Report Summary 1. Overnight Night Market Trends - International precious metal futures generally closed lower, with COMEX gold futures down 1.24% at $3,768.5 per ounce and COMEX silver futures down 1.11% at $44.115 per ounce [3]. - U.S. EIA crude oil inventories unexpectedly decreased by 607,000 barrels. WTI crude oil futures rose 2.21% to $64.81 per barrel, and Brent crude oil futures rose 2.02% to $68.32 per barrel [4]. - London base metals all rose, with LME copper up 3.46% at $10,320 per ton, LME zinc up 1.18% at $2,922.5 per ton, LME aluminum up 0.63% at $2,654.5 per ton, and LME nickel up 0.53% at $15,435 per ton [4]. - As of 2:20, U.S. soybeans fell 0.35%, U.S. corn fell 0.53%, U.S. soybean oil fell 0.22%, U.S. soybean meal fell 0.50%, and U.S. wheat fell 0.19% [5]. - As of 23:00, most domestic futures contracts closed higher. Soybean No. 2, palm oil, soybean meal, low-sulfur fuel oil (LU), and fuel oil rose more than 1%, while cotton fell slightly [5]. 2. Important News Macroeconomic News - The People's Bank of China will conduct 600 billion yuan of MLF operations on September 25, 2025 [8]. - Zhengzhou Commodity Exchange will adjust the trading margin and price limit of certain futures contracts from September 29, 2025 [8]. - The Ministry of Housing and Urban-Rural Development announced that 25,000 old urban residential areas are planned to be renovated in 2025, and 21,700 have been started from January to August [8]. - U.S. Treasury Secretary Besent expressed disappointment that Fed Chair Powell did not set a clear agenda for interest rate cuts and called for a 100 - 150 basis point cut by the end of the year [8]. - The U.S. officially lowered tariffs on EU cars, effective August 1, 2025 [8]. - Fed's Daly fully supports the 25 - basis - point rate cut last week and said further policy adjustments may be needed [9]. Energy and Chemical Futures - Multiple departments issued the "Work Plan for Stable Growth in the Building Materials Industry (2025 - 2026)", aiming to control cement and glass production capacity [12]. - As of the week of September 24, the capacity utilization rate of 92 asphalt refineries in China was 42.0%, up 5.7% week - on - week, and the weekly output was 701,000 tons, up 15.5% [12]. - As of September 24, 2025, China's methanol port inventory decreased by 65,600 tons to 1.4922 million tons [12]. - As of the week of September 22, the total refined oil inventory at the Fujairah Port in the UAE increased by 1.833 million barrels to 14.922 million barrels [12]. - U.S. commercial crude oil inventories (excluding strategic reserves) decreased by 607,000 barrels to 415 million barrels in the week ending September 19, 2025, while strategic petroleum reserve inventories increased by 230,000 barrels to 406 million barrels [13]. - Eight international oil companies in the Kurdistan region of Iraq reached a preliminary agreement to resume oil exports [13]. Metal Futures - Xinjiang Dongfang Hope New Energy Co., Ltd. started annual maintenance on its first - phase polysilicon production line, and the third - phase project is ready for maintenance [16]. - The Shanghai Futures Exchange will adjust the trading margin and price limit of copper, aluminum, zinc, lead, gold, and silver futures contracts from September 29, 2025 [16]. - The Antamina copper mine in Peru expects zinc production to increase by 67% this year, offsetting a 12% decline in copper production [16]. - From January to July 2025, the global copper market had a surplus of 101,000 tons, compared with a surplus of 401,000 tons in the same period last year [17]. - An accident at the Grasberg Block Cave mine in Indonesia led to the suspension of operations, and the company lowered its copper and gold sales forecasts for the third quarter [17]. Black - Series Futures - In mid - September, the daily output of crude steel by key steel enterprises decreased by 0.6% month - on - month, while the daily output of iron and steel products increased [20]. - Beibu Gulf Port in Guangxi suspended manganese ore pick - up due to a typhoon, with limited impact on inventory [20]. - On September 24, the auction price of coking coal in Linfen market rose significantly, with an average increase of about 92 yuan per ton [20]. - Dalian Commodity Exchange will adjust the trading margin and price limit of iron ore, coke, and coking coal futures contracts from September 29, 2025 [21]. Agricultural Product Futures - The EU postponed the implementation of anti - deforestation regulations, providing a respite for palm