Report Title - Nickel & Stainless Steel Monthly Strategy Report, March 2026 [1] 1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - With the tightening of nickel ore quotas and the reality and expectation of a shortage in nickel ore supply, the premium of nickel ore has gradually strengthened to $35 - $40 per wet ton, and the price of nickel iron has also strengthened, leading to an upward shift in the support for the pyrometallurgical process of nickel prices. After the holiday, it enters the traditional peak season, and the demand has improved month - on - month. Stainless steel experiences seasonal inventory accumulation after the holiday, and the crude steel production schedule in March has increased month - on - month, with relatively firm cost support. In the new energy sector, according to third - party data, the production schedule of ternary materials in March has also increased. Fundamentally, cost is the core support. Currently, the inventory pressure of primary nickel is still high based on weekly data. Opportunities for light - position trial long positions near the cost line can still be continuously monitored, along with the inventory situation of primary nickel. If the subsequent visible inventory can be significantly depleted, it may have a further positive feedback on prices. Additionally, overseas macro risks need to be vigilant [4]. 3. Summary According to Relevant Catalogs 3.1 Price - In February, nickel prices fluctuated widely. The monthly decline of SHFE nickel was 0.7%, and the decline of LME nickel was 2.2% [6]. 3.2 Inventory - During the week, LME inventory increased by 270 tons to 287,976 tons; SHFE nickel inventory decreased by 27 tons to 53,131 tons, social inventory increased by 2,036 tons to 76,538 tons, and bonded - area inventory remained at 2,200 tons [6][16]. 3.3 Supply 3.3.1 Nickel Ore - The premium of Indonesian nickel ore increased by $4.5 per ton to $37 per wet ton. The premium of 1.5% nickel ore from the Philippines increased by $1 per ton to $8.0 per wet ton [4][6][22]. 3.3.2 Refined Nickel - In February, the estimated production of electrolytic nickel decreased by 5% month - on - month to 35,800 tons [6]. 3.3.3 Nickel Iron - The mainstream market quotes are concentrated at 1,080 - 1,100 yuan per nickel (including tax at the hatch), and some scattered orders are quoted as high as 1,130 - 1,150 yuan per nickel [4][6][25]. 3.3.4 Intermediate Products - The discount decreased slightly month - on - month, the spot price weakened, and trading activity declined [4][6]. 3.4 Demand 3.4.1 New Energy - The weekly production of ternary materials decreased by 664 tons to 15,617 tons, and the inventory decreased by 533 tons to 17,234 tons. The weekly production increased by 11.6% to 26 GWh, among which the production of lithium - iron batteries increased by 11.1% to 20 GWh, and the production of ternary batteries increased by 13.2% to 6 GWh. The Passenger Car Association predicts that after the holiday, the price - cut promotion ability of new - energy vehicle manufacturers will decline. The weak price elasticity will make consumers more cautious, and it may suppress the normal release of car - buying demand in the short term. However, anti - involution in prices is a long - term benefit, which helps to improve the wait - and - see sentiment in car - buying and guide the healthy development of industrial consumption [4][6][46]. 3.4.2 Stainless Steel - This month, the overall price of stainless steel decreased slightly, and the price strengthened again in the past week. The total social inventory of stainless steel in 89 warehouses of the national mainstream market was 1.173 million tons, a week - on - week increase of 16.57%. Among them, the inventory of the 300 series increased by 80,000 tons to 729,000 tons. According to Mysteel, the crude steel production schedule in March is 3.6335 million tons, a month - on - month increase of 32.69% and a year - on - year increase of 3.46%. Among them, the 200 series is 1.0771 million tons, a month - on - month increase of 28.18% and a year - on - year increase of 11.63%; the 300 series is 1.8948 million tons, a month - on - month increase of 43.24% and a year - on - year decrease of 0.37%; the 400 series is 661,600 tons, a month - on - month increase of 15.02% and a year - on - year increase of 2.51%. Raw materials are stronger than finished products, and the spot profit has weakened slightly [4][6][57]. 3.5 Supply - Demand Balance - Not provided in detail in the content 3.6 Options - Charts related to historical volatility, historical volatility cone, and the put - call ratio of open interest and trading volume of SHFE nickel options are presented [90][91][95]

