Report Summary 1. Investment Rating The report does not provide an industry investment rating. 2. Core Views - The lead market shows a situation of increasing supply and demand with no obvious contradictions. Tight raw materials and peak - season expectations support lead prices. Due to the warm domestic market sentiment, lead prices are expected to trade in a range in the short term [1]. - The zinc market has an increase in both zinc ore and zinc ingot supply, while demand is in the off - season with continuous inventory accumulation, resulting in a weak fundamental situation. However, strong market bullish sentiment may lead to zinc prices trading in a range in the short term [1]. 3. Summary by Related Catalogs Lead - **Price and Market Data**: On July 28, 2025, the average price of SMM1 lead ingots was 16,750 yuan/ton, up 0.30% from the previous day; the closing price of the main futures contract was 16,955 yuan/ton, up 0.38%. The LME3 - month lead futures closing price (electronic trading) was 2,020.50 dollars/ton, down 0.12%. The ratio of Shanghai - London lead prices was 8.39, up 0.51% [1]. - **Industry Operation Data**: From July 18 to July 24, the weekly operating rate of SMM primary lead enterprises was 63.37%, a 2.5 - percentage - point decrease; the weekly operating rate of recycled lead enterprises was 40.7%, a 2.8 - percentage - point increase; the weekly operating rate of lead - acid battery enterprises was 71.86%, a 0.9 - percentage - point increase. The electric bicycle trade - in program has boosted the industry, with a 113.5% average monthly - on - month increase in sales from January to June 2025, and a 27.6% year - on - year increase in the production of the top ten brands [1]. - **Fundamental Analysis**: There is no expected increase in lead concentrate imports, and processing fees are likely to rise. A primary lead smelter had equipment - related maintenance last week, leading to a slight decline in production. For recycled lead, the price of waste lead - acid batteries is likely to rise, and some smelters have reduced or stopped production due to raw material shortages or cost - price inversions. As the inventory of electrolytic lead in factories decreases, the market's acceptance of high - priced recycled lead has improved. The market still anticipates peak - season consumption, but most enterprises suspended purchases at the end of the month for inventory checks [1]. Zinc - **Price and Market Data**: On July 28, 2025, the average price of SMM1 zinc ingots was 22,700 yuan/ton, down 0.48% from the previous day; the closing price of the main futures contract was 22,885 yuan/ton, down 0.56%. The LME3 - month zinc futures closing price (electronic trading) was 2,829.00 dollars/ton, down 0.40%. The ratio of Shanghai - London zinc prices was 8.09, down 0.16% [1]. - **Industry Operation Data**: From July 18 to July 24, the weekly operating rate of galvanizing enterprises was 59.42%, a 0.30 - percentage - point increase; the weekly operating rate of die - casting zinc alloy enterprises was 51.03%, a 0.92 - percentage - point decrease; the weekly operating rate of zinc oxide enterprises was 55.99%, a 0.33 - percentage - point decrease. The total inventory of zinc concentrates at major Chinese ports was 35.4 million tons, a decrease of 8.6 million tons from the previous week [1]. - **Fundamental Analysis**: Smelters have sufficient raw material inventories, and zinc ore processing fees are rising. Domestic smelters are negotiating next - month's zinc processing fees, and it is expected that processing fees will continue to rise in August. With the continuous strength of zinc prices during the week, downstream off - season purchases have significantly decreased [1].

