**Today's Headlines**

**Six Departments: Strictly Prohibit New Cement Clinker and Flat Glass Capacity; New Construction and Renovation Projects Must Develop Capacity Replacement Plans**

On September 24, the Ministry of Industry and Information Technology, Ministry of Natural Resources, Ministry of Ecology and Environment, Ministry of Housing and Urban-Rural Development, Ministry of Water Resources, and Ministry of Agriculture and Rural Affairs jointly issued the "Building Materials Industry Stable Growth Work Plan (2025-2026)." The plan proposes strict control over cement and glass capacity. It strictly prohibits new cement clinker and flat glass capacity, requiring new construction and renovation projects to develop capacity replacement plans. It also strictly prohibits the transfer of cement clinker and flat glass capacity from non-key atmospheric pollution prevention and control areas to key atmospheric pollution prevention and control areas.

**Market Outlook**

**Nasdaq Golden Dragon China Index Closes Up 2.83%**

Overnight U.S. markets closed with the Dow Jones Industrial Average falling 171.5 points to 46,121.28, down 0.37%; the S&P 500 declining 18.95 points to 6,637.97, down 0.28%; and the Nasdaq Composite dropping 75.61 points to 22,497.86, down 0.33%.

Popular tech stocks showed mixed performance. Intel surged over 6% on reports that the company is seeking investment from Apple. Tesla rose nearly 4%, while Google fell over 1%, and Nvidia and Apple each declined nearly 1%. Lithium Americas surged over 95% on reports that the U.S. government seeks to acquire up to 10% stake in the company.

The Nasdaq Golden Dragon China Index closed up 2.83%, with popular Chinese ADRs broadly higher. Alibaba and GDS Holdings rose over 8%, Baidu and JD.com gained over 5%, and NIO advanced over 2%.

Hang Seng Index ADR fell proportionally to close at 26,412.89 points, down 105.76 points or 0.40% from Hong Kong's close.

**Hot Prospects**

**Nuclear Fusion "National Team" to Build New High-Temperature Superconducting Fusion Device in Shanghai, Named "HL-4"**

At the 25th China International Industry Fair being held in Shanghai, China Fusion Energy Co., Ltd., with registered capital of 15 billion yuan and officially established just over two months ago, made its first public appearance, showcasing its technology roadmap and business layout.

Following the general nuclear energy development pattern of experimental reactor-demonstration reactor-commercial reactor, the company targets commercial fusion energy by 2050, with coordinated R&D between Shanghai and Chengdu. The company will establish headquarters and R&D base in Shanghai, focusing on fusion engineering business, with key layouts in fusion reactor overall design, high-temperature superconducting magnet technology R&D and verification, and digital fusion reactor development.

Multiple domestic controllable nuclear fusion industry sources confirmed that China Fusion Energy will build a new fusion experimental device in Shanghai to verify its high-temperature superconducting magnets developed in Shanghai. The device is tentatively named "China Circulation Ring No. 4."

The nuclear fusion concept sector involves Hong Kong-listed SHANGHAI ELECTRIC (02727).

**Eight Departments: Increase Effective Supply of AI Terminal Products, Release Consumption Potential of AI Smartphones and Wearable Devices**

Recently, the Ministry of Commerce and seven other departments jointly issued "Guiding Opinions on Vigorously Developing Digital Consumption to Create a Better Life in the Digital Era." The guidance encourages enterprises to accelerate R&D innovation, increase effective supply of AI terminal products, and release consumption potential of new products such as AI smartphones, computers, intelligent robots, wearable devices, and desktop 3D printing equipment.

**Individual Company Updates**

**HENGRUI PHARMA (01276): Signs Authorization License Agreement for SHR-A1811 Project, Eligible for Up to $1.093 Billion Milestone Payments**

HENGRUI PHARMA announced signing an authorization license agreement with Glenmark Specialty S.A. for the SHR-A1811 project. Under the agreement, Glenmark Specialty will pay Hengrui an upfront payment of $18 million and is eligible for up to $1.093 billion in milestone payments, plus royalties based on sales.

**SINOPEC SSC (01033) Subsidiary Formally Signs Contract for Iraq Ratawi Oilfield Phase II Project**

SINOPEC SSC announced that its wholly-owned subsidiary China Petrochemical International Petroleum Engineering Co., Ltd. has formally signed a design, procurement, supply, construction, and commissioning turnkey fixed-price contract with TotalEnergies Ratawi Project Company for the Iraq Ratawi Oilfield Phase II wellpad and inter-well pipeline project. The contract amount is $359 million (approximately RMB 2.553 billion), representing about 3.15% of the company's 2024 operating revenue under Chinese accounting standards.

**GEELY AUTO (00175): Company, Geely Holding, FARIZON AUTO and Shandong Geely New Energy Enter Vehicle and CKD Cooperative Manufacturing Procurement Agreement**

On September 24, GEELY AUTO announced that due to the launch of new models under Geely and Lynk & Co brands and insufficient production capacity, the company, Geely Holding, FARIZON AUTO and Shandong Geely New Energy entered into a vehicle and CKD cooperative manufacturing procurement agreement. The three-year agreement runs from completion date to December 31, 2027.

**XPENG-W (09868): Xpeng Global Connected Charging Piles Exceed 2.4 Million**

XPENG-W announced that Xpeng's global connected charging piles exceed 2.4 million. In September, Xpeng's first batch of brand co-branded charging stations in Southeast Asia went online simultaneously in Singapore, Malaysia, and Thailand.

**CTF SERVICES (00659) Announces Annual Results: Shareholders' Profit Up 3.73% YoY to HK$2.162 Billion, Final Dividend HK$0.35 per Share**

CTF SERVICES announced full-year results for the year ended June 30, 2025. Revenue was approximately HK$24.285 billion, down 8.09% YoY; shareholders' profit increased 3.73% YoY to HK$2.162 billion; basic and diluted earnings per share were HK$0.54; proposed final ordinary dividend of HK$0.35 per share.

**CHERY AUTO (09973) Priced at Upper Limit, Hong Kong Public Offering Oversubscribed 308.18 Times**

CHERY AUTO announced allocation results for its global offering of approximately 297 million H shares, with Hong Kong public offering accounting for 10% and international offering for 90%. Final offering price was HK$30.75 per share, with net proceeds of approximately HK$8.879 billion from the global offering. Trading unit is 100 shares, with H shares expected to commence trading on the Stock Exchange at 9:00 a.m. Hong Kong time on Thursday, September 25, 2025.

On September 24, CHERY AUTO's grey market opened strongly, showing a price of HK$33.56, up 9.14% from the IPO price of HK$30.75.

**Individual Stock Spotlight**

**ND PAPER (02689) Announces Annual Results: Profit Attributable to Equity Holders Increases Approximately 135.4% to RMB 1.767 Billion**

ND PAPER announced full-year results for the year ended June 30, 2025. Sales volume increased 9.6% to approximately 21.5 million tons, revenue increased approximately 6.3% to RMB 63.241 billion, gross profit increased approximately 26.9% to RMB 7.245 billion, and profit attributable to equity holders increased approximately 135.4% to RMB 1.767 billion, with basic earnings per share of RMB 0.38.

The revenue growth was mainly due to the net effect of sales volume increase of approximately 9.6% and average selling price decrease of approximately 3.0%. Gross margin increased from 9.6% in fiscal 2024 to approximately 11.5% in fiscal 2025, mainly due to raw material costs declining more significantly and rapidly than product selling prices.