Core Viewpoint - COMEX gold, silver, and copper prices have experienced a decline, with various related products also retreating, indicating a bearish trend in the precious and industrial metals market [1] Group 1: Market Performance - As of 13:40, the non-ferrous metal ETF (516650) fell by 3.06%, with major holdings like Guocheng Mining down by 8.92% and Shengxin Lithium Energy down by 7.61% [1] - The gold stock ETF (159562) decreased by 3.44%, while the Huaxia Gold ETF (518850) saw a smaller decline of 0.75% [1] Group 2: Economic Indicators - Recent statements from several Federal Reserve officials regarding interest rate cuts have created uncertainty about a potential rate cut in December, with inflation data remaining a focal point for many officials [1] - Economic and liquidity expectations are anticipated to improve marginally, potentially supporting the prices of cyclical commodities like copper and aluminum through Q4 2025 [1] Group 3: ETF Focus - The non-ferrous metal ETF (516650) tracks the CSI segmented non-ferrous metal industry theme index, focusing on gold, copper, aluminum, rare earths, tungsten, molybdenum, and energy metals like lithium and cobalt [1]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report Last week, the convertible bond market followed the equity market to fluctuate upward and then pulled back. The CSI Convertible Bond Index outperformed the Shanghai Composite Index by 0.67 pcts. High - priced convertible bonds continued to be dominant, and low - price and low - premium convertible bonds led the Wind sub - indices. In the short term, the "15th Five - Year Plan" focusing on carbon peaking and the supply - side reform of the new energy industry is expected to support relevant underlying stocks and convertible bonds. However, in the fourth quarter, due to economic data pressure and profit - taking needs, the probability of high - to - low and structural switching in the market increases, and defensive convertible bonds with previous underperformance may be dominant in stages, and the cost - performance of low - price and low - premium convertible bonds has increased. Attention should also be paid to the possible impact on the demand side of convertible bonds with the further adjustment of fund fees and the launch of stock - bond balanced funds [2]. 3. Summary by Relevant Catalogs Policy Tracking - On October 28, the China Securities Regulatory Commission (CSRC) issued the "Several Opinions on Strengthening the Protection of Small and Medium - sized Investors in the Capital Market", focusing on key issues of small and medium - sized investors and proposing 23 specific measures in eight aspects [3]. - On October 31, the CSRC issued the "Guidelines for the Performance Comparison Benchmark of Publicly Offered Securities Investment Funds (Exposure Draft)", aiming to standardize the selection and use of performance comparison benchmarks of public funds through six chapters and 21 articles, and protect the legitimate rights and interests of investors [3]. Secondary Market - **Equity Market**: Last week, major domestic equity market indices fluctuated strongly. Overseas, the Fed cut interest rates by 25bp as expected, but its stance on the December interest - rate cut was hawkish. Domestically, the China - US economic and trade negotiations advanced, and the October manufacturing PMI was 49.0%, 0.8 percentage points lower than that in September, which was lower than market expectations and suppressed market risk appetite. The equity market showed a pattern of rising first and then falling [6]. - **Convertible Bond Market**: Last week, major convertible bond market indices followed the equity market to rise. The CSI Convertible Bond Index, Shanghai Convertible Bond Index, and Shenzhen Convertible Bond Index rose 0.79%, 0.55%, and 1.14% respectively. Convertible bond ETFs had a net redemption of 11.92 billion yuan. Structurally, high - priced convertible bonds continued to be strong, and low - price and low - premium convertible bonds performed well. In terms of industries, most convertible bonds in various industries rose, with steel industry convertible bonds leading the gain. Looking forward, in the short term, relevant policies may support new energy - related convertible bonds, but in the fourth quarter, the probability of market switching increases, and the cost - performance of low - price and low - premium convertible bonds has increased [2][8][11]. Primary Market - **Issuance and Listing**: Last week, there was no new convertible bond issuance. Fueneng Convertible Bond and Jin25 Convertible Bond were listed, while several convertible bonds were redeemed in advance or expired and delisted. As of October 31, the convertible bond market's outstanding scale was 581.274 billion yuan, a decrease of 152.619 billion yuan compared with the beginning of the year and an increase of 3.14 billion yuan compared with the previous week [35]. - **Conversion and Approval**: Seven convertible bonds had a conversion ratio of over 5% last week. Shuangle Co., Ltd.'s convertible bond issuance was approved by the exchange, and Ruikeda's convertible bond issuance was approved by the CSRC. As of last Friday, 5 convertible bonds were approved by the CSRC to be issued, with a total of 4.15 billion yuan, and 6 convertible bonds passed the issuance review committee, with a total of 3.381 billion yuan [35][40]. - **Clause Tracking**: Last week, no convertible bond announced a downward revision of the conversion price, and 1 convertible bond announced early redemption. Several convertible bonds proposed or were about to trigger a downward revision of the conversion price, and some were expected to trigger early redemption conditions [41].

