Report Date - The report is dated November 13, 2025 [1] Price Information Silicon Ferroalloy - Spot prices for different regions and grades vary, e.g., Ningxia 72 is 5150 with a daily change of -30 and weekly change of 0; Inner Mongolia 72 is 5200 with a daily change of -50 and weekly change of -20 [2] - Different contract prices on the futures market also show various changes, e.g., the main contract price is 5490 with a daily change of 2 and weekly change of -70 [2] - Export prices in Tianjin for 72 are 1045 and for 75 are 1100, both with no daily or weekly changes [2] Silicon Manganese Ferroalloy - Spot prices for different regions and grades also have differences, e.g., Inner Mongolia 6517 is 5600 with a daily change of -20 and weekly change of -20; Ningxia 6517 is 5560 with no daily or weekly changes [2] - Futures contract prices and their changes are presented, e.g., the main contract price is 5762 with a daily change of -2 and weekly change of -14 [2] Historical Price Trends - Multiple historical price trend charts are provided for silicon ferroalloy and silicon manganese ferroalloy, including market prices in different regions, export and import prices, and price differences between different contracts and regions from 2021 - 2025 [3][4][6] Supply - Related Information Silicon Ferroalloy - Production data of 136 silicon ferroalloy enterprises in China, including monthly and weekly production, and capacity utilization rates in Inner Mongolia, Ningxia, and Shaanxi from 2021 - 2025 are shown [4] - Export - related data such as export prices in Tianjin and export quantity in China from 2021 - 2025 are presented [4] Silicon Manganese Ferroalloy - Production data like weekly production in China from 2021 - 2025 are provided [6] - Procurement data of Hebei Iron and Steel Group, including procurement prices and quantities of 6517 from 2021 - 2025 are given [6] Demand - Related Information Silicon Ferroalloy - Demand - related data such as the estimated production of crude steel in China, the production of metal magnesium, and the demand for silicon ferroalloy in China from 2021 - 2025 are shown [4] Silicon Manganese Ferroalloy - Demand - related data including the demand for silicon manganese in China from 2021 - 2025 are presented [4][7] Inventory - Related Information Silicon Ferroalloy - Inventory data of 60 sample enterprises in China, including inventory in different regions, and inventory - related data such as warehouse receipts, effective forecasts, and inventory average available days in different regions from 2021 - 2025 are provided [5] Silicon Manganese Ferroalloy - Inventory - related data such as warehouse receipts, effective forecasts, and inventory average available days in China from 2021 - 2025 are shown [7] Cost and Profit - Related Information Silicon Ferroalloy - Cost - related data such as electricity prices in different regions, prices of raw materials like blue charcoal and silica, and production costs and profits in Ningxia and Inner Mongolia from 2021 - 2025 are presented [5] Silicon Manganese Ferroalloy - Profit - related data in different regions such as Inner Mongolia, Guangxi, and the northern and southern regions from 2021 - 2025 are provided [7]

