Summary of Weiming Environmental Conference Call Company and Industry Overview - **Company**: Weiming Environmental - **Industry**: Nickel production and waste incineration power generation Key Points and Arguments Nickel Production - Weiming Environmental's first high ice nickel production line is expected to be operational by the end of the year, with a 70% stake in the project, projected to contribute approximately 400 million RMB in net profit attributable to the parent company, significantly enhancing 2026 performance [2][3] - Current high ice nickel prices are around $13,000 per ton, with estimated production costs controlled between $11,000 and $12,000 per ton [2][3] - The company has laid out plans for three nickel smelting projects, with the first project expected to reach full production by 2025, contributing to a total capacity of 40,000 tons [3] - The company also holds a 20% stake in a 20,000-ton wet nickel smelting project [3] Waste Incineration Power Generation - Total waste incineration power generation capacity has reached approximately 40,000 tons, ranking within the top ten in the industry, generating annual operational revenue of 1.7 to 2 billion RMB and over 3 billion RMB in cash flow [2][6] - The business model relies on waste treatment fees (30%) and electricity sales (70%) [6] - The industry has entered a stable operational phase, with capacity exceeding the 14th Five-Year Plan target, and new capacity additions are not expected to increase further [10] Financial Performance and Projections - The company's net cash ratio typically hovers around 1.3 times, indicating strong operational cash flow relative to net profit [8] - A significant national subsidy payment is expected to return in June to July 2025, indicating an acceleration in subsidy disbursement [9] - For 2025, the environmental business is projected to grow by about 10%, with total profits expected to reach around 3 billion RMB, corresponding to a market capitalization of over 30 billion RMB, resulting in a PE ratio of less than 11 [25] Future Growth and Expansion - Future growth points include the high ice nickel smelting industry and overseas expansion, particularly in Southeast Asia, where modern waste incineration facilities are lacking [17][18] - The company is exploring partnerships to apply waste incineration power generation to high-energy-consuming enterprises, enhancing revenue through green electricity supply policies [20] - The Shanghai Lingyun Volunteer Center project is expected to influence the industry towards a rental model for computing power [21] Challenges and Opportunities - The nickel industry is expected to see upward price trends due to low-cost production, rapid downstream demand growth, and concentrated supply dynamics [7] - The company faces challenges in overseas expansion, including higher investment costs (20%-30% more than domestic) but has opportunities for higher revenue in markets like Indonesia [19] Key Milestones - Key milestones include the operational launch of the new high ice nickel production line by the end of the year and decisions based on nickel cost data expected in the third or fourth quarter [27] Additional Important Information - The company has a full industrial chain equipment manufacturing capability, which reduces capital expenditure and enhances competitiveness [4][16] - The waste incineration power generation business is expected to maintain a dividend payout ratio of around 30%, keeping the dividend yield at approximately 3% [27]

Group 1: Report Industry Investment Rating - Not provided in the content Group 2: Core Views of the Report - Macro aspect: Trump's tariff turmoil has resurfaced, but the overall tariff pressure has been reduced, leading to strong uncertainty in the policy. Most Fed officials still believe it is appropriate to cut interest rates at the end of the year, and the impact of Trump's tariffs on prices remains uncertain [3]. - Fundamental aspect: Nickel ore prices have weakened, stainless - steel production has declined, spot inventories are high, steel mills' willingness to replenish raw materials is weak, nickel - iron prices are under pressure, and the cost pressure on nickel - iron plants is still prominent. The power