Core Viewpoint - Jiangsu Zhengli New Energy Battery Technology Co., Ltd. (Zhengli New Energy) is expected to achieve a net profit of 6.8 to 8.2 billion yuan in the fiscal year 2025, representing a growth of 647.25% to 801.10% compared to the previous year, driven by increased market demand and improved production efficiency through AI-driven closed-loop systems [2]. Group 1: Financial Performance - The company reported a total shipment of 7.8 GWh in the first half of 2025, generating revenue of 31.72 billion yuan, a year-on-year increase of 71.9% [4]. - The net profit for the first half of 2025 reached 2.20 billion yuan, reversing a loss of 1.30 billion yuan in the same period of 2024, achieving 2.4 times the net profit of the entire year of 2024 [4]. - Each GWh of battery shipped contributes a net profit of 0.43 to 0.51 billion yuan, indicating strong profitability per unit [4]. Group 2: Market Position and Capacity - Zhengli New Energy's battery shipment volume for 2025 is projected to be approximately 15.93 GWh, with a market share of 2.07%, an increase of 0.27 percentage points from 2024 [3]. - The company plans to increase its production capacity to 50.5 GWh by 2026, with a current capacity of 25.5 GWh, which is among the smallest in the top-tier domestic battery manufacturers [4]. - The company is ranked among the top 10 in domestic power battery shipments for three consecutive years [3]. Group 3: Product and Technology Development - Zhengli New Energy has a balanced shipment structure, with 14.8 GWh of lithium iron phosphate batteries and 1.13 GWh of ternary batteries shipped in 2025, maintaining strong positions in both segments [6]. - The company has begun to apply its aviation battery technology to the automotive sector, enhancing its product offerings and safety standards [7]. - The introduction of advanced battery technologies, such as the second-generation "three highs and one fast" aviation power battery, is expected to improve performance metrics across its product lines [7]. Group 4: Customer Base and Partnerships - Zhengli New Energy has established a diverse customer base, supplying batteries to various brands including GAC Toyota, SAIC General, and new energy vehicle manufacturers like Leap Motor [9][10]. - The company is a key supplier for multiple models, including the Buick GL8 and various models from GAC and FAW, showcasing its strong market presence [9].

Group 1: Industry Trends - Japanese and South Korean battery manufacturers are under pressure and are taking two major actions: upgrading production lines for lithium iron phosphate batteries and increasing investments in the energy storage sector [2][4] - SK On has signed a lithium procurement agreement with POSCO to purchase 25,000 tons of lithium from the Ombre Muerto salt lake project in Argentina for use in power battery projects in Europe and North America from 2026 to 2028 [2] - LG Energy Solution is transforming its Lansing plant into a base for square lithium iron phosphate batteries, marking its first project in this category to serve Tesla [3] Group 2: Financial Performance - In Q4 of the previous year, the three major South Korean battery manufacturers reported collective losses: LG Energy Solution lost 122 billion KRW, Samsung SDI approximately 300.3 billion KRW, and SK On an estimated 200 billion KRW [5] - The decline in orders and significant losses highlight the urgent need for these companies to reverse their financial downturns [5] Group 3: Strategic Shifts - Samsung SDI and SK On are focusing on energy storage solutions, with SK On planning to build a 3GWh lithium iron phosphate battery production line in South Korea, aligning with government policies to develop energy storage projects [3][6] - Panasonic is attempting to pivot towards becoming a provider of energy solutions for data centers, aiming for 800 billion JPY in revenue from this sector by the fiscal year 2029 [4][8] - The collective shift of Japanese and South Korean manufacturers towards energy storage indicates a significant change in strategy due to competitive pressures from lithium iron phosphate batteries [4][7]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report Supply and demand have returned to a tight balance, and prices are expected to run strongly within a certain range [4]. 3. Summary by Relevant Catalogs 3.1 Lithium Carbonate Market - Yesterday, the price of the main lithium carbonate futures contract closed at 166,480 yuan/ton, with increased trading volume and open interest, and the long - short ratio decreased month - on - month. Guangzhou Futures Exchange inventory decreased by 330 lots to 38,525 lots. The average price of SMM electric carbon was 161,750 yuan/ton, with an electric - industrial price difference of 3,500 yuan/ton. Downstream demand was for replenishment, while upstream suppliers were reluctant to sell and held up prices, resulting in light trading [2]. - After the market yesterday, Zimbabwe suspended lithium exports (with an annual production capacity of about 220,000 tons), increasing supply concerns. The current tight supply - demand situation and low inventory in China, along with emotional disturbances, boosted the futures price [2]. 