Group 1 - The company held its 18th meeting of the 9th Board of Directors on July 25, 2025, via communication methods, with all directors and senior management notified in advance [1] - The Board decided not to exercise the early redemption rights of the "Yuguang Convertible Bonds" based on confidence in the company's future development and current operating conditions, and will not exercise these rights again if triggered within the next three months [1] - The company plans to hold its fourth extraordinary general meeting of shareholders on August 12, 2025, to discuss related matters [2] Group 2 - The voting results for the board meeting showed unanimous support for the proposals, with 8 votes in favor and no opposition or abstentions [2] - Related party guarantees were discussed, with certain directors recusing themselves from the vote, which resulted in 4 votes in favor [2]

Group 1: Report Industry Investment Rating - No relevant information provided Group 2: Report's Core View - For lead, the market is in a state of weak supply and demand with no obvious contradictions. Tight raw materials and peak - season expectations support lead prices, and short - term prices are expected to consolidate within a range [1] - For zinc, although there is strong bullish sentiment in the market, the supply of zinc ore and zinc ingots is increasing while demand is in the off - season, and the inventory accumulation trend is emerging. Fundamentals are weak, and short - term zinc prices are expected to weaken within a range. Consider shorting on rallies [1] Group 3: Summary According to Related Catalogs Lead Price and Spread - The average price of SMM1 lead ingots was 16,700 yuan/ton, down 0.30% from the previous day. The closing price of the lead futures main contract was 16,845 yuan/ton, down 0.30%. The basis was - 145 yuan/ton. The LME 0 - 3 spread was - 27.85 dollars/ton, up 3.17 dollars/ton [1] Trading Volume and Open Interest - The trading volume of the lead futures active contract was 31,395 lots, down 3.74%. The open interest was 51,951 lots, down 2.73%. The trading volume to open interest ratio was 0.60, down 1.04% [1] Inventory - LME lead inventory was 270,950 tons, with no change. Shanghai lead warehouse receipt inventory was 60,284 tons, up 3.78%. As of July 17, the total inventory of SMM lead ingots in five regions was 6.9 million tons, an increase of 0.79 million tons from July 10 and 0.56 million tons from July 14 [1] Fundamental Analysis - There is no expected increase in lead concentrate imports, and processing fees are likely to rise. A primary lead smelter had equipment failure and maintenance last week, with a slight decline in production. For secondary lead, the price of waste lead - acid batteries is likely to rise, and the supply of recyclers is limited. Due to raw material shortages or cost inversion, smelters have reduced or stopped production, and the inventory of secondary lead products is increasing. Demand is gradually shifting from the off - season to the peak season, and the drag on lead prices may ease [1] Zinc Price and Spread - The average price of SMM1 zinc ingots was 22,040 yuan/ton, up 0.27%. The closing price of the zinc futures main contract was 22,130 yuan/ton, up 0.39%. The basis was - 90 yuan/ton. The LME 0 - 3 spread was - 3.20 dollars/ton, up 5.75 dollars/ton [1] Trading Volume and Open Interest - The trading volume of the zinc futures active contract was 77,512 lots, down 13.36%. The open interest was 67,223 lots, down 14.16%. The trading volume to open interest ratio was 1.15, up 0.93% [1] Inventory - LME zinc inventory was 121,475 tons, with no change. Shanghai zinc warehouse receipt inventory was 11,563 tons, down 4.92%. As of July 17, the total inventory of SMM zinc ingots in seven regions was 9.35 million tons, an increase of 0.33 million tons from July 10 and 0.05 million tons from July 14 [1] Fundamental Analysis - Smelters have sufficient raw material stocks, and zinc ore processing fees are rising. The improvement in the tight supply of zinc concentrate is basically realized, and the production restrictions on smelters due to raw material shortages are weakened. The cost - side support is weakened, and smelter profits and production enthusiasm are improving, with an obvious trend of increasing production. Although downstream zinc ingot inventory has increased due to price - fixing at low points, the overall procurement is limited due to weak terminal demand [1]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - For lead, raw material tightness and peak - season expectations support the lead price, with short - term prices in a range - bound and stronger consolidation, but high prices may limit upside potential due to reduced downstream purchasing enthusiasm [1]. - For zinc, recent macro - positive sentiment and supply - side disturbances have led to a rebound in zinc prices, but this may suppress downstream buying and cause inventory accumulation, limiting the rebound space. Opportunities for short - selling should be watched for when positive factors fade [1]. 