1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - For aluminum, it maintains a convergent oscillation pattern with volatility at a historical low. There is no bearish view on industrial metals currently, and the core strategy for aluminum is to wait for buying opportunities on price dips, unless subsequent inventory accumulation is excessive. The market lacks a smooth trading logic, leading to a decline in overall market positions and extremely low volatility. Attention should be paid to the duration of low volatility, and there will be opportunities to re - enter long - volatility positions in the future [3]. - For alumina, there are obvious differences in market views. Although some expect a significant relaxation of available spot goods around mid - August, there may be uncertainties. The market is also waiting for potential short - term production cuts in northern capacities in late August. It is believed that alumina may reach a certain balance at the current price level in the short term, but caution is needed if the spot price confirms an inflection point [4]. 3. Summary by Relevant Catalogs 3.1 Trading End: Spreads, Volume, and Positions 3.1.1 Term Spreads - This week, the spot premium of A00 aluminum weakened. The average spot premium of SMM A00 aluminum changed from - 20 yuan/ton to - 50 yuan/ton, and the average spot premium of SMM A00 aluminum (Foshan) changed from - 15 yuan/ton to - 55 yuan/ton. - The spot premium of alumina also weakened. The premium of Shandong alumina to the current month changed from - 63 yuan/ton to 51 yuan/ton, and that of Henan alumina changed from 83 yuan/ton to 71 yuan/ton [9]. 3.1.2 Monthly Spreads - The spread between the near - month and the first - continuous contract of SHFE aluminum narrowed [10]. 3.1.3 Positions - The position volume of the main SHFE aluminum contract decreased slightly, and the trading volume continued to decline. - The position volume of the main alumina contract decreased slightly but remained at a historical high, and the trading volume decreased significantly [12]. 3.1.4 Position - to - Inventory Ratio - The position - to - inventory ratio of the main SHFE aluminum contract declined, and that of alumina continued to fall and is at a historical low [18]. 3.2 Inventory: Bauxite, Alumina, Electrolytic Aluminum, and Processed Materials 3.2.1 Bauxite - As of August 8, the port inventory of imported bauxite in the Steel Union weekly data decreased, with a week - on - week increase of 400,000 tons, and the port inventory days remained basically the same. As of July, the port inventory and inventory days of Chinese bauxite in the阿拉丁 data continued to show an upward trend. - As of July, the bauxite inventory of 43 sample enterprises in China increased by 1.19 million tons month - on - month, and the bauxite inventory days in alumina plants continued to decline. - As of August 8, the weekly bauxite shipments from Guinea ports decreased slightly by 445,700 tons week - on - week, and those from Australian ports decreased slightly by 408,000 tons week - on - week. The weekly bauxite floating inventory in Guinea decreased slightly by 1.7711 million tons week - on - week, while that in Australia increased slightly by 167,700 tons week - on - week. - As of August 1, the bauxite shipments from Australia's Weipa + Gove ports increased slightly by 64,600 tons week - on - week, and those from Guinea's Boffa + Kamsar ports increased slightly by 360,500 tons week - on - week. The bauxite arrivals under the SMM data increased by 414,600 tons week - on - week [23][28][29][34]. 3.2.2 Alumina - The national total alumina inventory continued to accumulate, with a week - on - week increase of 62,000 tons. Alumina plant inventory remained flat, electrolytic aluminum plant alumina inventory increased slightly, port inventory increased, and platform/in - transit inventory decreased. - As of August 7, the national alumina inventory was 3.285 million tons, a week - on - week increase of 42,000 tons. Alumina plant inventory increased by 19,000 tons, electrolytic aluminum plant alumina inventory increased by 23,000 tons, port inventory decreased by 2,000 tons, and yard/platform/in - transit inventory increased slightly by 2,000 tons [43][47]. 3.2.3 Electrolytic Aluminum - According to seasonal patterns, domestic electrolytic aluminum social inventory usually reaches its peak in the fifth or sixth week after the holiday and then enters a cycle of oscillatory inventory reduction. As of August 7, the weekly inventory of aluminum ingot social inventory increased by 24,000 tons to 549,000 tons, continuing to accumulate [48]. 3.2.4 Aluminum Rod - This week, the spot and in - plant inventories of downstream aluminum rods showed a slight reduction [54]. 3.2.5 Aluminum Profiles and Plate - Foil - As of July, the finished - product inventory ratio of SMM aluminum profiles remained basically flat, while the raw - material inventory ratio decreased significantly. The finished - product inventory ratio of SMM aluminum plate - foil decreased slightly, and the raw - material inventory ratio decreased significantly [57]. 