3.2 Raw Material Fundamentals - Supply side: Before the festival, the price of spodumene concentrate (CIF) rose slightly, while that of mica decreased slightly. The SMM weekly operating rate was 46.02% (-1.27%), and the operating rates of all processes except lithium mica decreased. The SMM weekly total output was 20,184 tons (-560 tons), indicating a slight contraction in supply [3]. - Demand side: There was a differentiation in demand. Lithium iron phosphate production increased and inventory decreased, while ternary production and inventory both decreased. As of February 8, the penetration rate of new energy vehicle sales in SMM dropped to 36.3%, at a relatively low level. In January, the combined production of power and energy - storage batteries was 168.0 GWh, a month - on - month decrease of 16.7% and a year - on - year increase of 55.9%; sales were 148.8 GWh, a month - on - month decrease of 25.4% and a year - on - year increase of 85.1%. Energy - storage cells had strong production and sales and low inventory, being a structural highlight [3]. - Inventory side: Before the festival, the SMM four - location sample social inventory increased by 3,160 tons to 46,210 tons. The sample weekly total inventory decreased to 102,932 tons, and the total inventory days decreased to 29.6 days, returning to a tight - balance pattern [3]. 3.3 Macro - policy and International Environment - Macro - policy: On the demand side, subsidies for trading in old cars for new ones and export tax rebates for batteries directly stimulate terminal consumption and improve macro - liquidity. On the supply side, the National Development and Reform Commission issued a management method for the comprehensive utilization of new energy vehicle power batteries in January, raising recycling thresholds and eliminating backward production capacity, which will optimize domestic supply in the long term and raise the cost - support center. Industrial planning, including the development of Qinghai salt lakes, the focus of energy - storage in the 15th Five - Year Plan, and a series of deployments in the Central Economic Work Conference, work together to support long - term supply - demand balance. The central bank's structural interest - rate cuts strengthen the long - term positive atmosphere [4]. - International environment: On February 20, the US Supreme Court ruled that the IEEPA tariff was illegal, and the White House imposed a 15% temporary tariff. The tariff on energy - storage cells decreased from 48.4% to 43.4%, improving export profit margins and benefiting demand during the window period [4].

Group 1: Global Economic Context - The global economic recovery is fragile, driven by structural contradictions, with a significant drop in global trade growth from 2.4% in 2025 to 0.5% in 2026 [4] - Manufacturing data reflects this demand shrinkage, with the US manufacturing PMI contracting for nine consecutive months and Germany's unemployment reaching a 12-year high of 3.085 million [4] - Global debt has surpassed $307 trillion, with a debt-to-GDP ratio climbing to 336%, limiting countries' policy responses to crises [4] Group 2: Monetary Policy Divergence - Divergent monetary policies among major economies increase global economic uncertainty, with the Federal Reserve balancing inflation and growth, while the European Central Bank cautiously lowers rates amid wage growth concerns [5] - The World Bank warns that missteps in monetary policy by major economies could trigger a new wave of global financial turmoil [5] Group 3: China's Economic Resilience - China's economic resilience stems from deepening domestic demand and innovative policy tools, such as the "trade-in" policy for consumer goods, which has stimulated consumption in sectors like automobiles and electronics [5][6] - Infrastructure investment plays a crucial role, with new projects enhancing transportation networks and fostering new economic growth points through digital infrastructure and clean energy investments [6] Group 4: Technological Innovation - Breakthroughs in technology are reshaping China's economic growth, with advancements in high-temperature recyclable epoxy resin and reusable rocket engines positioning China as a leader in commercial aerospace [6] - Chinese companies dominate the global market for optical modules, holding a 43% market share, supported by systemic innovations in silicon photonics and cooling solutions [6] Group 5: Global Economic Governance - China's "dual circulation" development model offers new insights for