market has no significant changes, and nickel sulfate is relatively stable. Pure nickel continues the de - stocking trend, but the spot market is cold, and the premium has dropped significantly [3]. - Future outlook: Supply increases month - on - month, demand decreases month - on - month, and nickel prices lack fundamental drivers. In the short term, focus on macro risks. The nickel price may fluctuate weakly [3][11]. Group 3: Summary by Relevant Catalogs 1. Last Week's Market Important Data - SHFE nickel price rose from 120,540 yuan/ton on July 7, 2025, to 121,390 yuan/ton on July 11, 2025, an increase of 850 yuan/ton. LME nickel price rose from 15,177 dollars/ton to 15,198 dollars/ton, an increase of 21 dollars/ton. LME inventory increased by 3,708 tons to 206,178 tons, while SHFE inventory decreased by 390 tons to 20,442 tons. Jinchuan nickel premium increased by 50 yuan/ton to 2,050 yuan/ton, and Russian nickel premium increased by 250 yuan/ton to 550 yuan/ton. High - nickel pig iron average price decreased by 10 yuan/nickel point to 912 yuan/nickel point, and stainless - steel inventory increased by 1.47 tons to 93.1 tons [4]. 2. Market Review Nickel Ore - The price of 1.5% laterite nickel ore in the Philippines dropped from 52 dollars/wet ton to 51 dollars/wet ton, and that in Indonesia dropped from 46.9 dollars/wet ton to 46.4 dollars/wet ton. Due to rainfall disturbances, the supply shortage at the mine end has persisted. With the long - term pressure on nickel - iron, some nickel - iron plants have reduced production and carried out maintenance, alleviating the shortage of nickel ore and causing the high - level price to weaken [5]. Nickel Iron - The price of high - nickel pig iron (10% - 12%) dropped from 907.5 yuan/nickel point to 905 yuan/nickel point. In June, China's nickel - iron production was expected to be about 24,550 metal tons, a month - on - month decrease of 4.82%, and 24,540 tons in July, a month - on - month decrease of 0.04%. In May, domestic nickel - iron imports were about 848,200 tons, a year - on - year increase of 30.19% and a month - on - month decrease of 3.83%. Indonesia's nickel - iron production in June was 136,800 nickel tons, a year - on - year increase of 13.51% and a month - on - month decrease of 3.26%, and 134,700 nickel tons in July, a year - on - year increase of 28.42% and a month - on - month decrease of 1.52%. The stainless - steel production has shrunk significantly, the inventory is at an absolute high level, and the downstream steel mills' willingness to replenish nickel - iron is weak. The cost pressure on nickel - iron plants is increasing, and many plants have reduced production. If the production continues to shrink, it may drive the price to stop falling and stabilize [6]. Nickel Sulfate - The price of battery - grade nickel sulfate rose slightly from 27,400 yuan/ton to 27,420 yuan/ton, and the price of electroplating - grade nickel sulfate remained at 28,000 yuan/ton. In June, the metal output of nickel sulfate was about 24,795 tons, a year - on - year decrease of 18.68% and a month - on - month decrease of 1.39%. The output of ternary materials increased to about 64,600 tons, a year - on - year increase of 30.95% and a month - on - month increase of 1.36%. As of July 4, the downstream nickel - sulfate inventory days increased to 13 days, and the upstream inventory days decreased to about 8 days. The high inventory may suppress the material plants' replenishment intensity, and the nickel - sulfate price may be difficult to rise further [7]. 3. Macro and Fundamental Analysis - Macro: Trump's tariff turmoil has resurfaced, with most countries seeing a decline in tariff rates compared to April. The Fed believes it is appropriate to cut interest rates at the end of the year and emphasizes observing the impact of tariffs on the supply chain [3][8]. - Fundamental: In July, the domestic monthly production capacity decreased slightly by 400 tons to 53,699 tons, and the smelter production increased slightly month - on - month. The expected production of electrolytic nickel in July was 32,200 tons, a month - on - month increase of about 1.25%. The export profit turned negative, which may suppress the domestic inventory de - stocking [8]. 