Core Viewpoint - The fluorochemical industry index underperformed compared to the broader chemical and stock market indices in December, indicating a weaker performance in the sector [2][3]. Group 1: Market Performance - As of December 31, the Shanghai Composite Index was at 3968.84 points, up 2.06% from November 28, while the CSI 300 Index rose 2.28% to 4629.94 points [2]. - The Shenwan Chemical Index increased by 4.43% to 4372.39 points, whereas the fluorochemical index rose only 1.89% to 2018.62 points, underperforming the Shenwan Chemical Index by 2.54 percentage points [2]. Group 2: Price Trends - In the first quarter, mainstream refrigerant long-term contract prices are expected to continue rising, with R32 contracts priced at 61,200 yuan/ton (up 1.66%) and R410A at 55,100 yuan/ton (up 3.57%) compared to Q4 2025 [2]. - R134a prices increased to 58,000 yuan/ton, R125 to 47,500 yuan/ton, and R410A to 54,500 yuan/ton, reflecting a month-on-month increase of 2,500 yuan/ton and 1,500 yuan/ton respectively [3]. Group 3: Production and Demand - Domestic air conditioning production is projected to grow by 11% year-on-year in January 2026, with January production at 7.86 million units (up 8.9%) and February at 6.48 million units (down 12.0%) [4]. - The liquid cooling technology is driving demand for fluorinated liquids and refrigerants, as traditional cooling methods reach their limits [4]. Group 4: Industry Developments - PVDF prices are rising due to increased production costs and improved supply-demand dynamics, with mainstream prices for different grades ranging from 54,000 to 60,000 yuan/ton [5]. - Key industry news includes mergers and expansions by companies like Dongyangguang and Dongyue Group, indicating ongoing consolidation and growth in the sector [5]. Group 5: Investment Recommendations - The tightening of refrigerant quotas is expected to maintain a balance in supply and demand for mainstream refrigerants like R32, R134a, and R125, suggesting potential for price increases [6]. - Companies with strong infrastructure and advanced technology in the fluorochemical sector, such as Juhua Co., Dongyue Group, and Sanmei Co., are recommended for investment [6].

Investment Rating - The report maintains an "Outperform" rating for the fluorochemical industry [5][8]. Core Insights - The fluorochemical industry index underperformed compared to the Shenwan Chemical Index and the CSI 300 Index in December, with a 1.89% increase, lagging behind the Shenwan Chemical Index by 2.54 percentage points [1][15]. - The long-term contracts for refrigerants are expected to stabilize, with prices for R32 and R410A increasing in the first quarter of 2026 [2][23]. - The demand for fluorinated liquids and refrigerants is anticipated to rise due to advancements in liquid cooling technologies driven by AI and high-density server requirements [4][60]. Summary by Sections 1. December Fluorochemical Industry Performance - As of December 31, the Shanghai Composite Index was at 3968.84 points, up 2.06% from November, while the fluorochemical index was at 2018.62 points, up 1.89% [1][15]. 2. December Refrigerant Market Review - The long-term contract prices for R32 and R410A are set to increase, with R32 at 61,200 CNY/ton and R410A at 55,100 CNY/ton, reflecting increases of 1.66% and 3.57% respectively [2][23]. - The prices for R134a, R125, and R410A have also seen significant increases, with R134a reaching 58,000 CNY/ton, up 4.50% from the previous month [2][24]. 3. Liquid Cooling Driving Demand for Fluorinated Liquids and Refrigerants - The report highlights the shift from traditional air cooling to liquid cooling in data centers, which is expected to significantly increase the demand for fluorinated liquids [4][60]. - The liquid cooling market is projected to grow rapidly, with a compound annual growth rate of 51.4% from 2019 to 2027, potentially exceeding 100 billion CNY [60][63]. 4. 2026 Refrigerant Quota Announcement - The Ministry of Ecology and Environment has announced the refrigerant quotas for 2026, indicating a slight increase in production quotas for R32, R125, and R134a, while R141b's quota has been eliminated [67][70]. - The report suggests that the tightening of refrigerant quotas will support the long-term price stability and profitability of leading companies in the sector [67][72]. 5. Key Company Profit Forecasts and Investment Ratings - Key companies such as Juhua Co., Dongyue Group, and Sanmei Co. are rated as "Outperform," with projected earnings per share (EPS) growth for 2026 [8].

