Building Copper Industry Service Ecosystem to Address Pain Points

On April 22, at the CCIE 2025 SMM (20th) Copper Industry Conference & Copper Industry Expo – Electrical Power Transmission and Distribution Industry Forum, hosted by SMM Information & Technology Co., Ltd., SMM Metal Trading Center, and Shandong Aisi Information Technology Co., Ltd., with Jiangxi Copper Corporation and Yingtan Land Port Holdings Co., Ltd. as the main sponsors, Shandong Humon Smelting Co., Ltd. as the special co-organizer, and Xinhuang Group and Zhongtiaoshan Nonferrous Metals Group Co., Ltd. as co-organizers, Dong Junhao, General Manager of the Market Development Department of World Copper Recycling Copper Digital Trading Center, shared his views on the topic of "Building a Copper Industry Service Ecosystem to Address Industry Pain Points" and made introduction to the business of World Copper Recycling Copper Digital Trading Center.

I. Industry Pain Points

1.1 Pain Points in the Secondary Copper Industry

Secondary copper traders: They earn very little or even no profits.

1.2 Pain Points in the Secondary Copper Industry

Large price fluctuations: Price risks, supply-demand mismatch, diverse demand, tariffs, trade wars;

Capital-intensive: High cargo value, large demand, difficult financing, high costs;

Direct hedging tools: Default risks, hedging needs, spot purchases, futures trading;

Third-party platforms: Quasi-public attributes, credit endorsements, fund supervision, risk control systems.

The solution: Digitalization is the trend! Commodity trading platforms are the remedy!

II. Building a Copper Industry Service Ecosystem

2.1 Building a Copper Industry Service Ecosystem

Thinking leads to problems; doing leads to solutions! — Build the World Copper Recycling Copper Digital Trading Center in Guixi, establish a copper industry service ecosystem, and create a globally influential digital and intelligent service platform for the copper industry!

2.2 Building a Copper Industry Service Ecosystem

2.3 Copper Industry Service Ecosystem

► Copper Industry Service Ecosystem

1. Trading services: Capacity presales, listing trading, auction trading modes, etc.

2. Supply chain financial services: Relying on the trading platform, upstream and downstream industries, domestic and foreign warehouses, and financial institutions to build a commodity trading ecosystem and provide supply chain financial services.

3. Matchmaking trading: The trading platform links the supply and demand of upstream and downstream enterprises, relying on regional, team, and platform advantages to establish efficient and extensive matching and matchmaking of buying and selling information. Meanwhile, it provides services in supply chain finance, overseas warehousing, customs clearance, etc.

4. Commercial services: Provides company registration agency and bookkeeping services, as well as tax incentives and refunds for enterprises that need to register in Hainan.

5. Technology output: Provides platform co-construction technology and operational support for local governments and enterprises.

III. Introduction to the Business of the Copper Industry Service Ecosystem

3.1 Introduction to the Business — Capacity Presales

● Certified traders by the Maritime Exchange actively post prices and quantities for selling or buying spot cargo or contracts for future delivery through the trading platform; other trading members can choose to buy or sell commodity spot cargo or contracts, with options for early agreement on delivery, contract transfer at any time, and delivery upon maturity!

● Broaden corporate sales and procurement channels; deposit transactions reduce credit default risks; flexible delivery with spot and forward month transactions conducted simultaneously; supply chain finance empowerment.

3.1-1 Business Introduction - Capacity Pre-sale

► Thirteen Delivery Brands

Based on industry characteristics and the convenience of delivery brands being close to upstream and downstream clusters, the brass billet segment is mainly in the Zhejiang region, with 6 delivery enterprises; there are 7 low-oxygen copper rod delivery enterprises, covering major processing areas such as North China, Southwest China, East China, and Central South China.

► Eight Delivery Warehouses

To facilitate delivery for industrial clients, in downstream demand areas, mainly using State Reserve and CMST warehouses, the Maritime Exchange has designated eight specified delivery warehouses to meet delivery and supply chain financing business needs.

3.1-2 Business Introduction - Capacity Pre-sale

3.2 Business Introduction - Supply Chain Finance

Relying on the trading platform, upstream and downstream industries, warehouses at home and abroad, and financial institutions to build a bulk commodity trading ecosystem, providing supply chain financial services.

3.2-1 Business Introduction - Supply Chain Finance

Providing one-stop services, from foreign resource sources, overseas transportation and warehousing, maritime transportation, customs clearance, to inland transportation, creating a full trade process service for cooperative enterprises.

