Core Insights - The article emphasizes a value-oriented investment approach, focusing on underappreciated assets during market fluctuations [1][2][3] Investment Strategy - The investment strategy involves maintaining a fully invested position since the fund's inception in June 2017, emphasizing the importance of finding undervalued stocks with a safety margin [2][3] - The focus is on individual stock value rather than market timing, with successful investments made in sectors like CXO, Hong Kong consumer stocks, and copper mining during periods of market pessimism [2][3] Valuation and Cycles - The core of the investment philosophy is based on valuation and market cycles, with a belief that low prices provide a strong safety margin and potential for significant returns when cycles recover [3] - Current areas of interest include leading companies in the liquor industry and the home furnishings sector, which have been temporarily overlooked by the market [3] AI Industry Perspective - Despite the AI industry's prominence, the company remains cautious, citing a lack of deep understanding and high valuations of related stocks [4] - The company is actively learning about the AI sector while focusing on more stable investments, such as copper mining stocks, which are seen as undervalued with significant growth potential [4][5] Long-term Market Outlook - The long-term market outlook is driven by the entrepreneurial spirit of Chinese entrepreneurs, with expectations for the emergence of competitive companies that create new demand [6][7] - The investment approach is characterized by a continuous learning mindset, analyzing fundamentals, industry dynamics, and management effectiveness to identify suitable investment opportunities [7]

Core Viewpoint - The investment strategy focuses on identifying undervalued assets in forgotten market segments, emphasizing a bottom-up approach to uncover hidden opportunities during market fluctuations [1][2]. Group 1: Investment Philosophy - The company maintains a fully invested position since its inception in June 2017, demonstrating a commitment to long-term value rather than short-term market timing [2]. - The core investment philosophy revolves around finding high-quality stocks with a safety margin, rather than attempting to predict overall market trends [2][3]. - The investment approach is characterized by a focus on valuation and market cycles, with a belief that low prices provide strong safety margins and potential for significant upside when cycles recover [2][4]. Group 2: Current Market Focus - The company is currently exploring opportunities in sectors such as leading liquor brands and the home furnishings industry, which have been temporarily overlooked by the market [3]. - Despite the AI industry's prominence, the company remains cautious, citing high valuations and a lack of deep understanding of the rapidly evolving sector [3][4]. - The company identifies copper mining stocks as attractive investments due to their reasonable valuations and significant growth potential driven by increasing demand from AI infrastructure and renewable energy [4]. Group 3: Long-term Outlook - The long-term market outlook is driven by the entrepreneurial spirit of Chinese businesses, with expectations for the emergence of competitive companies that create new demand [4][5]. - The investment strategy is likened to "turning stones," emphasizing continuous learning and analysis of industry fundamentals, competitive dynamics, and management effectiveness [4][5]. - The company acknowledges the inevitability of mistakes in the investment process, viewing them as part of a learning journey that contributes to long-term value accumulation [5].