3. Summary by Relevant Catalogs Lead - **Price and Market Data**: On July 14, 2025, the SMM1 lead ingot average price was 16,925 yuan/ton, down 0.44%; the futures main - contract closing price was 17,075 yuan/ton, down 0.90%. The LME3 - month lead futures closing price (electronic) was 2,017 dollars/ton, down 0.98%. The trading volume of the active futures contract increased by 69.79% to 52,461 lots, and the open interest increased by 1.80% to 53,479 lots. The LME lead inventory was 249,375 tons, and the Shanghai lead warehouse receipt inventory increased by 4.48% to 52,901 tons [1]. - **Industry Operation**: From July 4 to July 10, the weekly operating rate of SMM primary lead enterprises was 66.88%, down 1.6 percentage points; that of secondary lead enterprises was 35.5%, up 0.7 percentage points; and that of lead - acid battery enterprises was 70.76%, down 1.07 percentage points. Inner Mongolia's secondary lead smelters under maintenance have no restart plan this week, and raw material supply and consumption limit production [1]. - **Fundamentals and Outlook**: Lead concentrate imports are not expected to increase, and processing fees are likely to rise. Primary lead production is stable with a slight increase. Secondary lead production is at a relatively low level due to raw material shortages and cost issues, and finished - product inventory is rising. Demand is expected to improve as it transitions from the off - season to the peak season [1]. Zinc - **Price and Market Data**: On July 14, 2025, the SMM1 zinc ingot average price was 22,360 yuan/ton, up 0.13%; the futures main - contract closing price was 22,380 yuan/ton, down 0.02%. The LME3 - month zinc futures closing price (electronic) was 2,738 dollars/ton, down 1.40%. The trading volume of the active futures contract decreased by 11.68% to 129,357 lots, and the open interest decreased by 4.44% to 107,632 lots. The LME zinc inventory was 105,250 tons, and the Shanghai zinc warehouse receipt inventory decreased by 0.57% to 8,873 tons [1]. - **Industry Operation**: From July 4 to July 10, the weekly operating rate of galvanized enterprises was 58.29%, up 1.81 percentage points; that of die - cast zinc alloy enterprises was 53.94%, up 4.80 percentage points; and that of zinc oxide enterprises was 55.84%, down 0.30 percentage points. Hudbay Minerals suspended operations in the Snow Lake area due to wildfires but maintained its 2025 production guidance [1]. - **Fundamentals and Outlook**: Zinc smelters have sufficient raw material stocks, and zinc ore processing fees are rising. The tight supply of zinc concentrate has improved, and production is expected to increase. Downstream purchasing increased slightly when prices fell during the week, but overall demand remains weak [1].

Group 1: Report Summary - The Federal Reserve's meeting minutes show differences among members regarding the outlook, mainly due to concerns about the impact of tariffs on inflation [4]. - US initial jobless claims reached a four - week low, while continuing claims remained at the highest level since the end of 2021 [4]. - Some Federal Reserve officials believe there may be two interest rate cuts this year, and the impact of tariffs on prices is milder than expected, boosting market risk appetite [4]. - In the zinc market, smelting fees are relatively wide, zinc mine production is abundant, and new projects have started production, with zinc ingot output exceeding expectations [4]. - In the lead market, refined lead supply remains tight, with more maintenance in electrolytic lead smelting enterprises, and the traditional consumption season is gradually starting [4]. Group 2: Bull - Bear Focus Zinc - Bullish factors: The US dollar index remains low, and there are short - term fluctuations in smelting maintenance [7]. - Bearish factors: Zinc ingot production in June increased more than expected, and the overall inventory build - up expectation is stronger [7]. Lead - Bullish factors: Secondary lead cost support, rising prices of waste batteries, and the gradual start of the traditional consumption season [10]. - Bearish factors: The actual restocking strength of downstream is relatively limited [10]. Group 3: Data Analysis Zinc - In