Linking end-user power plants with traders, solving the short-term gap period caused by power plant repayments, alleviating the financial pressure on traders, and ensuring the cycle and normal operation of the business.

3.3 Corporate Commerce

3.4 Business Introduction - Supply Chain Solutions

Taking the platform of Jiangxi Copper Capital Digital Service Company as a model, relying on the Maritime Exchange platform, combining local industry chain characteristics, integrating resources and capabilities in trade, warehousing, finance, and other aspects around the local non-ferrous metal industry chain, establishing a comprehensive supply chain solution locally for raw material procurement, resource sales, logistics, and financing business.

3.5 Cooperative Enterprises (Partial)

IV. Introduction to Jiangxi Tongdu Digital Service Co., Ltd. and Hainan International Commodities Exchange (HICE)

4.1 Establishment of Jiangxi Tongdu Digital Service Co., Ltd.

On May 26, 2023, leaders from Guixi City, known as the "World Copper Capital," visited the Hainan International Commodities Exchange (HICE) center for a survey and exchange. They proposed that, from the perspective of long-term industrial development and building industrial influence, and with secondary copper as a distinctive feature, the gap in the copper raw material trade industry should be filled. Leveraging the platform advantages of HICE, a World Copper Capital Secondary Copper Trading Service Center should be established in Guixi to create a globally influential digital intelligence service platform for the copper industry! On June 13, 2024, Jiangxi Tongdu Digital Services Co., Ltd. (also known as the World Copper Capital Secondary Copper Trading Service Center) was inaugurated. Numerous leaders and guests from domestic and overseas industries, including China Communications Construction Group, HICE, Guixi City leaders, Daye Nonferrous Metals, Jintian Copper, Hailiang Group, Trafigura, etc., attended the inauguration ceremony, marking a milestone in the development of the World Copper Capital Secondary Copper Trading Service Center!

On December 19, 2024, the Yingtan Guixi Municipal People's Government, Hainan International Commodities Exchange Center Co., Ltd., and Jiangxi Tongdu Digital Service Co., Ltd. signed a strategic cooperation agreement in Sanya. The agreement aims to leverage the resources and policy advantages of the three parties, deepen regional development cooperation, focus on the goal of "setting an example and striving for excellence," build "three major highlands," implement "five major strategies," and unwaveringly promote high-quality development.

He also introduced the shareholder structure of Jiangxi Tongdu Digital Service Co., Ltd.

4.1-2 Development Vision of Jiangxi Tongdu Digital Service Co., Ltd.

Serving the Industry, Non-Standard Hedging, Digital Copper Capital: Based in Guixi and rooted in the secondary copper industry of Guixi, it aims to form a complementary development with the futures and spot trading platforms of the Shanghai Futures Exchange and the Central China Nonferrous Metals Exchange Center, creating a differentiated market supporting service system. Starting from serving the hedging needs of non-standard products and serving the real economy, it aims to form unique competitive advantages. Leveraging the advantages of Guixi and Hainan in policies, industries, platforms, and resources, it strives to jointly build a secondary copper trading service center and pricing center, forming a globally influential "Digital Copper Capital" and the Guixi Index!

4.2-1 Mission of HICE

In line with the spirit of General Secretary Xi Jinping's important speech on April 13 and the Central Document No. 12, and with the full support and promotion of Sanya City and the Provincial Financial Bureau, HICE was established as a comprehensive commodity trading venue in accordance with the planning of the "Overall Plan for the Construction of the Hainan Free Trade Port" to "promote the development of related over-the-counter derivatives businesses based on the construction of the Hainan Free Trade Port." It is a core member of Sanya's efforts to build a financial name card of "one exchange and three centers."

4.2-2 Development History of HICE

4.2-3 Variety Categories of the Marine Commodity Exchange

Energy and Chemicals, Metals and Minerals, Agriculture, Forestry, Animal Husbandry, and Fisheries, Digital Services and Trade.

5.1 Trading Client of the Marine Commodity Exchange

The Marine Commodity Exchange provides trading enterprises with a variety of trading software, supporting functions such as capacity pre-sale, listing trading, transaction inquiries for centralized trading businesses, capital inflows and outflows, capital inquiries, settlement, contract trading volumes, agreement downloads, inquiries, and more.

• Capacity Pre-sale: Downloads of the Boyi Master PC client, mobile client, Jinwang Android client, and 10S client are available for transactions involving brass billets and low-oxygen copper rods.

• Centralized Trading Business: Conducted in the trading hall on the official website of the Marine Commodity Exchange.

• Listing Trading: Conducted in the trading hall on the official website of the Marine Commodity Exchange.