Group 1 - The "Critical Minerals Alliance," led by the U.S. and comprising 31 countries, has initiated measures targeting China's rare earths, including a $5 billion global exploration fund for projects in Australia and Canada [1] - The European Union is advancing plans to establish an "Eastern European Rare Earth Corridor," aiming for 20% self-sufficiency in rare earths by 2030 through the construction of separation plants in Hungary and Poland [1] - The U.S. is relaxing environmental standards to expedite rare earth mining in Minnesota, despite local protests from indigenous communities [1] Group 2 - Australia's Mount Weld mine has been operational for five years, but all extracted rare earths still require processing in China due to a lack of critical separation technology locally [2] - Chinese companies, such as Northern Rare Earth, have developed advanced separation processes and maintain a significant technological edge in rare earth materials [3] Group 3 - The U.S. is imposing a 25% tariff on Chinese rare earth magnets starting April 2025 and has established import quotas with Japan and South Korea, limiting their purchases from China to 60% [3] - The EU is planning to impose a carbon tax on Chinese rare earth oxides, but Chinese companies have managed to reduce carbon emissions significantly, leading to a delay in the tax's implementation [4] Group 4 - The U.S. Department of Defense is funding research for alternatives to rare earths, but current substitutes like iron-nitride alloys are not viable for high-performance applications [5] - Pakistan has signed a rare earth cooperation agreement with the U.S., planning a two-phase investment to explore and develop its rare earth resources, which could provide significant economic benefits [7][9] Group 5 - Despite the potential of U.S.-Pakistan cooperation, it is unlikely to impact China's dominance in the rare earth sector in the short term due to the lengthy timeline for exploration and production [11] - China currently controls over 60% of global rare earth extraction and 92% of processing, maintaining a strong position in the industry [11][13]

Core Viewpoint - The recent tightening of rare earth export approvals by China has significant implications for global supply chains, particularly for Western countries that rely on these materials for technology and manufacturing [2][3]. Group 1: China's Export Control Measures - China has shifted from bulk export approvals to individual applications, implementing strict controls to prevent stockpiling and ensure transparency through blockchain technology [2][5]. - The new regulations clearly delineate military and civilian uses of rare earths, with severe penalties for violations, emphasizing resource security and market integrity [7][9]. Group 2: Western Response and Strategy - In response to China's actions, G7 and EU representatives are considering price caps and tariffs on Chinese rare earths, reflecting a complex mix of frustration and strategic maneuvering [3][5]. - Western nations are attempting to establish alternative supply chains, but face significant challenges in terms of time, investment, and environmental standards, indicating a reliance on Chinese resources in the short term [3][5]. Group 3: Market Implications - The uncertainty surrounding rare earth supply chains is leading to increased inventory accumulation and price volatility across various industries [5]. - The control measures are expected to slow down negotiations and complicate contract terms, thereby increasing the overall cost and risk in the market [5][9]. Group 4: Long-term Outlook - The ongoing confrontation over rare earths is likely to evolve into a prolonged strategic battle, with the ability to manage supply chains and adhere to regulations becoming critical for future industry positioning [9].

Group 1 - The core viewpoint of the articles highlights the escalating tensions in US-China relations, particularly due to China's decisive actions in response to US tariffs and provocations regarding Taiwan [1][3][20] - China has canceled all soybean orders from the US and tightened restrictions on rare earth exports, indicating a significant shift in its supply chain strategy [3][5][20] - The cancellation of soybean orders is not just an economic adjustment but also a demonstration of China's firm stance against US pressure [5][20] Group 2 - The Taiwan issue remains a sensitive point in US-China relations, with China asserting that it will not tolerate US provocations regarding Taiwan's status [7][9][20] - China's recent actions, including economic sanctions and diplomatic statements, aim to clarify its bottom line on Taiwan and signal that it will not accept ambiguous strategies from the US [9][20][24] - The US military has acknowledged the pressure from China's technological advancements, indicating a shift in the balance of power [11][20] Group 3 - There is a noticeable change in the behavior of US allies, particularly Japan and South Korea, who are beginning to adopt a more pragmatic approach in their relations with China [13][15][17] - Economic interests and regional stability are becoming more significant factors for these countries, leading them to seek a balance rather than choosing sides in the US-China rivalry [15][17][20] - European countries are also reducing their reliance on US unilateral policies and are moving towards multilateral cooperation with China and ASEAN [17][18][20] Group 4 - The articles suggest that the traditional US strategy of maintaining a dominant position through ambiguous policies is becoming less effective against China's clear and assertive stance [20][22][24] - China's actions are reshaping regional dynamics and influencing global order, as it seeks to establish itself as a rule-maker rather than a rule-taker [24][26]