3.3 Production: Output, Capacity, and Operating Rate 3.3.1 Bauxite - Domestic bauxite supply is mainly stable. As of July, the domestic bauxite output under the SMM data increased slightly. Imported bauxite supply is an important factor driving the growth of total domestic bauxite supply. - In July, the bauxite output in Shanxi under the Steel Union data increased slightly by 120,000 tons month - on - month, while that under the SMM data decreased slightly by 42,500 tons month - on - month. The bauxite output in Henan under the Steel Union data increased slightly by 60,000 tons month - on - month, and that under the SMM data decreased by 32,000 tons month - on - month. The bauxite output in Guangxi under the Steel Union data increased slightly by 40,000 tons month - on - month, and that under the SMM data decreased by 89,400 tons month - on - month [62][67]. 3.3.2 Alumina - The alumina capacity utilization rate remains stable. As of August 8, the total operating capacity of national alumina was 95.8 million tons, with a week - on - week increase of 1.2 million tons in weekly operating capacity. This week, the domestic metallurgical - grade alumina output was 1.851 million tons, a week - on - week increase of 4,000 tons, remaining at a high level in recent years. The short - term supply - side loosening pattern of alumina has not been reversed, and alumina prices may continue to be under pressure [71]. 3.3.3 Electrolytic Aluminum - As of July, the operating capacity of electrolytic aluminum remained at a high level, and the capacity utilization rate remained high due to profit recovery. As of August 7, the weekly output of electrolytic aluminum under the Steel Union data was 845,900 tons, a week - on - week increase of 50 tons, maintaining a high level in the past six years. With the terminal consumption entering the off - season, the aluminum - water ratio has a seasonal decline, and the ingot - casting volume of aluminum ingots is expected to continue to increase month - on - month, potentially increasing supply pressure [76]. 3.3.4 Downstream Processing - This week, the output of recycled aluminum rods decreased by 730 tons week - on - week. The load of aluminum rod plants decreased slightly week - on - week, and the weekly output of aluminum rods decreased by 2,800 tons week - on - week. The output of aluminum plate - foil decreased slightly by 3,250 tons week - on - week. - This week, the operating rate of domestic aluminum downstream leading enterprises increased slightly by 0.1% to 58.7%. There was a divergence in operating rates due to insufficient orders during the traditional off - season. The operating rate of aluminum plates remained flat, with enterprises reporting a significant decline in export orders in July. The operating rate of aluminum foils remained flat, mainly affected by weak terminal demand, export decline, and summer high - temperature holidays, with the industry operating at a low level. - The operating rate of aluminum profiles decreased slightly. Although some enterprises had new orders for automotive aluminum, the building materials sector continued to be weak, and the order volume in the photovoltaic sector continued to decline, putting pressure on enterprise operations. The operating rate of aluminum cables increased slightly, but the speed of matching orders from the State Grid was still slow, and the procurement rhythm slowed down significantly. The operating rate of recycled aluminum alloys remained flat, affected by the off - season effect, low - price supply shocks, and potential production cuts by terminal automobile enterprises due to high - temperature holidays or inventory pressure. The operating rate of primary aluminum alloys increased slightly, as surplus aluminum water was mostly used for the production of primary aluminum alloys under the requirement of aluminum - water alloying [79][80][85]. 3.4 Profit: Alumina, Electrolytic Aluminum, and Processed Materials 3.4.1 Alumina - This week, the alumina profit decreased slightly. The profit of metallurgical - grade alumina under the Steel Union data was 418 yuan/ton, and the smelting profit continued to recover. The alumina profits in Shandong, Shanxi, and Henan remained stable, and the profit in Guangxi was better due to relatively firm cost [87]. 3.4.2 Electrolytic Aluminum - Electrolytic aluminum profit remains at a high level. However, the complex global macro - economic situation, overseas geopolitical conflicts leading to increased risk - aversion sentiment, and the volatility of trade policies have increased uncertainties and disrupted market expectations [97]. 3.4.3 Downstream Processing - In terms of downstream processing profit, the aluminum rod processing fee decreased slightly by 50 yuan/ton week - on - week, and the downstream processing profit remains at a low level [98]. 3.5 Consumption: Import Profit and Loss, Export Profit and Loss, and Apparent Demand 3.5.1 Import Profit and Loss - The import profit and loss of alumina and SHFE aluminum have widened [107]. 3.5.2 Export - In July 2025, the export of unwrought aluminum and aluminum products increased slightly by 52,000 tons month - on - month. The export profit and loss of aluminum processed materials are divergent. The export demand for aluminum products is hindered by trade policy adjustments and requires market games, which may drag down the demand side [109][111]. 3.5.3 Consumption Absolute Quantity - The transaction area of commercial housing decreased, and the automobile production increased month - on - month [116].

