1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints - For alumina, the fundamentals may be in a phase of excessive supply and stable demand. It is recommended to trade with a light position in a volatile market, controlling the rhythm and trading risks [2] - For electrolytic aluminum, the fundamentals may be in a state of tight supply - demand balance. The long - term outlook is positive, and it is advised to trade with a light position in a volatile market, controlling the rhythm and trading risks [2] - For cast aluminum alloy, the fundamentals may be in a situation of slightly decreasing supply and slowing demand. It is suggested to trade with a light position in a volatile market, controlling the rhythm and trading risks [2] 3. Summary by Relevant Catalogs 3.1 Futures Market - The closing price of the main SHFE aluminum contract was 22,275 yuan/ton, down 55 yuan; the closing price of the main alumina futures contract was 2,646 yuan/ton, up 92 yuan [2] - The main contract positions of SHFE aluminum decreased by 6,450 hands to 290,474 hands; the main contract positions of alumina increased by 134,943 hands to 245,088 hands [2] - LME aluminum cancelled warrants remained unchanged at 73,225 tons; LME aluminum inventory increased by 1,450 tons to 521,050 tons [2] - The SHFE aluminum net position of the top 20 decreased by 177 hands to - 12,420 hands; the SHFE - LME ratio decreased by 0.06 to 7.53 [2] 3.2 Spot Market - The price of Shanghai Non - ferrous A00 aluminum decreased by 50 yuan to 21,980 yuan/ton; the spot price of alumina in Shanghai Non - ferrous decreased by 10 yuan to 2,630 yuan/ton [2] - The basis of cast aluminum alloy decreased by 105 yuan to 605 yuan/ton; the basis of electrolytic aluminum increased by 5 yuan to - 295 yuan/ton [2] 3.3 Upstream Situation - Alumina production was 813.8 million tons, with a national monthly opening rate of 84.37% (down 0.92%) and a total capacity utilization rate of 86.51% (down 0.45%) [2] - The demand for alumina in the electrolytic aluminum part increased by 25.92 million tons to 730.23 million tons; the supply - demand balance was 37.98 million tons, down 8.87 million tons [2] 3.4 Industry Situation - The WBMS aluminum supply - demand balance was - 10.87 million tons, up 8.34 million tons; the electrolytic aluminum social inventory decreased by 101,652.54 tons to 53.70 million tons [2] - The total electrolytic aluminum production capacity increased by 1 million tons to 4,524.20 million tons; the electrolytic aluminum opening rate was 98.21%, down 0.03% [2] - Aluminum product production increased by 23.70 million tons to 593.10 million tons; the export volume of unwrought aluminum and aluminum products increased by 7 million tons to 57 million tons [2] 3.5 Downstream and Application - The production of recycled aluminum alloy ingots increased by 9.17 million tons to 70 million tons; the export volume of aluminum alloy decreased by 0.03 million tons to 3.06 million tons [2] - The national real estate climate index was 91.90, down 0.52 [2] - Automobile production increased by 240,000 vehicles to 3.519 million vehicles [2] 3.6 Option Situation - The 20 - day historical volatility of SHFE aluminum increased by 0.10% to 13.00%; the 40 - day historical volatility remained unchanged at 12.01% [2] - The implied volatility of the at - the - money SHFE aluminum main contract increased by 0.0284% to 15.75%; the call - put ratio of SHFE aluminum options decreased by 0.0021 to 1.64 [2] 3.7 Industry News - The central bank's monetary policy committee held its fourth - quarter meeting, emphasizing the stability of the capital market [2] - Ningbo Sbei Technology plans to expand an aluminum alloy die - casting production project in Thailand, with a total investment of 400 million yuan [2] - Chalco Shenyang Aluminum and Magnesium Institute signed a design contract for a 75,000 - ton/year electrolytic aluminum project with a Malaysian company [2] - Nanning Chantou Xinglv New Materials plans to build a high - precision battery aluminum foil and can lid pull - ring material project [2]

