Report Summary 1) Report Industry Investment Rating No information provided. 2) Core Views - The lead market is in a state of weak supply and demand with no obvious contradictions. Tight raw materials and peak - season expectations support lead prices. With Powell's dovish remarks and positive domestic sentiment, lead prices will maintain range - bound consolidation [1]. - The zinc market has an increase in both zinc ore and zinc ingot supply, while demand is in the off - season and inventory is accumulating. However, due to the low LME zinc inventory overseas, the LME 0 - 3 shifting to a back structure, and high capital concentration, LME zinc has been rising. In the short term, Shanghai zinc may show a strong - side consolidation under the influence of external markets and macro - sentiment [1]. 3) Summary by Relevant Catalogs Price and Market Data - **Lead**: SMM1 lead ingot average price was 16,725 yuan/ton with 0.00% change; futures主力合约收盘价 was 16,850 yuan/ton, down 0.03%. LME 3 - month lead futures (electronic) closed at 1,994 dollars/ton, down 0.47%. The trading volume of the active futures contract increased by 5.94% to 42,223 hands, and the open interest increased by 0.95% to 51,504 hands [1]. - **Zinc**: SMM1 zinc ingot average price was 22,080 yuan/ton, up 0.23%; futures主力合约收盘价 was 22,325 yuan/ton, up 0.68%. LME 3 - month zinc futures (electronic) closed at 2,865.5 dollars/ton, up 1.15%. The trading volume of the active futures contract decreased by 10.03% to 125,688 hands, and the open interest decreased by 7.34% to 107,662 hands [1]. Market News - **Lead**: A small - and - medium - sized lead - zinc mine project in Qinghai completed its 10 - day autumn maintenance, and production resumed in August. On September 1st, the [LME0 - 3 lead] was at a discount of 42.47 dollars/ton, and the open interest decreased by 686 hands to 160,389 hands [1]. - **Zinc**: Since September 1st, many galvanized sheet plants in Hebei have been on holiday due to the approaching National Day, and the resumption time is undetermined. Some plants in other regions have chosen to conduct maintenance or stop production due to vehicle transportation restrictions. On September 1st, the [LME0 - 3 zinc] was at a premium of 14.98 dollars/ton, and the open interest increased by 1,018 hands to 192,517 hands [1]. Fundamental Analysis - **Lead**: There is no expected increase in lead concentrate imports, and processing fees are likely to rise. Some primary lead smelters have maintenance plans, and the operating rate has declined slightly. For secondary lead, the price of waste lead batteries is likely to rise, and some smelters have reduced or stopped production due to raw material shortages or cost - price inversion. The terminal market shows no significant improvement, and dealers are mainly digesting inventory [1]. - **Zinc**: Smelters have sufficient raw material stocks, and zinc ore processing fees are rising. Domestic zinc concentrate processing fees remained flat at 3,900 yuan/metal ton last week, and the import zinc ore processing fee index increased to 93.75 dollars/dry ton. Smelter profits and production enthusiasm have improved, and production is increasing. However, due to the off - season and environmental protection restrictions in the north, some downstream industries' operating rates have weakened, and the enthusiasm for purchasing zinc ingots is limited [1].