Report Information - Date: November 10, 2025 [1] - Type: Ferroalloy Morning Report Core Content Summary Price - **Silicon Ferroalloy**: - Spot prices of silicon ferroalloy in various regions have declined to different degrees. For example, the price of 72 silicon ferroalloy natural block in Ningxia is 5150 yuan/ton, with a weekly decrease of 30 yuan/ton; in Inner Mongolia, it is 5220 yuan/ton, also with a weekly decrease of 30 yuan/ton [2]. - The export price of 72 silicon ferroalloy in Tianjin is 1045 US dollars/ton, with a weekly decrease of 10 US dollars/ton; the export price of 75 silicon ferroalloy is 1100 US dollars/ton, with a weekly decrease of 5 US dollars/ton [2]. - The prices of silicon ferroalloy futures contracts have also declined. For example, the main contract price of silicon ferroalloy is 5526 yuan/ton, with a daily decrease of 60 yuan/ton and a weekly increase of 26 yuan/ton [2]. - **Silicon Manganese Alloy**: - The ex - factory prices of silicon manganese alloy in various regions have decreased. For example, the ex - factory price of 6517 silicon manganese alloy in Inner Mongolia is 5620 yuan/ton, with a weekly decrease of 40 yuan/ton; in Ningxia, it is 5560 yuan/ton, with a weekly decrease of 30 yuan/ton [2]. - The price of the main contract of silicon manganese alloy is 5760 yuan/ton, with a daily decrease of 38 yuan/ton and a weekly decrease of 12 yuan/ton [2]. Supply - **Silicon Ferroalloy**: - The production capacity utilization rates of 136 silicon ferroalloy production enterprises in Inner Mongolia, Ningxia, Shaanxi and other regions have shown different trends in different periods from 2021 to 2025 [4]. - The weekly output of 136 silicon ferroalloy enterprises in China (with a production capacity accounting for 95%) has also fluctuated in different years [4]. - **Silicon Manganese Alloy**: - The weekly output of silicon manganese alloy in China has shown certain changes from 2021 to 2025 [6]. - The operating rates of silicon manganese alloy enterprises in China have also fluctuated [6]. Demand - **Silicon Ferroalloy**: - The demand for silicon ferroalloy is related to the production of products such as crude steel, stainless steel, and metal magnesium. For example, the production of crude steel in China has shown different trends in different months from 2021 to 2025, which will affect the demand for silicon ferroalloy [4]. - The procurement volume and price of FeSi75 - B by Hebei Iron and Steel Group have also changed in different months from 2021 to 2025 [4]. - **Silicon Manganese Alloy**: - The demand for silicon manganese alloy in China (according to the Steel Union's caliber) has shown an upward trend from 2021 to 2025, and the export volume has also changed [7]. Inventory - **Silicon Ferroalloy**: - The inventories of 60 sample enterprises of silicon ferroalloy in China, Ningxia, Inner Mongolia, Shaanxi and other regions have fluctuated in different weeks from 2021 to 2025 [5]. - The total number of warehouse receipts and effective forecasts of silicon ferroalloy on the Zhengzhou Commodity Exchange (CZCE) has also changed [5]. - **Silicon Manganese Alloy**: - The total number of warehouse receipts, effective forecasts, and the sum of warehouse receipts and effective inventories of silicon manganese alloy on the CZCE have shown different trends from 2021 to 2025 [7]. - The inventories of 63 sample enterprises of silicon manganese alloy in China have also changed in different weeks [7]. Cost and Profit - **Silicon Ferroalloy**: - The production costs of silicon ferroalloy in Ningxia and Inner Mongolia have fluctuated from 2021 to 2025, which is related to factors such as electricity prices and raw material prices [5]. - The profits of silicon ferroalloy in Ningxia, including the profit of converting to the main contract on the futures market and the spot profit, have also changed [5]. - The export profit of 75 silicon ferroalloy has also shown different trends [5]. - **Silicon Manganese Alloy**: - The profits of silicon manganese alloy in Inner Mongolia, Guangxi, the northern region, and the southern region (according to the Steel Union's caliber) have fluctuated from 2021 to 2025 [7]. - The profit of converting Guangxi silicon manganese alloy to the main contract on the futures market has also changed [7].

Group 1 - The core viewpoint of the article highlights that Baowu Magnesium Industry (002182) reported a revenue of 2.618 billion yuan in Q3 2025, marking a year-on-year increase of 15.26% [1] - The company achieved a net profit of 23.3151 million yuan in Q3 2025, which represents a year-on-year decline of 31.37% [1]

Group 1 - Company Baowu Magnesium Industry reported Q3 performance with revenue of approximately 6.97 billion yuan, a year-on-year increase of 9.82% [1] - The net profit attributable to shareholders was about 87.44 million yuan, a year-on-year decrease of 43.13% [1] - Basic earnings per share were 0.0882 yuan, reflecting a year-on-year decrease of 43.1% [1] Group 2 - As of the report, Baowu Magnesium Industry has a market capitalization of 14.5 billion yuan [2]