oil exporters [23]. - As of September 20, the inventory of sugar in third - party warehouses in Guangxi decreased by about 300,000 tons compared with August [23]. - In August 2025, China's industrial feed output was 29.36 million tons, up 3.7% month - on - month and 3.8% year - on - year [25]. - Indonesia's palm oil exports in July were 3.54 million tons, with a production of 5.11 million tons and an inventory of 2.57 million tons [26]. - The CNF price of Argentine soybeans imported into China decreased, and the cost of imported soybeans declined [26]. - A senior analyst predicted that Malaysian BMD crude palm oil futures may rise 27% in the first quarter of next year [26]. - The average pig - to - grain ratio in Guangdong Province entered the second - level early - warning range of excessive decline, and the province will conduct frozen pork reserve purchases [26]. - Brazil's ANEC lowered its September soybean export forecast to 7.15 million tons and raised its corn export forecast to 7.61 million tons [27]. 3. Financial Markets Stocks - A - shares rose, with the ChiNext Index and the Sci - Tech Innovation 50 Index hitting new highs. The semiconductor industry chain was strong, while AI hardware and the banking sector declined. The Shanghai Composite Index rose 0.83%, the Shenzhen Component Index rose 1.8%, the ChiNext Index rose 2.28%, and the Sci - Tech Innovation 50 Index rose 3.49%. The total trading volume was 2.35 trillion yuan [30]. - The Hong Kong Hang Seng Index rose 1.37%, the Hang Seng Tech Index rose 2.53%, and the Hang Seng China Enterprises Index rose 1.64%. Southbound funds had a net purchase of HK$13.7 billion [30]. - Chery Automobile's H - shares were listed on the Hong Kong Stock Exchange at a final offer price of HK$30.75 per share [31]. - Mercedes - Benz plans to acquire a minority stake in A - share listed Qianli Technology [32]. Industries - Six departments issued a work plan for stable growth in the building materials industry, aiming for green building materials revenue to exceed 300 billion yuan by 2026 [33]. - The State Administration for Market Regulation solicited opinions on a new standard for food delivery platform services [35]. - The National Press and Publication Administration approved 145 domestic and 11 imported game licenses in September [35]. - The transportation department issued a plan to promote the integrated development of container rail - water intermodal transport, aiming for a 15% annual growth in volume by 2027 [35]. - From January to August, China's railway passenger volume increased by 6.7% year - on - year, freight volume increased by 2.6%, and fixed - asset investment increased by 5.6% [35]. - The "Blue Book on the Development of the Beidou Industry (2025)" showed that the total output value of China's satellite navigation and location - based services industry reached 575.8 billion yuan in 2024, and the number of new Beidou - supported terminals is expected to exceed 400 million by the end of 2028 [36]. Overseas Markets - The U.S. and the EU finalized a tariff agreement, with the U.S. lowering tariffs on EU cars and the EU getting tariff exemptions for certain products [37]. - U.S. Treasury Secretary Besent criticized Fed Chair Powell for not setting a clear interest - rate - cut agenda and called for a 100 - 150 basis point cut by the end of the year. The Treasury is considering a $20 billion currency swap with Argentina [37]. - The U.S. government is negotiating to restructure a $2.3 billion energy department loan to Lithium Americas through equity investment [39]. - U.S. new home sales in August reached an annualized rate of 800,000 units, far exceeding expectations, and the inventory of new homes for sale decreased [39]. - Bank of England Governor Bailey said there is room for interest rate cuts, depending on inflation [40]. - Australia's CPI in August rose 3% year - on - year, reaching the upper limit of the RBA's inflation target range [40]. - Germany's September IFO business expectations and sentiment indices declined [41]. International Stock Markets - U.S. stocks fell slightly, with the Dow down 0.37%, the S&P 500 down 0.28%, and the Nasdaq down 0.33%. Chinese concept stocks generally rose [42]. - European stocks closed mixed, with the German DAX Index rising 0.23%, the French CAC40 Index falling 0.57%, and the UK FTSE 100 Index rising 0.29% [42]. - Saudi Arabia is considering relaxing foreign ownership restrictions on listed companies, leading to a 5% rise in the Saudi All - Share Index [44]. - The