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints - The lead market shows a pattern of increasing supply and demand with no obvious contradictions. Tight raw materials and peak - season expectations support lead prices. With Powell's dovish remarks and increased market expectations of a Fed rate cut in September, lead prices are expected to remain range - bound [1]. - The zinc market has an increase in both zinc ore and zinc ingot supply, while demand is in the off - season and inventory is accumulating. However, the dovish remarks from Powell and increased expectations of a Fed rate cut in September provide some support, and short - term zinc prices are expected to trade in a range [1]. 3. Summary by Related Catalogs Lead Market - **Price and Spread**: The average price of SMM1 lead ingots remained flat, the closing price of the main Shanghai lead futures contract fell by 0.15%. The Shanghai lead basis increased by 25 yuan/ton to - 130 yuan/ton. Other spreads also showed certain changes [1]. - **Trading Volume and Open Interest**: The trading volume of the active lead futures contract decreased by 9.12% to 39,854 lots, while the open interest increased by 3.73% to 51,017 lots. The trading - to - open - interest ratio decreased by 12.39% to 0.78 [1]. - **Inventory**: LME lead inventory remained unchanged at 259,550 tons, and Shanghai lead warehouse receipts decreased by 0.91% to 56,801 tons [1]. - **Fundamentals**: There is no expected increase in lead concentrate imports, and processing fees are likely to rise. Primary lead production is stable with a slight increase as some refineries resume production. In the secondary lead sector, due to high waste lead - acid battery prices and limited supplies, some refineries cut or stopped production. Terminal demand has not improved significantly, and dealers are mainly digesting inventory [1]. - **News**: On September 1, 2025, the new national standard for electric bicycles was officially implemented. On August 29, the LME 0 - 3 lead was at a discount of 41.07 dollars/ton, and the open interest decreased by 800 lots to 161,075 lots [1]. Zinc Market - **Price and Spread**: The average price of SMM1 zinc ingots rose by 0.41%, and the closing price of the main Shanghai zinc futures contract rose by 0.16%. The Shanghai zinc basis increased by 55 yuan/ton to - 145 yuan/ton. Zinc ingot premiums in different regions decreased [1]. - **Trading Volume and Open Interest**: The trading volume of the active zinc futures contract increased by 0.05% to 139,706 lots, and the open interest decreased by 0.35% to 116,185 lots. The trading - to - open - interest ratio increased by 0.40% to 1.20 [1]. - **Inventory**: LME zinc inventory remained unchanged at 55,875 tons, and Shanghai zinc warehouse receipts remained unchanged at 37,957 tons. As of September 1, the total inventory of SMM zinc ingots in seven locations increased to 146,300 tons [1]. - **Fundamentals**: Refineries have sufficient raw material stocks, and zinc ore processing fees are rising. The supply of zinc is increasing, but demand is affected by the off - season and environmental restrictions in the north, and downstream purchasing enthusiasm is limited [1]. - **News**: A zinc smelter in Guangxi will stop production for maintenance from September 7 due to a temporary interruption in zinc concentrate supply, with an expected impact of 10,000 tons [1].

Core Points - The company announced that Mr. Tan Yizhong, the deputy general manager, submitted his resignation due to work changes on September 1, 2025 [1] - According to relevant regulations, Mr. Tan's resignation will take effect upon delivery to the company's board of directors [1] - After resigning, Mr. Tan will continue to hold positions as the deputy secretary and chairman of the labor union [1] - The board of directors expressed gratitude for Mr. Tan's positive contributions during his tenure [1]