1. Report Industry Investment Rating - No information provided in the content 2. Core Views of the Report - This week, credit bond yields declined significantly, and spreads showed a divergent trend, with 4 - 5y varieties outperforming. Although the SSE Composite Index breaking through 4000 points had an impact on the bond market, the central bank's announcement of restarting treasury bond trading and the unexpected decline in the October manufacturing PMI led to a relatively strong performance in the bond market. The improvement in institutional sentiment towards credit bond allocation drove the relatively strong performance of 4 - 5y credit varieties, with a large narrowing in spreads, while most 1 - 2y varieties and medium - term notes over 5y widened passively [1][7]. - Key policies and hot events included the release of the "Administrative Measures for Asset Management Trusts (Draft for Comment)" by the Financial Regulatory Administration, Vanke receiving a loan of up to 2.2 billion yuan from its major shareholder Shenzhen Metro Group, Vanke's Q3 2025 report showing a decline in operating income and a net loss, and the central bank's report on the financial work situation indicating a significant reduction in the number of financing platforms and the scale of operating financial debts [1][2][10]. 3. Summaries According to the Table of Contents 3.1 Credit Bond Market Review: Most Yields Declined, 4 - 5y Varieties Performed Better - Credit bond yields declined significantly this week, and spreads showed a divergent trend, with 4 - 5y varieties outperforming. The central bank's announcement of restarting treasury bond trading and the unexpected decline in the October manufacturing PMI led to a relatively strong performance in the bond market. The improvement in institutional sentiment towards credit bond allocation drove the relatively strong performance of 4 - 5y credit varieties, with a large narrowing in spreads, while most 1 - 2y varieties and medium - term notes over 5y widened passively [1][7]. 3.2 Key Policies and Hot Events: Vanke Received Another Loan from Shenzhen Metro Group, and the "Administrative Measures for Asset Management Trusts (Draft for Comment)" was Released - On October 31, the Financial Regulatory Administration released the "Administrative Measures for Asset Management Trusts (Draft for Comment)" to strengthen supervision, prevent risks, and standardize the development of the trust industry [10]. - On October 30, Vanke announced that its major shareholder Shenzhen Metro Group would provide a loan of up to 2.2 billion yuan to repay the principal and interest of its publicly - issued bonds. As of the announcement date, Shenzhen Metro Group had provided a cumulative loan of 26.93 billion yuan (excluding this time) [2][10]. - On October 30, Vanke released its Q3 2025 report. In the first three quarters, the company's total operating income was 161.388 billion yuan, a year - on - year decrease of 26.61%, and the net profit attributable to the parent company was a loss of 28.016 billion yuan, a year - on - year decrease of 56.14%. Although Vanke's self - repayment ability was weak, it had received support from its major shareholder and financial institutions [2][11]. - On October 28, the central bank released the State Council's report on the financial work situation, stating that as of the end of September 2025, the number of national financing platforms and the scale of operating financial debts had decreased by 71% and 62% respectively compared to the end of March 2023, and risks had been significantly mitigated. The central bank emphasized continuing to support the debt - resolution work of financing platforms and their market - oriented transformation [2][12]. 3.3 Secondary Market: Credit Bond Yields Generally Declined, and Credit Spreads Showed a Divergent Trend - Yields of medium - and short - term notes generally declined by 2 - 13BP, with spreads of 4 - 5y varieties narrowing by 4 - 8BP, and spreads of most other maturities widening by 0 - 4BP [14]. - For urban investment bonds, yields of various varieties generally declined by 4 - 11BP, with 4 - 5y varieties performing better. Credit spreads showed a divergent trend, with spreads of most varieties narrowing by 1 - 6BP [14]. - For real estate bonds, except for the 1y and 3y AAA varieties, yields of other varieties generally declined by 3 - 12BP. Spreads of most varieties generally narrowed by 0 - 8BP [15]. - For cyclical bonds, yields of coal bonds generally declined by 2 - 12BP, and spreads of most varieties narrowed by 0 - 9BP. Yields of steel bonds generally declined by 3 - 12BP, and spreads of most varieties narrowed by 0 - 8BP [15]. - For financial bonds, yields of bank secondary capital bonds and perpetual bonds of various maturities declined by 5 - 12BP, and spreads of most varieties narrowed by 1 - 8BP. Yields of securities firm sub - bonds generally declined by 1 - 9BP, and spreads of most varieties generally narrowed by 0 - 3BP. Yields of insurance sub - bonds generally declined by 5 - 11BP, and spreads of most varieties generally narrowed by 1 - 4BP [15]. 