Core Viewpoint - The company Snow Dragon Group plans to establish a wholly-owned subsidiary, Ningbo Snow Dragon Aluminum Magnesium Technology Co., Ltd., with a registered capital of 100 million RMB to enhance its vertical integration in the die-casting product segment and reduce reliance on external processing [1][3][4]. Group 1: Investment Overview - The investment involves setting up a wholly-owned subsidiary with a registered capital of 100 million RMB, funded by the company's own resources [2][6]. - The establishment of the subsidiary has been approved by the company's board of directors and does not require shareholder approval [3][5]. Group 2: Strategic Intent - The investment aims to control the supply chain of core die-casting components, improve production stability and efficiency, and optimize cost structures [3][10]. - The subsidiary will leverage existing technological expertise and industry resources to expand into external markets for aluminum and magnesium die-casting products, moving beyond solely supporting the parent company [3][10]. Group 3: Company Structure and Management - The new subsidiary will be a limited liability company located in Ningbo, with its operational scope including the manufacturing of aluminum and magnesium die-casting parts, automotive components, and related research and development [7][8]. - The subsidiary will not have a board of directors but will have an executive director appointed by the shareholder, with management personnel selected from the parent company or hired externally [8]. Group 4: Financial Impact - The investment is expected to be included in the company's consolidated financial statements but will not significantly impact the company's financial status or operational results in the current fiscal year [10].

Group 1 - The core viewpoint of the news is that Xingyuan Zhuomei's stock price increased by 5.17% to 47.61 CNY per share, with a trading volume of 113 million CNY and a turnover rate of 7.30%, resulting in a total market capitalization of 5.332 billion CNY [1] - Xingyuan Zhuomei, established on July 16, 2003, and listed on December 15, 2022, specializes in the research, production, and sales of magnesium alloy and aluminum alloy precision die-casting products and supporting die-casting molds [1] - The revenue composition of Xingyuan Zhuomei includes 68.00% from magnesium alloy die-casting parts, 21.43% from aluminum alloy die-casting parts, 9.46% from molds, and 1.11% from other sources [1] Group 2 - From the perspective of fund holdings, one fund under Xingzheng Global Fund has a significant position in Xingyuan Zhuomei, with the Xingquan Antai Stable Pension One-Year Holding Mixed Fund (FOF) A holding 6,100 shares, accounting for 0.04% of the fund's net value, ranking as the ninth largest holding [2] - The Xingquan Antai Stable Pension One-Year Holding Mixed Fund (FOF) A was established on November 26, 2020, with a latest scale of 659 million CNY, achieving a return of 7.94% this year, ranking 695 out of 1,038 in its category [2] - The fund manager, Liu Xiao, has been in position for 3 years and 163 days, with the fund's total asset scale at 3.832 billion CNY, achieving a best return of 16.9% and a worst return of 0.2% during his tenure [3]

Core Viewpoint - The company has established a leading position in the magnesium alloy automotive parts sector, benefiting from a strong product gross margin and a growing market demand for lightweight materials in the context of carbon neutrality and electric vehicle development [14][3]. Group 1: Company Overview and Financial Performance - The company was founded in 2003 and entered the magnesium alloy automotive parts market in 2014, supplying to major clients like Tesla and others [14]. - In 2025H1, the company reported revenue of 184 million yuan, a year-on-year increase of 0.1%, while net profit attributable to shareholders was 31 million yuan, down 15.2% year-on-year, primarily due to increased expense ratios and fixed asset depreciation [21]. - The company's revenue is projected to reach 4.09 billion yuan in 2024, with a year-on-year growth of 16.0%, and net profit is expected to be 800 million yuan, a slight increase of 0.3% [21]. Group 2: Market Potential and Demand Drivers - The demand for lightweight materials, particularly magnesium alloys, is significantly driven by the dual carbon goals and the anxiety over the range of electric vehicles, with the market size for magnesium alloys in the automotive sector estimated to reach 16 billion yuan by 2025 [3]. - The company anticipates that the market for magnesium alloys could exceed 50 billion yuan by 2030, especially with applications in robotics potentially pushing the market beyond 100 billion yuan [3]. Group 3: Product and Client Expansion - The company has been expanding its product line from small to medium and large-sized magnesium alloy products, with the revenue share of medium and large products reaching 60.18% in 2022H1, an increase of 7.46 percentage points since 2019 [5][4]. - The average selling price (ASP) of the company's products is expected to reach 62.5 yuan in 2024, with a compound annual growth rate (CAGR) of 18% from 2021 to 2024 [5]. Group 4: Strategic Initiatives and Innovations - The company plans to issue convertible bonds to raise up to 450 million yuan for the construction of a project to produce 3 million sets of high-strength magnesium alloy precision components annually [6]. - The company has been investing in semi-solid magnesium alloy injection molding technology, with five sets of equipment procured since 2021, enhancing its production capabilities [7]. Group 5: Profitability and Valuation - The company's gross margin for magnesium alloy die-casting is projected to be 33.77% in 2024, which is significantly higher than comparable companies [21]. - The company is expected to achieve net profits of 0.78 billion yuan, 1.54 billion yuan, and 2.30 billion yuan from 2025 to 2027, with corresponding earnings per share (EPS) of 0.69 yuan, 1.37 yuan, and 2.05 yuan [8].

