Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The main contract price of rebar declined weakly, with a daily decline of 1.89%. In the current situation of increasing supply and demand, industrial contradictions continue to accumulate, inventory increases, and steel prices are still under pressure. It is expected to continue the weak bottom - seeking trend, and attention should be paid to demand performance [4]. - The main contract price of hot - rolled coil plate showed a weak operation, with a daily decline of 1.58%. The demand for hot - rolled coils has certain resilience, providing support for prices. However, concerns about external demand remain, and the supply contraction is difficult to sustain. It is expected to continue the weakening trend in oscillation, and attention should be paid to steel mill production [4]. - The main contract price of iron ore weakened again, with a daily decline of 2.67%. The demand for iron ore continues to weaken, while the supply is stable. The ore fundamentals are weakly stable, and the ore valuation is relatively high. Under the game of multiple and short factors, the ore price will continue the weak oscillation operation, and attention should be paid to steel performance [4]. Summary by Related Catalogs 1. Industry Dynamics - In August, China's Manufacturing Purchasing Managers' Index (PMI) was 49.4%, up 0.1 percentage points from the previous month. The PMI of large enterprises was 50.8%, up 0.5 percentage points; the PMI of medium - sized enterprises was 48.9%, down 0.6 percentage points; the PMI of small enterprises was 46.6%, up 0.2 percentage points [6]. - In August 2025, China's heavy - truck market sold about 84,000 vehicles, a year - on - year increase of about 35%. From January to August, the cumulative sales exceeded 700,000 vehicles, and it is almost certain that the annual sales will exceed 1 million vehicles [7]. - From January to August 2025, nearly 110 anti - dumping and countervailing investigations or rulings on Chinese steel products were announced, involving various steel products [8]. 2. Spot Market - For rebar, the Shanghai price was 3,220 yuan/ton, down 20 yuan; the Tianjin price was 3,210 yuan/ton, down 30 yuan; the national average price was 3,300 yuan/ton, down 26 yuan. For hot - rolled coil plate, the Shanghai price was 3,350 yuan/ton, down 30 yuan; the Tianjin price was 3,300 yuan/ton, down 60 yuan; the national average price was 3,430 yuan/ton, down 28 yuan. The price of Tangshan steel billet was 2,970 yuan/ton, down 30 yuan, and the price of Zhangjiagang heavy scrap was 2,120 yuan/ton, unchanged [9]. - The price of 61.5% PB powder at Shandong ports was 765 yuan/ton, down 13 yuan; the price of Tangshan iron concentrate was 788 yuan/ton, unchanged. The sea freight from Australia was 10.11 yuan, down 0.05 yuan; from Brazil was 24.51 yuan, up 0.14 yuan. The SGX swap (current month) was 101.81, down 0.09, and the Platts Index (CFR, 62%) was 103.60, down 0.30 [9]. 3. Futures Market - The closing price of rebar futures was 3,115 yuan/ton, with a decline of 1.89%, the trading volume was 1,342,816, an increase of 534,144, and the open interest was 1,633,714, an increase of 578,004 [11]. - The closing price of hot - rolled coil plate futures was 3,303 yuan/ton, with a decline of 1.58%, the trading volume was 587,250, an increase of 59,364, and the open interest was 1,195,204, an increase of 28,571 [11]. - The closing price of iron ore futures was 766.0 yuan/ton, with a decline of 2.67%, the trading volume was 393,789, an increase of 178,541, and the open interest was 453,950, a decrease of 19,658 [11]. 4. Related Charts - The report provides various charts related to steel and iron ore inventories (such as rebar inventory, hot - rolled coil plate inventory, national 45 - port iron ore inventory, etc.), steel mill production (such as 247 - sample steel mill blast furnace opening rate, 87 - independent electric furnace opening rate, etc.) [13][26]. 5. Future Market Judgment - For rebar, supply and demand both increased. The weekly output increased by 59,100 tons, and demand improved with a weekly increase of 94,100 tons in apparent demand. However, high - frequency daily transactions were sluggish. With accumulated industrial contradictions and increasing inventory, it is expected to continue the weak bottom - seeking trend [34]. - For hot - rolled coil plate, supply and demand were stable. The weekly output decreased by 5,000 tons, and the weekly apparent demand decreased by 5,500 tons. Although there is demand resilience, external demand concerns remain, and it is expected to continue the weakening trend in oscillation [34]. - For iron ore, supply and demand both weakened. Steel mill production declined, and ore demand is expected to fall. The domestic port ore arrival increased, and overseas supply remained high. Under the game of multiple and short factors, the ore price will continue the weak oscillation operation [35].