Core Viewpoint - The partnership between MP Materials and the U.S. Department of Defense highlights a significant shift in the rare earth market, with the government committing to purchase neodymium-praseodymium products at approximately double the market price, ensuring a minimum price for 10 years, which reflects a rare interventionist approach by the government [1][9]. Group 1: Rare Earth Market Dynamics - The prices of rare earth elements are experiencing a surge, influenced by China's export controls and the U.S. strategy to secure its own supply chains, particularly affecting the prices of neodymium and praseodymium, which are essential for electric vehicles and wind turbines [1][3][6]. - As of September 18, dysprosium reached $840 per kilogram, approximately three times its price before China's export controls, while terbium hit a record high of $3,600 per kilogram [3]. - The price of neodymium-praseodymium (NdPr) has also risen significantly, with the Chinese price reaching $90,850 per ton in late August, marking a high not seen since March 2023 [6]. Group 2: U.S. Supply Chain and Policy Changes - MP Materials has ceased exporting rare earth concentrates to China due to high tariffs, leading to anticipated shortages of light rare earths in the U.S. market, which is driving up prices [9]. - The U.S. Geological Survey indicates that the U.S. accounts for 12% of global rare earth production, with MP Materials operating the only rare earth mine in the U.S. [6]. - The U.S. government's commitment to purchase NdPr at $110 per kilogram, nearly double the market price, is seen as an unusual socialist-like intervention in the market [9]. Group 3: Geopolitical Implications - The ongoing tensions between the U.S. and China regarding rare earth resources are expected to continue, with strict export licensing from China and decreasing inventories among demand-side players [10]. - China's recent regulations to strengthen control over domestic rare earth mining and refining are likely to further impact global prices and supply dynamics [9][10].

Core Insights - A leading German magnet manufacturer, VAC, has developed a new type of super magnet that does not require heavy rare earth elements, causing significant disruption in both the global technology and geopolitical arenas [1] Group 1: Industry Dynamics - The competition over rare earth elements, referred to as "industrial gold," has intensified, with the U.S. and Europe eager to reduce their dependence on these materials [3] - The U.S. Department of Energy and Department of Defense are heavily investing in domestic companies, such as Niron, which is producing "iron-nitrogen magnets" that are completely free of rare earth elements [3] - European countries are forming alliances, like the "European Critical Raw Materials Alliance," to treat rare earths as strategic resources, with Germany researching nano-composite magnets and the UK utilizing AI for material selection [3] Group 2: Strategic Moves - G7 countries are discussing setting a price floor for rare earths and considering tariffs on certain rare earth exports from China, indicating a coordinated effort to achieve "de-China-ization" of supply chains [5] - The U.S. has previously used chip technology to exert pressure on China, and now, in the rare earth sector, China is responding by strategically utilizing export controls to create a sense of urgency among Western nations [7] Group 3: Technological Advancements - Although Germany and the U.S. are developing new magnet technologies without rare earths, these alternatives still lag significantly behind the performance of high-performance neodymium-iron-boron magnets [9] - New magnets may be suitable for low-end applications, but high-performance sectors, such as electric vehicles and aerospace, still require traditional rare earth magnets due to their superior stability and magnetic energy density [9] Group 4: Market Outlook - The rare earth industry in China possesses a comprehensive advantage in the entire supply chain, including extraction, refining, and processing, making it difficult for competitors to surpass [11] - The ongoing competition and technological advancements signal that the landscape of the rare earth market is evolving, and while challenges exist, China's dominance is not easily undermined [11]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何 責 任。 (1) 復 牌 進 展 之 季 度 更 新 之 補 充 公 告； (2) 有 關 訴 訟 之 最 新 情 況； 及 (3) 繼續暫停買賣 本公司財務顧問 有關復牌進展之補充資料 本公司謹此知會本公司股東及潛在投資者有關更新本集團業務營運最新狀況 及 達 成 復 牌 指 引 項 下 規 定 進 展 的 補 充 資 料。 有關本公司業務營運之額外資料 誠 如 本 公 司 截 至 二 零 二 四 年 十 二 月 三 十 一 日 止 年 度 之 年 報 所 披 露，本 公 司 主 要透過於中國境內的該等附屬公司從事稀土業務及耐火材料業務兩個業務分 部。 誠 如 調 查 公 告 所 披 露，本 公 司 已 接 獲 自 稱 本 公 司 其 中 一 間 附 屬 公 司 僱 員 的 僱 員 投 訴，指 控（其 中 包 括）本 集 團 附 屬 公 司 潛 在 挪 用 ...

Core Viewpoint - The article highlights a significant shift in investment trends within the A-share market, with a notable influx of funds into technology and innovation sectors, particularly in the context of the upcoming National Day holiday and the fourth quarter outlook [3][15]. Group 1: Fund Flows and Market Trends - The total inflow into bond ETFs reached approximately 779 billion yuan, while stock ETFs saw a net inflow of about 331 billion yuan [6]. - On September 24, the newly launched Sci-Tech Bond ETFs attracted a staggering 639 billion yuan in a single day, indicating strong market interest despite the overall underperformance of bond ETFs this year [12][14]. - The growth of the Sci-Tech Bond market is notable, with cumulative issuance nearing 3.1 trillion yuan and a balance of 2.2 trillion yuan, positioning it as a key player in the credit bond investment landscape [14]. Group 2: Sector Performance - The technology sector, particularly the Sci-Tech Chip ETF, has emerged as a favorite among institutional investors, with a year-to-date increase of 71.8% and a trading volume of 245 billion yuan last week [17][18]. - In contrast, traditional sectors such as chemicals, rare earths, and photovoltaics experienced significant capital outflows, with the chemical ETF seeing a reduction of 16.58 billion shares and a net outflow of 11.4 billion yuan [20][22]. - The article emphasizes the importance of sectors benefiting from upcoming consumption peaks and ongoing technological innovation cycles as key investment opportunities for the next market phase [19][23].