Industry Overview - In the first half of 2025, China's primary magnesium production was approximately 476,800 tons, a year-on-year decrease of about 2.19% [1] - Total exports of various magnesium products reached around 221,500 tons, down 6.18% year-on-year [1] - Magnesium prices fluctuated between 15,000-17,000 RMB/ton (including tax), with the magnesium-aluminum ratio dropping to a historical low of 0.8-0.9, highlighting the cost-effectiveness of magnesium materials [1] Company Resource Status - Subsidiary Chao Lake Bao Magnesium holds white marble mineral resources with a reserve of 90 million tons, currently in operation [2] - Subsidiary Wutai Bao Magnesium has white marble mineral resources with a reserve of 580 million tons [2] - The company’s associate Anhui Bao Magnesium possesses white marble mineral resources with a reserve of 1.3 billion tons, which is not yet in production [2] - Gansu Bao Magnesium's subsidiary has quartzite mineral resources with a reserve of 2.95 million tons, with mining rights obtained and expected to commence in Q4 2025, which will effectively reduce silicon iron production costs [2] Automotive Sector Applications - Magnesium prices have remained lower than aluminum prices, accelerating the penetration of magnesium in automotive lightweighting [3] - Die-casting plants are increasingly adopting magnesium die-casting, including some aluminum die-casting companies [3] - New energy vehicle companies, including brands like Geely and SAIC, are increasing the use of magnesium products, with some vehicles using over 20 kg of magnesium per unit, potentially reaching 50-100 kg with larger magnesium die-cast components [3] Robotics Industry Applications - Magnesium alloys enhance the robotics industry with advantages such as lightweight, speed, stability, and cost-effectiveness [4] - The use of advanced magnesium alloy materials reduces the weight of similar components, improves operational speed, and extends the lifespan of robotic joints due to superior thermal conductivity [4] - The company has established a robotics business working group to engage with clients and promote magnesium applications [4] Electric Bicycle Applications - Magnesium's lightweight, electromagnetic shielding, and vibration damping properties are being utilized in electric bicycles [6] - Leading electric vehicle manufacturers like Aima and Yadea are incorporating magnesium alloy components, resulting in reduced weight and improved range and shock absorption [6] - The adoption of magnesium alloys is expected to lower production costs and enhance competitiveness against aluminum alloys [6]

Core Insights - Baowu Magnesium Industry (002182) reported steady revenue growth in the first half of 2025, achieving operating income of 4.352 billion yuan, a year-on-year increase of 6.78%, and a net profit attributable to shareholders of 64.1242 million yuan, showcasing its strong capabilities and forward-looking layout in the magnesium industry chain [1][2] Revenue and Profitability - The company’s complete industry chain layout from "bauxite mining - primary magnesium smelting - magnesium alloy melting - magnesium alloy processing - magnesium alloy recycling" has effectively reduced production costs and improved resource utilization efficiency, ensuring stable product quality and reliable supply [1] - In the magnesium materials business, Baowu Magnesium maintained its market leadership, with magnesium alloy products generating revenue of 1.133 billion yuan despite price fluctuations, achieved through product structure optimization and enhanced production efficiency [1] Market Expansion and Internationalization - The company has made significant progress in internationalization, increasing efforts to expand overseas markets, enhancing local service capabilities, and optimizing the overseas sales network, resulting in steady growth in overseas business scale and market share [1] Technological Innovation - Baowu Magnesium has increased R&D investment to drive product iteration and upgrade, successfully developing high-performance self-researched alloys for application in the drone industry, providing solid technical support for industry chain extension [2] Future Outlook - The excellent performance in the first half of 2025 highlights the company's deep accumulation and market competitiveness in the magnesium industry chain, indicating a promising future with broader development space and opportunities as the global magnesium market continues to grow and technology advances [2]

Core Insights - The company reported a revenue of 4.352 billion yuan for the first half of 2025, representing a year-on-year increase of 6.78% [1] - The net profit attributable to shareholders decreased to 64.1242 million yuan, a decline of 46.47% compared to the previous year [1] - Basic earnings per share fell to 0.0647 yuan, down 46.44% year-on-year [1] - The company announced plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves [1]

