Group 1 - The company, Luoping Zinc & Electricity, is committed to continuous technological innovation to enhance the extraction of rare and precious metals from raw materials and slag, effectively promoting the utilization efficiency of mineral resources [1]

Core Viewpoint - The domestic zinc ingot inventory is increasing, while overseas London zinc inventory is decreasing, leading to a divergence in supply and demand dynamics, which may result in an expanded price gap between domestic and international markets. This situation could potentially boost domestic demand as the traditional peak consumption season approaches, with expectations for spot zinc prices to surpass 23,000 yuan/ton in September [1][8]. Inventory Dynamics - As of August 18, domestic zinc ingot social inventory reached 116,100 tons, reflecting an increase of over 27% since early August, marking five consecutive weeks of inventory accumulation, indicating weakened market consumption during the traditional off-peak season [1]. - In contrast, London zinc inventory has decreased from 75,850 tons to a near two-year low, primarily due to supply tightening caused by high energy costs affecting European smelters and increased zinc consumption driven by infrastructure investments in India and Southeast Asia [3]. Price Trends - The current market shows a "tight supply abroad and loose supply domestically" scenario, with high domestic inventory suppressing prices while overseas inventory depletion supports international zinc prices. The domestic spot prices have remained low, while London zinc prices have shown an upward trend, leading to a declining Shanghai-London price ratio, which has approached a low point not seen since May 2024 [5]. Short-term Outlook - Domestic social inventory accumulation may continue into September, while overseas supply tightness is expected to persist. The divergence in price trends is likely to continue, with the Shanghai-London price ratio potentially declining further. However, increased demand for domestic electrolytic zinc from European markets and infrastructure projects in India and Southeast Asia may help alleviate the oversupply situation domestically [7]. - The upcoming traditional consumption peak season ("Golden September and Silver October") is anticipated to provide a dual boost to domestic zinc demand, with expectations of a 10%-15% increase in demand for galvanized sheets and zinc alloys due to seasonal recovery in real estate completions and automotive production [7]. Price Forecast - Short-term domestic spot prices are expected to fluctuate between 22,000 and 23,000 yuan/ton. As the peak season effects become more pronounced, spot zinc prices are projected to break through the 23,000 yuan/ton resistance level and align more closely with London zinc price trends. However, given the high domestic inventory, the pace of price increases may be moderate, warranting close attention to inventory depletion rates and actual downstream purchasing activities [8].

Core Viewpoint - Zinc Industry Co., Ltd. reported significant growth in both revenue and net profit for the first half of 2025, indicating strong operational performance and financial health [1] Financial Performance - The company achieved operating revenue of 8.913 billion yuan, representing a year-on-year increase of 23.92% [1] - The net profit attributable to shareholders reached 62.6537 million yuan, showing a remarkable year-on-year growth of 99.07% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 55.3439 million yuan, reflecting a substantial year-on-year increase of 158.48% [1] - Basic earnings per share stood at 0.04 yuan [1]

Core Viewpoint - Zinc Industry Co., Ltd. reported significant growth in its financial performance for the first half of 2025, indicating a strong operational momentum and profitability improvement [1] Financial Performance - The company achieved an operating revenue of 8.913 billion yuan, representing a year-on-year increase of 23.92% [1] - The net profit attributable to shareholders reached 626.537 million yuan, marking a substantial year-on-year growth of 99.07% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 553.439 million yuan, reflecting a remarkable year-on-year increase of 158.48% [1] - Basic earnings per share stood at 0.04 yuan [1]

Core Insights - The company reported a revenue of 521 million yuan for the first half of 2025, representing a year-on-year decrease of 25.97% [1] - The net loss attributable to shareholders of the listed company was 92.19 million yuan [1] - The net loss attributable to shareholders after deducting non-recurring gains and losses was 65.46 million yuan, which expanded by 1247.58% year-on-year [1] - The basic loss per share was 0.29 yuan [1]