1. Report Industry Investment Rating - No information provided in the report 2. Core Viewpoints - 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. With Powell's dovish remarks and increased market expectations of a Fed rate cut in September, lead prices will maintain range - bound consolidation [1] - The zinc market has an increase in both zinc ore and zinc ingot supply, while demand is in the off - season and inventory continues to accumulate. Although overseas LME zinc inventory is decreasing, with Powell's dovish remarks and increased market expectations of a Fed rate cut in September, zinc prices are expected to be range - bound in the short term [1] 3. Summary by Relevant Catalogs 3.1 Lead and Zinc Price and Market Data Lead - SMM1 lead ingot average price was 16,880 yuan/ton, down 0.15% from the previous day; Shanghai lead futures main contract closed at 16,725 yuan/ton, down 0.18% [1] - Shanghai lead basis was - 155 yuan/ton, up 5 yuan; Shanghai lead futures active contract trading volume was 43,853 lots, up 28.41%; open interest was 49,182 lots, down 1.46% [1] - LME lead inventory was 261,050 tons, unchanged; Shanghai lead warehouse receipt inventory was 57,325 tons, down 1.42% [1] - LME 3 - month lead futures (electronic trading) closed at 1,991 US dollars/ton, up 0.38%; Shanghai - London lead price ratio was 8.48, down 0.55% [1] Zinc - SMM1 zinc ingot average price was 21,940 yuan/ton, down 0.54% from the previous day; Shanghai zinc futures main contract closed at 22,140 yuan/ton, down 0.14% [1] - Shanghai zinc basis was - 200 yuan/ton, down 90 yuan; Shanghai zinc futures active contract trading volume was 139,630 lots, down 10.73%; open interest was 116,592 lots, up 1.71% [1] - LME zinc inventory was 56,500 tons, unchanged; Shanghai zinc warehouse receipt inventory was 37,957 tons, up 5.33% [1] - LME 3 - month zinc futures (electronic trading) closed at 2,814 US dollars/ton, up 0.97%; Shanghai - London zinc price ratio was 7.87, down 1.09% [1] 3.2 Industry News Lead - From August 22nd to August 28th, the weekly operating rate of SMM primary lead enterprises was 68.33%, up 0.26 percentage points; that of recycled lead enterprises was 35.3%, down 4.1 percentage points; and that of lead - acid battery enterprises was 70.59%, down 1.05 percentage points [1] - A Malaysian data center owner and North American AI giant N company will invest $2.36 billion to build an AI data center in Johor, and Coslight's VRLA battery system won the bid [1] Zinc - From August 22nd to August 28th, the weekly operating rate of galvanizing enterprises was 55.47%, down 1.95 percentage points; that of die - casting zinc alloy enterprises was 50.78%, up 0.32 percentage points; and that of zinc oxide enterprises was 51.69%, down 4.20 percentage points [1] - Last week, the inventory of SMM zinc concentrates at major Chinese ports was 414,000 tons, up 25,500 tons from the previous week, mainly due to the increase in Fangchenggang inventory [1] 3.3 Fundamental Analysis Lead - There is no expected increase in lead concentrate imports, and processing fees are likely to rise. However, it has not significantly affected refinery operations. Some recycled lead refineries have reduced or stopped production due to raw material shortages or cost inversion [1] - Terminal demand has not improved significantly, and the peak - season effect has not emerged. Dealers are mainly digesting inventory, and producers produce based on sales [1] Zinc - Refineries have sufficient raw material stocks, and zinc ore processing fees are rising. Affected by the low internal - external price ratio, refineries mainly purchase domestic zinc ore, and the domestic TC in September may have limited growth [1] - Refinery profits and production enthusiasm have improved, with an obvious trend of increased output. Due to the off - season and environmental restrictions in the north, some downstream operations have weakened, and the enthusiasm for purchasing zinc ingots is limited [1]

Summary of Chihong Zn & Ge Co., Ltd. Conference Call Company Overview - Chihong Zn & Ge reported a revenue of 10.58 billion yuan for the first half of 2025, a year-on-year increase of 7.67% [1] - Net profit attributable to shareholders was 932 million yuan, up 3.27% year-on-year [1] - Operating cash flow reached 2.158 billion yuan, reflecting a significant increase of 34.73% [1] - The company's debt-to-asset ratio decreased to 26.44%, positioning it among the leaders in the non-ferrous metal industry [1] Production Capacity and Mining Operations - The company operates six active mines with a total lead-zinc metal production capacity of 420,000 tons per year and smelting capacity of 630,000 tons per year [2] - The lead-zinc resource reserves exceed 32 million tons [2] - The company plans to increase zinc alloy production capacity to 220,000 tons per year starting from the end of 2024 [2] - The company has invested in technological upgrades, increasing the smelting capacity in Hohhot to 300,000 tons [1][4] Financial Performance - The company achieved a mining recovery rate improvement, with smelting costs for new products decreasing by 27.85% year-on-year [1][10] - Four smelting enterprises under the company reported profitability in the first half of 2025 [10] - The company implemented a dividend of 657 million yuan for 2024 and announced a mid-year dividend plan for 2025, distributing 0.3 yuan per share [1][15] Strategic Initiatives - Chihong Zn & Ge is focusing on digital and green transformation, investing 281 million yuan in safety and environmental protection [1][14] - The company has established a joint venture with Chalco and others to create a high-value rare metal industry chain platform [4][33] - The company is committed to high shareholder returns, with a total dividend payout ratio of 68.19% [15] Technological and Environmental Innovations - The company has developed a comprehensive resource utilization and technological innovation strategy, focusing on clean production and recycling [5] - The ESG report has been rated A for four consecutive years, reflecting the company's commitment to environmental, social, and governance standards [14] Future Outlook and Expansion Plans - The company does not plan to build new smelting facilities but will enhance existing production processes based on market demand [16] - The focus will be on increasing the production ratio of zinc alloys, which contribute higher profits compared to traditional zinc products [17] - The company aims to optimize its mining operations and enhance production efficiency through smart mining initiatives [32] Challenges and Market Conditions - The company faced a decline in new product output due to maintenance activities, with a 6.98% year-on-year decrease in emerging product production [10] - Mining costs have slightly increased due to project construction and reduced high-grade ore production [26] Share Buyback and Market Management - In July 2025, the company completed a share buyback of 5.091 million shares, representing 1% of total shares [3][27] - The company has a dividend policy aiming for an average payout ratio of no less than 40% over the next three years [28] Conclusion Chihong Zn & Ge Co., Ltd. is positioned for steady growth with a focus on operational efficiency, shareholder returns, and sustainable practices. The company is leveraging technological advancements and strategic partnerships to enhance its market position in the non-ferrous metal industry.

