production capacity is being put into operation, demand has no growth, profit recovery may lead to the resumption of production by shut - down enterprises, and spot prices have fallen in some areas [4]. Electrolytic Aluminum - **Price Forecast**: The latest price is 20250 yuan/ton, with a monthly price forecast range of 19000 - 20300 yuan/ton. The current 20 - day rolling volatility is 0.0977, and the historical percentile (3 - year) is 0.4114 [2]. - **Risk Management Strategies**: For inventory management with high product inventory, short the main Shanghai aluminum futures contract at 20100 yuan/ton with a 75% hedging ratio; for raw material management with low raw material inventory, long the main Shanghai aluminum futures contract at 19600 yuan/ton with a 75% hedging ratio [2]. - **Core Contradictions**: Supply is close to the industry ceiling, demand is weakening, and low inventory and continuous de - stocking support prices in the short term [5]. - **Leveraging Factors**: Low inventory and continuous de - stocking, tight spot supply in East China [5][8]. - **Negative Factors**: Terminal factory orders have decreased significantly, downstream operating rates have declined slightly, and there are signs of product inventory accumulation [5]. Cast Aluminum Alloy - **Price Forecast**: The latest price is 19400 yuan/ton, with a monthly price forecast range of 18500 - 19900 yuan/ton [2]. - **Core Contradictions**: The cost is strongly supported by tight scrap aluminum supply, but there is an oversupply and expected weakening demand. The futures contract has a BACK structure [5]. - **Leveraging Factors**: Tight scrap aluminum supply supports costs [5]. - **Negative Factors**: Expected weakening demand and industry over - capacity [5][6]. Market Data - **Price and Spread**: The prices and spreads of various aluminum and alumina contracts are provided, including Shanghai aluminum, London aluminum, and alumina contracts, as well as regional price differences and basis data [7][9][13]. - **Inventory Data**: The inventory data of aluminum and alumina, including Shanghai Futures Exchange warehouse receipts, London Metal Exchange inventory, and alumina warehouse receipts, are presented [27].

Core Viewpoint - The launch of casting aluminum alloy futures and options on June 10 marks the first recycled metal commodity in China's futures market, with strong initial trading performance and participation from leading aluminum companies [1][2][3]. Market Performance - On the first trading day, all seven contracts for casting aluminum alloy futures closed higher, with the main contract AD2511 opening at 19,400 yuan/ton and closing at 19,190 yuan/ton, a rise of 825 yuan/ton or 4.49% from the listing benchmark price of 18,365 yuan/ton [3][4]. - The total trading volume for the seven contracts reached 57,300 lots, with a transaction value of 11.011 billion yuan, and the main contract AD2511 accounted for 52,300 lots and 10.1 billion yuan in transaction value [3][4]. Industry Participation - Major aluminum companies such as Shunbo Alloy, Lichong Group, and Judong Co. actively participated in the trading on the first day, indicating strong industry interest [1][6][8]. - The recycled aluminum alloy industry is primarily composed of private enterprises, with a market concentration of about 30% among the top five companies [7]. Price Dynamics and Future Outlook - Analysts suggest that the initial price performance aligns with expectations, but caution that the market may experience significant price fluctuations due to seasonal demand changes and supply dynamics [4][5]. - The industry faces challenges such as overcapacity and low profit margins, with a projected operating rate of only 53% in 2024, which may limit future price increases [4][5]. Impact on Related Companies - The launch of casting aluminum alloy futures has positively impacted stock prices of related companies, with Shunbo Alloy rising by 10.01% and Lichong Group by 7.60% as of June 11 [8]. - Shunbo Alloy's projected revenue for 2024 is 13.977 billion yuan, a year-on-year increase of 17%, although its net profit is expected to decrease by 47.96% [8]. Strategic Importance - The introduction of these futures is expected to enhance risk management for industry players, providing a more effective hedging tool compared to existing aluminum futures [8][9]. - The futures market is anticipated to play a significant role in the pricing mechanism for aluminum alloys, contributing to a more transparent and fair market environment [8][9][10].