1. Report Industry Investment Rating - No relevant information provided. 2. Core Viewpoints of the Report - Last week, the main contract price of Shanghai zinc futures stopped falling and stabilized. The improvement of PMI data in Europe and the US and the dovish interpretation of Powell's speech at the Jackson Hole Central Bank Annual Meeting increased the market's expectation of a Fed rate cut in September, improving market risk appetite. Domestically, the A-share market continued to strengthen [3][10]. - Fundamentally, LME zinc inventories continued to decline, supporting the pattern of stronger overseas and weaker domestic zinc markets. Affected by concentrated arrivals, the zinc ore imports in July exceeded expectations, and refineries had sufficient raw material inventories, supporting stable production. The imports of refined zinc decreased in July as expected, and it is expected to remain at the current level. The smelting end maintained high supply, while downstream consumption did not improve significantly. After the decline in zinc prices, downstream buyers actively replenished their stocks at low prices, resulting in a slight decrease in inventories, but the sustainability remains to be seen [4][10]. - Overall, Powell's dovish stance boosted the rate - cut expectation and repaired market risk appetite. There were no new contradictions in the fundamentals. The decline in LME inventories and increased low - price purchases by domestic downstream provided support, but the high supply pressure from stable mining and smelting production suppressed zinc prices. Technically, the futures price found support near the previous low. In the short term, with the boost of macro - sentiment, zinc prices are expected to repair with a volatile and upward trend [4][11]. 3. Summary by Directory 3.1 Transaction Data | Contract | August 15 | August 22 | Change | Unit | | --- | --- | --- | --- | --- | | SHFE Zinc | 22505 | 22275 | - 230 | Yuan/ton | | LME Zinc | 2796.5 | 2805.5 | 9 | US dollars/ton | | Shanghai - London Ratio | 8.05 | 7.94 | - 0.11 | - | | SHFE Inventory | 76803 | 77838 | 1035 | Tons | | LME Inventory | 76325 | 68075 | - 8250 | Tons | | Social Inventory | 11.69 | 10.37 | - 1.32 | Ten thousand tons | | Spot Premium | - 50 | - 40 | 10 | Yuan/ton | [5] 3.2 Market Review - The decline of the main contract of Shanghai zinc futures (ZN2510) slowed down last week, and it stabilized and repaired in the second half of the week. The market was waiting for Powell's speech for rate - cut guidance, and the low - price purchases by downstream led to a slight decrease in weekly inventories, providing support. The contract finally closed at 22275 Yuan/ton, with a weekly decline of 1.02%. It rose during the Friday night session [6]. - LME zinc fluctuated narrowly in the first half of the week. The market revised its rate - cut expectation, and the US dollar stabilized and rebounded, suppressing the LME zinc price. On Friday, the rate - cut expectation recovered, and the contract closed at 2805.5 US dollars/ton, with a weekly increase of 0.32% [6]. - In the spot market, as of August 22, the mainstream transaction price of Shanghai 0 zinc was concentrated between 22220 - 22290 Yuan/ton, with a discount of 10 - 0 Yuan/ton to the 2509 contract. In different markets, the prices and discounts varied. In general, downstream low - price purchases were more frequent in the first half of the week, but with no obvious improvement in consumption, purchases decreased in the second half of the week, and traders' quotes remained stable, with the premium remaining weak [7]. - In terms of inventory, as of August 22, LME zinc inventory was 68075 tons, a weekly decrease of 8250 tons. SHFE inventory was 77838 tons, an increase of 1035 tons from the previous week. As of August 21, social inventory was 13.29 million tons, an increase of 0.37 million tons from August 14 and a decrease of 0.26 million tons from August 18. The decline in the zinc price center during the week boosted downstream purchasing enthusiasm, leading to a slight decrease in inventories in many places [8]. - Macroeconomically, the preliminary value of the US S&P Global Manufacturing PMI in August reached 53.3, the highest level since May 2022, far exceeding the expected 49.5. The service PMI slightly declined to 55.4, but the significant rebound in manufacturing pushed the composite PMI to a 9 - month high of 55.4. The preliminary value of the Eurozone PMI in August rebounded from 49.8 to 50.5, breaking above the boom - bust line for the first time since June 2022, higher than the expected 49.5. The US and the EU reached a framework for a trade agreement, with the EU promising to cancel all US industrial product tariffs and plan to purchase US energy and AI chips worth billions of dollars. The Fed's July meeting minutes showed a hawkish signal, but after Powell's speech, traders increased their bets on a Fed rate cut in September [8][9]. 