Core Viewpoint - Aikang Co., Ltd. (爱旭股份) has shown significant improvement in its financial performance in the first half of 2025, driven by the success of its ABC components and cost reduction strategies [1][2][3]. Financial Performance - In the first half of 2025, Aikang Co., Ltd. achieved operating revenue of 8.446 billion yuan, a year-on-year increase of 63.63% [1]. - The net profit attributable to shareholders was -238 million yuan, an improvement from a loss of -1.745 billion yuan in the same period last year [1]. Component Sales and Market Strategy - The company reported that its ABC component shipments reached 8.57 GW, a year-on-year increase of over 400%, with ABC component revenue accounting for approximately 74% of total revenue, up from 32.96% in the previous year [2]. - Aikang Co., Ltd. is transitioning from a third-party battery supplier to a producer of advanced N-type ABC components and scenario-based products [2]. - In the second quarter of 2025, overseas sales of components accounted for over 40% of total sales, with ABC components commanding a price premium of 10% to 50% over traditional TOPCon components in high-value distributed markets [2]. Cost Management - The company has successfully reduced management expenses by 37.42% and R&D expenses by 65.60%, attributing these reductions to decreased personnel costs [3]. - Financial expenses shifted from 280 million yuan in the previous period to -37 million yuan, due to increased exchange gains and interest income [3]. Industry Outlook and Fundraising - Aikang Co., Ltd. noted that the industry is stabilizing due to self-regulatory production limits and improved pricing conditions, although potential risks remain if policy measures fall short [4]. - The company received approval for a revised fundraising plan, aiming to raise 3.5 billion yuan, with 3 billion yuan allocated for a new high-efficiency solar cell project and 500 million yuan for working capital [4]. - The fundraising is expected to enhance the supply capacity of N-type ABC cells and solidify the company's competitive advantage in the BC cell sector [4].

Investment Rating - The report maintains a "Buy-A" rating for the company [1][7]. Core Views - The company has experienced a decline in revenue and net profit for 2024, with revenue at 46.17 billion yuan, down 10.0% year-on-year, and net profit at 2.25 billion yuan, down 22.6% year-on-year [3]. - The energy storage business shows strong growth, with revenue reaching 9.74 billion yuan in 2024, up 420.8% year-on-year, and a gross margin of 30.8% [5]. - The photovoltaic module business saw a revenue decline to 31.48 billion yuan in 2024, down 25.6% year-on-year, with a gross margin of 12.8% [6]. Financial Performance - In Q1 2025, the company reported revenue of 8.59 billion yuan, down 10.5% year-on-year and 28.4% quarter-on-quarter, with a net profit of 47 million yuan, down 91.8% year-on-year and 83.8% quarter-on-quarter [3]. - The company expects earnings per share (EPS) for 2025, 2026, and 2027 to be 0.61, 0.82, and 1.15 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 16.5, 12.1, and 8.7 [7]. Market Position - The company maintains a leading position in module delivery, with a total shipment of 31.1 GW in 2024, including a record 8.2 GW in Q4 [6]. - The company is expanding its overseas production capacity, with 5 GW of module capacity in the U.S. expected to ramp up in the second half of 2025 [6]. Future Outlook - The company anticipates a significant increase in energy storage shipments, projecting a total of 11-13 GWh for 2025, supported by a backlog of potential orders of approximately 79 GWh [5]. - The report highlights the competitive nature of the solar industry and the uncertainties in international trade and policies [7].

Performance Insights - In Q1 2025, convertible bond funds achieved a median return of 3.48%, outperforming pure bond funds which had a median return of -0.19%[1] - The first quarter saw significant growth in the scale of convertible bond funds, reaching 98.4 billion CNY, an increase of 3.6% from the previous quarter[2] - The excess return of convertible bond funds was highlighted, with a 25th percentile excess return of 1.72%[8] Fund Size and Positioning - The scale of first and second-tier bond funds increased by 331 billion CNY and 871 billion CNY, reaching 7686 billion CNY and 7692 billion CNY respectively in Q1 2025[2] - Convertible bond fund positions increased by 0.32 percentage points to 91.24%, marking a historical high[2] - Traditional bond funds saw a reduction in convertible bond positions, with first-tier bond funds decreasing by 0.04 percentage points to 8.65%[22] Market Trends and Strategies - Public funds focused on increasing positions in sectors like AI and photovoltaic components while reducing exposure to banks and brokerages[34] - The overall market environment in April 2025 is characterized by uncertainties, prompting a cautious approach among fund managers[3] - The preference for lower-risk bond funds is driven by banks' risk appetite and capital usage considerations[23] Risk Factors - Potential risks include accelerated style rotation in equity markets and unexpected adjustments in convertible bond market rules[4]