Group 1: Report Information - Report title: Non-ferrous Metals Weekly Report [1] - Date: October 24, 2025 [2] - Researchers: Zhang Ping, Yu Feifei, Peng Jinglin [3] Group 2: Copper Core View - Affected by the improved macro - atmosphere and strong medium - term fundamentals, copper prices are expected to continue rising next week [7]. Market Review - This week, the main contract of Shanghai copper operated in the range of (84410, 87860), with total positions rising 7% to 584,000 lots. LME copper operated in the range of (10536.5, 10969). The net long position of funds decreased by about 3% to 57,476 lots, and the commercial net short position decreased by 7% to 73,093 lots [7]. Fundamental Analysis Supply - Copper ore processing fees are in a deeper inversion. SMM seven - port copper concentrate inventory decreased. In September, the import of copper concentrates and their ores decreased month - on - month. Domestic cold - material processing fees fell again. In September, domestic electrolytic copper production decreased significantly, and it is expected to continue to decline in October [10][11][13]. Demand - The weekly operating rate of scrap copper rods increased slightly, while that of refined copper rods decreased. The operating rate of wire and cable and enameled wire increased slightly, but the overall consumption was lackluster [15][16]. Spot - Domestic copper stocks decreased by 0.08 to 274,000 tons, and bonded area stocks decreased by 0.49 to 92,800 tons. The LME + COMEX market increased stocks by 1,439 tons to 450,000 tons [17]. Group 3: Lithium Carbonate Core View - Due to short - term supply - demand boom, continuous inventory reduction, and unresolved supply - side disturbances, lithium carbonate futures are expected to move up [27]. Market Review - This week, lithium carbonate futures rose, with the main contract operating in the range of (75340, 80880), and total positions increasing by 7.5% to 812,000 lots. Spot prices also moved up, but the trading was dull [26]. Fundamental Analysis Supply - Lithium ore prices moved up, and the losses of salt plants increased. The weekly output of lithium carbonate reached a new high, and the production costs of purchasing lithium spodumene and lepidolite increased [30][31]. Demand - The prices of ternary materials, lithium iron phosphate, lithium cobalt oxide, and battery cells all increased. The domestic power market is in the peak season, and the demand for materials is supported [32][33][34]. Spot - The price difference between electric - grade and industrial - grade lithium carbonate is at a low level. Lithium carbonate inventory decreased by 2,292 tons to 130,366 tons [36][37]. Group 4: Aluminum Core View - Aluminum prices are expected to remain in a high - level shock, with a low - buying strategy recommended [46]. Market Review - This week, Shanghai aluminum rose unilaterally, hitting a new high for the year. The overseas market is worried about tariff risks. The demand side has gradually fulfilled its expectations in the peak season, but the downstream performance lacks highlights [42]. Fundamental Changes Bauxite - Domestic bauxite supply is tight, and prices in some regions have risen slightly. Imported bauxite prices are weak [47][48]. Alumina - Alumina prices have initially stabilized, with the bottom slightly rising. The import window remains open [50][51]. Electrolytic Aluminum - The profit of the smelting industry remains at a high level. The operating capacity remains unchanged. The export of aluminum profiles has slightly recovered, and the import window of aluminum ingots remains closed. The operating rate of downstream processing enterprises has declined slightly, and aluminum ingot stocks have decreased slightly [56][64][66]. Group 5: Nickel Core View - Nickel prices remain in a range - bound pattern, with support at the 120,000 level. Pay attention to overseas market changes and Indonesian policy risks [80]. Market Review - This week, Shanghai nickel was in a narrow - range shock in the first four days and rose on Friday, but it has not broken out of the range - bound pattern. The futures market maintains a contango structure, and the import window remains closed [75][80]. Fundamental Changes Nickel Ore - The prices of Philippine and Indonesian nickel ores remained stable this week. Some smelters have started procurement plans in advance [81]. Ferronickel - Ferronickel prices continued to fall this week, and it is expected that the downward trend will continue [80]. Electrolytic Nickel - The production capacity of electrowon nickel is rapidly releasing, but the output is difficult to increase significantly in the short term [92][93]. Nickel Sulfate - Nickel salt prices remained stable this week. It is expected that the supply of nickel sulfate will still increase slightly in October [96][98]. Stainless Steel - The inventory of stainless steel in Wuxi and Foshan decreased slightly this week, but it is expected that the inventory will not decline significantly [103]. Group 6: Zinc Core View - Zinc ore processing fees have peaked and declined. The supply of zinc ingots has increased, and the demand is weak. Pay attention to the implementation of export volume and gradually enter the market for reverse arbitrage [106]. Market Review - LME zinc inventory is at a low level, and the risk of structural shortage has increased. Shanghai zinc rose oscillatingly. The import window has been deeply closed since July, and there is a small amount of exports [105]. Fundamental Analysis Supply - Domestic zinc ore processing fees have peaked and declined. In October, the overall output of refined zinc increased month - on - month. The import window remains closed, and the export window is open [115][116]. Demand - The operating rates of galvanizing, die - casting zinc alloy, and zinc oxide all decreased slightly, and the overall demand has declined [117][118]. Spot - Domestic zinc stocks decreased to 162,100 tons, and LME zinc inventory decreased to below 40,000 tons [119].