Group 1: Iron Ore Reserves Comparison - The United States has iron ore reserves of 11.5 billion tons, but the iron content is low at around 33%, which is significantly below the standard for high-grade ore [3] - Russia's iron ore reserves total 29 billion tons, with over 60% being high-quality ore, allowing for direct use in steel production [5] - China's iron ore reserves are 16.2 billion tons, but the iron content is also low at approximately 34%, necessitating additional processing [7] Group 2: Iron Ore Consumption and Production - The U.S. consumes about 120 million tons of iron ore annually but can only produce 40 million tons domestically, leading to a reliance on imports from allies like Canada and Brazil [3] - China has an annual iron ore consumption of over 130 million tons, with a production capacity of nearly 1 billion tons of raw ore, but still imports significant amounts from Australia and Russia [7][9] - The global iron ore production capacity is heavily dominated by Australia and Brazil, which together account for half of the total supply [7]

Report Industry Investment Rating No relevant content provided. Core View of the Report Considering the shipping schedule, the supply and demand of iron ore will be weak in September, and the overall static supply and demand will tighten. Attention should be paid to the restoration of molten iron after the military parade and the strength of the downstream peak season. If there is significant inventory reduction and rapid restoration of molten iron during the peak season, the iron ore price will remain firm. Otherwise, attention can be paid to the bottom - up negative feedback [5]. Summary by Relevant Catalogs 1. Market Review - In August, the spot and futures prices of iron ore fluctuated strongly. As of August 28, the futures price of the main contract increased by 33.5 yuan/ton month - on - month [2][4] 2. Supply Side - **Mainstream Mines**: The shipments of the four major mines are expected to increase in September, with an estimated month - on - month increase of about 325 tons. Specifically, VALE's estimated shipment in September is 2785 tons, a decrease of 5 tons month - on - month; Rio Tinto's is 3015 tons, an increase of 195 tons; BHP's is 2380 tons, an increase of about 55 tons; and FMG's is 1610 tons, an increase of 80 tons [23][26][27] - **Non - mainstream Mines**: The shipments of non - mainstream mines are relatively stable overall. The estimated shipment in August is 4740 tons, and in September it is 4715 tons, a decrease of about 25 tons [30] - **Domestic Mines**: The domestic iron concentrate production is expected to decrease slightly. The estimated production in August is 2056 tons, and in September it is 1985 tons, a month - on - month decrease of 70 tons [33] - **Overall Supply**: The global supply in September is expected to increase by about 235 tons month - on - month [34] 3. Demand Side - **Domestic Demand**: According to the Steel Union's statistics, the estimated national pig iron production in August is 7460 tons, a year - on - year increase of 6.4%. The estimated blast furnace molten iron production in September is 7190 tons, a month - on - month decrease of 270 tons, which translates to a decrease of 443 tons in the demand for 61% grade iron ore [5][16][20] - **Overseas Demand**: The daily average pig iron production outside China remains stable for now. The estimated pig iron production in September will decrease by 30 tons, which translates to a decrease of about 49 tons in the demand for 61% grade iron ore [19][20] - **Overall Demand**: Globally, the demand for 61% grade iron ore in September is expected to decrease by about 492 tons [5][20] 4. Inventory - **Port Inventory**: At the end of August, the inventory of imported iron ore at 45 ports across the country was 1.38 billion tons, a month - on - month increase of 105 tons. The inventory in September is expected to fluctuate slightly [35] - **Steel Mill Inventory**: Steel mills adopt low - inventory management. They replenished inventory at low levels in June and July, and there may be inventory replenishment before the long holiday at the end of September [37] 5. Supply - Demand Balance Sheet - Considering the shipping schedule, the supply and demand of iron ore in September will be weak, and the overall static supply and demand will tighten. The supply - demand surplus in September is estimated to be - 26 tons [43][44]