3.3 Industry News - As of August 22, the average weekly domestic TC of SMM Zn50 was flat at 3900 Yuan/metal ton, and the SMM imported zinc concentrate index rose by 2.2 US dollars/dry ton to 92.5 US dollars/dry ton [12]. - According to customs data, in July, zinc concentrate imports were 501,400 tons, a month - on - month increase of 51.97% and a year - on - year increase of 33.58%. From January to July, the cumulative zinc concentrate imports were 3.0354 million tons, a cumulative year - on - year increase of 45.2%. In July, refined zinc imports were 17,900 tons, a month - on - month decrease of 50.35% and a year - on - year decrease of 2.97%. From January to July, the cumulative refined zinc imports were 209,900 tons, a cumulative year - on - year decrease of 12.72%. In July, galvanized sheet exports were 1.1975 million tons, a month - on - month increase of 5.86% and a year - on - year increase of 13%. In July, die - cast zinc alloy exports were 241.35 tons, a month - on - month decrease of 61.21% [12][13]. 3.4 Related Charts - The report provides multiple charts, including the price trend charts of SHFE zinc and LME zinc, the ratio of domestic and foreign markets, spot and LME premiums, inventory data of SHFE, LME, social and bonded areas, domestic and foreign zinc ore processing fees, zinc ore import profit and loss, refined zinc net imports, domestic refined zinc production, smelter profits, and downstream primary enterprise operating rates [15][16][17].

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - This week, the main contract of Shanghai Zinc fluctuated and declined, with a weekly change of -1.02% and an amplitude of 1.29%. The closing price of the main contract was 22,275 yuan/ton. Looking ahead, macro - factors show that the preliminary value of the US manufacturing PMI in August reached 53.3, hitting a new high in more than three years and increasing inflation pressure. In terms of fundamentals, the import volume of zinc ore at home and abroad has risen, the zinc ore processing fee has continued to increase, and the sulfuric acid price has risen significantly, leading to a further repair of smelter profits and increased production enthusiasm. New production capacities are being released, and previously overhauled capacities are resuming production, accelerating the growth of supply. Currently, the import loss continues to expand, and the inflow of imported zinc has decreased. On the demand side, it is the off - season, the operating rate of processing enterprises has decreased year - on - year. After the recent decline in zinc prices, downstream enterprises mainly purchase on - demand at low prices, and the overall transaction has improved. Domestic social inventories have slightly decreased, and the spot premium has remained stable. Overseas LME inventories have decreased significantly, and the LME spot premium has been adjusted downward, which may weaken the support for domestic zinc prices. Technically, the price is adjusting at a low position of holdings, and attention should be paid to the support at 22,200. It is recommended to wait and see or go long lightly at low prices [4]. 3. Summaries According to Relevant Catalogs 3.1 Week - to - Week Summary - **Market Review**: The main contract of Shanghai Zinc fluctuated and declined this week, with a weekly change of -1.02% and an amplitude of 1.29%. The closing price of the main contract was 22,275 yuan/ton [4]. - **Market Outlook**: Macroeconomic factors include the high US manufacturing PMI and inflation pressure. Fundamentally, supply is increasing, and demand is in the off - season. Technically, attention should be paid to the support at 22,200 [4]. - **Strategy Suggestion**: It is recommended to wait and see or go long lightly at low prices [4]. 