3.4 Primary Market: Net Financing of Credit Bonds and Urban Investment Bonds Declined Month - on - Month - This week, the issuance scale of credit bonds was 224.8 billion yuan, a month - on - month decrease of 246.7 billion yuan, and the net financing was - 12.6 billion yuan, a month - on - month decrease of 148.5 billion yuan. The issuance scale of urban investment bonds was 105.6 billion yuan, a decrease of 5.83 billion yuan from last week, and the net financing was - 36.6 billion yuan, a decrease of - 4.96 billion yuan from last week [4]. 3.5 Trading Liquidity: Trading Activity in the Inter - bank Market Decreased, and Trading Activity in the Exchange Market Increased - This week, the trading activity of credit bonds in the inter - bank market decreased, and the trading volume decreased from 586 billion yuan last week to 580.7 billion yuan. The trading activity in the exchange market increased, and the trading volume increased from 381.7 billion yuan last week to 435.8 billion yuan [4]. 3.6 Rating Adjustment: One Entity's Rating was Upgraded, and No Entity's Rating was Downgraded - This week, the rating of one entity was upgraded, and no entity's rating was downgraded [4].

Group 1 - The core point of the news is that Zijin Mining experienced a decline of 5.08% in its stock price, reaching 28.95 CNY per share, with a trading volume of 5.181 billion CNY and a turnover rate of 0.86%, resulting in a total market capitalization of 769.421 billion CNY [1] - Zijin Mining Group Co., Ltd. is located in Fujian Province and was established on September 6, 2000, with its listing date on April 25, 2008. The company's main business involves mineral resource exploration and development [1] - The revenue composition of Zijin Mining includes smelting products at 60.94%, mineral products at 36.48%, other revenues at 16.83%, and trading at 8.02% [1] Group 2 - From the perspective of major fund holdings, one fund under Nord Fund has a significant position in Zijin Mining. The Nord New Enjoy fund (004987) reduced its holdings by 42,000 shares in the third quarter, now holding 47,900 shares, which constitutes 5.16% of the fund's net value, making it the largest holding [2] - The Nord New Enjoy fund (004987) was established on August 9, 2017, with a latest scale of 27.3096 million CNY. Year-to-date returns are at 8.29%, ranking 6192 out of 8223 in its category, while the one-year return is 7.2%, ranking 6517 out of 8115 [2]

Core Viewpoint - Huayu Mining's stock price dropped by 5.08% to 28.21 CNY per share, with a trading volume of 538 million CNY and a market capitalization of 23.131 billion CNY as of November 3 [1] Company Overview - Tibet Huayu Mining Co., Ltd. is located in Lhasa Economic and Technological Development Zone, established on October 22, 2002, and listed on March 16, 2016. The company specializes in non-ferrous metal mining, mineral processing, geological exploration, and trading [1] - The revenue composition of the company includes: 45.30% from self-produced gold abroad, 33.37% from domestic lead-antimony concentrate (including silver), 14.87% from domestic zinc concentrate, 5.63% from self-produced antimony abroad, 0.54% from other sources, and 0.30% from domestic copper concentrate [1] Shareholder Analysis - Dazhong Fund's Dazhong New Industry Mixed A (090018) entered the top ten circulating shareholders of Huayu Mining in the third quarter, holding 7.0312 million shares, which is 0.86% of the circulating shares. The estimated floating loss today is approximately 10.6171 million CNY [2] - Dazhong New Industry Mixed A was established on March 20, 2012, with a latest scale of 4.447 billion CNY. Year-to-date return is 38.14%, ranking 2061 out of 8223 in its category; the one-year return is 30.19%, ranking 2790 out of 8115; and since inception, the return is 876.42% [2] Fund Performance - Dazhong Core Trend Mixed A (012519) holds 1.1242 million shares of Huayu Mining, accounting for 3.9% of the fund's net value, ranking as the ninth largest holding. The estimated floating loss today is about 1.6975 million CNY [4] - Dazhong Core Trend Mixed A was established on June 30, 2021, with a latest scale of 639 million CNY. Year-to-date return is 55.81%, ranking 693 out of 8223; the one-year return is 45.14%, ranking 1263 out of 8115; and since inception, the return is 42.05% [4]