4. Terminal Consumption - From July 1 - 6, the retail sales of new - energy passenger vehicles in China were 135,000, a year - on - year increase of 21% and a month - on - month decrease of 11%. The retail penetration rate of the new - energy market was 56.7%, and the cumulative retail sales since the beginning of the year were 6.583 million, a year - on - year increase of 37%. The sales growth rate of new - energy vehicles weakened in the first week of July. The shortage of subsidy funds may drag down demand, and the export of new - energy vehicles to Europe is expected to weaken. The "Big and Beautiful" Act in the US will cancel subsidies for new - energy vehicle purchases after September 30. The domestic policy will focus on the automotive industry, and the demand is not expected to increase significantly [9]. 5. Inventory - The current total social inventory of pure nickel in six places is 39,173 tons, a decrease of 1,144 tons from the previous period. SHFE inventory is 20,442 tons, a month - on - month decrease of 399 tons, and LME nickel inventory is 206,178 tons, a month - on - month increase of 3,708 tons. The total inventory of the two major global exchanges is 226,620 tons, a month - on - month increase of 3,318 tons [10]. 6. Industry News - Indonesia's approved nickel - ore production in 2025 reached 364 million tons, higher than the 2024 target [12]. - Zhongwei Co., Ltd.'s first - phase 40,000 - ton nickel - based material production line in Morocco has been fully put into operation, and the base has a complete industrial - chain layout [12]. - Zhejiang New Era Zhongneng Technology Co., Ltd.'s project of producing electrowon nickel - cobalt in a sulfuric - acid system has been successfully put into production [12]. - Indonesian ITMG acquired a 9.62% stake in a nickel - mining enterprise [12]. 7. Relevant Charts - The report provides charts on the trends of domestic and foreign nickel prices, spot premiums, LME 0 - 3 nickel premiums, nickel domestic - to - foreign ratios, nickel - futures inventories, nickel - ore port inventories, high - nickel - iron prices, 300 - series stainless - steel prices, and stainless - steel inventories [14][16]

Report Industry Investment Rating The report does not explicitly mention an industry investment rating. Core Views of the Report - In the first half of 2025, the nickel market was characterized by a bearish fundamental outlook, with frequent policy disturbances leading to periodic price rebounds. The macro - economic expectations were volatile, but nickel prices were largely desensitized. - In the second half, the U.S. economic outlook remains unclear with stagflation risks. Domestically, policies focus on supply, lacking determination to improve consumption. In the industry, Indonesia and the Philippines aim to control nickel mines, and the nickel ore market may not ease this year. The nickel price will oscillate due to the game between weak market reality and strong cost pressure. - It is expected that the main contract of Shanghai nickel will trade between 115,000 - 130,000 yuan/ton in the second half of the year, and LME nickel will fluctuate between 14,000 - 16,000 US dollars/ton [3][45]. Summary by Relevant Catalogs 1. First - Half Review - In the first half of 2025, the bearish fundamental logic prevailed. Overseas policy disturbances were frequent, such as the Philippines' plan to ban nickel ore exports and Indonesia's series of policies on mineral resources. Trump's global tariff policy in April led to a spread of pessimistic expectations. In June, the cancellation of the Philippines' nickel ore export ban and Indonesia's increase in RKAB nickel ore approvals, along with weak consumption, accelerated the decline of nickel prices [8]. 2. Macroeconomic Analysis 2.1 United States - In the first half, the U.S. faced stagflation risks. The real GDP in Q1 was - 0.5%, affected by increased imports and weakened personal consumption. Inflation showed a complex trend, with the CPI rising slightly in May. Fiscal support boosted residents' consumption, but the "Big and Beautiful" bill may impact residents' income. The tariff policy was implemented, and trade negotiations were slow [13][14][15]. - In the second half, tariffs and crude oil may support high inflation, while weak consumption may drag down economic growth [16][17]. 