3.2 Futures and Spot Market - **Price and Ratio**: The price of Shanghai Zinc futures declined this week, and the Shanghai - London ratio decreased. As of August 22, 2025, the closing price of Shanghai Zinc was 22,275 yuan/ton, a decrease of 230 yuan/ton from August 15, 2025, with a decline of 1.02%. As of August 21, 2025, the closing price of LME Zinc was 2,767 US dollars/ton, a decrease of 75.5 US dollars/ton from August 15, 2025, with a decline of 2.66% [9]. - **Net Position and Open Interest**: As of August 22, 2025, the net position of the top 20 in Shanghai Zinc was -7,709 lots, a decrease of 26,519 lots from August 15, 2025. The open interest of Shanghai Zinc was 211,313 lots, a decrease of 4,138 lots from August 15, 2025, with a decline of 1.92% [12]. - **Price Spreads**: As of August 22, 2025, the aluminum - zinc futures spread was 1,645 yuan/ton, a decrease of 90 yuan/ton from August 15, 2025. The lead - zinc futures spread was 5,495 yuan/ton, a decrease of 160 yuan/ton from August 15, 2025 [16]. - **Premium and Discount**: As of August 22, 2025, the spot price of 0 zinc ingot was 22,210 yuan/ton, a decrease of 250 yuan/ton from August 15, 2025, with a decline of 1.11%. The spot discount was 45 yuan/ton, an increase of 20 yuan/ton from last week. As of August 21, 2025, the LME zinc near - month and 3 - month spread was -7.54 US dollars/ton, a decrease of 6.98 US dollars/ton from August 14, 2025 [22]. - **Inventory**: As of August 21, 2025, the LME refined zinc inventory was 69,375 tons, a decrease of 8,075 tons from August 14, 2025, with a decline of 10.43%. As of August 22, 2025, the SHFE refined zinc inventory was 77,838 tons, an increase of 1,035 tons from last week, with an increase of 1.35%. As of August 21, 2025, the domestic refined zinc social inventory was 117,600 tons, an increase of 7,600 tons from August 14, 2025, with an increase of 6.91% [25]. 3.3 Industry Situation - **Upstream**: In May 2025, the global zinc ore output was 1.0193 million tons, a month - on - month decrease of 2.37% and a year - on - year increase of 2.49%. In July 2025, the import volume of zinc ore concentrates was 501,424.97 tons, a month - on - month increase of 51.97% and a year - on - year increase of 37.75% [31]. - **Supply - Side**: In May 2025, the global refined zinc output was 1.1164 million tons, a decrease of 48,700 tons from the same period last year, with a decline of 4.18%. The global refined zinc consumption was 1.1605 million tons, an increase of 36,800 tons from the same period last year, with an increase of 3.27%. The global refined zinc gap was 44,100 tons. In July 2025, the zinc output was 617,000 tons, a year - on - year increase of 13.8%. From January to July, the cumulative zinc output was 4.166 million tons, a year - on - year increase of 1.3%. In July 2025, the refined zinc import volume was 17,903.91 tons, a year - on - year decrease of 2.97%. The refined zinc export volume was 406.07 tons, a year - on - year decrease of 85.11% [36][40][43]. - **Downstream**: - Galvanized sheet (strip): From January to June 2025, the inventory of domestic major enterprises' galvanized sheet (strip) was 790,300 tons, a year - on - year increase of 21.31%. In July 2025, the import volume of galvanized sheet (strip) was 30,900 tons, a year - on - year decrease of 39.92%. The export volume was 346,700 tons, a year - on - year increase of 43.29% [46]. - Real estate: From January to July 2025, the new housing construction area was 352.0614 million square meters, a year - on - year decrease of 19.5%. The housing completion area was 250.3441 million square meters, a year - on - year decrease of 21.19%. The funds in place for real estate development enterprises were 5.728655 trillion yuan, a year - on - year decrease of 7.5%. Among them, personal mortgage loans were 791.8 billion yuan, a year - on - year decrease of 9.3% [51][52]. - Infrastructure: In July 2025, the real estate development climate index was 93.34, a decrease of 0.25 from last month and an increase of 1.23 from the same period last year. From January to July 2025, the infrastructure investment increased by 7.29% year - on - year [57]. - Home appliances: In July 2025, the refrigerator output was 8.7307 million units, a year - on - year increase of 5%. From January to July, the cumulative refrigerator output was 59.6315 million units, a year - on - year increase of 0.9%. In July 2025, the air - conditioner output was 20.5965 million units, a year - on - year increase of 1.5%. From January to July, the cumulative air - conditioner output was 183.4554 million units, a year - on - year increase of 5.1% [61]. - Automobile: In July 2025, the Chinese automobile sales volume was 2,593,410 units, a year - on - year increase of 14.66%. The automobile production volume was 2,591,084 units, a year - on - year increase of 13.33% [64].