Investment Rating - The report maintains a "Buy" rating for the industry, highlighting several companies as key investment opportunities [4][8]. Core Insights - The report emphasizes that the easing of China-US trade tensions will drive demand for industrial metals, leading to a positive outlook for prices [2][4]. - It identifies a strong demand for lithium and cobalt, particularly in the electric vehicle and energy storage sectors, while also noting supply constraints for cobalt due to logistical issues in the Democratic Republic of Congo [3][4]. - The report suggests that gold and silver prices may stabilize in a range due to reduced safe-haven demand, but long-term trends remain positive due to central bank purchases and weakening dollar credit [4][71]. Summary by Sections Industrial Metals - The report indicates that copper prices have recently surpassed $11,000 per ton, driven by positive signals from China-US trade talks and macroeconomic factors [2][43]. - Aluminum supply is tightening due to production cuts in overseas smelters, while domestic demand remains resilient despite some environmental restrictions [2][21]. - The report notes fluctuations in industrial metal prices, with aluminum up by 1.10%, copper down by 0.51%, and zinc up by 1.01% during the week [1][11]. Energy Metals - Lithium demand continues to exceed expectations, supported by growth in the electric vehicle and energy storage markets, leading to a bullish outlook for lithium prices [3][4]. - Cobalt supply remains tight due to export delays from the Democratic Republic of Congo, which is expected to maintain upward pressure on cobalt prices [3][4]. - Nickel prices are projected to remain strong despite some inventory accumulation in downstream sectors [3][4]. Precious Metals - The report anticipates that gold prices will enter a consolidation phase, with potential upward movement driven by central bank purchases and a weakening dollar [4][71]. - Recent geopolitical developments have reduced safe-haven demand for precious metals, leading to a technical adjustment in prices [4][71]. - The report recommends several companies in the precious metals sector, including Zijin Mining and Shandong Gold, as strong investment candidates [4][71].

Financial Data and Key Metrics Changes - Copper production in Q3 2025 reached 12,800 tons, down 24% year-on-year, primarily due to processing of ore stockpiled during the previous year's suspension [5] - Silver production was 4.3 million ounces, a 3% decrease from 4.4 million ounces in the same period last year, attributed to lower output at Uchuchaco and Yumpac [6] - Gold production totaled 30,894 ounces, down 21% year-on-year, mainly due to reduced output at Orcompampa and Tambomayo [6] - EBITDA from direct operations was $202.1 million, a 48% increase compared to $136.5 million in Q3 2024 [6] - Net income for the quarter was $167.1 million, down from $236.9 million in Q3 2024, which included $157.3 million from the sale of Chaupilón [6] - The company ended the quarter with a cash position of $486 million and total debt of $711 million, resulting in a leverage ratio of 0.41 times [7] Business Line Data and Key Metrics Changes - CAPEX for the San Gabriel project in Q3 2025 was $92 million, aimed at completing the processing plant for commercial production in Q4 2025 [7][9] - San Gabriel's overall progress reached 96% completion, with construction at 95% complete [10][12] - Coimolache received a new operating permit, allowing full capacity production, with expectations to produce over 8,000 ounces of gold next year [11] Market Data and Key Metrics Changes - The company is on track to begin production at San Gabriel in Q4 2025, pending timely approval of necessary permits [10] - The operational ramp-up at San Gabriel is expected to start in January, with projected production of 70,000 to 90,000 ounces of gold next year [23] Company Strategy and Development Direction - The company is focused on stable and continuous production at flagship operations while prioritizing cost efficiency [11] - Strong cash flow generation and a solid balance sheet enable the company to return value to shareholders and resume its dividend policy [11] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in obtaining final permits for San Gabriel and anticipates producing the first gold bar by the end of the year [15][17] - The company expects to reach break-even by the second quarter of next year, even if not operating at full capacity [25] Other Important Information - The Board of Directors approved a dividend payment of $0.1446 per ADS [7] Q&A Session Summary Question: What is still pending for San Gabriel regarding permits and government approvals? - Management is confident that all necessary permits will be granted, with production of two bars expected by the end of the year [15] Question: What is the timeline for the commissioning process and production ramp-up at San Gabriel? - The power line construction is complete, and commissioning will take about two months, with the first gold bar expected by mid-December [21][23] Question: When does management expect San Gabriel to be EBITDA neutral? - Management anticipates reaching break-even by the first or second quarter of next year, even with initial high-grade production [25]