Core Points - Angola's first large-scale copper mine, Tetelo, is set to begin production soon, marking a significant step in the country's diversification efforts towards clean energy minerals [2] - The Tetelo mine, valued at $250 million, is expected to produce 25,000 tons of copper concentrate annually during its first two years of operation, starting with open-pit mining and transitioning to underground mining in the second half of 2026 [2] - The production commencement of Tetelo is seen as a milestone for Angola, which is rich in oil resources, as it aims to tap into the copper market, a key metal for the transition to renewable energy [2] - Major companies like Ivanhoe Mines and Anglo American are also involved in copper exploration projects in Angola [2] - China, as the world's largest copper consumer, faces three major challenges: increasing dependence on foreign upstream resources, overcapacity in the midstream processing sector, and suppressed downstream demand due to high copper prices [2] Industry Insights - The copper industry is crucial for the transition to renewable energy, with copper being recognized alongside battery metals like lithium, cobalt, and nickel [2] - To assist the industry in navigating these challenges, Shanghai Nonferrous Metals Network has collaborated with copper industry enterprises to compile the "2026 China Copper Industry Chain Distribution Map," available in both Chinese and English [2]

Group 1: Iron Ore Production and Demand Outlook - BHP maintains an optimistic outlook on global iron ore demand, supported by strong macroeconomic signals and rising global economic growth expectations [1] - In the three months ending September 30, BHP's iron ore production in Western Australia was 70.2 million tons, slightly below market estimates of 71.55 million tons, and a minor decrease of 0.1% year-on-year [1][2] - The company expects its iron ore production in Western Australia for the fiscal year 2026 to remain unchanged at 284 million to 296 million tons [2] Group 2: Copper Production and Strategic Focus - BHP's copper production increased by 4% to 493,600 tons, primarily due to higher output from the Escondida project in Chile, offsetting declines in other areas [3] - The company has become the world's largest copper producer, with an annual output of approximately 2 million tons, and maintains its copper production forecast for 2026 [3] - BHP's CEO highlighted that production disruptions at competitors' mines have tightened the overall market, benefiting BHP's world-class asset portfolio [3] Group 3: Potash Project Developments - BHP has postponed the expansion plans for the Jansen potash project due to cost overruns and ample market supply, but remains optimistic about potash as a long-term opportunity [3] - The first phase of the Jansen potash project is 73% complete and is expected to start production in 2027, while the second phase is 13% complete [3]

Core Viewpoint - The company aims to become a leading global mining group by leveraging its substantial mineral resources and advanced extraction technologies, focusing on the synergistic development of its three main business segments: potassium, lithium, and copper [3]. Group 1: Business Performance - The company held a performance briefing on October 20, 2025, attended by 304 analysts and investors, discussing the operational performance for the first three quarters of 2025 [1][2]. - Revenue for the first three quarters increased by 3.35% year-on-year, driven primarily by a 34.04% increase in potassium chloride revenue, while lithium carbonate revenue decreased by 64.50% due to market price fluctuations and production halts [5]. - The average sales cost of potassium chloride was 978.69 RMB/ton, a decrease of 19.12% year-on-year, while the average selling price was 2919.81 RMB/ton, an increase of 26.88% year-on-year, resulting in a gross margin of 63.46%, up 20.78 percentage points [5]. Group 2: Strategic Developments - The company plans to optimize potassium chloride production and cost control, with the Laos potassium salt mine serving as a strategic reserve for future growth [3]. - The second phase of the joint venture with Jilong Copper is expected to significantly increase copper production upon commencement [3]. - The lithium carbonate project at the Mami Cuo salt lake is progressing steadily, with production adjustments made for the year due to earlier production halts [6][7]. Group 3: Shareholder Returns - The company has emphasized its commitment to shareholder returns, having distributed a total of 7.4 billion RMB in dividends from 2022 to 2024, with 1.569 billion RMB distributed in the first half of 2025 [4]. Group 4: Cost Control and Efficiency - The company has achieved significant cost control, with a notable reduction in operating costs contributing to improved profitability in the potassium chloride segment [5]. - The company is actively working on reducing environmental impacts through innovative mining techniques in its Laos potassium project [8]. Group 5: Future Outlook - The company is focused on enhancing its competitive edge through resource development and technological innovation in its core business areas of potassium, lithium, and copper [8].