global economic governance, contrasting with the unilateralism of Western countries [7] - The successful operation of the China-Europe Railway Express and the import of Chilean cherries demonstrate China's commitment to open trade and supply chain resilience [7] Group 6: Green Transition - China's green transition provides replicable pathways for developing countries, with the largest clean energy corridor generating over 2.351 trillion kilowatt-hours in the first three quarters [7] - The reduction of iron-lithium battery costs to 0.32 yuan/Wh is accelerating decarbonization in the global shipping industry [7] Group 7: Digital Economy Advancements - China is showcasing its leadership in the fourth industrial revolution through breakthroughs in digital infrastructure and applications, such as the "East Data West Computing" project [8] - The adoption of Chinese AIGC solutions by major companies like Microsoft and Sony indicates the global recognition of Chinese technology standards [8]

Summary of Key Points from Conference Call Records Industry Overview: Lithium Battery and Electric Vehicle Market Global Electric Vehicle Sales Forecast - In 2025, global electric vehicle (EV) sales are expected to reach 29.076 million units, representing a year-on-year growth of 33% with a penetration rate of approximately 30% [5] - The second half of 2025 is projected to see growth rates exceeding 30%, with December potentially surpassing 40% [5] - By 2027, global EV sales are anticipated to grow by 13% to 15%, with an increase in battery capacity per vehicle of about 17% [3] European Market Dynamics - European countries are actively promoting EV adoption through subsidies, with major markets like the UK, France, Germany, and Spain covering over 70% of sales [6] - The expected growth in the European commercial vehicle segment is conservatively estimated at 25%, while passenger vehicles are projected to grow by 29%, corresponding to an increase of 70 GWh in battery demand [3] Key Players and New Models - Major automotive manufacturers such as BMW, Volkswagen, and Stellantis are set to launch new platforms and models in 2027, which are expected to contribute an additional 5.5% to sales growth, equating to over 250,000 units [7] - BYD's factory in Hungary is also expected to drive significant sales growth [7] Lithium Battery Supply Chain Growth - The European lithium battery supply chain is projected to grow by over 29% in 2027, driven by the adoption of 800V high-voltage architectures and increased use of lithium iron phosphate batteries [9] - The production ramp-up at the Hungarian factory will further support this growth [9] Market Demand and Supply Insights Current Demand for Lithium and Materials - The demand for lithium and materials is currently very strong, particularly in the energy storage sector, with estimates ranging from 900 to over 1,000 GWh [2] - Despite domestic subsidy policies, the overall vehicle prices are high, which may lead to a slight decline in sales growth for power batteries [2] Supply Chain Challenges - Supply chain bottlenecks, particularly in lithium hexafluorophosphate and lithium carbonate, may lead to tight supply-demand conditions [3][12] - The global lithium battery market is expected to grow by approximately 33% to reach 2.8 TWh by 2027, with optimistic scenarios suggesting growth could reach 40% [3][12] Investment Opportunities and Risks Focus Areas for Investment - Attention is recommended on lithium carbonate and lithium hexafluorophosphate segments, which are expected to see high capacity utilization rates and significant price increases [3][13] - Key material companies such as those producing lithium iron phosphate, anode materials, separators, copper foil, and aluminum foil are considered attractive for investment due to their valuation potential [3][13] Price Transmission and Profitability - The battery industry is expected to maintain profitability through price linkage mechanisms with downstream customers, despite potential material cost increases [14][16] - Companies like CATL are focusing on supply chain stability to ensure long-term profitability rather than short-term gains [14] Future Market Growth Expectations - The energy storage market is anticipated to experience strong growth, with a projected demand increase of approximately 2,800 GWh in 2027, representing a year-on-year growth of 36% [20] - The European market is expected to see a conservative growth rate of 30%, translating to an additional 70 GWh in battery demand [20] Conclusion - The overall outlook for the lithium battery and electric vehicle market remains positive, with significant growth opportunities driven by technological advancements, supportive government policies, and increasing consumer demand for electric vehicles and energy storage solutions.