经中国证监会同意，铸造铝合金期货、铸造铝合金期权今天9时、21时先后在上海期货交易所挂牌交易。 铸造铝合金期货及期权上市，将为产业链参与者提供有效的风险管理工具和公开、透明的价格，推动铸造铝合金市场交易机制的规范化发展。那具体对我国 铝产业链企业有哪些影响呢？ 走进企业的生产区域，记者看到生产铸造铝合金的原材料都是回收来的废铝。 上海某新材料企业负责人程帅：这些废铝来源包括，汽车到了报废年限拆解出来的废铝，生活中使用过的易拉罐，或者一些锅碗瓢盆用废后报废掉的。 由于铸造铝合金具有低密度、高强度、良好的抗蚀性和优异的铸造工艺性，已被广泛应用于汽车、机械设备等领域。这家企业80%的业务就来源于汽车行 业。 而在企业生产中遇到的最大难题就在于废铝采购。废铝的价格虽然跟着纯铝走，但是两者的价格波动会有一个时间差。 上海某新材料企业负责人 程帅：比如今天一吨纯铝涨了100元，可能一吨废铝过了两三天才涨50元，这就给我们生产经营造成了很大的不确定性。 上海某新材料企业负责人 程帅：有了期货工具后，就可以根据期货订单做到工厂满产生产，哪怕没有客户订单，也可以在期货上做价格保护。 除了能平稳企业的采购与销售，铸造铝合金期货及 ...

Group 1 - The core concept of options hedging is to use the characteristics of options to offset potential losses in spot or futures positions, thereby achieving risk management and profit protection [6][4] - Options hedging involves establishing an options position that generates returns to compensate for losses in the underlying spot or futures, aiming to lock in or reduce price risk [6][4] - The principle of futures hedging is based on the high correlation between the prices of the same underlying asset in the spot, futures, and options markets, where futures prices generally move in the same direction as spot prices [3][4] Group 2 - Protective hedging can be classified into two types based on the intent of the hedger: purchasing call options for consumers to prevent price increases, and purchasing put options for producers to prevent price decreases [7][6] - The protective hedging strategy allows for locking in losses while retaining the potential for profit, functioning as an insurance strategy against adverse price movements [6][7] - The number of options contracts for hedging should typically match the size of the underlying spot or futures position, but adjustments can be made based on market volatility assessments for better hedging effectiveness [8][7]

Core Viewpoint - The current downturn in the polysilicon industry is primarily driven by a significant oversupply, leading to a drastic decline in prices, necessitating effective risk management tools for the photovoltaic sector [1][2]. Group 1: Market Conditions - Since the end of 2022, polysilicon prices have plummeted from over 300,000 yuan/ton to approximately 37,500 yuan/ton, a decline of over 85% [1]. - The current operating rate of the polysilicon industry is around 35%, with inventory days decreasing from nearly 5 months to about 3 months [1]. - China's polysilicon production capacity has reached nearly 3.1 million tons, sufficient to meet over 1,440 GW of downstream demand, while social inventory remains high at around 390,000 tons [1]. Group 2: Risk Management Tools - The introduction of polysilicon futures and options provides photovoltaic companies with essential risk management tools, enabling them to hedge against price fluctuations [2][3]. - Polysilicon futures have shown a strong correlation with spot prices, reflecting market expectations more rapidly, particularly during periods of declining demand [2]. - The active trading of polysilicon futures, with an average daily volume of around 100,000 contracts, creates a favorable environment for companies to engage in hedging [3]. Group 3: Industry Adoption - Nearly ten listed companies in the photovoltaic sector have announced plans to engage in polysilicon futures hedging, indicating a growing interest in utilizing these financial instruments [4]. - Despite the potential benefits, there are still few cases of companies effectively using polysilicon futures to mitigate current price decline risks, suggesting a need for further education and understanding of the futures market [4]. - The integration of futures and spot markets is crucial for companies to fully realize the benefits of the futures market [4]. Group 4: Future Considerations - Understanding the operational logic of the futures market is essential for companies to leverage its value in serving the real economy [5].