Japanese Nikkei 225 Index rose 0.3% to a new high, while the South Korean KOSPI Index fell 0.45% after hitting a new high [44]. - South Korean securities companies may resume U.S. stock trading services in early November [44]. Commodities - Zhengzhou Commodity Exchange and Shanghai Futures Exchange will adjust the trading margin and price limit of multiple futures contracts from September 29, 2025 [45]. - International precious metal futures fell, international oil prices rose, London base metals rose, and global steel production in August increased slightly year - on - year [45][46][47]. Bonds - Yields of major interest - rate bonds in the inter - bank market generally rose, and bond prices fell. The central bank conducted 401.5 billion yuan of 7 - day reverse repurchase operations, with a net withdrawal of 1.7 billion yuan [48]. - Commercial banks can use certain bonds as collateral for treasury cash time deposits [48]. - The issuance scale of local government bonds from January to August reached 7.68 trillion yuan, a 41.9% year - on - year increase [48]. - U.S. Treasury yields rose, and the issuance of UK government bonds faced weak demand [48][50]. Foreign Exchange - The on - shore RMB against the U.S. dollar closed down 86 basis points at 7.1219, and the U.S. dollar index rose 0.65% [51]. 4. Upcoming Data Releases and Events Data Releases - A series of economic data from Germany, France, the UK, the U.S., and China Hong Kong will be released on September 25 [53]. Events - Multiple central bank meetings, policy announcements, corporate events, and international meetings are scheduled for September 25 [55].

Core Viewpoint - Dongshan Precision is planning to issue H-shares and list on the Hong Kong Stock Exchange, raising concerns due to its recent low-priced private placement and ongoing financial challenges [1][4]. Financial Performance - In 2024, Dongshan Precision's revenue is projected to grow by 9.27% to 36.77 billion yuan, while net profit is expected to decline by 44.74% to 1.09 billion yuan [1]. - The company's electronic circuit products account for over 60% of revenue, but the average selling price has decreased by 23.48%, leading to a 2.45 percentage point drop in gross margin to 18.34% [1]. - The LED display business has seen a significant revenue decline of 35.48%, with a gross margin of -40.94%, indicating a loss on sales [1]. Customer Concentration Risk - In 2024, sales to the top five customers accounted for 71.04% of total sales, with a single major customer contributing over half of the revenue at 18.86 billion yuan [2]. - The reliance on the largest customer has increased from 29.8% in 2017 to 51.28% in 2024, posing risks during supply chain fluctuations [2]. Capacity Utilization - The average capacity utilization rate for the flexible circuit board (FPC) business is around 60%, indicating underutilization of existing capacity [2]. Capital Operations - The company has proposed a controversial private placement to raise up to 1.40 billion yuan at a price of 11.24 yuan per share, significantly below the market price [4]. - Since its listing in 2010, the controlling shareholders have cumulatively cashed out 3.38 billion yuan, raising concerns about the pricing rationale of the recent placement [4]. - As of June 2025, the controlling shareholders have over one-third of their shares pledged, indicating financial strain [4]. Mergers and Acquisitions - Dongshan Precision has a history of aggressive acquisitions, including the purchase of MFLX in 2016 and Multek in 2018, expanding into the Apple supply chain [4]. - Recent acquisitions include GMD Group for approximately 814 million yuan and a proposed acquisition of Sorsy Optoelectronics for up to 5.93 billion yuan, significantly increasing the company's asset scale [5]. - The goodwill from acquisitions has risen to 2.12 billion yuan, with a provision for goodwill impairment of 89.59 million yuan in 2024 [5]. Integration and Synergy - The profitability of acquired entities remains uncertain, with GMD Group reporting a loss of 6 million euros in 2023 and only a slight profit in 2024 [6]. - The acquisition of Sorsy Optoelectronics, while profitable, comes at a high premium, with an assessment value approximately 3.56 times its net asset value, likely increasing goodwill [6]. Strategic Intent - The planned H-share issuance is seen as a strategic move to enhance international presence and brand recognition, but it may also be a response to increasing financial pressures from recent acquisitions [6].

