Group 1: Military Industry New Materials - The price of electrolytic cobalt has increased to 436,000 CNY/ton, with a week-on-week change of +3.1%. The price ratio of electrolytic cobalt to cobalt powder is 0.76, also up by +3.1% [4] - Carbon fiber price remains stable at 83.8 CNY/kg, with a gross profit of -9.19 CNY/kg [4] Group 2: New Energy Vehicle Materials - The prices of lithium carbonate and lithium hydroxide are 171,900 CNY/ton and 162,600 CNY/ton, reflecting week-on-week increases of +19.6% and +12.4% respectively [5] - Sulfuric cobalt price is stable at 95,300 CNY/ton [5] - The prices of lithium iron phosphate and 523-type cathode materials are 52,400 CNY/ton and 193,800 CNY/ton, with week-on-week changes of +0% and +3.4% respectively [5] - The price of praseodymium-neodymium oxide is 890.57 CNY/kg, up by +4.8% [5] Group 3: Photovoltaic New Materials - The price of photovoltaic-grade polysilicon is 6.16 USD/kg, showing a week-on-week decrease of -0.5% [6] - EVA price remains unchanged at 9,650 CNY/ton, at a low level since 2013 [6] - The price of 3.2mm photovoltaic glass coating is stable at 24.0 CNY/sqm [6] Group 4: Nuclear Power New Materials - Prices for zirconium-related materials such as oxychloride zirconium and sponge zirconium remain stable, while uranium price is 69.71 USD/lb, reflecting a week-on-week increase of +9.8% [7] Group 5: Consumer Electronics New Materials - The price of cobalt oxide is stable at 363,000 CNY/ton, while lithium cobalt oxide is priced at 402.0 CNY/kg [8] - Silicon carbide price remains unchanged at 5,600.00 CNY/ton [8] - The prices for high-purity gallium, crude indium, and refined indium are 1,950.00 CNY/kg, 4,650.00 CNY/kg, and 4,750.00 CNY/kg, with week-on-week increases of +1.6%, +9.4%, and +9.2% respectively [9] Group 6: Other Materials - The prices of platinum, rhodium, and iridium are 609.00 CNY/g, 2,900.00 CNY/g, and 1,855.00 CNY/g, with week-on-week changes of +17.1%, +4.5%, and +0% respectively [10]

Group 1: Military Industry New Materials - The price of electrolytic cobalt is 423,000 CNY/ton, with a week-on-week increase of 0.7%. The price ratio of electrolytic cobalt to cobalt powder is 0.74, also up by 0.7% [4] - Carbon fiber price remains at 83.8 CNY/kg, with a gross profit of -9.19 CNY/kg [4] Group 2: New Energy Vehicle Materials - The prices of lithium carbonate and lithium hydroxide are 143,800 CNY/ton and 137,600 CNY/ton, reflecting week-on-week increases of 6.9% and 3.9% respectively [5] - The price of sulfuric cobalt is stable at 95,300 CNY/ton [5] - The prices of lithium iron phosphate and 523-type cathode materials are 52,400 CNY/ton and 187,300 CNY/ton, with week-on-week changes of 0% and 4.1% respectively [5] - The price of praseodymium-neodymium oxide is 849.82 CNY/kg, up by 12.2% [5] Group 3: Photovoltaic New Materials - The price of photovoltaic-grade polysilicon is 6.19 USD/kg, remaining unchanged week-on-week [6] - The price of EVA is 9,650 CNY/ton, stable and at a low level since 2013 [6] - The price of 3.2mm photovoltaic glass coating is 24.0 CNY/square meter, unchanged [6] Group 4: Nuclear Power New Materials - The prices of zirconium-related materials are stable, with prices for zirconium oxychloride, sponge zirconium, hafnium oxide, zirconium silicate, and zircon sand at 13,750 CNY/ton, 145 CNY/kg, 9,000 CNY/kg, 14,875 CNY/ton, and 14,012.5 CNY/ton respectively [7] - The uranium price for January 2026 is 69.71 USD/pound, reflecting a week-on-week increase of 9.8% [7] Group 5: Consumer Electronics New Materials - The price of cobalt oxide is 363,000 CNY/ton, stable week-on-week [8] - The price of lithium cobalt oxide is 402.0 CNY/kg, unchanged [8] - The price of silicon carbide is 5,600.00 CNY/ton, stable [8] - The prices of high-purity gallium, crude indium, and refined indium are 1,920.00 CNY/kg, 4,250.00 CNY/kg, and 4,350.00 CNY/kg, with week-on-week changes of 0%, -4.5%, and -4.4% respectively [9] Group 6: Other Materials - The prices of platinum, rhodium, and iridium are 520.00 CNY/g, 2,775.00 CNY/g, and 1,855.00 CNY/g, with week-on-week increases of 1.4% and 6.9% for platinum and rhodium respectively [10]