Group 1 - Lichong Group expects a net profit of 830 million to 870 million yuan for 2025, representing a year-on-year growth of 17.38% to 23.04% [1] - Shandong Zhanggu anticipates a net profit of 72 million to 80 million yuan for 2025, with a year-on-year increase of 0.65% to 11.83% [2] - Yinglian Co. forecasts a net profit of 32 million to 42 million yuan for 2025, marking a turnaround from a loss of 39.67 million yuan in the previous year [3] Group 2 - Hangya Technology announces plans for shareholders to reduce their holdings by up to 2.76% of the company's shares [4] - Guizhou Tire plans to invest in a project in Morocco to produce 6 million semi-steel radial tires annually, with a total investment of 299 million USD [5] - Laisentongling's shareholder plans to reduce their stake by no more than 1% [6] Group 3 - ST Yifei's shareholder intends to reduce their holdings by up to 1.53% [7] - Hengyi Petrochemical has fully launched the second phase of its Brunei refining project, aiming for a production capacity of 12 million tons per year [8] - Zai Sheng Technology's controlling shareholder has terminated an agreement to transfer part of the company's shares [9] Group 4 - Sry New Materials proposes a cash dividend of 0.4 yuan per 10 shares for the first three quarters of 2025 [10] - Quanyin High-Tech announces that the offer period for China Seed Group's acquisition has expired, leading to a temporary suspension of its stock [11] - Zhonggang Luonai's shareholder plans to reduce their stake by up to 1% [12] Group 5 - Nanmo Bio expects to receive a government subsidy of 5.8 million yuan for its subsidiary [13] - Beite Technology has received approval from the China Securities Regulatory Commission for a stock issuance to specific investors [14] - Qianyuan Pharmaceutical's subsidiary has obtained drug registration certificates for a new medication [15] Group 6 - Boto Integrated plans to reduce its holdings by no more than 1% [16] - Wanze Co. intends to reduce its stake by up to 1.66% [17] - Tianci Materials will halt production for maintenance on its lithium hexafluorophosphate production line starting March 1, 2026 [18] Group 7 - Haopeng Technology plans to raise up to 800 million yuan through a private placement [20] - Yisheng Co. reports a 43.32% year-on-year increase in sales revenue for its white feather broiler chicks in December 2025 [21] - Jinyu Medical proposes a cash dividend of 8.8 yuan per 10 shares for the first three quarters of 2025 [22] Group 8 - Caesar Travel's subsidiary has won a management service project for the Qingdao International Cruise Port [23] - Kelun Pharmaceutical plans to repurchase shares worth 50 million to 100 million yuan [24] - Jiangling Motors reports a 10.56% year-on-year increase in cumulative sales for 2025 [25] Group 9 - Yilian Technology plans to issue convertible bonds to raise up to 1.2 billion yuan [26] - Shaanxi Guotou A intends to participate in a capital increase for Chang'an Bank, with an amount not exceeding 800 million yuan [27] - Oupokang Vision has obtained a production license for eye drops [28] Group 10 - Shanghai Electric plans to provide management services for overseas assets of China Electric International [30] - Yingfang Micro is planning a major asset restructuring, leading to a temporary suspension of its stock [31] - Victory Energy's stock will resume trading after completing a verification process [32] Group 11 - China Merchants Industry has signed a shipbuilding agreement with Dalian Shipbuilding [33] - Kunyu Group has appointed a new chairman following a board meeting [34] - Microchip Bio's clinical trial application for a new diabetes treatment has been accepted [35] Group 12 - Hanshuo Technology has signed a sales intention agreement for smart shopping carts with Woolworths in Australia [36] - Zhongmin Energy's three photovoltaic power station projects have been included in the Fujian Province development list [37] - Penghui Energy plans to issue H-shares and apply for listing on the Hong Kong Stock Exchange [38] Group 13 - Victory Energy reports that the acquirer has deposited a guarantee for the acquisition [39] - Fangsheng Pharmaceutical proposes a special dividend of 0.15 yuan per share for 2025 [40] - Nanning Department Store has received approximately 14.28 million yuan in government subsidies since January 2025 [41] Group 14 - Jushen Co. has signed a bauxite transfer agreement with a company in Guinea [42] - ST Huluwawa has received a drug registration certificate for a new inhalation solution [43] - Zhongzhi Co. will become the controlling shareholder following a share transfer agreement [44] Group 15 - Chuangli Group has signed a strategic cooperation framework agreement with Chuanjiu Construction [45]

