Core Viewpoint - XuZhou HaoTong New Materials Technology Co., Ltd. reported a significant decrease in revenue and cash flow for the first half of 2025, with a focus on precious metal recovery and related products, while maintaining a stable net profit margin [3][4][5]. Financial Performance - The company's operating revenue for the reporting period was approximately 1.35 billion yuan, a decrease of 22.13% compared to the same period last year [6]. - The net profit attributable to shareholders was approximately 84.72 million yuan, reflecting a 10.97% increase year-on-year [6]. - The net cash flow from operating activities was negative at approximately -137.59 million yuan, a decline of 130.60% compared to the previous year [6]. Business Overview - The main business segments include precious metal recovery, new materials, and trade, with a focus on recovering platinum, palladium, rhodium, and silver from secondary resources [7][8]. - The company has established a stable supply chain for raw materials, primarily sourcing from the petrochemical and fine chemical industries [8]. Product and Service Analysis - Key products include platinum, palladium, rhodium, and silver, with applications in jewelry, catalysts, and electronic components [9]. - The company also offers deep processing services for new materials, such as dichlorotetraamine platinum and dichlorodiamine palladium [9]. Competitive Advantages - The company has a strong brand presence and product reputation in the precious metals market, supported by over a decade of industry experience [10]. - Technological innovation is a priority, with significant investments in R&D leading to several core technologies being at the domestic leading level [10][11]. - The company has established long-term partnerships with major petrochemical companies, enhancing its competitive position in the industry [12]. Financial Health - Total assets increased by 35.35% year-on-year, reaching approximately 4.12 billion yuan [6]. - The company has a strong cash position, with cash and cash equivalents amounting to approximately 882.07 million yuan, representing 21.41% of total assets [13].

Group 1: Market Overview - The price of gold is projected to reach a historical high of $3,500 per ounce by April 2025, driven by geopolitical tensions and a dollar credit crisis, highlighting the renewed focus on precious metals [2] - Gold has seen a year-to-date increase of 28.51%, reinforcing its status as a safe-haven asset amid inflationary risks in the U.S. [2] - Central banks' ongoing purchases of gold emphasize its unique role as a sovereign credit hedge [2] Group 2: Silver and Platinum Group Metals - Silver is expected to surpass $43.50 per ounce in 2025, with its essential role in 5G electronics and new energy batteries due to its conductivity [3] - The market for platinum is facing challenges due to reduced demand from traditional fuel vehicles, but hydrogen fuel cell vehicles present new opportunities [3] - The usage of platinum in vehicles has decreased from 1.1g/kW in 2000 to 0.17g/kW, prompting accelerated research into low-platinum catalysts [3] Group 3: Palladium and Rhodium Dynamics - Palladium's demand in automotive emissions control is declining, with its market share dropping from 75% in 2020 to 60% in 2025, while new demands in electronics and hydrogen fuel cells are emerging [4] - Rhodium prices have surged from 1,200 yuan per gram in 2020 to over 3,000 yuan per gram in 2025, driven by demand from hydrogen vehicles and 5G glass [4] - The development of rhodium-free catalysts in Japan poses a potential risk to rhodium prices if mass production occurs [4] Group 4: Recycling and Geopolitical Risks - The precious metals recycling market in China is expected to expand, with new technologies increasing recovery rates to over 95% [4] - Geopolitical risks remain high, as 80% of rhodium and 40% of palladium supply relies on South Africa and Russia, making the supply chain vulnerable to disruptions [4] - The interplay between resource concentration and technological breakthroughs is creating uncertainties in the precious metals market [4] Group 5: Future Outlook - Each precious metal faces unique challenges and opportunities, with gold balancing monetary and medical applications, platinum undergoing energy transition pains, and palladium and rhodium navigating traditional and emerging demands [5] - The precious metals market in 2025 transcends simple safe-haven investments, serving as a lens to observe global industrial changes and geopolitical dynamics [5]