Core Viewpoint - The zircon market is experiencing stabilization in prices due to changes in supply and demand dynamics, particularly driven by the acceleration of solid-state battery commercialization and ongoing supply constraints from major mining regions [1][9]. Supply and Demand Dynamics - The demand for zircon-based materials is shifting from traditional ceramics to core materials for new energy applications, particularly in solid-state batteries [1][9]. - Global zircon resources are highly concentrated, with Australia, South Africa, and Mozambique controlling over 80% of the reserves. China remains a major consumer and importer of zircon products, with an import dependency exceeding 80% [2][10]. - Supply bottlenecks are becoming more pronounced as major Australian mines face resource depletion risks, with expected reductions in production starting this year. Frequent strikes in South Africa are further disrupting global supply [2][10]. Price Trends - Current prices for zircon sand are approximately 12,000 CNY/ton in Australia and 11,800 CNY/ton in South Africa. Domestic prices for zircon oxide are stable at 43,000 CNY/ton, while sponge zircon is around 145,000 CNY/ton [2][10]. Emerging Opportunities in Solid-State Batteries - 2026 is anticipated to be the year of large-scale production for semi-solid-state batteries, with zircon-based materials being critical for oxide and halide electrolytes. The demand for zircon oxide is expected to increase significantly, with estimates suggesting a usage of about 2,133 tons of zircon oxide per GWh of solid-state battery, over ten times that of traditional liquid batteries [3][11]. - By 2030, global demand for zircon oxide in solid-state electrolytes and cathode materials is projected to reach 78,000 tons and 12,000 tons, respectively, with zircon sand demand expected to hit 1.489 million tons [3][11]. Geopolitical Impact - The Chinese government's recent announcement to strengthen export controls on dual-use items to Japan, including zircon and its alloys, may impact Japanese zircon manufacturers while benefiting Chinese zircon powder and ceramic block manufacturers by expanding their market share overseas [4][12]. Industry Developments - Leading domestic companies are proactively positioning themselves in the market. For instance, Dongfang Zircon has secured long-term agreements with major firms like CATL, locking in about 60% of its production capacity. The company plans to invest 737 million CNY to build a new production facility for battery-grade zircon [6][13]. - Sanxiang New Materials is diversifying its product offerings in various zircon-related fields and has become one of the largest industrial sponge zircon producers in Asia, with an annual production capacity of 5,000 tons [6][13]. Technological Advancements - Sanxiang New Materials is also developing zircon-hafnium separation technology to break foreign monopolies, with plans to invest up to 300 million CNY in a new project expected to add 20,000 tons of zircon-hafnium series products annually [7][14].