Group 1 - The core announcement from the Ministry of Industry and Information Technology (MIIT) includes the release of the last batch of new vehicles for 2025, featuring a total of 163 new models, with a significant majority of 83% using lithium iron phosphate (LiFePO4) batteries and 17% using ternary batteries [2] - Among the new electric vehicles, 82 are pure electric models and 81 are plug-in hybrid or range-extended models, indicating a narrowing gap between these two categories [2] - The announcement highlights the presence of major brands such as Audi, BMW, and Cadillac, with a focus on SUV models that predominantly favor ternary batteries [4] Group 2 - The BMW iX1 is noted to be equipped with the sixth-generation eDrive system and a new cylindrical battery supplied by EVE Energy, which is expected to start mass production in Q3 of this year [3] - CATL's supply ratio in this batch is less than one-third, with only 48 vehicles, while other companies like Fudi, Guoxuan High-Tech, and Ruipu LanJun secured 10 or more new vehicle supplies each [3][4] - The Dongfeng Nissan NX8 is highlighted for its 800V high-voltage platform and 5C supercharging battery, with battery suppliers including CATL and Dongyu Xinseng [3]

Group 1: Industry Overview - The lithium battery sector has shown strong fluctuations since October, driven by rising upstream raw material prices, unexpected demand for energy storage lithium batteries, and continuous growth in new energy vehicle sales [1] - Upstream raw material prices have increased significantly, with lithium hexafluorophosphate rising by 105% to 123,000 yuan/ton as of November 11, and other materials like electrolyte and lithium carbonate also seeing over 15% increases since early October [1] - The energy storage cell market is experiencing a "full production and full sales" situation, with a surge in demand for high-quality cells due to policy shifts from "mandatory storage" to "independent storage" [1] Group 2: Downstream Developments - In October, China's new energy vehicle sales reached 1.715 million units, marking a year-on-year increase of 19.93% and a month-on-month increase of 6.92%, with sales accounting for 51.63% of the total [2] - By October 2025, the installed capacity of power batteries in China is expected to reach 84.1 GWh, reflecting a year-on-year growth of 42.06% [2] Group 3: Investment Insights - Institutions suggest focusing on the trends in upstream raw material prices, monthly sales, domestic and international policies, and advancements in solid-state batteries [3] - The demand for iron-lithium batteries has exceeded expectations, leading to a potential price increase for VC (vinylene carbonate), an important additive in electrolytes, as the industry is currently operating at full capacity [3] - The growth in energy storage demand is expected to positively adjust the outlook for the phosphorus industry chain, with a recommendation to focus on companies with strong supply capabilities in the phosphate ore segment [3]

Group 1: Institutional Trading Insights - A total of 33 stocks were listed on the institutional trading leaderboard, with 20 stocks experiencing net buying and 13 stocks facing net selling [1] - The top three stocks with the highest net buying by institutions were Tian Ci Materials (484 million), Hai Bo Si Chuang (382 million), and Ying Wei Ke (275 million) [1] - Hai Bo Si Chuang signed a strategic cooperation agreement with CATL, committing to purchase a cumulative total of no less than 200 GWh of electricity from 2026 to 2028 [1] Group 2: Lithium Battery Sector - Multi-Flor Multi is a leading global producer of lithium hexafluorophosphate, focusing on solid-state battery materials and possessing a complete industrial chain from fluorine resources to lithium batteries [1] - Hua Sheng Lithium Electric has a current production capacity of 15,000 tons of VC, with plans to expand by 20,000 to 30,000 tons next year [2] - The price of VC surged to 100,000-120,000 yuan per ton following the shutdown of a leading VC producer, with further increases expected due to rising downstream demand [2] - VC is primarily used in lithium battery electrolytes as an organic film-forming additive, enhancing battery efficiency and lifespan [2] - The demand for iron-lithium batteries is exceeding expectations, with VC's additive ratio increasing significantly, particularly in energy storage applications [3] Group 3: Consumer Sector - Dongbai Group is in the early stages of applying for tax-free product operating qualifications and is monitoring related policies to explore new business opportunities [4] - San Yuan Co. is the largest dairy product manufacturer in Beijing, with a focus on developing its "Ai Li You" series of milk powder [4]