Investment Rating - The report maintains an "Outperform" rating for the fluorochemical industry [5][8]. Core Views - The fluorochemical industry is expected to benefit from the rising prices of refrigerants and the increasing demand for fluorinated liquids driven by advancements in liquid cooling technology for data centers [4][7]. - The long-term outlook for mainstream refrigerants such as R32, R134a, and R125 remains positive due to supply constraints from quota policies, which are expected to support price increases [7][68]. Summary by Sections 1. December Fluorochemical Industry Performance - As of December 31, the Shanghai Composite Index rose by 2.06%, while the fluorochemical index increased by 1.89%, underperforming the broader chemical indices [1][15]. 2. December Refrigerant Market Review - Mainstream refrigerant long-term contract prices are on the rise, with R32 expected to reach 61,200 CNY/ton, a 1.66% increase from the previous quarter [2][23]. - R134a prices have increased to 58,000 CNY/ton, reflecting a 4.5% month-over-month rise [24]. 3. Liquid Cooling Driving Demand for Fluorinated Liquids and Refrigerants - The shift towards liquid cooling in data centers is expected to significantly increase the demand for fluorinated liquids and refrigerants, as traditional air cooling methods become less effective [4][60]. - Companies such as Juhua Co., Dongyue Group, and Sanmei Co. are highlighted as key players in this market [4][66]. 4. 2026 Refrigerant Quota Announcement - The Ministry of Ecology and Environment has announced the 2026 refrigerant quotas, indicating a slight increase in production quotas for R32, R125, and R134a, while R141b's quota has been eliminated [67][70]. - The overall supply constraints are expected to maintain a tight balance in the refrigerant market, supporting price stability [68][72]. 5. Air Conditioning and Export Data Tracking - The production of air conditioners is projected to maintain high levels, with January 2026 production expected to be 7.86 million units, a year-on-year increase of 8.9% [3][5]. - Export data shows a mixed trend, with R32 exports increasing by 12% while R22 exports have decreased by 21% [29][33]. 6. Focus on PVDF Price Recovery - The report notes a recovery in PVDF prices due to rising costs and improved supply-demand dynamics, with current prices ranging from 54,000 to 60,000 CNY/ton [4][66].

Core Viewpoint - The stock of Juhua Co., Ltd. has experienced fluctuations, with a recent decline of 2.03% and a total market capitalization of 102.698 billion yuan, reflecting mixed investor sentiment and market activity [1]. Financial Performance - For the period from January to September 2025, Juhua Co., Ltd. achieved a revenue of 20.394 billion yuan, representing a year-on-year growth of 13.89%, while the net profit attributable to shareholders increased by 158.29% to 3.248 billion yuan [2]. Shareholder Information - As of September 30, 2025, the number of shareholders for Juhua Co., Ltd. reached 76,800, an increase of 49.11% compared to the previous period, with an average of 35,172 circulating shares per shareholder, which is a decrease of 32.93% [2]. Dividend Distribution - Since its A-share listing, Juhua Co., Ltd. has distributed a total of 5.973 billion yuan in dividends, with 1.647 billion yuan distributed over the past three years [3]. Major Shareholders - The second-largest circulating shareholder is Hong Kong Central Clearing Limited, holding 64.509 million shares, a decrease of 20.4115 million shares from the previous period. Other notable shareholders include Xingquan Helun Mixed A and Xingquan Heyi Mixed A, with varying changes in their holdings [3].