Group 1 - The core viewpoint is that anti-involution policies are accelerating in high-end manufacturing sectors such as electronics and semiconductors, aiming to enhance international competitiveness and secure a more favorable position for China in global competition [1] - The decision-makers are focusing on rectifying low-price disorderly competition, promoting the orderly exit of backward production capacity, and correcting the chaotic local government investment attraction practices [1] - In the electronics sector, particularly in consumer electronics and optical optoelectronics, the low inventory and capital expenditure are expected to improve the tight supply situation [1] Group 2 - The semiconductor sector is benefiting from breakthroughs in AI and the Sino-U.S. technology competition, showing significant growth potential [1] - The anti-involution policies, combined with improved corporate cash flow, may lead to a rebound in the Producer Price Index (PPI), driving the recovery of profitability in the technology sector [1] - The semiconductor equipment ETF (159516) tracks the semiconductor materials and equipment index (931743), focusing on upstream materials and equipment in the semiconductor industry, reflecting the overall performance of technology-intensive enterprises [1] Group 3 - Investors without stock accounts can consider the Guotai Zhongzheng Semiconductor Materials and Equipment Theme ETF Initiated Link A (019632) and Link C (019633) [1]

Group 1 - Shenzhen Weiding Juxin Technology Co., Ltd. has successfully assembled and delivered its first high-precision stepper lithography machine, the WS180i series, which targets the growing fields of compound semiconductors and high-end optoelectronic devices [1] - The China Securities Consumer Electronics Theme Index (931494) rose by 1.47% as of September 24, 2025, with notable increases in component stocks such as Changying Precision (300115) up 11.54% and Tongfu Microelectronics (002156) up 10.00% [1] - The Consumer Electronics ETF (561600) increased by 1.18%, reaching a latest price of 1.29 yuan, and has seen a cumulative increase of 6.97% over the past week [1] Group 2 - As of August 29, 2025, the top ten weighted stocks in the China Securities Consumer Electronics Theme Index accounted for 54.8% of the index, including companies like Cambricon (688256) and Luxshare Precision (002475) [2] - The weight and performance of key stocks in the index show varied trends, with Luxshare Precision down 1.66% and SMIC (688981) up 4.79% [4]

Group 1 - The report highlights a significant decline in the stock market, with the Wind All A Index dropping by 0.63% and a trading volume of 2.52 trillion yuan, an increase of 376 billion yuan from the previous day [1][2] - There was a net outflow of 10.2 billion yuan from stock ETFs, with the major outflows occurring in chip-related ETFs, indicating a cautious outlook on the index market [2][3] - The semiconductor equipment ETF saw a net inflow of 200 million yuan, suggesting a targeted investment strategy within the semiconductor sector [2][3] Group 2 - The Hong Kong stock market experienced larger declines than the A-share market, with the Hang Seng Index and Hang Seng Tech Index falling by 0.70% and 1.45% respectively, influenced by hawkish signals from multiple Federal Reserve officials [3] - Despite the overall market pressure, Alibaba continued to attract significant net inflows, indicating investor confidence in its AI narrative and business expansion [3][4] - The report suggests that while there is pressure on thematic investments, there remains resilience as funds seek new consensus, indicating potential opportunities in sectors like semiconductor equipment and energy storage [3][4] Group 3 - The bond market is experiencing upward pressure on yields, primarily driven by concerns over the potential impact of new redemption fee regulations for bond funds [4][5] - Institutions are reportedly accelerating the redemption of bond funds, which may lead to a preemptive release of market risks [5][6] - The report emphasizes that leveraging and coupon strategies remain the best safe havens in the current bond market environment [6] Group 4 - The commodity market is showing signs of weakness, with precious metals like gold and silver continuing to rise, while basic metals are underperforming [7][8] - The report notes a significant outflow of funds from the new energy sector, particularly in polysilicon, reflecting pressure on previously high-valued commodities [7][8] - The overall sentiment in the commodity market is shifting from policy-driven narratives to a focus on actual supply and demand conditions, indicating a need for careful monitoring of inventory and demand recovery [8]

