Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core View of the Report The report presents the daily arbitrage data of various futures products of Baocheng Futures on October 9, 2025, including power coal, energy chemicals, black metals, non - ferrous metals, agricultural products, and stock index futures, covering aspects such as basis, inter - period spreads, and inter - commodity spreads. 3. Summary by Related Catalogs Power Coal - The report shows the basis and inter - period spreads of power coal from September 24 to September 30, 2025. The basis on September 30 was - 102.4 yuan/ton, and all inter - period spreads (5 - 1 month, 9 - 1 month, 9 - 5 month) were 0.0 [1][2] Energy Chemicals Energy Commodities - It provides the basis, price ratios, and other data of fuel oil, INE crude oil, and other energy commodities from September 24 to September 30, 2025. For example, the basis of INE crude oil on September 30 was 13.33 yuan/ton [7] Chemical Commodities - **Basis**: The basis data of rubber, methanol, PTA, LLDPE, V, and PP from September 24 to September 30, 2025 are presented. For example, the basis of rubber on September 30 was - 730 yuan/ton [9] - **Inter - period Spreads**: Inter - period spreads (5 - 1 month, 9 - 1 month, 9 - 5 month) of rubber, methanol, PTA, LLDPE, PVC, PP, and ethylene glycol are given. For example, the 5 - 1 month inter - period spread of rubber was - 15 yuan/ton [11] - **Inter - commodity Spreads**: Inter - commodity spreads such as LLDPE - PVC, LLDPE - PP, PP - PVC, and PP - 3*methanol from September 24 to September 30, 2025 are provided. For example, the LLDPE - PVC spread on September 30 was 2298 yuan/ton [11] Black Metals - **Inter - period Spreads**: Inter - period spreads (5 - 1 month, 9(10) - 1 month, 9(10) - 5 month) of rebar, iron ore, coke, and coking coal are shown. For example, the 5 - 1 month inter - period spread of rebar was 54.0 yuan/ton [20] - **Inter - commodity Spreads**: Inter - commodity spreads such as rebar/iron ore, rebar/coke, coke/coking coal, and rebar - hot rolled coil from September 24 to September 30, 2025 are presented. For example, the rebar/iron ore ratio on September 30 was 3.95 [20] - **Basis**: The basis data of rebar, iron ore, coke, and coking coal from September 24 to September 30, 2025 are given. For example, the basis of rebar on September 30 was 138.0 yuan/ton [21] Non - ferrous Metals Domestic Market - The domestic basis data of copper, aluminum, zinc, lead, nickel, and tin from September 24 to September 30, 2025 are provided. For example, the basis of copper on September 30 was 80 yuan/ton [28] London Market - Data such as LME spreads, Shanghai - London ratios, CIF prices, domestic spot prices, and import profit and loss of LME non - ferrous metals (copper, aluminum, zinc, lead, nickel, tin) on September 30, 2025 are presented. For example, the LME spread of copper was (42.98) [33] Agricultural Products - **Basis**: The basis data of soybeans No.1, soybeans No.2, soybean meal, soybean oil, corn, etc. from September 24 to September 30, 2025 are given. For example, the basis of soybeans No.1 on September 30 was 33 yuan/ton [38] - **Inter - period Spreads**: Inter - period spreads of various agricultural products are provided, including soybeans No.1, soybeans No.2, soybean meal, soybean oil, rapeseed meal, rapeseed oil, palm oil, corn, sugar, and cotton. For example, the 5 - 1 month inter - period spread of soybeans No.1 was 32 yuan/ton [38] - **Inter - commodity Spreads**: Inter - commodity spreads such as soybeans No.1/corn, soybeans No.2/corn, soybean oil/soybean meal, etc. from September 24 to September 30, 2025 are presented. For example, the soybeans No.1/corn ratio on September 30 was 1.83 [38] Stock Index Futures - **Basis**: The basis data of CSI 300, SSE 50, CSI 500, and CSI 1000 from September 24 to September 30, 2025 are provided. For example, the basis of CSI 300 on September 30 was 22.69 [50] - **Inter - period Spreads**: Inter - period spreads (next month - current month, next quarter - current quarter) of CSI 300, SSE 50, CSI 500, and CSI 1000 are given. For example, the next month - current month spread of CSI 300 was - 9.8 [50]

Summary of the Conference Call on Tongguan Copper Foil Industry Overview - The copper foil industry is experiencing significant price increases for H, V, L, and P series products, indicating strong demand and a potential prolonged boom cycle compared to electronic fabrics [2][3] - The domestic production rate of A and B copper foils is very low, similar to the laser drilling in PCB equipment, suggesting substantial room for domestic substitution as overseas capacity expansion is limited [2][3] Company Positioning - Tongguan Company is positioned similarly to Zhongtai but lacks historical proof of its capabilities. Despite not participating in the last lithium battery cycle, it has a comparable market share and customer binding with Taiwanese partners [2][4] - The company has shown consistent quarterly performance improvement, with Q1 earnings at 5 million and Q2 at 30 million, primarily driven by AI product contributions [5] Expansion Strategy - Tongguan's expansion strategy is conservative, retaining 35,000 tons of PCB capacity, which provides a first-mover advantage in the current cycle. The major shareholder, Tongling Nonferrous Metals, holds 72-73% of the shares, ensuring a stable overall expansion strategy [6] Technical Challenges - The main technical challenge for HVO P copper foil is reducing surface roughness (R value) while maintaining adhesion performance. The R value has decreased from 12 in the first generation to 0.5 in the fourth generation, driven by AI demand [7] - HOP synchronization faces difficulties in mechanical equipment debugging and backend coupling agent formulation adjustments, requiring a balance between reducing force values and ensuring bonding strength [8] Market Demand and Pricing Trends - From Q4 2025 to H1 2026, the copper foil market is expected to see significant demand changes, with a shortage anticipated due to the transition from second to fourth generation products, leading to a 15-20% drop in yield rates [10][11] - The price and processing fees for copper foil are expected to double, with single-ton profits potentially reaching three times that of second-generation copper foil [10] Supply Chain Dynamics - Currently, six main suppliers for H, V, O, P series copper foil include companies from Japan, Taiwan, and mainland China, with domestic competitors producing at much lower volumes [9] - Mitsui holds a dominant market position with over 95% market share, and its lead times have extended from two months to two and a half months, indicating product scarcity [12] Domestic Substitution Feasibility - The trend towards domestic substitution is clear, driven by the difficulty of penetration by Japanese manufacturers. Domestic enterprises are expected to promote substitution, especially among second and third-tier PCB companies [14][17] Future Outlook - The overall sentiment regarding Tongguan's future performance is positive, with expectations of continued revenue growth and market share expansion, particularly in the context of rising prices and product shortages [15][16]