Domestic News - The Ministry of Commerce spokesperson stated that the U.S. has continuously provoked new trade frictions, increasing uncertainty and instability in bilateral economic relations, and has unjustly accused China of violating agreements from the Geneva trade talks [1] - From May 26 to June 1, national freight logistics operated in an orderly manner, with national railways transporting 77.638 million tons of goods, a decrease of 0.16% month-on-month; highway freight traffic reached 52.008 million vehicles, down 6.14%; monitored ports completed a cargo throughput of 277.418 million tons, an increase of 2.24%, while container throughput was 6.517 million TEUs, down 0.72% [1] - On June 2, the national railway is expected to send 17.9 million passengers, with 1,279 additional passenger trains planned [1] Strategic Mineral Control - Various regions in China are implementing measures to prevent the illegal outflow of strategic minerals, with the National Export Control Coordination Mechanism issuing a deployment plan for comprehensive control of strategic mineral exports [2] - Guizhou will strictly follow the deployment plan, while Hunan will conduct systematic inspections of local strategic mineral export enterprises and guide them to enhance compliance awareness [2] - Guangxi will intensify supervision of strategic mineral exploration and mining, cracking down on illegal mining activities [2] Real Estate Market - In May, the total transaction volume of new and second-hand housing in Shanghai reached 2.23 million square meters, a year-on-year increase of 17% [2] - The real estate market in Shanghai has shown characteristics of "increased volume and stable prices" from January to May this year [2]

Core Insights - The true control of the global mineral supply chain lies not in ownership of underground resources but in the mastery of refining capabilities [1] - China's near-monopoly in the rare earth refining sector has been highlighted, with a significant price surge observed following export controls [1] Group 1: Market Concentration - Global rare earth mineral trade is extremely concentrated, with 89% of trade relationships relying on a few suppliers [3] - Specifically, 43% of trade relationships depend on five or fewer suppliers, while 46% rely on three or fewer suppliers [3] - Key emerging and developing economies dominate the extraction of critical raw materials, such as the Democratic Republic of Congo supplying 73% of cobalt ore and Guinea supplying 70% of aluminum ore [3] Group 2: China's Dominance in Refining - Despite the dispersion of raw material extraction across various countries, nearly all processing and refining stages are concentrated in China [3] - China supplies 65% of the world's refined lithium and nearly 80% of refined cobalt, controlling over 90% of global refined rare earth supply [3] Group 3: Geopolitical Factors - China's dominant position in the mineral supply chain has been systematically built over the past two decades, focusing on facilities and technologies for converting raw materials into usable inputs for batteries and green technologies [6] - Geopolitical tensions have intensified reliance on Chinese mineral supply chains, with over 90% of U.S. rare earth imports coming from China in 2023, up from 70% in 2013 [6] Group 4: Future Supply Chain Dynamics - The U.S.-Ukraine mineral agreement is strategically significant but unlikely to alter the global mineral supply landscape in the short term, as the bottleneck lies in refining capacity rather than extraction [7] - Ukraine possesses about 5% of global rare earth reserves and significant lithium and titanium reserves, but the increase in critical mineral supply remains a distant prospect [7] - Establishing rare earth refining in Ukraine will take years and may require a comprehensive overhaul of the global supply chain [7]