Group 1 - The National Robot Industry Index fell by 3.0% at midday, indicating a decline in the robotics sector [1] - The China Securities Consumer Electronics Theme Index decreased by 2.3%, reflecting a downturn in the consumer electronics market [1] - The China Securities Internet of Things Theme Index dropped by 1.7%, suggesting challenges in the IoT industry [1] - The China Securities Smart Electric Vehicle Index saw a decline of 0.9%, indicating a slight downturn in the electric vehicle sector [1] - Despite the overall market decline, the E Fund Robot ETF (159530) experienced a net subscription of nearly 100 million shares, showing investor interest in robotics [1]

Market Overview - The three major indices collectively declined in early trading, with the Shanghai Composite Index down 1.23%, the Shenzhen Component down 1.84%, and the ChiNext Index down 1.75%. The North Stock 50 fell by 3.05% [1] - The total trading volume in the Shanghai and Shenzhen markets reached 171.35 billion yuan, an increase of 35.79 billion yuan compared to the previous day. Nearly 5,000 stocks in the market experienced declines [1] Sector Performance - The banking, port shipping, and insurance sectors showed the highest gains, while the tourism and hotel, Huawei concept, real estate, CRO, and internet finance sectors faced the largest declines [1] - The tourism and hotel sector suffered significant losses, with Yunnan Tourism hitting the daily limit down, and other companies like Huazhang Hotel, Tibet Tourism, and Caesar Travel also experiencing sharp declines. The film and cinema sector weakened, with Jinyi Film hitting the daily limit down for three consecutive days, followed by China Film and Huayi Brothers [1] - CRO concept stocks also underperformed, with companies like Medisi, Zhaoyan New Drug, and Dezhan Health showing significant declines [1] - Conversely, the banking sector rose against the trend, with Nanjing Bank increasing by over 5%, and Agricultural Bank, Construction Bank, and Xiamen Bank also rising [1] - The port shipping sector was active, with Nanjing Port and Ningbo Shipping hitting the daily limit up [1] - The humanoid robot concept stocks showed localized strength, with Dayang Electric achieving two consecutive limit ups, and Hengshuai Co., Hongchang Technology, and Heertai reaching new highs during the session. Additionally, the semiconductor, solid-state battery, and consumer electronics sectors experienced a brief surge [1]

Core Viewpoint - The stock of Dianzhi Technology has experienced fluctuations, with a recent decline of 2.00% and a year-to-date drop of 5.69%, despite a notable increase of 21.51% over the past 60 days [1][2]. Company Overview - Dianzhi Technology Co., Ltd. was established on November 20, 2006, and listed on July 31, 2017. The company is located in the Guangming District of Shenzhen, Guangdong Province [1]. - The main business involves the research, design, manufacturing, and sales of micro connectors and interconnection systems [1]. Financial Performance - For the first half of 2025, Dianzhi Technology reported a revenue of 2.524 billion yuan, representing a year-on-year growth of 17.71%. However, the net profit attributable to shareholders decreased by 21.10% to 243 million yuan [2]. - Cumulative cash dividends since the A-share listing amount to 889 million yuan, with 430 million yuan distributed over the past three years [2]. Shareholder Structure - As of September 10, 2025, the number of shareholders increased to 29,600, with an average of 12,113 circulating shares per person, a decrease of 1.78% [2]. - Notable changes in institutional holdings include a decrease in shares held by Hong Kong Central Clearing Limited and an increase in holdings by several funds, including E Fund's ChiNext ETF [2]. Market Activity - As of September 23, 2025, Dianzhi Technology's stock price was 55.86 yuan per share, with a market capitalization of 23.73 billion yuan. The trading volume was 227 million yuan, with a turnover rate of 1.11% [1]. - The stock has seen a net outflow of 5.86 million yuan from major funds, with significant buying and selling activity from large orders [1]. Business Segmentation - The revenue composition of Dianzhi Technology includes automotive connectors (32.14%), RF connectors and cable assemblies (18.52%), electromagnetic compatibility components (17.75%), flexible boards (16.28%), and other products (15.32%) [1]. Industry Context - Dianzhi Technology operates within the electronic industry, specifically in the consumer electronics sector, focusing on components and assembly [1]. The company is associated with several concepts, including BYD concept, high-speed connectors, LCP concept, automotive electronics, and consumer electronics [1].