Core Viewpoint - Xingyuan Zhuomei experienced a decline of 1.76% in stock price on October 10, with a trading volume of 126 million yuan, indicating a potential shift in investor sentiment and market dynamics [1] Financing Summary - On October 10, the financing buy-in for Xingyuan Zhuomei was 9.3287 million yuan, while the financing repayment was 14.2334 million yuan, resulting in a net financing outflow of 4.9047 million yuan [1] - The total financing and securities lending balance for Xingyuan Zhuomei reached 136 million yuan, accounting for 8.12% of its circulating market value, which is above the 70th percentile of the past year [1] - There were no shares sold or repaid in the securities lending segment on October 10, with the securities lending balance also at zero, indicating a high level of inactivity in this area [1] Company Overview - Xingyuan Zhuomei, established on July 16, 2003, and listed on December 15, 2022, is located in Ningbo, Zhejiang Province, specializing in the research, production, and sales of magnesium and aluminum alloy precision die-casting products and supporting die-casting molds [1] - The company's revenue composition includes magnesium alloy die-casting parts (68.00%), aluminum alloy die-casting parts (21.43%), molds (9.46%), and other products (1.11%) [1] Shareholder and Financial Performance - As of June 30, the number of shareholders for Xingyuan Zhuomei increased to 13,300, a rise of 61.96%, while the average circulating shares per person decreased by 13.56% to 2,508 shares [2] - For the first half of 2025, Xingyuan Zhuomei reported a revenue of 184 million yuan, reflecting a year-on-year growth of 0.09%, while the net profit attributable to shareholders was 31.342 million yuan, down 15.20% year-on-year [2] - Since its A-share listing, Xingyuan Zhuomei has distributed a total of 83.2 million yuan in dividends [3] Institutional Holdings - As of June 30, 2025, among the top ten circulating shareholders, Ping An Advanced Manufacturing Theme Stock Fund (019457) became the second-largest shareholder with 806,400 shares, an increase of 450,800 shares from the previous period [3] - New institutional shareholders include Huazhang Cultural Health Flexible Allocation Mixed A (001532) and Huazhang Industry Selection Mixed A (014207), holding 314,600 shares and 230,200 shares respectively [3]

Company Overview - Xingyuan Zhuomei Technology Co., Ltd. is located in Ningbo, Zhejiang Province, established on July 16, 2003, and listed on December 15, 2022. The company specializes in the research, production, and sales of magnesium alloy and aluminum alloy precision die-casting products and supporting die-casting molds [1]. Business Composition - The main business revenue composition is as follows: magnesium alloy die-casting parts account for 68.00%, aluminum alloy die-casting parts for 21.43%, molds for 9.46%, and others for 1.11% [1]. Stock Performance - On September 18, the stock price of Xingyuan Zhuomei fell by 5%, closing at 54.49 CNY per share, with a trading volume of 402 million CNY and a turnover rate of 21.68%. The total market capitalization is 6.103 billion CNY [1]. Shareholder Information - Among the top ten circulating shareholders, Ping An Fund's advanced manufacturing theme stock fund (019457) increased its holdings by 450,800 shares in the second quarter, holding a total of 806,400 shares, which represents 2.41% of the circulating shares. The estimated floating loss today is approximately 2.3144 million CNY [2]. Fund Performance - The Ping An advanced manufacturing theme stock fund (019457) was established on October 24, 2023, with a latest scale of 430 million CNY. Year-to-date returns are 99.89%, ranking 7 out of 4222 in its category; the one-year return is 186.5%, ranking 1 out of 3804; and since inception, the return is 111.38% [2]. Fund Management - The fund manager of Ping An advanced manufacturing theme stock fund is Zhang Yinxian, who has been in the position for 1 year and 331 days. The total asset size of the fund is 1.425 billion CNY, with the best return during the tenure being 111.38% and the worst return being 29.88% [3].