Market Performance - The market continues to show weakness, with the Shanghai Composite Index down 0.06%, the Shenzhen Component down 0.66%, and the ChiNext Index down 1.71% at midday [1] - Over 3,400 stocks declined across both markets, with a total trading volume of 1.51 trillion yuan [1] Sector Performance - High-position stocks experienced significant declines, including multiple stocks hitting the daily limit down, such as Huasheng Tiancheng [3] - The fourth-generation semiconductor sector is undergoing adjustments, with Hengzhou Development hitting the limit down and Dongwei Semiconductor down 3.69% [3] - Data center power supply, Huawei Ascend, software development, and CRO sectors saw notable declines [3] - Consumer stocks, particularly in the liquor sector, rebounded, with Jiugui Liquor achieving two consecutive limit up [3] - Non-ferrous metal concept stocks showed strong fluctuations, with Luoping Zinc Electric hitting the limit up [3] - AI glasses concept stocks were active, with Kosen Technology achieving four consecutive limit up [3] - Sectors such as tourism, 3D cameras, and dairy products showed significant gains [3] Policy and Economic Developments - The State Council's ninth plenary session emphasized the need to continuously stimulate consumer potential and systematically remove restrictive measures in the consumption sector [3] - The Ministry of Finance plans to issue 12.5 billion yuan in government bonds in Hong Kong in August [3] - The Shanghai Municipal Economic and Information Commission, along with two other departments, released an implementation plan to accelerate the development of "AI + manufacturing" [3]

Core Viewpoint - Hindustan Zinc, India's largest refined zinc producer, announced a $438 million investment to build a metal processing plant as part of its capacity expansion plan [1] Group 1: Investment and Capacity Expansion - The new plant will have an annual processing capacity of 10 million tons, recovering metals from tailings, which are waste piles left after metal extraction from ore [1] - This facility aims to enhance the company's overall mineral recovery rate and support its larger goal of doubling annual production capacity to 2 million tons [1] - In June, the company announced a $1.39 billion investment plan to establish a metal complex in Rajasthan, where it already operates a zinc smelter [1]

Report Industry Investment Rating No relevant content provided. Core View of the Report - The domestic zinc market is facing a situation where supply is increasing while demand remains weak, leading to continuous inventory accumulation and downward pressure on the Shanghai zinc price. However, the LME zinc inventory overseas is continuously decreasing and remains at a relatively low level, so attention should be paid to the impact of overseas funds on the LME zinc price [6]. Summary According to Relevant Catalogs Chapter 1: Comprehensive Analysis and Trading Strategies Industrial Supply and Demand - **Mine End**: This week, the domestic zinc concentrate market remained stable. The average weekly TC price of domestic SMM Zn50 zinc concentrate was flat at 3,900 yuan/metal ton, and the SMM imported zinc concentrate index rose by $8.05/dry ton to $90.3/dry ton. The arrival of imported zinc concentrate at Fangchenggang Port this week led to an increase in the inventory of imported zinc concentrate at domestic ports, with the total amount at major SMM ports increasing by 46,000 tons to 304,000 tons. Although the TC of imported zinc concentrate has been raised recently, the smelting profit of domestic zinc concentrate is still high, and smelters tend to purchase domestic ore. It is expected that there is still room for an increase in the imported TC in the future [6]. - **Smelting End**: In August, except for some smelters in Hunan for maintenance, the production of other smelters is expected to remain stable. Coupled with the continuous release of new domestic production capacity, SMM expects that the domestic refined zinc output in August may increase by 3.1% month-on-month to 621,500 tons. Currently, the zinc concentrate processing fee has been significantly raised compared with the previous period, and the zinc price is relatively high, so the profit margin of smelters is constantly expanding. With sufficient domestic zinc concentrate supply, the enthusiasm of smelters to start production has significantly increased, and the supply of refined zinc is expected to increase significantly [6]. - **Consumption**: Currently, it is still the off - season for zinc consumption. Coupled with the possible production reduction and suspension in the Beijing - Tianjin - Hebei region around August 20, downstream consumption may further weaken [6]. - **Inventory Data**: As of August 14, the total inventory of zinc ingots in seven major SMM regions was 129,200 tons, an increase of 10,000 tons from August 11 and 16,000 tons from August 7. The LME zinc inventory (August 14) was 76,300 tons, a decrease of 