May 2025, China's zinc ore sand and concentrate imports were 491,522.01 tons, a month - on - month decrease of 0.64% and a year - on - year increase of 85.28%. Imported zinc ore processing fees are showing a rebound [12]. - In June, the average domestic zinc concentrate TC increased by 150 yuan/metal ton to 3,650 yuan/metal ton, and the average imported ore TC increased by 10 dollars/dry ton to 55 dollars/dry ton [15]. - Zinc concentrate prices declined slightly. The price of 50% zinc concentrate in Hechi was 17,170 yuan/ton, a decrease of 50 yuan/ton from last week; in Chenzhou, it was 17,090 yuan/ton, a decrease of 230 yuan/ton from last week [20]. - In May 2025, China's zinc production was 583,000 tons, a year - on - year decrease of 2.3%. In June, new capacity was released in some areas, and some previous maintenance enterprises resumed production [23]. - In May 2025, China's refined zinc imports were 26,716.511 tons, a month - on - month decrease of 5.36% and a year - on - year decrease of 39.85% [26]. - LME zinc inventory has been declining, and as of last week, it was 105,600 tons. SHFE zinc inventory increased by 3.97% to 45,364 tons in the week of July 4 [33]. Lead - In June, new energy vehicle production and sales reached 1.268 million and 1.329 million respectively, a year - on - year increase of 26.4% and 26.7%. In June, China's total automobile exports were 592,000 vehicles, a year - on - year increase of 22.2% [30]. - From January to May, China's real estate development investment cumulative year - on - year growth rate was - 10.7%, and the new construction area cumulative year - on - year growth rate was - 22.8% [30]. - This week, the lead futures and spot prices continued to rise, with a basis of 25 yuan/ton, and the refined - scrap spread weakened [37]. - The weekly price of 60% lead concentrate in Kunming increased by 125 yuan/ton, and in Baoji, it increased by 34 yuan/ton [41]. - As of July 4, the lead concentrate processing fee in Jiyuan was 800 yuan/ton, a decrease of 100 yuan/ton from last week; in Chenzhou, it was 300 yuan/ton, a decrease of 500 yuan/ton; in Gejiu, it was 300 yuan/ton, a decrease of 400 yuan/ton [41]. - In May 2025, China's lead production was 649,000 tons, a year - on - year decrease of 5.7%. In June, more electrolytic lead smelting enterprises had maintenance, and some secondary lead smelters had a recovery expectation [44]. - The primary lead operating rate increased to 68.46% month - on - month [47]. - The secondary lead enterprise operating rate increased by 0.20 percentage points to 34.8% month - on - month [49]. - The lead - acid battery operating rate increased by 3.06 percentage points to 71.83% month - on - month [52]. - As of July 10, LME lead inventory decreased to 252,375 tons. SHFE lead inventory increased by 2.65% to 53,303 tons in the week of July 4 [56]. Group 4: Market Outlook - For zinc, it is recommended to mainly operate in the range of 21,500 - 22,500 [59]. - For lead, it is recommended to operate in the range of 16,500 - 17,500 [59].

Group 1 - The company will hold its third extraordinary general meeting of shareholders on July 23, 2025, at 14:30 in the company's conference room [1] - Voting will be conducted both on-site and online, with specific time slots for each method [1] - The meeting will be presided over by the company's chairman, Mr. Zhao Jingang [1] Group 2 - The agenda includes the announcement of the meeting's commencement, the nomination of vote counters, and the review of proposals [1] - One of the key proposals is to abolish the supervisory board and amend the company's articles of association and related rules [2] - The supervisory board's powers will be transferred to the audit committee of the board of directors [2] Group 3 - The proposed amendments to the articles of association aim to enhance corporate governance and compliance with the new Company Law effective from July 1, 2024 [2] - The company will no longer maintain a supervisory board, and related rules will be abolished [2] - The specific content of the amendments includes changes to the governance structure and the roles of various committees [3][4]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% compared to the benchmark index within six months [6][11]. Core Views - The company is projected to achieve a net profit attributable to shareholders of between 5.6 billion to 6.5 billion yuan for the first half of 2025, representing a year-on-year increase of 50.97% to 75.23% [3]. - The company has transitioned from primarily a lead-zinc smelting business to a resource-oriented company focused on mining profitability, with over 85% of total