Core Viewpoint - The company reported an increase in revenue to $122.8 million for the six months ending June 30, 2025, despite a 13.9% decline in the Platts 65% iron content index price, attributed to a 26.9% increase in sales volume [1][2] Financial Performance - Revenue increased to $122.8 million, driven by a 26.9% rise in sales volume [1] - Adjusted EBITDA (excluding non-recurring items and foreign exchange) was $6.7 million, a significant improvement from a negative $1.7 million in the previous year [1] - Adjusted basic loss was $3 million, compared to a loss of $10.8 million in the previous year [1] - K&S asset impairment expense was $120.2 million, attributed to the appreciation of the ruble and expectations of future cost increases [1] - Shareholders' loss amounted to $102 million, compared to a loss of $13.2 million in the previous year [1] Operational Insights - The company experienced significant operational improvements, particularly at the Sutara mine, which enhanced ore quality and increased production [2] - Despite operational advancements and increased sales, financial performance was negatively impacted by external market conditions, including falling iron ore prices and the strengthening ruble [2] - The company remains focused on improving operational efficiency, maintaining financial flexibility, and preparing for potential market recovery [2]

Core Viewpoint - Jinling Mining (000655) reported a strong performance in its 2025 mid-year financial results, with significant increases in revenue and net profit compared to the previous year [1] Financial Performance - Total revenue for the first half of 2025 reached 768 million yuan, a year-on-year increase of 10.17% [1] - Net profit attributable to shareholders was 150 million yuan, up 88.14% year-on-year [1] - In Q2 2025, total revenue was 412 million yuan, a slight decrease of 1.14% compared to the same quarter last year [1] - Q2 net profit attributable to shareholders was 101 million yuan, an increase of 75.01% year-on-year [1] Profitability Metrics - Gross margin improved to 27.71%, reflecting a year-on-year increase of 57.55% [1] - Net margin rose to 19.97%, with a year-on-year increase of 67.98% [1] - Total selling, administrative, and financial expenses amounted to 42.749 million yuan, accounting for 5.56% of revenue, down 16.62% year-on-year [1] Earnings and Cash Flow - Earnings per share (EPS) increased to 0.25 yuan, up 88.15% year-on-year [1] - Operating cash flow per share was 0.21 yuan, a significant increase of 171.67% year-on-year [1] - The company's net cash flow from operating activities saw a substantial increase due to higher sales revenue and reduced raw material expenditures [2] Investment and Debt - The company reported a 310.91% increase in R&D expenses due to new projects [2] - Interest-bearing liabilities increased by 14.17% to 1.2506 million yuan [1] - Cash and cash equivalents decreased slightly by 1.29% to 1.854 billion yuan [1] Historical Performance - The company's return on invested capital (ROIC) was 4.67%, indicating weak capital returns historically [4] - The historical median ROIC over the past decade was 4.39%, with four years of losses since its listing [4]

Core Points - The company reported a revenue of approximately 768.49 million yuan for the first half of 2025, representing a 10.17% increase compared to the same period last year [1] - The net profit attributable to shareholders reached approximately 150.30 million yuan, marking an 88.14% increase year-on-year [1] - The basic earnings per share increased to 0.2525 yuan, an 88.15% rise from the previous year [2] - The net cash flow from operating activities improved significantly, showing a net inflow of approximately 126.06 million yuan, a 171.67% increase compared to a net outflow in the same period last year [2] - Total assets at the end of the reporting period were approximately 4.03 billion yuan, a 3.51% increase from the end of the previous year [3] - The net assets attributable to shareholders increased to approximately 3.44 billion yuan, reflecting a 2.44% growth year-on-year [3] Company Overview - The company is listed on the Shenzhen Stock Exchange under the stock code 000655 [1] - The board of directors approved a cash dividend of 0.5 yuan per 10 shares, with no bonus shares issued [1] - The company is in the process of transferring 100% equity and related debts of Tashkurgan Jinchang Mining Co., Ltd., with the transfer still ongoing [4]