2.2 China - In the first half, the domestic labor market improved, with the unemployment rate decreasing and fiscal personal income tax increasing. Social consumption showed some recovery, but there was a lack of strong autonomous consumption. Corporate profits improved with structural differentiation, and private - sector industrial enterprises performed better [18][19]. - In the second half, the situation is uncertain, and attention should be paid to policy directions [19]. 3. Fundamental Analysis 3.1 Policy Disturbances and Nickel Ore Shortage - In the first half, overseas nickel ore resources were scarce. The price of Philippine laterite nickel ore rose by 23.53%. The Philippines attempted to ban nickel ore exports, and Indonesia increased policy intervention. China's nickel ore imports decreased from January to May, and port inventories were lower than seasonal levels [23][24][25]. 3.2 Sufficient Supply and Resource Flow to LME - In the first half, domestic pure - nickel production increased significantly, with new production capacity coming online. Pure - nickel imports mainly came from Russia and South Africa, and exports increased, with resources flowing to the LME. The proportion of LME Asian warehouse resources increased [27][28]. 3.3 Nickel Iron: First Rise then Fall with High Cost Pressure - In the first half, domestic and Indonesian nickel - iron production increased. The profit of nickel - iron plants first rose then fell. China's nickel - iron imports mainly came from Indonesia. In the second half, new production capacity will be put into operation, but demand may remain weak, and prices may oscillate at a low level [30][31]. 3.4 Stable Sulfuric Acid Nickel Price with Limited Consumption Growth - In the first half, domestic sulfuric acid nickel production decreased slightly, and imports increased slightly. The price first rose then fell. In the second half, consumption may not improve significantly due to weak demand expectations [33]. 3.5 Low - Level Stainless Steel Consumption and Slow De - stocking - In the first half, stainless - steel prices fluctuated with the real - estate market. Production increased, but inventory remained high. In the second half, the fundamental situation may remain weak, and trade policies may provide short - term support [35][36]. 3.6 Doubtful Terminal Consumption Resilience and Policy - Driven Car - Manufacturer Production Cut - In the first half, domestic new - energy vehicle production and sales increased, mainly driven by subsidy policies. In the second half, domestic demand may be affected by the end of subsidies and corporate cash - flow pressure. Overseas, the growth of new - energy vehicle consumption in Europe and the U.S. may slow down [39][40][41]. 3.7 Excess Resources Flow Outward, and Domestic Inventory Remains Stable - In the first half, pure - nickel inventory first increased then decreased, with resources flowing to the LME. In the second half, due to narrowed export profits, domestic inventory may increase [43][44]. 4. Market Outlook - Supply: The export window remains open, keeping pure - nickel supply at a relatively high level (neutral). - Demand: The real - estate market continues to bottom out, and new - energy consumption lacks independent driving force, resulting in limited demand growth (neutral). - Cost: Nickel ore shortage due to policy pressure provides strong cost support (bullish). - Macroeconomics: The U.S. stagflation expectation persists, and domestic deflation pressure may continue (bearish). Overall, the nickel price will oscillate due to the game between weak reality and strong cost [45].

甘肃是全国重要的新能源及新能源装备制造基地。今年一季度，甘肃电网新能源新增并网160.6万千 瓦，新能源总装机达6597万千瓦，新能源发电量增长12.4%。截至3月底，甘肃新能源外送电量达88.48 亿千瓦时，同比增长71.55%。 甘肃有色金属资源丰富，有色金属产业占全省工业总量的25.5%。2024年，"金白兰武有色金属集群"入 选国家先进制造业集群。近日，在金白兰武有色金属国家先进制造业集群建设工作推进会上，1.2万吨 超细高纯金属粉体材料项目等29个项目签约，总金额105亿元。 （文章来源：经济日报） 本报兰州5月24日讯（记者陈发明、赵梅）今年一季度，甘肃省规模以上工业增加值同比增长11%，增 速居全国第二。其中，有色金属、电力行业贡献突出，分别拉动规模以上工业增长4.4个、2.3个百分 点。 前不久，金川集团、兰石集团合作的1万吨高端装备用镍基合金先进材料生产线项目在兰州新区开工。 金川集团镍合金项目组组长张东介绍，项目建成达产后，每年将形成1万吨高温耐蚀合金、纯镍及蒙乃 尔合金等产品产能，产品主要应用于石油化工、电子电工、能源电力、航空航天等领域。 甘肃省统计局副局长顾克勇介绍，一季度，甘肃有色 ...