Core Points - The company reported a total asset of approximately 19.47 billion yuan, an increase of 10.59% compared to the previous year [1] - The net profit attributable to shareholders reached approximately 484.65 million yuan, reflecting a growth of 15.12% year-on-year [1] - The operating income for the reporting period was approximately 22.44 billion yuan, representing an increase of 18.93% compared to the same period last year [1] Financial Summary - Total assets at the end of the reporting period were 19,471,494,462.46 yuan, up from 17,607,400,232.67 yuan [1] - Net assets attributable to shareholders were 5,753,709,283.04 yuan, an increase of 4.45% from 5,508,522,542.95 yuan [1] - The total profit for the period was 626,406,279.77 yuan, a rise of 17.27% from 534,155,459.49 yuan [1] Earnings Performance - The basic earnings per share were 0.4445 yuan, up 15.10% from 0.3862 yuan [1] - The diluted earnings per share were 0.4060 yuan, an increase of 5.13% from 0.3862 yuan [1] - The weighted average return on equity was 8.67%, a decrease of 0.25 percentage points from 8.42% [1] Shareholder Information - The total number of shareholders at the end of the reporting period was 59,878 [1] - The largest shareholder, Henan Yuguang Group Co., Ltd., holds 29.61% of the shares, amounting to 322,799,737 shares [2] - Other significant shareholders include Jiyuan Investment Group Co., Ltd. with 6.89% and Hong Kong Central Clearing Limited with 3.13% [2]

Core Points - The audit committee of Henan Yuguang Gold Lead Co., Ltd. held its fifth meeting of the ninth board, confirming the legality and validity of the meeting [1] - The committee reviewed the company's 2025 semi-annual report and found it to be in compliance with relevant regulations, ensuring the report's authenticity and completeness [1] - The committee unanimously approved the semi-annual report and its summary for submission to the board for further review [1] Summary by Sections - **Meeting Legality**: The meeting was attended by three committee members, and it complied with the Shanghai Stock Exchange listing rules and other relevant regulations [1] - **Report Review**: The audit committee conducted a thorough examination of the 2025 semi-annual report, concluding that it met all regulatory requirements without any false statements or significant omissions [1] - **Approval Process**: The voting results showed unanimous support for the report, with three votes in favor and no opposition or abstentions [1]

Group 1 - The company reported a revenue of 1.811 billion yuan for the first half of 2025, representing a year-on-year increase of 2.80% [1] - The company experienced a net loss of 74.9946 million yuan, compared to a net profit of 58.343 million yuan in the same period last year [1]