Investment Rating - The report recommends the industry [5] Core Insights - In Q4 2025, the total production of zircon, rutile, and synthetic rutile increased by 20% year-on-year to 154,900 tons, while total sales rose by 18% year-on-year to 161,400 tons [1] - The company continues to invest in the Balranald and Eneabba projects, with capital expenditures reaching AUD 862 million for the fiscal year 2025 [6] - The company’s financial performance showed a revenue of AUD 260 million for zircon/rutile/synthetic rutile, a 105% increase quarter-on-quarter but a 4% decrease year-on-year [4] Production Summary - Zircon sand production in Q4 2025 was 47,800 tons, a 21% increase quarter-on-quarter and a 7% increase year-on-year [1] - Zircon concentrate (ZIC) production reached 38,400 tons, with a 200% quarter-on-quarter increase and a 156% year-on-year increase [1] - Rutile production was 29,900 tons, reflecting a 121% quarter-on-quarter increase and a 153% year-on-year increase [1] - Synthetic rutile production was 38,800 tons, showing a 33% decrease both quarter-on-quarter and year-on-year [1] - Total titanium ore production was 62,600 tons, a 23% decrease quarter-on-quarter and a 37% decrease year-on-year [1] Sales Summary - Zircon sand sales in Q4 2025 were 29,700 tons, a 3% decrease quarter-on-quarter but a 34% increase year-on-year [2] - Zircon concentrate (ZIC) sales reached 36,200 tons, with a 174% quarter-on-quarter increase and a 132% year-on-year increase [2] - Rutile sales were 39,700 tons, reflecting a 275% quarter-on-quarter increase and a 322% year-on-year increase [2] - Synthetic rutile sales were 55,900 tons, a 459% quarter-on-quarter increase but a 37% year-on-year decrease [2] - Total sales of zircon/rutile/synthetic rutile reached 161,400 tons, a 151% increase quarter-on-quarter and an 18% increase year-on-year [2] Pricing Summary - The unit sales revenue for zircon/rutile/synthetic rutile was AUD 1,610 per ton, a decrease of 18% quarter-on-quarter and 19% year-on-year [3] Financial Performance Summary - Total revenue from zircon/rutile/synthetic rutile was AUD 260 million, a 105% increase quarter-on-quarter but a 4% decrease year-on-year [4] - Revenue from titanium ore and other sources was AUD 17 million, a 13% increase quarter-on-quarter but an 11% decrease year-on-year [4] - Total mineral sand revenue was AUD 276 million, a 94% increase quarter-on-quarter but a 5% decrease year-on-year [4] Project Updates - The Eneabba project is progressing with the construction of Australia's first fully integrated rare earth oxide separation refinery, with significant milestones achieved in Q4 2025 [9] - The Balranald project is utilizing new remote-controlled underground mining technology, with initial ore extraction and processing having commenced [13][14] - The Wimmera project aims to supply rare earths and zircon, with preliminary feasibility studies completed and further studies underway [15]

Investment Rating - The industry is rated as "Recommended" [5] Core Insights - In Q4 2025, the total production of zircon, rutile, and synthetic rutile increased by 20% year-on-year to 154,900 tons, while total sales rose by 18% to 161,400 tons [1] - The company continues to invest in the Balranald and Eneabba projects, with capital expenditures reaching AUD 862 million for the fiscal year 2025 [6] - The financial performance for Q4 2025 showed a revenue of AUD 260 million from zircon/rutile/synthetic rutile, a 105% increase quarter-on-quarter but a 4% decrease year-on-year [4] Production Summary - Zircon sand production in Q4 2025 was 47,800 tons, a 21% increase quarter-on-quarter and a 7% increase year-on-year [1] - Zircon concentrate (ZIC) production reached 38,400 tons, with a 200% quarter-on-quarter increase and a 156% year-on-year increase [1] - Rutile production was 29,900 tons, reflecting a 121% quarter-on-quarter increase and a 153% year-on-year increase [1] - Synthetic rutile production was 38,800 tons, showing a 33% decrease both quarter-on-quarter and year-on-year [1] - Total titanium ore production was 62,600 tons, down 23% quarter-on-quarter and 37% year-on-year [1] Sales Summary - Zircon sand sales were 29,700 tons, a 3% decrease quarter-on-quarter but a 34% increase year-on-year [2] - Zircon concentrate (ZIC) sales reached 36,200 tons, with a 174% quarter-on-quarter increase and a 132% year-on-year increase [2] - Rutile sales were 39,700 tons, reflecting a 275% quarter-on-quarter increase and a 322% year-on-year increase [2] - Synthetic rutile sales were 55,900 tons, with a 459% quarter-on-quarter increase but a 37% year-on-year decrease [2] - Total sales of zircon/rutile/synthetic rutile reached 161,400 tons, a 151% increase quarter-on-quarter and an 18% increase year-on-year [2] Pricing Summary - The unit sales revenue for zircon/rutile/synthetic rutile was AUD 1,610 per ton, down 18% quarter-on-quarter and 19% year-on-year [3] Financial Performance Summary - Total revenue from zircon/rutile/synthetic rutile was AUD 260 million, a 105% increase quarter-on-quarter but a 4% decrease year-on-year [4] - Revenue from titanium ore and other sources was AUD 17 million, a 13% increase quarter-on-quarter but an 11% decrease year-on-year [4] - Overall mineral sand revenue was AUD 276 million, a 94% increase quarter-on-quarter but a 5% decrease year-on-year [4] Project Updates - The Eneabba project is progressing with the construction of Australia's first fully integrated rare earth oxide separation refinery, with significant milestones achieved in Q4 2025 [9] - The Balranald project is utilizing new remote-controlled underground mining technology, with initial ore extraction and processing having commenced [14] - The Wimmera project is advancing towards a final feasibility study, with environmental impact assessments ongoing and initial tests confirming market suitability for extracted zircon [15]