Group 1: Investor Relations Activity - The investor relations activity involved 304 analysts and investors from various securities and asset management firms [3] - The meeting took place on October 20, 2025, via the "Cangge Mining Investor Relations" WeChat mini-program [3][4] Group 2: Company Overview and Strategic Goals - Cangge Mining aims to become a leading global mining group, leveraging its substantial mineral resource reserves and advanced technology in potassium and lithium extraction [4] - The company plans to enhance its resource volume and development technology in potassium and lithium to become a key supplier globally [4] Group 3: Financial Performance - In the first half of 2025, the company implemented cash dividends totaling CNY 1.569 billion, with cumulative dividends from 2022 to 2024 reaching CNY 7.4 billion [6] - Revenue increased by 3.35% year-on-year, primarily due to a 34.04% rise in potassium chloride revenue, while lithium carbonate revenue decreased by 64.50% due to market fluctuations [6] Group 4: Production and Sales Data - As of the end of Q3 2025, potassium chloride production reached 701,600 tons, achieving 70.16% of the annual target, while sales reached 783,800 tons, achieving 82.51% of the target [7] - Lithium production for the first three quarters was 6,021 tons, with sales of 4,800 tons and an average selling price of CNY 67,300 per ton [9] Group 5: Cost Management and Profitability - The average sales cost of potassium chloride decreased by 19.12% to CNY 978.69 per ton, while the average selling price increased by 26.88% to CNY 2,919.81 per ton, resulting in a gross margin of 63.46% [8] - The company continues to focus on cost control through process optimization and technological innovation [8] Group 6: Project Developments - The second phase of the Jilong Copper Mine project is progressing well, with significant milestones achieved in the construction of the second concentrator [12] - The Mali Mico Salt Lake project is on track, with construction of the photovoltaic power station and land use procedures underway [14]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's performance has significantly improved due to the rise in potassium chloride and copper prices, with a notable increase in net profit [2][3] - The resumption of lithium carbonate production and the steady progress of new projects are expected to contribute positively to future earnings [3] Summary by Sections Financial Performance - In the first three quarters of 2025, the company achieved revenue of 2.401 billion yuan, a year-on-year increase of 3.35% - The net profit attributable to shareholders reached 2.751 billion yuan, up 47.26% year-on-year, while the net profit after deducting non-recurring gains and losses was 2.756 billion yuan, an increase of 49.27% year-on-year - For Q3 2025, the company reported a revenue of 723 million yuan, a year-on-year increase of 28.71%, but a quarter-on-quarter decrease of 35.76% [1] Product Sales and Pricing - The potassium chloride sales volume for the first three quarters of 2025 was 783,800 tons, a year-on-year increase of 9.6%, primarily due to the release of approximately 80,000 tons from national reserves - The average selling price of potassium chloride was approximately 2,920 yuan per ton, reflecting a year-on-year increase of 26.9% - The company’s lithium carbonate sales volume was 4,800 tons, a decrease of 53.0% year-on-year, with an average selling price of 67,300 yuan per ton, down 24.6% year-on-year [2] Investment Income - The company received investment income of 1.95 billion yuan from its associate, Julong Copper Industry, representing a year-on-year increase of 43.1% - Julong Copper's copper production was 142,500 tons, up 16.8% year-on-year, with sales volume of 142,400 tons, an increase of 18.1% year-on-year, and an average selling price of 83,000 yuan per ton, up 8.0% year-on-year [2] Future Outlook - The company has resumed production at its lithium subsidiary and adjusted its lithium carbonate production and sales plan for 2025, expecting both to reach 8,510 tons - New projects, including the completion of photovoltaic power station construction contracts and the progress of the Laotian potassium salt mine project, are on track [3] Profit Forecast and Valuation - The profit forecast for 2025-2027 has been raised, with expected net profits of 3.645 billion, 4.845 billion, and 5.828 billion yuan respectively - The report maintains the "Buy" rating based on the anticipated growth driven by rising potassium chloride and copper prices [3][4]

