The Physical Trade of non-ferrous metals is our main business, mainly Electrolytic Copper and Zinc Ingots, with following business models:

1. Goods Storage Methods:

The company's physical trading utilizes existing public warehouses, such as Shanghai International Port Group Logistics Co., Ltd., Sinosteel, China Material Storage and Transportation Corp., Quansheng Storage, etc. The company signs "Warehouse Storage and Custody Contracts" with these warehouses, paying storage fees based on the tonnage of goods stored and the storage duration, and paying inbound and outbound handling fees based on the tonnage of goods entering and leaving the warehouse.

The company closely cooperates with Zhangjiagang Bonded Zone Foreign Investment Service Co., Ltd. to establish a non-ferrous metals warehouse in Tianjin, ensuring smooth transactions, goods security, and logistics accessibility for participating suppliers and customers.

2. Title Transfer and Goods Transportation Methods:

(a) Direct delivery from smelter to customer's factory:

When the smelter is responsible for transportation, the supplier's title transfers to our company upon unloading at the customer's factory, and simultaneously, the title transfers from our company to the customer.

(b) Our company picks up goods from the warehouse and transports them to the customer's factory:

The goods from the smelter or upstream supplier are transferred to our company's name through an intra-warehouse transfer. Our company commissions a transport fleet to pick up the goods from the warehouse and deliver them to the customer's factory; title transfers to the customer upon unloading.

(c) Customer picks up goods from the warehouse themselves:

The goods from the smelter or upstream supplier are transferred to our company's name through an intra-warehouse transfer. Based on the designated vehicle information in the customer's pickup authorization letter to our company, we issue a pickup authorization letter to the warehouse. Title transfers to the downstream customer upon completion of loading the designated vehicle.

(d) Other title transfer methods:

The goods from the smelter or upstream supplier are transferred to our company's name through an intra-warehouse transfer. Our company's goods are then transferred to the customer company's name through an intra-warehouse transfer.