Market Overview - A-shares experienced fluctuations with the ChiNext index rising over 1%, driven by active performance in the fruit chain and AI hardware sectors, particularly with Luxshare Precision hitting the daily limit up [1][10] - The Hang Seng Index and Hang Seng Tech Index both declined, with Baidu dropping over 4% [1][2] - Gold stocks showed strength, while tourism and retail sectors faced declines [1][6] A-share Performance - As of the latest update, the Shanghai Composite Index fell by 0.19% to 3821.28, while the Shenzhen Component rose by 0.47% to 13219.29, and the ChiNext Index increased by 1.31% to 3148.54 [1][11] - Notable stocks included Luxshare Precision, which saw a significant increase, and other consumer electronics stocks like Hongfu and Industrial Fulian also performed well [10][12] Hong Kong Market Performance - The Hang Seng Index was down 0.34% at 26255.23, and the Hang Seng Tech Index fell by 0.73% to 6212.05 [2][3] - Key declines were observed in tech stocks, with notable drops in Baidu and NIO [13][14] Bond Market - The bond market saw a general decline, with 30-year treasury futures dropping by 0.43%, 10-year futures down by 0.19%, and 5-year futures decreasing by 0.12% [4][9] - The overall trend indicates a bearish sentiment in the bond market [8] Commodity Market - Domestic commodity futures experienced widespread declines, with polysilicon and shipping indices dropping over 2%, while only a few commodities like gold and silver saw increases [1][16] - Specific commodities such as soybean meal and glass also reported significant drops [5][17] Gold and Precious Metals - The precious metals sector continued to rise, with companies like Xiaocheng Technology and Shandong Gold seeing increases of over 5% [6][7] - Gold stocks followed the upward trend, reflecting the overall strength in the gold market [6][14] Tourism Sector - The tourism sector faced significant declines, with Yunnan Tourism hitting the daily limit down and other companies like Qujiang Cultural Tourism and Guilin Tourism also experiencing substantial drops [7][8] - The overall sentiment in the tourism industry appears negative, impacting stock performance [7]

Company Movements - Xiaomi Group's Chairman and CEO Lei Jun announced the launch of the Xiaomi 17 series on September 25, which will include a sixth annual speech themed "Change," sharing stories about Xiaomi's玄戒 chip and Xiaomi's automotive developments [8] - OpenAI and NVIDIA announced a strategic partnership to deploy a 10-gigawatt NVIDIA system, with NVIDIA planning to invest up to $100 billion in OpenAI [8] - Hangzhou Dianzi's optical communication business is currently in a loss state, while its copper foil business is still in the early stages [9] - Shoukai Co., Ltd. holds a low equity stake of approximately 0.3% in Yushu Technology through its controlling subsidiary [10] - Changchuan Technology expects a net profit of 827 million to 877 million yuan for the first three quarters, representing a year-on-year growth of 131% to 145% [11] Industry Insights - The China Securities Regulatory Commission (CSRC) announced plans to accelerate the implementation of a new round of comprehensive capital market reforms, focusing on the Science and Technology Innovation Board, Growth Enterprise Market, and Beijing Stock Exchange [6] - On September 22, the three major A-share indices collectively rose, with funds continuing to favor technology stocks, leading to new highs for companies like SMIC and Haiguang Information [6] - The Hong Kong Stock Exchange's Hang Seng Index closed down 0.76% on September 22, with significant declines in energy and port stocks, while the consumer electronics sector saw a surge [6] - The Hong Kong Securities and Futures Commission is consulting on the implementation of an investor identification code system for the derivatives market to enhance market integrity and sustainability [6]