Core Insights - The demand for bilingual talent in Brazil is surging as Chinese enterprises expand their presence in the South American market, with over 2,100 job seekers attending the seventh China-Brazil Talent Recruitment Fair [1][3][4] - The fair featured 32 Chinese companies offering more than 400 quality job positions across various sectors, indicating a significant increase in recruitment activity [1][4] Group 1: Recruitment Trends - The number of participating companies has grown, with 32 firms covering industries such as engineering, telecommunications, manufacturing, agriculture, mining, retail, and the internet [4] - The number of job positions available has significantly increased, with over 400 positions that include technical research, project management, marketing, and bilingual services [4] - The number of applicants has reached a historical high, with over 2,100 job seekers, three times more than the previous year [4] Group 2: Industry Focus - Chinese companies are not only focusing on traditional sectors like agriculture and mining but are also actively exploring new areas such as green energy and digital economy [4] - Technical engineering positions remain the dominant focus at the recruitment fair, particularly in telecommunications, machinery, and energy sectors [4] - Financial and tax-related positions account for over 20% of the job offerings, indicating a push towards localization and compliance among Chinese enterprises in Brazil [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company's net profit attributable to shareholders for 2024 is 757 million yuan, a decrease of 66% year-on-year; the net profit after deducting non-recurring gains and losses is 603 million yuan, down 72% year-on-year [2][5]. - In Q1 2025, the company achieved a net profit of 135 million yuan, a decrease of 47% year-on-year and 36% quarter-on-quarter; the net profit after deducting non-recurring gains and losses is 43 million yuan, down 81% year-on-year and 77% quarter-on-quarter [2][5]. Summary by Sections Financial Performance - The company reported a total revenue of 5.364 billion yuan in 2024, with a gross profit of 1.757 billion yuan, resulting in a gross margin of 33% [14]. - The lithium segment generated revenue of 3.129 billion yuan, down 26% year-on-year, with a gross profit of 583 million yuan and a gross margin of 18.62%, a decrease of 39.15 percentage points year-on-year [11]. - The cesium and rubidium segment achieved revenue of 1.395 billion yuan, an increase of 24% year-on-year, with a gross profit of 1.092 billion yuan and a gross margin of 78.29%, an increase of 13.91 percentage points year-on-year [11]. Business Segments - The lithium segment's production volume increased by 138% year-on-year to 43,700 tons, while sales volume increased by 145% year-on-year to 42,600 tons [11]. - The cesium and rubidium segment maintained stable growth, with sales volume of 843.97 tons, down 16% year-on-year, but revenue increased significantly due to price hikes [11]. - In Q1 2025, the lithium sales volume was 9,000 tons, impacted by maintenance during the holiday period [11]. Future Outlook - The company is focusing on expanding its lithium production capacity and exploring new metal resources such as gallium and germanium [11]. - The copper segment is expected to enhance its production capacity with ongoing exploration and project developments [11].

Core Insights - The International Energy Agency (IEA) released the "2024 Global Critical Minerals Outlook" report, highlighting increasing risks of supply disruptions in critical minerals despite current market supply seeming adequate and prices having significantly decreased from 2021 and 2022 highs [1] - The report emphasizes that the market concentration of critical minerals is rising, particularly in refining and processing stages, with the top three producers' average market share increasing from approximately 82% in 2020 to 86% in 2024 [1] - IEA Director Fatih Birol stated that critical minerals have become a frontline issue for global energy and economic security amid heightened geopolitical tensions [1] Supply and Demand Dynamics - Demand for key energy minerals has surged, with lithium demand projected to grow nearly 30% in 2024, significantly higher than the 10% annual growth rate of the 2010s [5] - Despite strong demand, supply growth, particularly from China, Indonesia, and parts of Africa, has exerted downward pressure on prices, especially for battery metals, which have seen supply growth rates double compared to the late 2010s [5] - The report warns of potential supply-demand imbalances over the next decade, with mineral investment momentum weakening; related spending is expected to grow only 5% in 2024, down from 14% in 2023 [5] Risks and Challenges - The copper market faces significant risks, with demand expected to surge due to accelerated grid construction, yet current copper mining projects indicate a potential supply gap of 30% by 2035 [5] - Export restrictions are increasingly impacting supply security, with 55% of the strategic minerals analyzed facing some form of export control, which is expanding to include raw materials, refined products, and processing technologies [5][6] - The report also analyzed 20 strategic minerals, revealing that while some may have smaller market sizes, disruptions could lead to substantial economic impacts, with China being the primary refining country for 19 of these minerals, holding an average market share of about 70% [6]

Group 1 - The core viewpoint emphasizes the importance of leveraging technological innovation as a driving force for the transformation and development of resource-based cities like Daye [1][2] - Daye's mining and related industries once contributed over 70% of local tax revenue, but resource depletion has necessitated a shift towards new development paths [1] - The city is focusing on technological advancements to enhance resource value, moving from raw material sales to high-end product processing, significantly increasing product prices from 400 yuan per ton to over 13,000 yuan per ton [2] Group 2 - The strategy includes extending and strengthening industrial chains by connecting with external resources, such as the electronic information industry park in Daye that supports Wuhan's trillion-yuan industrial cluster [2] - Advanced technologies are being utilized to repurpose abandoned mines into energy storage facilities, showcasing the potential for resource regeneration [3] - The shift from selling resources to selling technology and from underground mining to intelligent applications represents a new beginning for development, indicating that resource depletion can lead to new opportunities [3]

