Core Viewpoint - The company emphasizes the importance of accurate and complete financial reporting, ensuring that there are no false records or misleading statements in its quarterly report [2][3]. Financial Data Summary - The financial statements for the first quarter of 2025 are unaudited, with the company confirming that there were no profits from mergers under common control [3][6]. - The company has not identified any non-recurring gains or losses that are significant enough to be reported separately [3][6]. Shareholder Information - The report includes details about the total number of ordinary shareholders and the status of major shareholders, although there are no changes reported in the top ten shareholders due to share lending activities [4]. Operational Considerations - The company highlights its reliance on exports to the United States and urges investors to be aware of potential adverse effects from Sino-U.S. trade tensions and tariffs imposed on Chinese exports to the U.S. [5].

Report Industry Investment Ratings No specific industry investment ratings are provided in the report. Core Views - Copper prices are currently in a state of long - short game on the trading board. As the subsequent macro - sentiment is gradually digested, the market is expected to return to fundamentals and remain in a volatile range in the short term [3][5]. - Given the repeated tariff policies and large fluctuations in crude oil, it is recommended to take a light - position short - selling approach to crude oil [6]. - For asphalt, with both supply and demand increasing and large fluctuations in crude oil, it is recommended to take a wait - and - see approach [11]. - PP is expected to trade in a volatile manner [13]. - Plastic is expected to trade weakly in a volatile manner, and it is recommended to close the short - position on the basis of the plastic 05 contract for profit [14]. - PVC is expected to trade weakly in a volatile manner in the near term [16]. - Urea may experience a corrective rebound after the agricultural demand starts, but attention should be paid to the risk of price fluctuations on the trading board [17]. Summary by Hot - Spot Varieties Copper - **Supply**: As of April 25, the domestic spot smelting fee (TC) is - 40.3 dollars per dry ton, and the RC fee is - 4.04 cents per pound, with negative values continuing to expand. In March, the refined copper production was 1.248 million tons, a year - on - year increase of 8.6%; the imported refined copper volume was 354,300 tons, a year - on - year increase of 4.5%. The market still anticipates a tight supply [3]. - **Demand**: After the price increase, pre - May Day stocking was scattered. In the peak season, downstream demand was relatively strong, and the downstream operating rate was high. In the first two months of 2025, the global apparent refined copper usage increased by about 1%. In China, the apparent demand increased by about 1.6%. The net refined copper imports decreased by 11%. Terminal demand from power grid investment, household appliances, and automobiles brought an increase in copper demand, and copper inventory decreased significantly within the month [3]. - **Price Outlook**: The current trading board is in a long - short game. After the macro - sentiment is digested, the market will return to fundamentals and remain volatile in the short term [3][5]. Crude Oil - **Supply**: OPEC + started to gradually relax the production - cut plan in April and increased the daily crude oil supply in May to 411,000 barrels. However, the motivation for compensatory production cuts in some countries is insufficient. The US crude oil production is still near a historical high, and other non - OPEC + countries are also releasing production capacity, resulting in large supply pressure [6]. - **Demand**: The most panicked period of the global trade war has passed, but the global economic growth rate is expected to decline. The three major crude oil institutions have lowered their forecasts for the global crude oil demand growth rate. May is the off - season for global crude oil consumption [6]. - **Price Outlook**: Given the repeated tariff policies and large price fluctuations, it is recommended to take a light - position short - selling approach [6]. Asphalt - **Supply**: Last week, the asphalt operating rate rebounded by 2.0 percentage points to 30.7%, higher than the same period last year. The expected production in May is 2.318 million tons, a month - on - month increase of 29,000 tons (1.3%) and a year - on - year increase of 30,000 tons (1.3%) [11]. - **Demand**: Last week, the downstream operating rate of asphalt increased. The road asphalt operating rate increased by 4.5 percentage points to 24.5%. The actual demand still needs to be restored [11]. - **Price Outlook**: With both supply and demand increasing and large fluctuations in crude oil, it is recommended to take a wait - and - see approach [11]. PP - **Supply**: The operating rate of PP enterprises has risen to about 78.5%, and the production ratio of standard - grade drawn yarn remains at about 29%. Exxon's two sets of equipment in Huizhou have been put into production, and there are many maintenance devices recently [13]. - **Demand**: The overall downstream operating rate of PP has decreased slightly, and the demand recovery is slow [12][13]. - **Price Outlook**: It is expected to trade in a volatile manner [13]. Plastic - **Supply**: The plastic operating rate has dropped to about 91%. New production capacities such as Wanhua Chemical, Inner Mongolia Baofeng 2, and ExxonMobil Huizhou Phase I have been put into production, and some maintenance devices have restarted recently [14]. - **Demand**: The downstream operating rate of PE is basically stable. The agricultural film season is coming to an end, and the packaging film orders have increased slightly. The downstream demand has not fully recovered, and the new orders are slow to follow up [14]. - **Price Outlook**: It is expected to trade weakly in a volatile manner. It is recommended to close the short - position on the basis of the plastic 05 contract for profit [14]. PVC - **Supply**: The PVC operating rate has increased to 78.63%. The spring inspection scale in April is less than that of last year, and the operating rate is expected to rise slightly this week [15][16]. - **Demand**: The downstream operating rate of PVC has not changed much and is still low compared to previous years. The real - estate data from January to March has slightly improved, but the year - on - year figures are still negative [16]. - **Price Outlook**: It is expected to trade weakly in a volatile manner in the near term [16]. Urea - **Supply**: The operating rate has increased, and the daily output has exceeded 200,000 tons. Some factories still have复产 plans after the May Day holiday [17]. - **Demand**: The holiday stocking is basically over. The demand from agricultural dealers is limited, and the demand from compound fertilizer factories is the main source. The demand for urea is expected to increase slightly after the summer fertilizer demand is released [17]. - **Price Outlook**: The current trading board is affected by negative sentiment, and the demand is weakening. There may be a corrective rebound after the agricultural demand starts [17]. Futures Market Overview - **Closing Prices**: As of April 29, most domestic futures main contracts fell. The container shipping index (European line) fell by more than 7%, and pulp and alumina fell by more than 3%. In terms of gains, staple fiber, asphalt, and international copper rose by nearly 1%. Among stock - index futures, the IF main contract fell by 0.20%, the IH main contract fell by 0.35%, the IC main contract rose by 0.23%, and the IM main contract rose by 0.70%. Among treasury - bond futures, the TS main contract rose by 0.01%, the TF main contract rose by 0.13%, the T main contract rose by 0.23%, and the TL main contract rose by 0.69% [8][9]. - **Fund Flows**: As of 15:18, funds flowed into alumina 2509 (460 million), CSI 1000 2506 (397 million), and ten - year treasury bonds 2506 (268 million). Funds flowed out of Shanghai gold 2506 (1.381 billion), Shanghai silver 2506 (486 million), and palm oil 2509 (298 million) [9].

