Summary of Conference Call Notes Industry Overview - **Industry**: New Materials in China - **Key Focus Areas**: Lithium, Uranium, Rare Earths, Solar Glass Key Points and Arguments Lithium Market - **Demand**: Year-to-date lithium demand has exceeded market expectations, driven by strong demand from Energy Storage Systems (ESS) and ongoing electric vehicle (EV) trade-in programs [2] - **Supply Risks**: Yichun lepidolite mines are undergoing resource reclassification, which may lead to temporary shutdowns. These mines collectively produce approximately 150,000 tons of Lithium Carbonate Equivalent (LCE) annually [2] - **Cost Dynamics**: The cost curve for lepidolite mines is expected to rise due to increased royalties and fees, with cost support estimated at around RMB 70,000 per ton [2] Uranium Market - **Price Momentum**: Strong momentum in uranium prices is anticipated, supported by major investment vehicles like SPUT and Yellow Cake purchasing in the spot market. Long-term prices are expected to rise post-World Nuclear Symposium, with current spot prices around US$83 per pound [3] - **Supply Adjustments**: Production cuts from Kazatomprom and Cameco highlight ongoing supply risks, benefiting CGN Mining, which has increased its spot price exposure to 70% from 60% due to a renewed three-year contract [3] Rare Earths and Magnets - **Price Strength**: Rare earth prices are robust due to strong downstream demand and China's supply-side controls. Magnet producers are expected to pass price increases to customers, improving gross profit margins [4] - **Export Recovery**: Export volumes for magnet producers are normalizing, with anticipated improvements in shipment volumes and earnings in the second half of the year [4] Solar Glass Market - **Demand Decline**: Demand for solar glass has softened in October and is expected to weaken further into winter, leading to inventory build-up and downward pressure on prices [5] - **Earnings Impact**: The anticipated decline in solar glass prices could negatively affect company earnings if no supply-side controls are implemented [5] Additional Insights - **Equity Ratings**: Various companies within the new materials sector have been rated with "Overweight" or "Equal-weight" based on their market positions and expected performance [10][11] - **Price Target Adjustments**: Price targets for several companies have been adjusted based on updated earnings forecasts and market conditions, reflecting changes in commodity prices and company performance [19][20] - **Market Sentiment**: The overall sentiment in the new materials sector remains attractive, with potential upside from uranium recovery and stable demand in rare earths, despite challenges in lithium and solar glass markets [1][7] Conclusion The new materials sector in China is experiencing mixed dynamics, with strong demand in lithium and uranium markets, while facing challenges in solar glass. Companies are adjusting their strategies and forecasts in response to evolving market conditions, highlighting the importance of monitoring supply risks and price movements in this sector.

Group 1: AI Sector Insights - The AI sector, particularly the ChiNext AI Index, is becoming a significant indicator of the AI wave, with a cumulative increase of approximately 145.52% from August 23, 2024, to August 22, 2025, compared to a 32.14% increase in the CSI 300 Index [2] - Key components of the ChiNext AI Index include leading companies such as Zhongji Xuchuang, Xinyi Sheng, and Tianfu Communication, with the top ten stocks accounting for about 53.83% of the index weight [2] - The strong performance of the index is driven by the rapid growth of core stocks, particularly the three leading optical module companies, which have seen significant price increases in the past month [2][3] Group 2: Company Performance - Zhongji Xuchuang expects a net profit of 3.6 billion to 4.4 billion yuan for the first half of 2025, representing a year-on-year growth of 52.64% to 86.57% [3] - Xinyi Sheng anticipates a net profit of 3.7 billion to 4.2 billion yuan for the same period, with a staggering year-on-year increase of 327.68% to 385.47% [3] - The performance of these companies reflects the direct benefits of the global AI industry boom and highlights a clear value path driven by large models and core hardware [3][4] Group 3: New Materials Sector Insights - The Shanghai Stock Exchange's New Materials Index symbolizes the depth of China's advanced manufacturing and is a key indicator of the country's "hard technology" self-sufficiency progress, with a cumulative increase of about 80.51% from August 23, 2024, to August 22, 2025 [5] - The index includes key players in various strategic fields, such as Hu Silicon Industry in semiconductor materials and Tian Nai Technology in new energy battery materials, showcasing a broad coverage of critical areas supporting China's industrial upgrade [5][6] - The performance of the New Materials Index is expected to continue benefiting from the ongoing trends of industrial upgrades and domestic substitution [5][7] Group 4: Future Outlook - The period from 2025 to 2030 is seen as crucial for China's new materials industry, transitioning from "catching up" to "keeping pace" and even "leading" in some areas, with major companies moving towards large-scale production [7] - Emerging technologies such as third-generation semiconductors and commercial aerospace are anticipated to open new growth points for the industry [7] - The New Materials Index is positioned to benefit from both current domestic substitution trends and the long-term rise of China's advanced manufacturing supply chain [7][8] Group 5: Investment Opportunities - Investors are encouraged to consider the Southern Fund's ChiNext AI ETF (159382) and the Sci-Tech Materials ETF (588160) as they track the respective indices, providing a convenient and transparent investment channel for core "hard technology" assets in China [9]