Report Industry Investment Rating - The investment rating for lithium carbonate is "Oscillating" [5] Core Viewpoints of the Report - Last week (May 26 - May 30), lithium salt prices continued to be weak. The closing prices of LC2506 and LC2507 decreased by 1.9% week - on - week to 59,800 yuan/ton, and the closing price of the near - month contract of Liyang Zhonglian Gold lithium carbonate decreased by 4.1% week - on - week to 59,000 yuan/ton. The price of lithium hydroxide was weak, with the average prices of SMM coarse - grained and micronized battery - grade lithium hydroxide decreasing by 2.5% and 2.3% week - on - week to 63,100 and 68,300 yuan/ton respectively. The price premium of battery - grade lithium hydroxide over battery - grade lithium carbonate continued to widen to 2,400 yuan/ton [2][12][13] - The resurgence of the new energy vehicle price war and news about "zero - kilometer used cars" increased market concerns about new energy vehicle inventory pressure, leading to concerns about the slowdown of terminal demand growth and dragging down prices. The inventory of new energy vehicles in China has increased to 1.1 months in the past half - year. In June, the apparent demand in the power sector remained stable month - on - month, while the energy storage sector saw a slight increase month - on - month [2][13] - During the decline last week, the monthly spread strengthened significantly. LC2507 - 2509 strengthened from 1200C to around 100C, possibly due to some funds in LC2507 changing positions in advance. The strengthening of the monthly spread may cause some hedging positions to shift to the near - end. Attention should be paid to whether the spot basis can remain stable and the rhythm of warrant generation [3][14] - Currently, the negative feedback between ore and salt is not over, terminal demand uncertainty is increasing, and the spot pressure is also increasing marginally after the rapid strengthening of the structure. In the short term, the fundamentals are bearish. However, considering that the ore price is approaching the current cash cost of some mines, the short - term downward space is limited. It is not recommended to chase short positions at the current level, and previous short positions can be gradually rolled over when the monthly spread is appropriate [3][16] Summary by Relevant Catalog 1. Concerns Caused by Power - end Inventory and Volatile Monthly Spread within the Week - **Price Trends**: Lithium salt prices were weak. LC2506 and LC2507 decreased by 1.9% week - on - week, and the near - month contract of Liyang Zhonglian Gold lithium carbonate decreased by 4.1% week - on - week. The price of lithium hydroxide was also weak [2][12][13] - **Market Influences**: The new energy vehicle price war and "zero - kilometer used car" news increased inventory concerns, leading to concerns about terminal demand and dragging down prices. The power - end apparent demand remained stable in June, and the energy storage sector had a slight increase [2][13] - **Monthly Spread Changes**: The monthly spread strengthened significantly during the decline, which may be due to early position - changing of some funds. Attention should be paid to the spot basis and warrant generation [3][14] 2. Review of Weekly Industry News - **Hainan Mining**: Its 20,000 - ton battery - grade lithium hydroxide project achieved full - process connectivity [17] - **Salt Lake Co., Ltd.**: Approved a plan to conduct lithium carbonate futures hedging business, with a margin and premium limit of 54 million yuan and a maximum contract value limit of 240 million yuan [17] - **Tianqi Lithium**: A 26,000 - ton battery - grade lithium carbonate project in Jiangsu was publicly announced for environmental assessment, with a total investment of 207.4845 million yuan [18] - **MIIT**: Will strengthen the rectification of "involution - style" competition in the automotive industry and maintain a fair and orderly market environment [18] 3. Monitoring of Key High - frequency Data in the Industrial Chain 3.1 Resource End: Continuous Decline in Lithium Concentrate Spot Quotes - The spot price of lithium concentrate continued to decline, with the average price of lithium spodumene concentrate (6%, CIF China) dropping from 690 US dollars/ton to 676 US dollars/ton, a decrease of 2.0% [13] 3.2 Lithium Salt: Significant Strengthening of Monthly Spread - The monthly spread of lithium salt strengthened significantly. LC2507 - 2509 strengthened from 1200C to around 100C [3][14] 3.3 Downstream Intermediates: Decline in Quotes - The prices of downstream intermediate products such as lithium iron phosphate, ternary materials, and cobalt acid lithium all declined to varying degrees [13] 3.4 Terminal: Recovery of New Energy Vehicle Penetration Rate in China in April - In April, the penetration rate of new energy vehicles in China rebounded [38]