4,100 tons from August 8 [6]. Trading Strategies - **Single - sided**: Profitable short positions can continue to be held, and attention should be paid to the impact of funds on the zinc price. - **Arbitrage**: Temporarily wait and see [6]. Chapter 2: Market Data No specific data analysis content provided in the given text. Chapter 3: Fundamental Data Zinc Ore Supply - **Production**: According to the International Lead and Zinc Study Group, from January to May 2025, the global zinc concentrate production was 4.993 million tons, a year - on - year increase of 252,000 tons or 5.31%. Among them, the overseas zinc concentrate production was 3.467 million tons, a year - on - year increase of 220,900 tons or 6.8%; China's zinc concentrate production was 1.526 million tons, a year - on - year increase of 31,000 tons or 2.07%. In July 2025, the SMM zinc concentrate production was 346,800 metal tons, a month - on - month increase of 7.53% and a year - on - year decrease of 5.68%. The expected zinc concentrate production in August 2025 is 340,800 metal tons, a month - on - month decrease of 1.73%. In July, the monthly raw material inventory of smelters was 468,000 metal tons, a month - on - month increase of 4.46% and a year - on - year increase of 157%. The inventory of zinc concentrate at major domestic ports increased by 46,000 tons to 354,000 tons [26][30]. - **Import**: From January to June 2025, overseas mines resumed and started production, and the zinc concentrate production increased significantly. When the domestic zinc concentrate import window opened, smelters and traders actively purchased and locked prices, resulting in a continuous inflow of overseas zinc concentrate into the domestic market, and the supply of imported zinc concentrate increased significantly. It is expected that the zinc concentrate import window will still open in the second half of the year, and a large amount of imported zinc concentrate will flow into the domestic market. In June 2025, China's import volume of zinc ore and its concentrates was 330,000 physical tons, a month - on - month decrease of 32.87% and a year - on - year increase of 22.95% [32][41]. Zinc Ore Processing Fees - In August, the monthly processing fee for domestic Zn50 zinc concentrate rose to 3,950 yuan/ton, an increase of 2,350 yuan/ton compared with December 2024. On August 15, the weekly processing fee for domestic Zn50 zinc concentrate was 3,900 yuan/ton, and the SMM imported zinc concentrate index rose by $8.05/dry ton to $90.3/dry ton [48]. Global Refined Zinc Production - From January to May 2025, the global refined zinc production was 5.512 million tons, a year - on - year decrease of 184,400 tons or 3.24%. The main reason for the decrease in production was the reduction and suspension of production at the Seakpho smelter in South Korea and the Annaka smelter in Japan. The global refined zinc consumption was 5.419 million tons, a year - on - year decrease of 43,100 tons or 0.79%. The decrease in consumption was mainly concentrated in the United States and Mexico. From January to May 2025, the global refined zinc had a cumulative surplus of 92,800 tons. In May, due to the significant increase in zinc consumption in Asia, the global refined zinc shifted from surplus to shortage [54]. Domestic Refined Zinc Supply - **Domestic Smelter Operation**: From January to July, the average operating rate of domestic refined zinc enterprises was about 89.2%, a year - on - year increase of 3.97%. By scale, the operating rate of large - scale refined zinc enterprises was 89.95%, a year - on - year increase of 2.05%; the operating rate of medium - scale refined zinc enterprises was 94.59%, a year - on - year increase of 7.4%; the operating rate of small - scale refined zinc enterprises was 72.38%, a year - on - year increase of 1.1%. From January to February this year, the operating rate of domestic smelters was lower than that of the same period last year, mainly because smelters were still in a loss - making state and due to the Spring Festival holiday. Since March, after smelters turned from loss to profit, the operating rate increased significantly year - on - year. From January to July, the domestic refined zinc production was 3.843 million tons, a year - on - year increase of 4.67% [57]. - **Zinc Ingot Import**: In June 2025, the refined zinc import volume was 36,100 tons, a month - on - month increase of 9,300 tons or 34.98%, and a year - on - year increase of 3.24%. From January to June, the cumulative refined zinc import volume was 191,900 tons, a cumulative year - on - year decrease of 13.53%. In June, the refined zinc export volume was 1,900 tons, so the net refined zinc import volume in June was 34,100 tons [59]. Raw Material Supply and Demand Summary - The report provides a detailed table of the supply and demand of zinc concentrate and refined zinc from January 2024 to June 2025, including production, net import volume, total supply, and their year - on - year changes [67].