Summary of Conference Call Records Industry Overview - The basic chemical sector is likely at the bottom of its cycle, with no need to wait for significant improvements in fundamentals before investing. Stock prices often lead the market, indicating potential investment opportunities when future fundamental changes are anticipated [2][4]. Key Investment Opportunities - Investment opportunities in 2026 are concentrated in traditional cyclical industries and technology materials, particularly in AI-related sectors such as energy storage materials (e.g., lithium carbonate) and storage materials (e.g., Yake Technology) [1][6]. - Recommended leading companies in the chemical industry include Wanhua Chemical, Hualu Hengsheng, and Juhua Co., due to their low valuations and high profit elasticity [1][8]. Company-Specific Insights Wanhua Chemical - Strongly recommended as a top investment choice due to its outlier effect and continuous growth catalysts. Expected revenue for 2026 is projected to reach 400 billion yuan, with a net profit forecast of 16 billion yuan [1][12][14]. - The company has a significant profit increase potential with every 1,000 yuan increase in MDI and TDI prices, translating to a net profit increase of 3.4 billion yuan [12][14]. Hualu Hengsheng - The company is expected to achieve annualized quarterly performance exceeding 5 billion yuan in 2026, supported by multi-category layout and technological upgrades [1][17][18]. Dongcai Technology - Notable for its advantages in new energy materials, with expectations to turn losses into profits as the overall profitability in the new energy sector improves [1][13][15]. Baofeng Energy - Expected to maintain stable annual profits between 12 billion to 13 billion yuan following the release of new capacity at its Ningxia base. The company benefits from the cyclical changes in the coal chemical industry and has diversified its product offerings [3][19][20]. Industry Trends and Signals - The potassium fertilizer industry is expected to experience tight supply and demand in 2026, maintaining high prices, while the phosphate market outlook remains stable with manageable supply increases [3][22][23]. - The tire industry is impacted by EU anti-dumping policies, prompting leading companies to expand overseas to increase market share [3][27][28]. - The spandex industry is at a cyclical bottom, with potential supply-side clearing effects anticipated due to the bankruptcy of a major player, which could improve market conditions [3][34][35]. Additional Insights - Investment in underperforming sectors is justified as they have likely reflected most negative factors in their stock prices, presenting potential for positive marginal changes [11]. - The refrigerant industry, while considered an "old story," shows strong certainty and potential for long-term investment due to ongoing price support [24]. - The organic silicon industry is expected to see price increases driven by domestic demand and external supply constraints, with companies like Dongyue showing significant elasticity [25][26]. Conclusion - The conference call highlighted a range of investment opportunities across various sectors within the chemical industry, emphasizing the importance of leading companies and emerging trends. Investors are encouraged to consider both cyclical recovery and technological advancements when making investment decisions.

特此公告。 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容 的真实性、准确性和完整性承担个别及连带责任。 浙江巨化股份有限公司（以下简称"公司"）于2025年10月23日召开董事会九届二十次会议，2025年12月 23日召开2025年第二次临时股东大会，审议通过了《关于取消监事会并修订〈公司章程〉及相关制度的 议案》。具体内容详见公司于2025年10月24日披露的《巨化股份关于取消监事会并修订〈公司章程〉及 相关制度的公告》（公告编号：临2025-46）。 公司于近日完成上述事项的工商备案手续，根据浙江省市场监督管理局的要求，公司调整了章程中个别 条款的措辞，调整内容与公司2025年第二次临时股东大会审议通过的《公司章程》不存在实质性差异。 具体内容详见与本公告同日披露的《浙江巨化股份有限公司章程》（工商备案版）。 股票代码：600160 股票简称：巨化股份 公告编号：临2026-02 浙江巨化股份有限公司 关于完成《公司章程》备案的公告 浙江巨化股份有限公司董事会 2026年1月6日 ...

Group 1 - The core viewpoint is that the chemical industry is experiencing a recovery phase from a cyclical bottom, with chemical product price indices expected to stabilize and improve profitability as downstream companies replenish inventory [2] - The China Chemical Industry Association and the Phosphate Fertilizer Association held a meeting to ensure the supply of sulfuric acid resources for phosphate fertilizer production, stabilizing agricultural supply for the spring farming season [1] - Wanhua Chemical has continuously raised global prices for core products such as MDI and TDI since December 2025, in line with international giants like BASF and Dow, driven by industry-wide maintenance and rising raw material costs [1] Group 2 - The top ten weighted stocks in the CSI Sub-Industry Chemical Theme Index account for 45.31% of the index, with major companies including Wanhua Chemical, Salt Lake Industry, and Hengli Petrochemical [2] - The chemical industry is seeing new growth engines from emerging applications in AI, OLED, and robotics, with semiconductor materials expanding due to demand from computing power [2] - The chemical ETF managed by Harvest (159129) closely tracks the CSI Sub-Industry Chemical Theme Index, focusing on the new economic cycle amid the "anti-involution" backdrop [2][3]