Core Viewpoint - A nearly decade-long overseas investment cooperation between Shenghe Resources and ETM is approaching a breakdown, as ETM unilaterally announced the termination of their strategic partnership established in 2016 [1][2]. Investment Details - In September 2016, Shenghe Resources and its subsidiary, Leshan Shenghe Rare Earth Co., signed a share subscription agreement with Greenland Minerals and Energy Ltd, agreeing to subscribe for 125 million ordinary shares at AUD 0.037 per share, totaling AUD 4.625 million (approximately CNY 23.59 million) [1]. - Following the completion of the share issuance, Leshan Shenghe held 12.5% of Greenland's total issued shares and obtained a non-executive director seat [1]. Developments and Changes - The investment received approvals from the Australian Foreign Investment Review Board in November 2016 and from Greenland's special shareholders meeting in December 2016, with the transaction completed on December 13, 2016 [2]. - Since the investment, Greenland has undergone multiple rounds of share issuance and has changed its name to Energy Transition Minerals Ltd (ETM) [2]. - As of January 2024, Shenghe exercised its anti-dilution rights to subscribe for an additional 4.367 million shares, holding a total of 129 million shares in ETM, representing approximately 6.5% ownership [2]. Current Situation - ETM recently announced the unilateral termination of the strategic partnership and claimed that Shenghe's "top-up rights" have expired, planning to formally confirm this with the Australian Stock Exchange [2]. - Shenghe does not agree with ETM's position and intends to maintain communication and potentially pursue legal action to protect its rights [2]. Financial Impact - Shenghe has assessed that the situation is not expected to have a significant impact on its operations, with a cumulative investment of CNY 24.34 million in ETM, which is classified as other equity investments [3]. - The fair value of the investment has appreciated, contributing approximately CNY 17.22 million to other comprehensive income as of September 30, 2025 [3]. - ETM's Kvanefjeld rare earth project has not yet obtained mining rights, and the company has not engaged in substantial production activities, which mitigates potential negative impacts on Shenghe's business [3]. Performance Outlook - Shenghe Resources projects a net profit attributable to shareholders for 2025 between CNY 790 million and CNY 910 million, representing a year-on-year growth of 281.28% to 339.20% [3]. - The expected net profit excluding non-recurring items is projected to be between CNY 765 million and CNY 885 million, indicating a year-on-year increase of 285.86% to 346.38% [3]. Market Reaction - On February 2, 2024, Shenghe's stock price fell by 9.91%, closing at CNY 24.35 per share, with a total market capitalization of CNY 42.681 billion [4].