Core Viewpoint - Shandong Jinling Mining Co., Ltd. achieved strong performance growth in the first half of 2025 despite challenges in the steel industry and declining iron ore prices, driven by strategic transformation and solid operational measures [1][2]. Financial Performance - The company reported a revenue of 768 million yuan, a year-on-year increase of 10.17% [1] - Total profit reached 193 million yuan, up 98.33% year-on-year [1] - Net profit attributable to shareholders was 150 million yuan, reflecting an 88.14% increase year-on-year [1] - Net cash flow from operating activities was 126 million yuan, a significant increase of 171.67% year-on-year [1] - In Q2, net profit attributable to shareholders reached 101 million yuan, a quarter-on-quarter growth of 106.12% [1] Dividend Distribution - The company implemented a cash dividend distribution plan for 2024, totaling 65.49 million yuan, with an expected total cash distribution of 107 million yuan for the year, representing 52.54% of the net profit attributable to shareholders for 2024 [1] - For the first half of 2025, the proposed cash dividend is 0.50 yuan per 10 shares, amounting to an expected payout of 29.77 million yuan [1] Strategic Transformation - The new management established a "three transformations" strategy: transitioning from a pure iron ore producer to a comprehensive mineral resource service provider, shifting from cost-focused operations to profit-centered management, and evolving from a single operational model to a dual-driven model combining production and capital operations [2] - This strategic direction has led to comprehensive performance growth and laid a solid foundation for sustainable development [2] Production and Cost Efficiency - The main product, iron concentrate, showed positive trends with production increasing by 15.74% to 698,000 tons and sales rising by 16.06% to 690,000 tons [2] - The company achieved a reduction in unit production costs for iron concentrate, with gross profit margin increasing by 8.16 percentage points to 25.39% [2] - The by-product, copper concentrate, also experienced simultaneous increases in both volume and price, further strengthening overall profitability [2] Resource Expansion and Logistics - The company made significant progress in resource expansion, obtaining exploration rights for high-grade iron ore in Shandong Province, which is expected to become a new resource base [3] - A specialized team was formed to focus on non-ferrous metal resource projects, conducting systematic research and selection [3] - In logistics, the company established a railway logistics network to reduce regional logistics costs and enhance product market competitiveness [3] Internal Management Improvements - The company implemented human resource reforms, including smaller accounting units and differentiated compensation mechanisms, to stimulate employee motivation and promote effective management practices [3]

Report Summary 1) Industry Investment Rating No industry investment rating is provided in the report. 2) Core Views - **Ribbed Bars**: The main contract futures price of ribbed bars fluctuated with a daily decline of 0.35%, and both trading volume and open interest decreased. The supply - demand on both sides is stable, industrial contradictions are accumulating, and steel prices are under pressure. However, the increase in cost may limit the downward space. It is expected that steel prices will continue to fluctuate weakly, and attention should be paid to the demand performance [4]. - **Hot - Rolled Coils**: The main contract futures price of hot - rolled coils fluctuated weakly with a daily decline of 0.86%, and both trading volume and open interest decreased. The supply and demand on both sides are rising, and the demand shows good resilience, which supports the price. But the fundamentals have not improved under the high - supply pattern. With the support of cost increase and production restriction disturbances, the price is expected to continue to fluctuate upward, and attention should be paid to the demand performance [4]. - **Iron Ore**: The main contract futures price of iron ore weakened with a daily decline of 0.71%, trading volume decreased while open interest increased. The demand for ore is at a high level with good resilience, which supports the ore price. However, steel mill profits are shrinking, and production restriction disturbances are continuous, weakening the positive effects. On the contrary, the supply has returned to a high level, and the fundamentals of ore are weakening. The over - valued ore price will continue to be under pressure and adjust through fluctuations. Attention should be paid to the performance of finished products [4]. 