Group 1 - Peru is the world's second-largest copper producer, with annual production consistently above 2.4 million tons, and holds significant mineral reserves including 12% of the world's copper reserves [1][2] - The country has seen limited new mining projects in the past five years, with only two new mines, Quellaveco and Mina Justa, coming online, reflecting a lack of capital expenditure in copper mining [2] - Peru's economy has shown resilience, recovering from a -10.9% GDP growth in 2020 due to the pandemic, with growth rates of 13.4% in 2021 and 2.7% in 2022, and a projected growth of 3.1% in 2024 [3] Group 2 - The National Infrastructure Plan (PNIC) aims to address a long-term infrastructure gap of approximately $110 billion from 2019 to 2038, with 52 priority projects totaling $28.5 billion expected to be completed by 2025 [3] - Chinese companies control two major mines in Peru, with the Toromocho project being the first large-scale copper mine developed by a Chinese enterprise overseas, expected to produce 300,000 tons of copper concentrate annually after expansion [3] - The Las Bambas project, one of the largest copper mines globally, is a joint venture involving MMG and other partners, with an expected annual production of 280,000 to 320,000 tons of copper concentrate [3]

1. Report Industry Investment Ratings No industry investment ratings are provided in the reports. 2. Core Views of the Reports - The overall sentiment in the A - share market is mixed. The stock index shows a pattern of first decline and then rebound in the short - term, with the medium - to - long - term upward trend remaining unchanged. The bond market is affected by the stock market and economic data, showing a pattern of wide - range fluctuations [2][4][7]. - Precious metals are expected to maintain a strong trend due to concerns about the US economic outlook and geopolitical conflicts. The price of silver is also expected to remain strong, but the domestic silver price may lag behind the international market [8][9][10]. - The shipping index (European line) is expected to show a moderately strong and volatile pattern in the short - term [12][13]. - In the non - ferrous metal sector, the price of copper is expected to fluctuate, alumina is expected to be weakly volatile, aluminum is expected to be highly volatile, zinc is expected to fluctuate, tin is expected to be highly volatile, nickel is expected to be range - bound, stainless steel is expected to be weakly volatile, and lithium carbonate is expected to be in a consolidation phase [18][23][26][31][37][40][44]. - In the black metal sector, the steel market needs to observe the recovery of post - holiday demand, iron ore is expected to be weakly volatile, coking coal is recommended for short - term long positions, and coke is recommended for speculative long positions [45][47][52][55]. - In the agricultural product sector, soybean meal prices are expected to be under pressure, and pig prices are expected to face supply pressure in the medium - to - long - term [56][58][60]. 3. Summary by Directory Financial Derivatives Financial Futures - **Stock Index Futures**: On Wednesday, the A - share market rebounded with reduced trading volume. The export - related sectors recovered. The four major stock index futures contracts all rose, and the basis spread of the main contracts showed a narrow - range fluctuation. The Sino - US trade friction is in a stage of mutual exploration. The stock index is expected to decline first and then rebound in the short - term, with the medium - to - long - term upward trend remaining unchanged [2][3][4]. - **Treasury Bond Futures**: The treasury bond futures mostly closed down after wide - range fluctuations. The bond market was affected by the strong performance of the stock market and was less sensitive to economic data. The bond market is expected to continue to fluctuate within a range in the short - term, and it is recommended to wait and see [5][7]. Precious Metals - The US economic activity is affected by tariffs and government shutdowns. The US dollar is weakening, and precious metals continue to be strong. Gold prices reached a new high, and silver prices rose more significantly. In the future, precious metals are expected to maintain a bull market, and it is recommended to hold long positions with stop - loss and take - profit measures [8][9][10]. Shipping Index (European Line) - The spot freight rates of shipping to Europe vary among different shipping companies. The shipping index shows a mixed trend. The supply of global container capacity has increased, and the demand in the eurozone and the US shows different situations. The futures market showed an upward trend on the previous day, and it is expected to be moderately strong and volatile in the short - term [12][13]. Commodity Futures Non - Ferrous Metals - **Copper**: The spot trading is average, and the price fluctuates. The supply of copper mines is tight, and the production of refined copper may decline. The demand has strong resilience, but the high price suppresses demand. The inventory shows a pattern of de - stocking in LME and stocking in domestic and COMEX. The price is expected to fluctuate, and the main contract is recommended to focus on the support level of 84000 - 85000 [14][16][18]. - **Alumina**: The cost support is weakening, and the price is exploring the bottom. The supply is in an oversupply situation, and the demand is weak. The inventory shows a mixed trend. The price is expected to be weakly volatile, and the main contract is expected to fluctuate between 2750 - 2950 [18][20][21]. - **Aluminum**: The price has slightly declined from the high level, and the spot premium has rebounded. The supply shows a structural tightness, and the demand is differentiated. The inventory is at a relatively low level. The price is expected to be highly volatile, and the main contract is recommended to operate between 20700 - 21300 [21][23]. - **Aluminum Alloy**: The price is maintaining a high - level volatility. The cost support is strong, but the inventory pressure is increasing. The supply and demand are in a state of game. The price is expected to be highly volatile, and the main contract is recommended to operate between 20200 - 20800 [24][26]. - **Zinc**: The fundamental factors have limited support for the price, and the price fluctuates. The supply is in a state of loose - to - tight transition, and the demand has no significant improvement. The inventory is increasing. The price is expected to fluctuate, and the main contract is recommended to operate between 21500 - 22500 [27][30][31]. - **Tin**: The strong fundamentals support the high - level volatility of the price. The supply of tin mines is tight, and the demand shows a structural differentiation. The inventory shows a mixed trend. The price is expected to be highly volatile, and it is recommended to pay attention to buying opportunities when the macro - sentiment declines [31][33][34]. - **Nickel**: The price is maintaining a range - bound pattern. The macro - expectations are changing, and the supply of nickel mines has some positive factors. The demand is relatively stable, and the inventory is increasing. The price is expected to be range - bound, and the main contract is recommended to operate between 120000 - 126000 [34][36][37]. - **Stainless Steel**: The spot trading is cautious, and the demand is insufficient. The raw material prices are firm, but the downstream demand has not been effectively realized. The inventory is increasing. The price is expected to be weakly volatile, and the main contract is recommended to operate between 12400 - 12800 [38][40]. - **Lithium Carbonate**: The price is maintaining a consolidation phase. The supply is increasing, and the demand is optimistic. The inventory is decreasing. The price is expected to be in a consolidation phase, and the main contract is recommended to have a price center between 70000 - 75000 [42][43][44]. Black Metals - **Steel**: The spot price is weakly declining. The cost and profit situation is changing, and the supply and demand show different trends. The inventory is increasing. It is necessary to observe the recovery of post - holiday demand, and it is recommended to wait and see for single - side trading [45][46]. - **Iron Ore**: The supply - side disturbances are weakening, and the demand is weakening. The inventory is increasing. The price is expected to be weakly volatile, and it is recommended to wait and see for single - side trading and consider the arbitrage strategy of long coking coal and short iron ore [47][48][49]. - **Coking Coal**: The post - holiday coal price has rebounded, and the downstream replenishment demand has increased. The supply of Mongolian coal may decrease. The price is expected to rise in the short - term, and it is recommended to go long on the 2601 contract in the short - term and consider the arbitrage strategy of long coking coal and short coke [50][52]. - **Coke**: The first - round price increase was implemented before the holiday, and it is difficult to have a second - round increase. The supply is affected by the cost, and the demand is weak. The inventory shows a mixed trend. It is recommended to go long on the 2601 contract speculatively and consider the arbitrage strategy of long coking coal and short coke [53][55]. Agricultural Products - **Meal Products**: The US soybean price is under pressure. The domestic soybean supply is sufficient in the fourth quarter, and the price of soybean meal is expected to be weak. It is recommended to pay attention to the uncertainty of soybean arrivals and consider the 1 - 5 positive arbitrage [56][58]. - **Pigs**: The pig price has rebounded due to the entry of secondary fattening. However, the supply pressure will continue to be released in the medium - to - long - term. It is recommended to go short on the futures and hold the LH1 - 5 and LH3 - 7 reverse arbitrage [59][60].