Group 1 - The opening of the "Qianwei Ju" restaurant in Haikou marks a significant investment opportunity driven by Hainan's geographical and policy advantages, with plans for rapid expansion in the region [1] - Hainan's free trade port will enhance the cultural and tourism market, attracting more domestic and international partners, as highlighted by the growth of Hainan Zhongshi Group, which has become a leading private enterprise in the region [2] - The zero-tariff policy post-free trade port closure will expand to approximately 6,600 tax items, significantly reducing costs for companies like Zhongshi Culture, which will benefit from substantial savings on equipment and IP procurement [2] Group 2 - The collaboration between Guizhou and Hainan has led to mutual benefits through policy coordination and cultural integration, creating new development opportunities for both regions [1][4] - The investment in the Hainan Zhongshun Technology Headquarters Economic Industrial Park, with a total planned investment of 360 million yuan, aims to support key industry development in Hainan [5] - The establishment of a new processing plant by Hainan Wensheng Zirconium Titanium is expected to increase its annual production capacity to 1.5 million tons, enhancing its position as a leading supplier in the industry [7] Group 3 - The import of raw materials for companies like Hainan Wensheng Zirconium Titanium will benefit from the zero-tariff policy, potentially saving significant amounts in tax, which can enhance production cost efficiency [8] - The focus on high-end manufacturing and value-added processing in Hainan is expected to attract more industries, supported by favorable policies that encourage technological advancements [7] - The strategic positioning of Hainan as a bridge between China and the world is seen as a critical factor for future investment and collaboration opportunities between Guizhou and Hainan [6]

Core Viewpoint - The company is positioning its zircon-titanium business as a second growth curve, leveraging its domestic processing capabilities and international resource acquisitions to enhance revenue potential [2]. Group 1: Competitive Advantages - The company operates two zircon-titanium processing plants in China with an approved processing capacity of 2 million tons per year [2]. - The acquisition of zircon-titanium heavy mineral rights in Madagascar and Tanzania provides the company with a rich resource reserve, enhancing its competitive edge in the market [2]. Group 2: Future Revenue Projections - The company anticipates that the gradual production of overseas zircon-titanium mines will significantly support its performance, indicating a strategic focus on increasing the revenue contribution from this segment [2].

Investment Rating - The report assigns a "Buy" rating to the company [4][7]. Core Insights - The company's revenue for the first three quarters of 2025 reached 10.456 billion yuan, a year-on-year increase of 26.87%, while the net profit attributable to shareholders was 788 million yuan, up 748.07% year-on-year [2][21]. - The significant performance improvement is attributed to the substantial increase in prices of key rare earth products and the company's effective market strategies [2][21]. - The company has completed the acquisition of Peak Company, enhancing its global resource control in the rare earth sector [3][14]. Summary by Sections 1. Global Resource Layout and Upstream Resource Security - The company has a complete rare earth industry chain and is actively acquiring overseas resources, including a 100% stake in Peak Company, which owns the Ngualla rare earth project in Tanzania, expected to start production in 2026 with an annual output of 18,000 tons of rare earth concentrate [3][14]. - The company is also involved in the zircon-titanium business, with projects in Tanzania and Madagascar, aiming to enhance production capacity [3][19]. 2. Performance Recovery Driven by Price Increases - The company experienced a rebound in performance due to rising prices of rare earth products, with a notable increase in sales volume compared to the previous year [2][21]. - The average price of praseodymium and neodymium oxide reached 541,000 yuan per ton as of November 6, 2025, reflecting a 35.93% increase since the beginning of the year [2][21]. 3. Profit Forecast and Valuation - The company is expected to see continued profit growth, with net profits projected at 840 million yuan, 893 million yuan, and 965 million yuan for 2025, 2026, and 2027, respectively [4][6]. - The estimated earnings per share for the same years are 0.48 yuan, 0.51 yuan, and 0.55 yuan, with corresponding P/E ratios of 46.30, 43.54, and 40.30 [4][6].

Group 1 - The company, Dongfang Zirconium (002167), stated on November 10 that it currently sources all the zircon sand required for production through external procurement [1]