Core Points - The 2025 Fujian Global Innovation and Entrepreneurship Competition aims to attract overseas professionals and promote strategic emerging industries in Fujian [1][4] - The competition features cash awards totaling 150,000 yuan for first prizes, 100,000 yuan for second prizes, and 50,000 yuan for third prizes, with additional excellent awards of 20,000 yuan [2] - Participants will compete in three categories: digital economy, biotechnology, and advanced manufacturing, showcasing innovations in artificial intelligence, biomedicine, new energy, and new materials [2] Competition Structure - The competition consists of four stages: registration, review process, preliminary round, and final round, with registration open from May 10 to July 10, 2025 [3] - The preliminary round will occur online in July, followed by offline pitch presentations in early September during the China International Fair for Investment & Trade (CIFIT) [3] - An awards ceremony will conclude the competition, accompanied by industry tours and investor networking sessions [3] Support for Participants - First-prize winners can receive recognition as Category B High-Level Talent, with a settlement subsidy of up to 1 million yuan [4] - Second- and third-prize winners can be recognized as Category C High-Level Talent, eligible for a settlement subsidy of up to 500,000 yuan [4] - Projects may qualify for the Hundred Talents Program for Entrepreneurship, with potential subsidies of up to 2 million yuan [4]

Investment Rating - The industry view for Greater China Materials is rated as Attractive [6] Core Insights - Lithium demand may be pressured by trade tensions, with a market surplus expected to increase to approximately 10,000 tons of lithium carbonate equivalent (LCE) in April, leading to downward pressure on prices [2][3] - Uranium fundamentals remain solid despite a spot price correction, with term pricing stable at around US$80 per pound, indicating a constructive medium-to-long-term supply-demand outlook [3] - Solar glass prices are likely to stabilize due to supply responses, although pressures are expected to persist in the second half of 2025 as demand decreases [4][10] Summary by Sections Lithium - Demand in 1Q25 was stronger than expected due to EV trade-in programs and energy storage system (ESS) demand, but the peak season in 2Q25 is anticipated to be muted due to earlier demand pull-forward [2] - Tariff uncertainties have caused large EV makers to pause April order books, leading to a potential price bottom for lithium carbonate at approximately Rmb65,000 per ton [2] Uranium - The spot price has declined to around US$60 per pound, influenced by uncertainties regarding Russian enriched uranium and US tariffs, but the gap between spot and term prices has widened, limiting further downside [3] - Supply imbalances are expected to gradually reflect in the market, potentially pushing uranium prices higher and benefiting companies like CGN Mining [3] Solar Glass - A reasonable recovery was noted in 1Q25, with prices rebounding due to increased demand from module producers, but a decrease in demand is expected in June as rush installations conclude [4][10] - The near-term supply and demand for solar glass could remain solid, supporting earnings recovery for producers, but increased industry supply may pressure prices again in 2H25 [10] Rare Earth Magnets - An upward trend in rare earth prices is anticipated due to new smelting regulations and tariffs, which could tighten supply from imports, benefiting producers [11] Stock Ratings - Overweight-rated stocks include Xinyi Solar, CGN Mining, and various rare earth magnet producers, with significant upside potential noted for several companies [12][13]