Core Insights - The company reported a net profit attributable to shareholders of 5.6 billion yuan in Q3 2025, marking a 96.40% year-on-year increase, with Q1-Q3 net profit reaching 14.3 billion yuan, up 72.61% year-on-year [1] - The company achieved a total revenue of 145.5 billion yuan for the first three quarters, a decrease of 5.99% year-on-year, while Q3 revenue was 50.7 billion yuan, down 2.36% year-on-year [1] - The KFM Phase II construction proposal was approved, which aims to add 100,000 tons of copper capacity with an investment of 1.084 billion USD, expected to be completed by 2027 [1] Production Performance - The company reported good performance in production, with Q3 copper production exceeding 180,000 tons [1] - For Q1-Q3 2025, the production figures for various minerals were as follows: copper at 543,000 tons, cobalt at 88,000 tons, molybdenum at 10,600 tons, tungsten at 6,000 tons, niobium at 7,800 tons, and phosphate fertilizer at 912,800 tons, with increases in all except molybdenum and tungsten [1] Profit Forecast - The company is expected to see steady growth in copper production from 2025 to 2027, with a rapid increase anticipated post KFM Phase II completion [2] - Projected net profits for 2025, 2026, and 2027 are 20.2 billion yuan, 25.7 billion yuan, and 31.6 billion yuan respectively, with year-on-year growth rates of 49%, 27%, and 23% [2] - Corresponding price-to-earnings ratios are forecasted to be 18.62, 14.67, and 11.90 for the respective years [2]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 20% compared to the benchmark index within the next six months [7][14]. Core Insights - The company reported a record high net profit of 56 billion yuan in Q3 2025, with a year-on-year increase of 96.40% [4]. - For the first three quarters of 2025, the company achieved a total revenue of 145.5 billion yuan, a decrease of 5.99% year-on-year, but the net profit for the same period rose by 72.61% to 143 billion yuan [4]. - The company’s copper production exceeded 180,000 tons in Q3 2025, surpassing market expectations, with total production figures for copper, cobalt, molybdenum, tungsten, niobium, and phosphate fertilizer showing varying degrees of year-on-year growth [5]. - The KFM Phase II construction proposal was approved, which is expected to add 100,000 tons of copper capacity with an investment of 1.084 billion USD, projected to be completed by 2027 [6]. Financial Projections - The company is expected to see steady growth in copper production from 2025 to 2027, with projected net profits of 202 billion yuan, 257 billion yuan, and 316 billion yuan for those years, representing year-on-year growth rates of 49%, 27%, and 23% respectively [7]. - The earnings per share (EPS) is projected to increase from 0.63 yuan in 2024 to 1.48 yuan in 2027, with corresponding price-to-earnings (P/E) ratios decreasing from 27.83 to 11.90 over the same period [10][11].

Core Viewpoint - The report highlights a significant decline in the export value of China's non-ferrous metal mining and selection industry, indicating potential challenges for companies in this sector [1]. Industry Summary - In September 2025, the export value of the non-ferrous metal mining and selection industry in China was 0.5 million yuan, representing a year-on-year decrease of 16.4% [1]. - From January to September 2025, the cumulative export value for the same industry was 4.9 million yuan, showing a cumulative year-on-year decline of 8.6% [1]. - A statistical chart from 2019 to September 2025 illustrates the trends in export value for the non-ferrous metal mining and selection industry [1]. Company Summary - Listed companies in the non-ferrous metal sector include Jiaozuo Wanfang (000612), Tongling Nonferrous Metals (000630), Alloy Investment (000633), among others [1]. - The report by Zhiyan Consulting provides insights into the market dynamics and future trends of the non-ferrous metal smelting and rolling processing industry in China from 2025 to 2031 [1].