Amidst fluctuations in the gold market and overall market sentiment being low, the color metal leading ETF (159876), which encapsulates leading companies in the non-ferrous metals industry, saw a decline of 1.05% today (October 23) in market activity.

In terms of component stocks, sectors like lithium and aluminum showed localized activity. Among lithium industry leaders, Shengxin Lithium Energy led with over a 6% increase; Tibet Mining, Tianqi Lithium, and Yongxing Materials all rose over 1%. In the aluminum sector, Zhongfu Industrial gained over 2%, and Yun Aluminum increased by more than 1%. Conversely, Chuangjiang New Materials fell over 4%, while Silver Futures, Yunnan Germanium, Hunan Gold, and Zhongjin Gold experienced significant declines, hindering overall index performance. Image: Top 10 constituent stocks of the color metal leading ETF (159876)

On the news front, disruptions in aluminum supply have emerged. On October 21, Century Aluminum announced production cuts at its Grundartangi aluminum smelter due to faults, affecting 200,000 tons of capacity. Previously, in August, South32 announced that its Mozal aluminum smelter might face maintenance-related shutdowns due to power supply issues, potentially impacting 500,000 tons of capacity. CITIC Securities regards the shutdown likelihood of Mozal as high, indicating it could resemble a pivotal moment for the aluminum industry akin to Cobre Panama. The supply constraints are intensifying, and early signs of disruptions are surfacing, maintaining a positive outlook on the rising profitability and valuation trend within the aluminum sector. Fundamentally, the disclosure of A-share third-quarter reports has highlighted the market's focus on quality leading firms. Zijin Mining recently released its third-quarter report, exceeding expectations with revenue of 254.2 billion yuan, a year-on-year increase of 10.33%; net profit attributable to shareholders reached 37.864 billion yuan, up 55.45% year on year. Several companies have reported substantial increases early, with Northern Rare Earth forecasting a net profit increase of 272.54%-287.34% for the third quarter, and Shenghe Resources expecting a profit growth of 696.82%-782.96%, marking significant growth rates. Market analysts believe that unlike traditional cyclical stocks, the non-ferrous metals sector is currently experiencing a 「golden phase」 characterized by rising volume and prices, with leading companies significantly improving profitability and ROE, providing solid support for current valuations. Image: Performance of the third-quarter reports of the constituent stocks of the color metal leading ETF (159876) as of October 23, 2025

Industry insiders point out that the evolving "new cycle" for leading non-ferrous metals is not just a simple cycle, but rather a long-term structural opportunity driven by a global energy revolution and technological advancements. At this moment, three core driving factors deserve attention: 1. Acceleration of the New Energy Revolution: The global explosion in industries such as photovoltaics, wind power, energy storage, and electric vehicles is resulting in a surge in demand for metals like copper, lithium, and cobalt; 2. Strategic Supply Chain Security: Countries are enhancing their strategic layouts for critical mineral resources, with China, as the world's largest non-ferrous metal producer and consumer, continually elevating its strategic position; 3. Technological Innovation Empowerment: Breakthroughs in new material technologies are continuously expanding the application boundaries of non-ferrous metals, extending from traditional industries to high-end manufacturing, semiconductors, and aerospace. 【The Metal Heart of Future Industries, The Golden Blood of Modern Industry】 Different non-ferrous metals exhibit varying degrees of prosperity, pace, and driving factors, leading to inevitable differentiation. For those optimistic about the non-ferrous metals sector, a relatively straightforward strategy is to achieve better engagement with the entire sector's beta trend through comprehensive coverage. The color metal leading ETF (159876) and its connected funds (Class A: 017140, Class C: 017141), which passively track the CSI Non-ferrous Metals Index, allocate weightings of 27.6% for copper, 14.5% for gold, 13.1% for aluminum, 10.4% for rare earths, and 8.4% for lithium, allowing for risk diversification compared to investing in a single metal industry and making it appropriate for portfolio allocation.

Risk Reminder: The color metal leading ETF and its connected funds passively track the CSI Non-ferrous Metals Index, effective as of December 31, 2013, and announced on July 13, 2015. Over the last five full years, the index experienced the following returns: 35.84% in 2020, 35.89% in 2021, -19.22% in 2022, -10.43% in 2023, and 2.96% in 2024. The composition of the index constituents adjusts according to its compilation rules, and historical performance does not predict future results. Constituents presented in this text serve as examples; the descriptions of individual stocks do not constitute any form of investment advice and do not represent the holdings or trading trends of any funds under the management. The fund manager assesses this fund's risk level as R3-medium risk, suitable for balanced (C3) investors and above. Suitability opinions should be based on the sales organization. Any information presented in this text (including, but not limited to, individual stocks, comments, forecasts, graphs, indicators, theories, expressed in any form, etc.) is for reference only; investors are responsible for their investment actions. Additionally, any opinions, analyses, or forecasts in this text do not constitute investment advice to readers, nor does it bear any responsibility for any direct or indirect losses resulting from the use of this content. Fund investments involve risks, and past performance does not guarantee future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Investing in funds should be done cautiously.

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