Investment Rating - The report maintains a "Hold" rating for the industry [7] Core Views - The non-ferrous metals industry index decreased by 0.63% over the past two weeks, underperforming the CSI 300 index, ranking 12th among 31 first-level industries [2][14] - Energy metals (up 4.49%) and industrial metals (up 1.05%) showed positive performance, while metal new materials (-4.08%), precious metals (-0.95%), and minor metals (-8.51%) experienced declines [2][14] Price Trends - As of September 26, 2025, COMEX gold closed at $3,789.80 per ounce, up 2.96% over two weeks; COMEX silver closed at $46.37 per ounce, up 8.63% [3][21] - LME copper settled at $10,125.50 per ton, increasing by 1.21% over two weeks; LME aluminum fell to $2,643 per ton, down 2.38% [3][20] - Cobalt prices surged, with electrolytic cobalt averaging 310,000 CNY per ton, up 13.55% over two weeks, and cobalt sulfate averaging 65,000 CNY per ton, up 20.82% [3][53] Major Events - The Grasberg mine, one of the largest copper mines globally, has suspended operations due to a fatal landslide, significantly impacting global copper supply [4][59] - The U.S. Defense Logistics Agency awarded a contract to U.S. Antimony Corporation worth up to $245 million for supplying antimony metal [59][60] Investment Recommendations - Following the Federal Reserve's interest rate cut in September, the report suggests focusing on investment opportunities that combine "resources + growth" themes, while monitoring geopolitical and export policy changes in major resource countries [5]

Core Viewpoint - The U.S. government has unexpectedly announced a $400 million investment in MP Materials, the largest domestic rare earth company, marking a significant shift from its long-standing free market principles to a more interventionist approach similar to China's industrial policy [1][2]. Group 1: Investment Strategy - The U.S. Department of Defense's investment is linked to specific production targets, mirroring China's industrial policy approach [2]. - A clear three-phase strategy has been established: 1. Focus on rare earth resource development with MP Materials at the core 2. Emphasize lithium resource development, targeting companies like Lithium Americas 3. Expand to cobalt, nickel, and other key battery materials [4]. Group 2: Challenges and Limitations - The U.S. faces significant challenges, including lengthy approval processes for new mining projects, averaging 29 years, which hampers timely development [6]. - The U.S. currently processes less than 10% of its rare earth materials domestically, relying heavily on overseas processing, unlike China, which has developed a complete supply chain [6]. - The disparity between policy expectations and actual production capacity is stark, with the U.S. lithium production accounting for only 0.8% of global output and over 80% of rare earth magnets being imported [8]. Group 3: Comparison with China - The U.S. is attempting to replicate China's successful model of resource development and supply chain integration, but struggles with inefficiencies and institutional challenges [10]. - While the U.S. has adopted the form of government investment, it has not fully grasped the essence of coordinated institutional support that characterizes China's approach [8][10].

Macro and Strategy Research - In the first eight months of 2025, the profit of industrial enterprises above designated size increased by 0.9% year-on-year, indicating a stabilization in profitability [4][5] - The profit growth rate turned positive, with a significant monthly increase of 20.4% in August, driven by improved pricing stability and a narrowing decline in the Producer Price Index (PPI) [5][6] - The revenue profit margin for the same period was 5.24%, a year-on-year decrease of 1.9%, but the decline was less severe compared to previous months, contributing to the positive profit growth [5][6] Fixed Income Research - The report explores investment strategies for Real Estate Investment Trusts (REITs) in 2025, highlighting the effectiveness of initial public offering (IPO) selling strategies [8][9] - Historical data shows that selling on the first day of listing yields the highest success rate, while holding for longer periods results in diminishing returns [9][10] - The report emphasizes the importance of timing in REIT investments, with specific months showing higher success rates for buying and holding strategies [12] Company Research - The company, as a specialized platform for the China Rare Earth Group, saw significant improvement in performance in H1 2025 due to rising rare earth prices, with a notable increase in sales net profit margin [20][21] - Short-term demand for rare earths is expected to remain resilient, supported by policies and seasonal consumption peaks, while long-term prospects are bolstered by the strategic importance of rare earths [20][21] - The company is advancing its mining projects and has strong potential for asset injection from its parent group, which could enhance its production capacity significantly [21][23] Industry Research - The light industry sector is experiencing price increases for packaging paper, with multiple manufacturers raising prices by 30-50 yuan per ton, which is expected to positively impact downstream products [24][25] - Recent changes in U.S. tariff policies, including significant tariffs on imported furniture and building materials, are anticipated to have a limited long-term impact on the competitiveness of Chinese manufacturing [25] - The introduction of national standards for smart mattresses is expected to promote market regulation and consumer protection, supporting healthy industry development [25]