Group 1 - Baowu Magnesium Industry has experienced a decline for six consecutive trading days, with a cumulative drop of -6.89% [1] - The company was formerly known as Yunhai Metal Group, established in 1993, and was listed on the Shenzhen Stock Exchange in 2007 [1] - Southern Fund's Southern CSI 1000 ETF is among the top ten shareholders of Baowu Magnesium Industry and has reduced its holdings in the second quarter of this year [1] Group 2 - The Southern CSI 1000 ETF has achieved a year-to-date return of 13.09%, ranking 941 out of 3420 in its category [1][2] - The fund's performance over various periods includes a quarterly increase of 13.11% and a six-month increase of 15.19% [2] - The fund manager, Cui Lei, has extensive experience and qualifications, including a Master's in Financial Engineering from Cornell University and certifications as a Financial Risk Manager (FRM) and Chartered Financial Analyst (CFA) [3][4]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [5]. Core Views - The company's performance is negatively impacted by declining magnesium prices, with projected revenues of 8.983 billion and 10.110 billion for 2024 and 2025 respectively, representing year-on-year growth of 17.39% and 12.55%. However, net profits are expected to decrease significantly, with a forecast of 1.6 billion and 0.28 billion for the same periods, reflecting a decline of 47.91% and 53.58% [1]. - The magnesium-aluminum price ratio has remained below 1 for nearly 11 months, indicating a growing application space for lightweight materials in the automotive sector. Major automotive manufacturers are increasing their use of magnesium products, with potential usage in vehicles expected to rise significantly in the future [1]. - The company has established a comprehensive supply chain from mining to magnesium alloy production, ensuring raw material supply and cost efficiency. Current production capacities include 100,000 tons of raw magnesium and 200,000 tons of magnesium alloy, with additional capacity expansions planned [3]. Summary by Sections Financial Performance - The company is projected to achieve revenues of 89.83 billion and 20.33 billion in Q1 of 2024 and 2025, with respective year-on-year growth rates of 17.39% and 9.08%. However, net profits are expected to decline to 1.6 billion and 0.28 billion, down 47.91% and 53.58% [1]. - The forecast for net profit for 2025-2026 has been revised downwards to 2.11 billion and 2.83 billion, reflecting a decrease of 64.7% and 68.1% respectively, with a new projection for 2027 at 4.23 billion [3]. Market Trends - The magnesium price has decreased by 17.2% since the beginning of 2024, with the current price at 18,210 yuan per ton [1]. - The magnesium-aluminum price ratio is currently at 0.90, indicating a shift towards magnesium in automotive applications, with significant penetration from companies like Seres and Geely [1]. Industry Position - The company benefits from an integrated layout that includes mining, raw magnesium smelting, and magnesium alloy production, which helps in securing raw material supply and reducing production costs [3]. - The company has significant resource reserves, with subsidiaries holding substantial quantities of dolomite resources, ensuring long-term supply stability [3].

Group 1 - The core viewpoint emphasizes the ongoing infrastructure projects in Wutai County, particularly the renovation of the old urban pipeline network, reflecting the county government's commitment to achieving economic goals and laying a solid foundation for future development [1][3] - The county government is implementing a work mechanism that includes leadership involvement, checklist management, scheduling reports, and performance assessments to enhance the planning and execution of industrial economic projects [3] - Major projects such as the Xiongxin High-speed Railway and the Fenwu Expressway are prioritized, alongside initiatives to attract high-quality hotels, guesthouses, and travel agencies to boost the local economy [3][4] Group 2 - The establishment of a 500-acre standardized Chinese medicinal herb base and the enhancement of certification efforts are part of the county's strategy to promote agricultural and tourism development [4] - The collaboration between Wutai Mountain Tianyu Agricultural Development Co., Ltd. and Shanxi Xinghuacun Fenjiu Distillery has led to the successful production of Wutai Mountain Quinoa Wine, creating a comprehensive industry chain from cultivation to sales [4][6] - The implementation of solar power projects in Siyang Village has significantly increased the village's collective economic income, with solar revenue accounting for 56% of total income [6]