Core Viewpoint - The article discusses how Huadong Co., Ltd. has developed a futures hedging system to manage risks in the volatile pig farming industry, providing a replicable risk management model for the sector [2][3][4]. Group 1: Company Overview - Huadong Co., Ltd. is a key national agricultural enterprise established in 2003, listed on the Shenzhen Stock Exchange in 2017, and has developed a full industry chain model covering feed processing, pig farming, slaughtering, and meat processing [2][3]. - The company is projected to have a pig output of over 2.5 million heads and a slaughtering capacity of 14 million heads annually by 2024 [2]. Group 2: Risk Management Challenges - The pig farming industry faces a "sandwich" dilemma with upstream raw material price fluctuations, midstream inventory management risks, and downstream impacts from pig price volatility [3]. - Huadong's management identified the need for risk management primarily from the downstream side, where price fluctuations can significantly affect sales profits [3]. Group 3: Futures Hedging Strategy - The company established a derivatives trading department to create a "three-in-one" hedging system focusing on pigs, corn, and soybean meal [3][4]. - In 2024, Huadong predicted the pig futures contract price to be around 19 yuan/kg, higher than the November spot market average, and decided to hedge by selling futures contracts at this price [3]. Group 4: Internal Control and Talent Development - Huadong has implemented a comprehensive internal control system for futures trading, including a permissions management mechanism and real-time risk monitoring [6]. - The company has focused on recruiting professionals with experience in futures trading and agricultural knowledge, enhancing its market analysis and risk control capabilities [7]. Group 5: Contribution to Industry Development - Huadong's participation in the futures market has improved supply chain collaboration and customer loyalty, establishing long-term agreements with suppliers and stabilizing product prices [9][10]. - The company believes that engaging in the futures market not only optimizes production costs and cash flow but also enhances financial metrics and investor expectations, contributing to high-quality industry development [10].

Group 1: Company Overview and Competitive Advantage - The company has nearly 40 years of experience in the copper foil industry, with a strong R&D team and advanced equipment, enabling it to conduct research and development based on electrochemistry and materials science [1] - The company has developed a comprehensive R&D system that integrates basic research, simulation analysis, modular development, and product testing [1] - The company possesses strong capabilities in autonomous production line design and optimization, supported by experienced management and technical personnel [1] Group 2: Product Development and Market Position - The company is currently advancing its high-end RTF and HVLP products in line with expectations, with specific updates available in company announcements [2] - As of May 20, 2025, the number of shareholders is 26,136 [3] - The company has implemented futures hedging strategies to mitigate raw material price fluctuations, ensuring the safety of hedging funds [4] Group 3: Product Applications and Collaborations - The company has developed various new copper foil solutions for semi/fully solid-state batteries, with some products already achieving mass shipments within the year [5][7] - The company has established deep strategic partnerships with leading lithium battery clients, focusing on providing advanced copper foil solutions [7] - The company's products are widely used in lithium batteries and electronic circuits, impacting industries such as robotics, new energy vehicles, consumer electronics, and AI servers [8] Group 4: Future Projections - The company expects to ship thousands of tons of HVLP1-4 and RTF1-3 products in the high-frequency, high-speed PCB and AI application sectors by 2025 [6]