net profit coming from mining operations [5]. - The recovery of zinc smelting processing fees, which have risen from a historical low of 1200 yuan/ton to 3800 yuan/ton, is expected to significantly enhance the company's performance in 2025 [4]. Company Overview - The latest closing price of the company's stock is 11.49 yuan, with a total market capitalization of 123 billion yuan and a circulating market value of 86 billion yuan [2]. - The company has a total share capital of 1.073 billion shares, with a debt-to-asset ratio of 50.8% and a price-to-earnings ratio of 17.41 [2]. Financial Performance - The company reported a net profit of 6.73 billion yuan for Water Mouth Mountain Nonferrous in 2024, a 64% increase from 4.11 billion yuan in 2023 [5]. - The projected net profits for the company from 2025 to 2027 are 12.89 billion yuan, 13.52 billion yuan, and 14.59 billion yuan, respectively, with year-on-year growth rates of 63.83%, 4.93%, and 7.92% [7]. - The company's earnings per share (EPS) are expected to rise from 0.73 yuan in 2024 to 1.36 yuan in 2027, reflecting a strong growth trajectory [9][10].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Report's Core View - For lead, due to no expected increase in lead concentrate imports, stable increase in primary lead production, and high costs and low production in the secondary lead sector, along with the transition from the off - season to the peak season in demand, lead prices are expected to oscillate upwards but with limited upside due to inventory accumulation risks [1]. - For zinc, with sufficient raw material reserves in smelters, improved supply of zinc concentrates, and weak downstream demand, zinc prices have rebounded recently but the upside is limited. Attention should be paid to short - selling opportunities after the disappearance of positive factors [1]. 3. Summary by Relevant Catalogs a. Price and Market Data - **Lead**: SMM1 lead ingot average price was 16,975 yuan/ton, down 0.29%; futures main contract closing price was 17,210 yuan/ton, down 0.49%; LME3 - month lead futures closing price was 2,057 dollars/ton; the ratio of Shanghai - London lead prices was 8.37, down 0.49% [1]. - **Zinc**: SMM1 zinc ingot average price was 22,200 yuan/ton, down 0.63%; futures main contract closing price was 22,090 yuan/ton, down 1.43%; LME3 - month zinc futures closing price was 2,735.5 dollars/ton; the ratio of Shanghai - London zinc prices was 8.08, down 1.43% [1]. b. Inventory - **Lead**: As of July 7, SMM lead ingot five - location inventory was 5.79 million tons, up 0.15 million tons from June 30 and 0.1 million tons from July 3 [1]. - **Zinc**: As of July 7, SMM zinc ingot seven - location inventory was 8.91 million tons, up 0.85 million tons from June 30 and 0.67 million tons from July 3 [1]. c. Production News - The Xinjiang Huoshaoyun 600,000 - ton lead - zinc smelting project, built by China Wuye Group, has been put into production. After reaching full capacity, it can process 2.5 million tons of lead - zinc ore annually, producing 560,000 tons of zinc ingots and 110,000 tons of lead ingots [1]. d. Market Analysis - **Lead**: Lead concentrate imports have no expected increase, processing fees are likely to rise, primary lead production is stable, and secondary lead production is limited by high costs. Demand is transitioning from the off - season to the peak season [1]. - **Zinc**: Zinc smelters have sufficient raw materials, zinc concentrate supply has improved, and downstream demand is weak, mainly for just - in - time replenishment [1].

Report Investment Rating - No investment rating information is provided in the report. Core Viewpoints - For lead, supported by raw materials and the reduced operation rate of secondary lead, the lead price fluctuates upward. However, as the downstream has not entered the peak season, there is still a risk of inventory accumulation, which may limit the continuous upward space of the lead price [1]. - For zinc, due to the warm macro - sentiment and supply - side disturbances, the zinc price has rebounded. But after the rebound, it suppresses the downstream purchasing enthusiasm, leading to inventory accumulation and limited rebound space. Attention should be paid to short - selling opportunities after the elimination of favorable factors [1]. Summary by Relevant Catalogs Lead Market Price and Spread - The average price of SMM1 lead ingots increased by 0.15% to 17,025 yuan/ton, and the closing price of the main futures contract rose by 0.29% to 17,295 yuan/ton. The basis was - 270 yuan/ton, down 25 yuan/ton [1]. - The spread between the near - month and the first - continuous contract