Group 1 - President Xi Jinping's state visit to Vietnam, Malaysia, and Cambodia from April 14 to 18 resulted in fruitful outcomes [3] - The visit was highlighted by discussions on enhancing bilateral cooperation and trade relations [3] Group 2 - The United Nations Industrial Development Organization stated that the U.S. tariff increases pose significant challenges to global economic development [2][21] - U.S. economic experts indicated that the tariff hikes are impacting the U.S. economy and investor confidence [2][23] Group 3 - In the first quarter of this year, 12,603 new foreign-invested enterprises were established in China, marking a year-on-year increase of 4.3% [4][10] - The actual use of foreign capital reached 269.23 billion yuan [4] Group 4 - The 137th Canton Fair concluded its first phase, attracting over 148,000 foreign buyers from 216 countries and regions [5][10] - The fair serves as a significant platform for international trade and business networking [5] Group 5 - The first quarter saw central enterprises achieve a cumulative added value of 2.6 trillion yuan, with significant investments in strategic emerging industries [8][10] - Fixed asset investment reached 851.3 billion yuan, with a year-on-year growth of 6.6% in strategic emerging industries [8] Group 6 - The Ministry of Water Resources reported a 2.9% year-on-year increase in investment in water conservancy infrastructure construction in the first quarter, totaling 198.81 billion yuan [11][9]

Core Viewpoint - The Chinese government is focusing on stabilizing the economy amidst external pressures, emphasizing the importance of domestic demand and proactive macroeconomic policies to achieve a growth target of around 5% for the year [2][3]. Group 1: Economic Outlook - The first quarter of 2023 is expected to show a stable economic performance, with growth predicted around 5%, supported by a consumption surge during the Spring Festival and advancements in technology [2][3]. - The Chinese economy is facing challenges due to external factors, particularly the impact of the U.S. government's tariff increases, which are anticipated to affect global trade dynamics [3][4]. Group 2: Policy Recommendations - There is a strong emphasis on expanding domestic demand as a long-term strategy, with specific measures to boost consumption and stabilize employment [2][4]. - Experts suggest increasing fiscal spending on consumer-related initiatives, such as unemployment benefits and subsidies for low-income individuals, to counteract the negative effects of tariffs [4]. Group 3: Expert Insights - Economists and business leaders participating in the discussion highlighted the resilience of China's supply chain and industrial capabilities, which have shown growth despite tariff pressures [4]. - The overall sentiment among domestic and international investors remains optimistic regarding China's economic prospects, supported by a solid policy environment and attractive market valuations [3].

Investment Rating - The report indicates a positive investment outlook for companies with strong domestic sales and flexible supply chains, particularly Haier and Hisense [2][9][10]. Core Insights - The impact of U.S. tariffs on Chinese home appliance companies varies significantly, with some companies like Haier benefiting from higher local production capacity [2][12]. - Chinese home appliance firms are leveraging their supply chain stability and scale advantages to maintain competitiveness despite tariff-induced price increases [6][15]. - The long-term changes in tariff policies are expected to reshape the competitive landscape of the home appliance industry, favoring larger companies with resilient production capabilities [15]. Summary by Sections U.S. Market Exposure - Midea's revenue from the U.S. market is approximately 20% of its total export revenue, while Haier's is close to 60%, with a significant portion sourced from local suppliers [2]. - Gree has minimal exposure to the U.S. market, with only about 2% of its revenue coming from there [2]. - Hisense's revenue from the U.S. market is around 10%-20%, primarily sourced from Mexico [2]. Strategies to Mitigate Tariff Impact - Companies are adopting various strategies such as price increases and shifting production to Southeast Asia to mitigate tariff impacts [4][15]. - Major OEMs like Dechang and Xinbao are relocating factories to countries like Vietnam and Indonesia to reduce tariff exposure [3][4]. Consumer Impact - The additional costs from tariffs will ultimately be passed on to U.S. consumers, leading to higher product prices and potential economic pressure [5][6]. Competitive Advantages - Haier's higher local production in the U.S. provides a competitive edge over rivals like Samsung and Electrolux [12]. - Hisense's production in Mexico allows it to effectively cover the U.S. market, potentially increasing market share despite overall demand decline [11]. Companies with Strong Domestic Market Focus - Gree Electric is well-positioned due to its low export ratio and strong domestic sales, which are less affected by U.S. tariffs [9]. - Other companies like Supor and Boss Electric also show resilience due to high domestic sales and cash dividend rates [9]. Future Areas of Interest - The report suggests monitoring the kitchen appliance sector and companies with global production capabilities that can adapt to tariff changes, such as Hisense [10].