Group 1: Report Overview - Report Title: Nickel Daily Report [1] - Date: May 15, 2025 [2] - Research Team: Nonferrous Metals Research Team, including Yu Feifei, Zhang Ping, and Peng Jinglin [3] Group 2: Market Review and Operation Suggestions - Nickel Price Movement: With the further easing of Sino-US tariff trade tensions, the macro environment improved again. The Shanghai nickel futures opened lower and closed higher at 125,230 yuan/ton, up 0.8%. The total open interest of the index decreased by 10,293 to 164,836 lots. The spot premium remained generally stable, with the Jinchuan premium at 2,150 yuan/ton and the Russian nickel premium at 200 yuan/ton [8]. - Fundamental Analysis: Nickel ore prices remained strong due to Indonesia's policy of raising royalties. The premium of domestic pyrometallurgical nickel ore increased by $2/wet ton month-on-month to $26 - $28/wet ton in April, and the ore price was prone to rise and difficult to fall. The pure nickel inventory continued to decline, with the London inventory dropping to 198,432 tons, and the marginal pressure of inventory accumulation weakened. The supply of intermediate products remained tight due to the production cuts of high - grade nickel matte and MHP by leading enterprises in Indonesia, which would affect the pure nickel output in the future. At the same time, the price of nickel sulfate was expected to maintain a moderate recovery trend due to the enhanced cost support [8]. - Investment Outlook: Fundamentally, the pattern was long - term bearish and short - term bullish. The long - term supply of primary nickel was in surplus, but the support at the mine end was strong at the bottom. The surplus pressure weakened under the short - term inventory reduction and the tight supply of intermediate products. The short - term macro environment improved, but there were still uncertainties. It was recommended to maintain an oscillating and bullish mindset and seize the opportunity to go long at low levels [8]. Group 3: Industry News Indonesia's Domestic Ore Benchmark Price - HMA: In the second half of May, the HMA was $15,415/ton, up $366/ton [11]. - HPM: SMM predicted that the HPM prices of Indonesian domestic nickel ore (MC35%) in the second half of May would increase compared with the first half. For example, the HPM price of Ni1.2% grade nickel ore was $15.63/wet ton, up $0.37/wet ton; the Ni1.6% grade was $27.25/wet ton, up $0.65/wet ton; the Ni1.7% grade was $30.66/wet ton, up $0.73/wet ton; the Ni1.8% grade was $34.27/wet ton, up $0.81/wet ton; the Ni1.9% grade was $38.08/wet ton, up $0.9/wet ton; and the Ni2.0% grade was $42.08/wet ton, up $1/wet ton [11][12]. - Premium: The mainstream premium of Indonesian pyrometallurgical domestic ore in May was $26 - $28/wet ton, about $2/wet ton higher than that in April, while the price of hydrometallurgical ore decreased slightly within the month [12]. Talon Metals' Discovery - High - Grade Nickel Sample: Talon Metals discovered the highest - grade nickel sample to date, with a nickel content of 12.65%, along with copper, gold, and platinum - group metals, in a location nearly half a mile underground near Tamarack, Minnesota. This discovery was part of an exploration plan that has drilled more than 290 holes and cost $65 million since 2020 [12]. - Project Progress: The company was conducting a feasibility study and starting the relevant approval process, planning to transport the mined ore to North Dakota for processing. The proposed underground mine project faced less opposition than other controversial mining projects in the state but still required a detailed environmental review [12]. Philippine Nickel Miner's Export - GFNI's Export: Philippine nickel miner Global Ferronickel Holdings, Inc. (GFNI) exported 56,625 wet metric tons (WMT) of low - grade nickel ore (1.25% nickel content and less than 20% iron content) to Indonesia for the first time on April 30, 2025, marking an important step in its market expansion strategy [12]. - Business Goals: Although China remained its largest market, the demand from Indonesia had increased significantly in recent years. PGMC aimed to complete 91 shipments, totaling 5 million WMT, in 2025, with an expected shipment structure of 53% low - grade and 47% medium - grade ore. GFNI was expected to achieve double - digit revenue growth in 2025 due to the doubling of Palawan's production capacity (from 1.5 million to 3 million WMT), the improvement of production efficiency in Surigao, and the improvement of Bataan port operations. In 2024, GFNI achieved revenues of 7.611 billion pesos and a net profit attributable to shareholders of 743.9 million pesos. The company's capital expenditure budget for 2025 was 711.8 million pesos, which would be used for mine development, resource expansion, exploration in several provinces, and investment in high - value - added processing projects such as ferronickel and battery - grade nickel [12]. Ivanhoe's Milestone - Project Breakthrough: On May 7, 2025, Ivanplats, a subsidiary of Ivanhoe Mining, achieved an important breakthrough. Miners at the 850 - meter level completed the first high - grade ore blasting of the Flatreef ore body. The project had completed a total of 5.5 kilometers of tunnel construction at three levels (750 meters, 850 meters, and 950 meters) since the start of the No. 1 shaft excavation in 2015, and the shafts had reached a depth of 996 meters by 2021. It was expected that the tunnels at the 750 - meter and 950 - meter levels would also enter the Flatreef ore body in the coming weeks [13]. - Ore Storage: The ore produced currently would be stored on the surface in preparation for the first feeding of the first - stage concentrator in the fourth quarter of this year. The ore body contained various metal elements, including platinum, palladium, rhodium, nickel, gold, and copper [13].