Core Points - The controlling shareholder of the company, Henan Yuguang Gold Lead Group Co., Ltd. (Yuguang Group), has partially lifted the pledge on its convertible bonds amounting to 160,000,000 yuan on August 28, 2025 [1][2] - Yuguang Group holds a total of 210,143,000 yuan in convertible bonds, which represents 29.60% of the total issuance [1][2] - After the partial release, Yuguang Group still has 50,000,000 yuan of convertible bonds under pledge, accounting for 23.79% of its holdings and 7.04% of the total issuance [2] Summary of Shareholder's Convertible Bond Pledge Release - The specific details of the pledge release include: - Shareholder Name: Yuguang Group - Amount of Convertible Bonds Released: 160,000,000 yuan - Percentage of Holdings Released: 76.14% - Percentage of Total Issuance Released: 22.54% - Date of Release: August 28, 2025 - Total Convertible Bonds Held: 210,143,000 yuan - Percentage of Total Issuance Held: 29.60% - Remaining Pledged Amount: 50,000,000 yuan - Percentage of Remaining Pledged Amount: 23.79% of holdings and 7.04% of total issuance [2]

Report Industry Investment Rating - Not provided in the report Core Viewpoints - 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. With Powell's dovish remarks, the market's expectation of a Fed rate cut in September increases, and lead prices are expected to remain range - bound [1] - The zinc market has an increase in both zinc ore and zinc ingot supply, while demand is in the off - season and inventory continues to accumulate. However, the overseas LME zinc inventory is decreasing. Powell's dovish remarks provide some support, and short - term zinc prices are expected to be range - bound [1] Summary by Related Catalogs Lead Market Price and Market Indicators - The average price of SMM1 lead ingots was 16,750 yuan/ton, down 0.15% from the previous day. The closing price of the futures main contract was 16,910 yuan/ton, up 0.12% [1] - The LME3 - month lead futures closing price (electronic disk) was 1,983.50 dollars/ton, down 0.05%. The Shanghai - London lead price ratio was 8.53, up 0.17% [1] - The trading volume of the futures active contract was 34,152 lots, down 30.90%, and the open interest was 49,909 lots, down 0.01%. The trading - to - open - interest ratio was 0.68, down 30.89% [1] - LME lead inventory was 262,500 tons, unchanged, and Shanghai lead warrant inventory was 58,151 tons, down 0.21% [1] Industry News - A large recycled lead smelter in East China will stop production in early September due to equipment maintenance, which may affect the recycled lead output by about 0.85 tons in September [1] - In September, SMMpb50TC price dropped 50 yuan/metal ton to 450 yuan/metal ton, and SMMpb60TC price dropped 30 dollars/dry ton to - 90 dollars/dry ton. The supply of lead concentrate remains tight [1] Fundamental Analysis - On the supply side, the supply of imported lead concentrate is tight, and the processing fee adjustment of domestic lead concentrate is relatively stable. The start - up of primary lead smelters is rising steadily, while the start - up of recycled lead smelters is at a relatively low level [1] - On the demand side, the terminal market shows no significant improvement, the peak - season effect is not obvious, and dealers mainly digest inventory [1] Zinc Market Price and Market Indicators - The average price of SMM1 zinc ingots was 22,060 yuan/ton, down 0.63% from the previous day. The closing price of the futures main contract was 22,170 yuan/ton, down 0.63% [1] - The LME3 - month zinc futures closing price (electronic disk) was 2,787 dollars/ton, up 0.83%. The Shanghai - London zinc price ratio was 7.95, down 1.45% [1] - The trading volume of the futures active contract was 156,406 lots, up 36.01%, and the open interest was 114,628 lots, up 6.31%. The trading - to - open - interest ratio was 1.36, up 27.94% [1] - LME zinc inventory was 58,000 tons, unchanged, and Shanghai zinc warrant inventory was 36,037 tons, down 0.49% [1] Industry News - On August 27, Hudbay Minerals resumed operations in Snow Lake after the wildfire. The company expects full - scale operations to resume in early September [1] - On August 27, Ivanhoe Mines announced that the capacity - expansion bottleneck renovation project of the Kipushi zinc mine in Congo (Kinshasa) was completed ahead of schedule and under budget, with improved processing capacity and efficiency [1] Fundamental Analysis - On the supply side, smelters have sufficient raw material reserves, zinc ore processing fees are rising, and the production profit and enthusiasm of smelters are improving, with an obvious upward trend in output [1] - On the demand side, downstream enterprises mainly consume existing inventory. Some terminal enterprises stock up due to concerns about future production cuts, driving an increase in galvanizing start - up [1]