of Shanghai lead was - 55 yuan/ton, down 65 yuan/ton; the spread between the first - continuous and the second - continuous contract was - 10 yuan/ton, up 20 yuan/ton; the spread between the second - continuous and the third - continuous contract was 5 yuan/ton, up 5 yuan/ton [1]. Trading Volume and Position - The trading volume of the active futures contract was 24,330 lots, down 29.37%; the open interest was 51,672 lots, down 2.28%; the trading volume to open interest ratio was 0.47, down 27.72% [1]. Inventory - LME lead inventory was 263,275 tons, with no change; Shanghai lead warehouse receipt inventory was 46,439 tons, with no change [1]. Industry Information - From June 28 to July 3, the weekly operation rate of SMM primary lead enterprises was 68.46%, up 2.25 percentage points; that of secondary lead enterprises was 34.8%, up 0.2 percentage points; that of lead - acid battery enterprises was 71.83%, up 3.06 percentage points [1]. - A new 200,000 - ton/year production line of a primary lead smelter in Central China was ignited and put into operation, expected to produce lead ingots next week, with an initial expected daily output increase of 300 tons, and up to 600 tons if raw material supply is guaranteed [1]. Zinc Market Price and Spread - The average price of SMM1 zinc ingots decreased by 0.09% to 22,340 yuan/ton, while the closing price of the main futures contract rose by 0.38% to 22,410 yuan/ton. The basis was - 70 yuan/ton, down 105 yuan/ton [1]. - The spread between the near - month and the first - continuous contract of Shanghai zinc was 30 yuan/ton, down 30 yuan/ton; the spread between the first - continuous and the second - continuous contract was 60 yuan/ton, up 5 yuan/ton; the spread between the second - continuous and the third - continuous contract was 65 yuan/ton, up 5 yuan/ton [1]. Trading Volume and Position - The trading volume of the active futures contract was 153,571 lots, up 15.75%; the open interest was 128,000 lots, up 0.05%; the trading volume to open interest ratio was 1.20, up 15.69% [1]. Inventory - LME zinc inventory was 112,325 tons, with no change; Shanghai zinc warehouse receipt inventory was 7,246 tons, up 9.80% [1]. Industry Information - From June 28 to July 3, the weekly operation rate of galvanizing enterprises was 56.48%, up 0.27 percentage points; that of die - casting zinc alloy enterprises was 49.14%, up 2.6 percentage points; that of zinc oxide enterprises was 56.14%, down 2.58 percentage points [1]. - As of July 3, the zinc ingot inventory in Shanghai Free Trade Zone was 6,000 tons, unchanged from last week [1].

Core Viewpoint - The restructuring of Zhuhai Group has led to significant improvements in its financial performance, with a notable increase in net profit and a diversified business model that now includes precious metals [1][5][4]. Financial Performance - In the first half of 2023, Zhuhai Group expects a net profit attributable to shareholders of between 5.6 billion to 6.5 billion, representing a year-on-year increase of over 50% [1][2]. - The company anticipates a non-recurring net profit of 5.7 billion to 6.6 billion, with a growth rate exceeding 80% compared to the previous year [1][2]. - For the first quarter of 2023, Zhuhai Group reported revenues of 48.03 billion and a net profit of 2.77 billion, reflecting year-on-year growth of 8.5% and 74.07%, respectively [2]. Restructuring Details - The company completed a major asset restructuring costing approximately 39 billion, acquiring 100% of Shuikoushan Co. and 20.83% of Zhuhai Nonferrous Metals [3][4]. - The restructuring has allowed Zhuhai Group to expand its operations beyond zinc and zinc alloy production to include precious metals, enhancing its market position [5][4]. Operational Efficiency - The restructuring has activated the entire industry chain of Zhuhai Group, improving its operational efficiency and cost control [5][6]. - The company has developed a comprehensive industrial chain, including mining, smelting, and sales of non-ferrous metals, with significant production capacities in zinc and lead [6]. Financial Health - The asset-liability ratio of Zhuhai Group has significantly decreased from 84% at the end of 2022 to approximately 52% by the end of the first quarter of 2023 [1][7]. - The net cash flow from operations has shown consistent growth, with projections of 6.36 billion, 6.90 billion, and 11.07 billion for the years 2022 to 2024, respectively [7]. Market Position - Zhuhai Group has established strategic partnerships with major clients such as China Baowu and Shougang Group, positioning itself as a leader in the high-end automotive board industry [6].