根据出口管制相关法律法规规定，中国商务部于4月4日和9日分别发布了第21号和22号公告，共将28家美国实体列入出口管制管控名单，禁止向其出口两 用物项。为落实中美经贸高层会谈的共识，决定自5月14日起，在90天内暂停上述相关措施。中国努力推动改善双边关系，但在90天窗口期内，美国相关 实体应借此表明其无意触碰中国底线的诚意。 各国应该清楚，只要不从事损害中国国家主权、安全、发展利益的活动，出口管制不会影响企业的正常经营贸易等活动，更不会影响国际产业链供应链 稳定和安全。 中国同其他国家一样，绝不容忍任何一方恩将仇报。 本文编译自《中国日报》5月16日社论 中国是全球最大的稀土生产和出口国，国家出口管制工作协调机制办公室5月12日在湖南省长沙市召开专门会议，部署开展了加强战略矿产出口全链条管 控工作，强调合法经营，合规贸易，加强源头管控，重点打击战略矿产走私出口。 14日，中国商务部新闻发言人对媒体表示，战略矿产管控需从源头入手，加强开采、冶炼、加工、运输、制造、销售、出口全链条管控。相关地方主管 部门将加快开展本地区战略矿产相关企业注册登记和台账记录工作，确保管控措施落实到位。 中国对镓、锗、锑、钨、中重稀土 ...

商务部：加强战略矿产资源出口管制事关国家安全和发展利益 金十数据5月12日讯，商务部新闻发言人就开展打击战略矿产走私出口专项行动应询答记者问，其中提 到，加强战略矿产资源出口管制事关国家安全和发展利益。我们对部分战略矿产实施出口管制以来，发 现一些境外实体与境内不法人员相互勾结，各相关部门立即开展行动，针对近期在战略矿产领域出现的 伪报瞒报、夹藏走私、"第三国"转口等企图规避出口管制的违法违规行为，迅速开展跨部门调查和案情 会商，加大口岸查验和打击查处力度，深挖幕后非法实体和走私网络，从严从快查办违法案件，持续提 升出口管制执法效力，切实维护国家安全和发展利益。 相关链接 ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the tungsten and rare earth elements industry, particularly regarding China's export controls and market dynamics [1][3]. Core Insights and Arguments - China has strengthened export controls on rare earth and tungsten minerals, using this as leverage in trade negotiations, particularly against U.S. demands to ease restrictions [1][3]. - China's production accounts for approximately 85% of global tungsten supply, with an expected export volume of about 15,000 tons in 2024 [1][3]. - The global leader in hard alloy, Kennametal (USA), is highly dependent on Chinese tungsten raw materials, indicating a significant reliance on China's supply chain [2][4]. - Tungsten has been added to the export control list, highlighting its strategic importance [5]. - The Ministry of Natural Resources has set the first batch of tungsten mining quotas for 2025 at 58,000 tons, a decrease of 4,000 tons year-on-year, marking a continuous decline in supply [6]. Additional Important Content - The difficulty of tungsten mining is emphasized, with strict national quotas limiting new mining operations, leading to insufficient supply growth [7]. - There has been a breakthrough in the use of tungsten wire in robotic tendon applications, which currently represents 5% of tungsten demand; while immediate supply elasticity is limited, there is potential for future growth in this area [7].

Market Overview - The Hang Seng Index showed stability, closing up 0.40%, supported by sectors like banking and electricity [1] - The US and UK reached a trade agreement, reducing tariffs on UK car imports from 25% to a maximum of 10%, with a cap of 100,000 cars per year [1] - The agreement requires the UK to purchase an additional $5 billion in US agricultural products and a $10 billion Boeing procurement deal [1] US-China Trade Negotiations - Substantial trade negotiations between the US and China are set to take place, with expectations of a significant reduction in tariffs from 145% to 50% [2] - The negotiations are seen as exploratory, aimed at understanding each side's demands and limits [2] Economic Data - China's April exports in USD rose by 8.1% year-on-year, while imports fell by 0.2%, resulting in a trade surplus of $96.18 billion [4] - The data indicates a strong performance in trade despite the ongoing tariff conflicts, with April's figures being the second highest for the month historically [4] Sector Focus - The Chinese government is intensifying efforts to combat the smuggling of strategic minerals, which is crucial for national security and economic stability [7] - The crackdown on smuggling is expected to tighten supply and support prices, potentially enhancing company performance in the sector [7] Company Highlights - China Resources Beverage reported a revenue of 13.521 billion yuan and a net profit of 1.661 billion yuan for 2024, marking a 24.7% increase [9] - The company plans to distribute a total dividend of 0.483 yuan per share, reflecting a payout ratio of 70.8% [9] - The beverage segment is experiencing significant growth, with a 30.8% increase in revenue, contributing to 10.3% of total revenue [10] - The company is increasing its self-production capacity, aiming for over 60% by 2025, which will reduce reliance on outsourcing and lower manufacturing costs [10]