3) Summary by Sections Industry Dynamics - **Consumption Market**: In July 2025, commodity retail sales increased by 4.0% year - on - year, with the retail sales of above - quota units increasing by 3.1%. From January to July, commodity retail sales increased by 4.9%. The policy of trading in old consumer goods for new ones continued to be effective. The retail sales of household appliances, furniture, communication equipment, and cultural and office supplies of above - quota units increased by 28.7%, 20.6%, 14.9%, and 13.8% respectively. In July, passenger car retail sales increased by 6.3% year - on - year, and new - energy passenger car retail sales increased by 12.0% with a penetration rate of 54%. Upgraded products maintained rapid growth [6]. - **Mechanical Industry**: From January to July, the added values of the five major industries in the mechanical industry increased year - on - year. General equipment manufacturing increased by 8.3%, special equipment manufacturing by 3.8%, automobile manufacturing by 10.9%, electrical machinery and equipment manufacturing by 11.9%, and instrument and meter manufacturing by 7.1%. In terms of fixed - asset investment, general equipment manufacturing increased by 14.8%, special equipment manufacturing by 4.6%, automobile manufacturing by 21.7%, electrical machinery and equipment manufacturing decreased by 8.7%, and instrument and meter manufacturing decreased by 16.3%. The cumulative output of metal - cutting machine tools was 480,000 units, an increase of 13.9% year - on - year; the cumulative output of industrial robots was 447,000 sets, an increase of 32.9% year - on - year; and the cumulative output of solar cells was 47,3960,000 kilowatts, an increase of 19.6% year - on - year [7]. - **Iron Ore Joint Venture**: The state - owned mining company SNIM of Mauritania and the Saudi Arabian steel company Hadeed will jointly establish a joint venture to develop an iron ore mine in Mauritania with an annual production target of 12 - 14 million tons. The two countries plan to enhance trade through direct transportation routes, and the Islamic Development Bank has allocated $315 million for infrastructure construction [8]. Spot Market - **Steel Products**: The spot prices of ribbed bars (HRB400E, 20mm) in Shanghai, Tianjin, and the national average were 3,280, 3,270, and 3,337 respectively, with decreases of 20, 10, and 5. The spot prices of hot - rolled coils (Shanghai, 4.75mm) in Shanghai, Tianjin, and the national average were 3,400, 3,360, and 3,459 respectively, with decreases of 20, 10, and 16. The price of Tangshan billets was 3,020 with no change, and the price of Zhangjiagang heavy scrap was 2,120 with no change. The coil - to - ribbed bar price difference was 120 with no change, and the ribbed bar - to - scrap price difference was 1,160, a decrease of 20 [9]. - **Iron Ore**: The price of 61.5% PB powder at Shandong ports was 767, a decrease of 3; the price of Tangshan iron concentrate was 778 with no change. The sea freight from Australia was 8.89, a decrease of 0.29; from Brazil was 23.24, a decrease of 0.49. The SGX swap (current month) was 101.49, an increase of 0.23, and the Platts Index (CFR, 62%) was 100.80, an increase of 0.20 [9]. Futures Market - **Ribbed Bars**: The closing price of the active contract was 3,119 with a decline of 0.35%. The highest price was 3,127, the lowest was 3,106, the trading volume was 801,286 (a decrease of 323,893), and the open interest was 1,411,603 (a decrease of 46,508) [13]. - **Hot - Rolled Coils**: The closing price of the active contract was 3,361 with a decline of 0.86%. The highest price was 3,374, the lowest was 3,350, the trading volume was 498,652 (a decrease of 73,892), and the open interest was 998,147 (a decrease of 49,335) [13]. - **Iron Ore**: The closing price of the active contract was 770.0 with a decline of 0.71%. The highest price was 774.5, the lowest was 766.0, the trading volume was 227,341 (a decrease of 54,414), and the open interest was 452,625 (an increase of 1,051) [13]. Future Outlook - **Ribbed Bars**: The supply - demand pattern remains weak, inventory continues to accumulate. The weekly output decreased by 58,000 tons, and the demand is at a low level. Although the cost increase may limit the downward space, it is expected that steel prices will continue to fluctuate weakly, and attention should be paid to the demand performance [38]. - **Hot - Rolled Coils**: Both supply and demand are rising. The weekly output increased by 96,500 tons, and the demand shows good resilience. However, the high - supply pattern has not improved the fundamentals. With the support of cost increase and production restriction disturbances, the price is expected to continue to fluctuate upward, and attention should be paid to the demand performance [38]. - **Iron Ore**: The demand is at a high level with good resilience, but steel mill profits are shrinking, and production restriction disturbances are continuous. The supply has returned to a high level, and the ore price will continue to be under pressure and adjust through fluctuations. Attention should be paid to the performance of finished products [39].

Group 1 - The core viewpoint is that Australia’s Fortescue Metals Group demonstrates a strong commitment to long-term investment and adaptability in the changing landscape of the Chinese economy, maintaining its leadership in global manufacturing and infrastructure [1] - Fortescue successfully completed a syndicated term loan financing totaling 14.2 billion RMB, marking a significant breakthrough as the first Australian company to achieve RMB syndicated loans, reflecting foreign companies' recognition of China's economic resilience [1] - Since entering the Chinese market in 2007, Fortescue has established a close partnership with Chinese entities, exporting over 2 billion tons of iron ore to China, which accounts for 90% of its global iron ore shipments [2] Group 2 - Fortescue views China as its largest customer and a key partner in innovation, supply chain development, and decarbonization efforts, having signed memorandums of understanding with major Chinese companies to explore carbon reduction in ironmaking and shipping [2][3] - The company is actively integrating advanced technologies into projects related to wind, solar, energy storage, rail, and mining equipment through strategic partnerships with leading Chinese renewable energy manufacturers [2] - Fortescue believes that China's economic resilience and commitment to structural transformation present significant opportunities, particularly in clean energy and green iron production, which are key investment areas for the company [3]

Group 1 - The core viewpoint is that China demonstrates resilience and adaptability in long-term investment, maintaining its leadership in global manufacturing and infrastructure development [1] - Fortescue Metals Group successfully completed a syndicated loan financing of 14.2 billion RMB, marking a significant breakthrough for Australian companies in obtaining RMB loans [1][2] - The company has established a wholly-owned subsidiary in the Shanghai Free Trade Zone, enabling direct supply of iron ore to Chinese steel companies using RMB for cross-border settlements [1][2] Group 2 - Since entering the Chinese market in 2007, Fortescue has maintained close cooperation with local partners, exporting over 2 billion tons of iron ore to China, which accounts for 90% of its global shipments [2] - Fortescue views China as its largest customer and a key partner in innovation, supply chain development, and decarbonization efforts [2][3] - The company has signed memorandums of understanding with major Chinese firms to explore carbon reduction in ironmaking and shipping, as well as green iron projects [2][3] Group 3 - Fortescue is focusing on clean energy, green iron, and supply chain innovation as key investment areas, driven by China's economic resilience and commitment to structural transformation [3] - Collaborating with Chinese institutions is seen as essential for the company's long-term growth strategy and leadership in green industry transformation [3]