Core Viewpoint - Ningbo Xingyuan Zhuomei Technology Co., Ltd. is responding to the inquiry letter regarding its application for issuing convertible bonds, providing detailed explanations on various financial metrics and operational strategies. Financial Performance - The company's main business revenue for the reporting periods was 214.68 million, 265.98 million, 171.15 million, 53.23 million, and 55.12 million, with net profits of 53.65 million and a growth rate of 30.98% [1]. - The company's inventory values at the end of each reporting period were 49.93 million, 62.45 million, and 71.77 million, with an asset-liability ratio of 7.88% as of September 30, 2024 [1]. Cash Flow Analysis - The net cash flow from operating activities was consistently lower than net profit, with discrepancies attributed to inventory changes and non-cash expenses [2][3]. - The company experienced a significant increase in accounts receivable, impacting cash flow negatively, particularly in 2022 [2]. Gross Margin Fluctuations - The fluctuation in gross margin was influenced by the prices of magnesium and aluminum alloy raw materials, with sensitivity analysis indicating that a 10% change in raw material prices could affect gross margins by approximately 2.04% to 2.85% [4][5]. - The gross margin for magnesium alloy die-casting products was significantly affected by raw material price increases, leading to a decrease in profitability in 2022 [3][4]. Pricing Mechanisms - The company employs a pricing strategy based on cost-plus and market quotations, with adjustments made for raw material price fluctuations and other factors [6][7]. - There are annual price reduction clauses in place for certain products, with reductions ranging from 10.19% to 35.87% over the years [8][9]. Competitive Position - Compared to industry peers, the company's gross margin for die-casting products remains higher, attributed to its focus on magnesium alloy products and a smaller competitive landscape [4][5]. - The company has maintained a competitive edge in the magnesium alloy sector due to its long-standing expertise and strategic partnerships with suppliers [6][7]. Risk Management Strategies - The company has implemented measures to mitigate the impact of raw material price volatility, including optimizing inventory management and establishing strategic supplier relationships [5][6]. - Specific pricing adjustment mechanisms are in place to address significant fluctuations in raw material costs, ensuring that the company can maintain profitability [10].

Core Viewpoint - The company has significantly enhanced its comprehensive strength in high-end manufacturing, achieving substantial revenue growth and strategic investments in key sectors [1][2]. Group 1: Financial Performance - In 2024, the high-end manufacturing segment generated revenue of 29.662 billion yuan, a year-on-year increase of 29.00%, accounting for 4.95% of the company's total revenue [1]. - The profit totaled 2.145 billion yuan, reflecting a year-on-year growth of 13.26%, contributing 33.06% to the overall profit [1]. - Research and development investment reached 1.254 billion yuan, up 17.49% compared to the previous year [1]. Group 2: Strategic Initiatives - The company is focusing on technological innovation to drive transformation and enhance core competitiveness in various sectors, including wire and cable, cogeneration, tire manufacturing, and magnesium processing [1]. - A strategic investment of 575 million yuan was made to acquire control of Shunfu Precision, a leading company in the aluminum alloy die-casting segment, to strengthen the lightweight materials industry chain [1]. - The company aims to build a complete industry chain from upstream raw material resources to precision die-casting manufacturing, with plans for further investments in valuable segments of the industry chain [1][2]. Group 3: Market Position and Future Outlook - Shunfu Precision has maintained a good growth momentum due to early positioning in the electric vehicle and energy storage sectors, along with deep strategic cooperation with relevant clients [2]. - The company plans to enhance resource integration capabilities and optimize product structure, focusing on the development of magnesium alloy products and high-quality lightweight products [2]. - The company is committed to aligning its investments with national strategic directions, focusing on high-tech barriers and capital barriers in sectors such as new energy, new materials, and high-end manufacturing [2][3]. Group 4: Digital Transformation - The company emphasizes the acceleration of digital and intelligent transformation in the supply chain through the integration of IoT, big data, and artificial intelligence [5]. - New models of digital supply chain organization are emerging, promoting deep adjustments in industrial organization [5]. - The company is actively benchmarking against world-class enterprises to enhance its business model and optimize its investment layout for sustainable high-quality development [5].