Core Viewpoint - The collaboration between the company and Trafigura Group aims to establish a comprehensive e-commerce platform for the non-ferrous metal industry, enhancing operational efficiency and providing superior trading experiences [1][2][3] Group 1: Joint Venture and Investment - The company announced a joint venture agreement with Lykos Holding Hong Kong Limited, a subsidiary of Trafigura Group, to establish a non-ferrous metal industry internet platform named ZongJinHui [1] - The company will invest RMB 45 million in cash to hold an 8.57% stake in the joint venture, ZongJinHui (Shanghai) Information Technology Co., Ltd [1] Group 2: Business Expansion and Digital Transformation - The partnership allows the company to accelerate its expansion into the non-steel sector and develop a comprehensive industrial internet platform [2] - The company established the PangMao Industrial Products Division, which has been rebranded to Zhaogang Industrial Products, leveraging infrastructure developed for the steel industry to facilitate non-steel trade [2] - As of December 31, 2024, the non-steel trade business collaborated with 371 suppliers and 1,728 customers, covering over 68,000 SKUs and completing 19,811 transactions, generating a total merchandise transaction value (GMV) of RMB 408 million, a year-on-year increase of 192.7% [2] Group 3: Platform Functionality and Customer Experience - The ZongJinHui platform provides real-time access to reliable supply and pricing information, enabling customers to place orders and complete transactions efficiently [2] - The platform's capabilities are supported by a core software system that enhances procurement efficiency and strengthens financial risk control [2] - The company aims to leverage its national sales network to distribute non-ferrous metal products to industrial and construction end-users, enhancing the platform's capabilities [3]

Core Viewpoint - The global climate crisis is intensifying, with the World Meteorological Organization reporting a 1.4℃ increase in average global temperatures since pre-industrial times. As a response, 151 countries have set carbon neutrality targets, with China aiming for peak carbon emissions by 2030 and carbon neutrality by 2060. Companies are increasingly integrating carbon neutrality and ESG (Environmental, Social, and Governance) principles into their strategic planning, as exemplified by Zhaogang Group's first ESG report, which highlights its commitment to sustainability and carbon reduction efforts [1][8]. Group 1: Carbon Neutrality Efforts - Zhaogang Group has implemented measures to enhance operational efficiency in the steel industry, significantly reducing carbon emissions. For instance, the company has decreased the average number of logistics cycles from 5 to 2, resulting in over a 50% reduction in carbon emissions during steel circulation [1]. - The logistics platform, Pangmao Logistics, has reduced average waiting time for goods from 24 hours to 15 hours, improving vehicle utilization by 12% and cutting carbon emissions by nearly 8% [2][13]. - Zhaogang Group promotes the recycling of construction waste steel, which can replace approximately 6 million tons of raw materials annually, indirectly reducing carbon emissions by about 600,000 tons [7]. Group 2: Digital Transformation in Steel Trading - The traditional steel trading model faces challenges such as inefficient information flow, high transaction costs, and low logistics efficiency. Zhaogang Group aims to address these issues through a digital platform that connects key participants in the steel trading industry, streamlining information, logistics, and financial flows [9][10][12]. - The digital trading platform has shortened the steel trading process from an average of 5-7 days to 2-3 days, significantly enhancing transaction efficiency and reducing labor input [12]. - Zhaogang Group has developed a proprietary digital logistics platform, Pangmao Logistics, which integrates transportation resources and improves order dispatch efficiency, thereby contributing to carbon reduction [13]. Group 3: Employee Engagement and Corporate Responsibility - Zhaogang Group emphasizes employee growth and satisfaction as part of its corporate governance and social responsibility. The company provides comprehensive employee benefits, including health and safety measures, training programs, and various employee engagement activities [14][15][18]. - The founder of Zhaogang Group highlights the importance of nurturing talent and creating a supportive work environment, which is integral to the company's operational philosophy [14][18]. Group 4: Expansion and Future Prospects - Zhaogang Group has established itself as the largest digital platform for steel trading in China, with a trading volume of 514.18 million tons and a total transaction value of 188 billion yuan in 2024 [18][22]. - The company is exploring the application of new technologies such as AI and cloud computing in the steel industry, enhancing trading efficiency and expanding its service offerings to other sectors [24][25]. - Zhaogang Group's commitment to a "beneficial to others" approach has led to successful collaborations and the expansion of its business model into other product categories, further promoting efficiency and sustainability [22][25][27].