Core Viewpoint - The petrochemical industry is experiencing a strong upward trend, supported by rising stock prices and increased investment in related ETFs, indicating a positive outlook for the sector [1][2]. Group 1: Market Performance - As of January 6, 2026, the China Securities Petrochemical Industry Index rose by 3.61%, with key stocks such as Hengli Petrochemical up by 8.13% and Luxi Chemical up by 7.87% [1]. - The Petrochemical ETF (159731) increased by 3.47%, reaching a latest price of 0.95 yuan [1]. - Over the past eight trading days, the Petrochemical ETF attracted a total of 24.46 million yuan in inflows, with a significant increase of 25 million shares in the past month, bringing the total size to 246 million yuan, a one-year high [1]. Group 2: Industry Dynamics - Wanhua Chemical has continuously raised global prices for core products such as MDI/TDI since December 2025, aligning with price adjustments from international giants like BASF and Dow, driven by industry-wide maintenance and rising raw material costs [1]. - The China Sulfuric Acid Industry Association, in collaboration with the Phosphate Fertilizer Association, held a meeting to ensure the supply of sulfuric acid resources for phosphate fertilizer production, aiming to stabilize agricultural supply for the spring planting season [1]. - The macroeconomic indicators and valuation levels suggest that the chemical sector is likely entering a new upward cycle, supported by ongoing policy guidance for capacity reduction and a global demand recovery, benefiting companies with cost advantages [1]. Group 3: Key Stocks - The top ten weighted stocks in the China Securities Petrochemical Industry Index as of December 31, 2025, include Wanhua Chemical, China Petroleum, and China Petrochemical, collectively accounting for 56.73% of the index [2]. - Notable stock performances include Wanhua Chemical at 7.25% increase and China Petroleum at 1.39% increase, with their respective weights in the index being 10.47% and 7.63% [4].

Group 1 - The Shenzhen Component Index rose by 0.53% and the Chemical Sub-Index increased by 2.43%, with notable stock performances including Junzheng Group up over 8% and Hengli Petrochemical, Wanhua Chemical up over 5% [1] - The Chemical ETF by Harvest (159129) increased by 2.49%, reflecting strong performance in the chemical sector [1] - The Venezuelan oil exports have nearly dropped to zero due to U.S. oil sanctions, leading to the state oil company reducing crude production and initiating emergency measures to close some oil fields [1] Group 2 - Guosen Securities predicts that the "anti-involution" policy signals will effectively optimize the supply side of the refining and chemical industry [1] - The global external environment is changing rapidly, with significant uncertainties related to the Russia-Ukraine conflict, U.S.-Iran relations, and U.S. "reciprocal tariffs" [1] - It is expected that the Brent oil price will stabilize between $55-65 per barrel and WTI oil price between $52-62 per barrel by 2026, considering OPEC+'s fiscal balance oil price costs and the high new well costs of U.S. shale oil [1] Group 3 - The Chemical ETF tracks the CSI Sub-Sector Chemical Industry Index, which selects 50 large-cap, liquid chemical companies from the Shanghai and Shenzhen markets [2] - The top ten weighted stocks in the index include Wanhua Chemical, Salt Lake Co., Tianci Materials, Cangge Mining, Juhua Co., Hualu Hengsheng, Duofu Du, Hengli Petrochemical, Baofeng Energy, and Yuntianhua [2]

Group 1 - The core viewpoint of the news is that the petrochemical industry is experiencing a strong upward trend, with the Zhongzheng Petrochemical Industry Index rising by 2.58% and significant inflows into the Petrochemical ETF, indicating positive market sentiment and potential investment opportunities [1][2] - The Petrochemical ETF has seen a total inflow of 24.46 million yuan over the past 8 trading days, reaching a new high of 246 million yuan in total scale, reflecting increased investor interest [1][2] - The Petrochemical ETF has achieved a net value increase of 43.18% over the past two years, with a maximum single-month return of 15.86% since its inception, showcasing strong performance metrics [1][2] Group 2 - A new round of national subsidies amounting to 62.5 billion yuan has been initiated, aimed at supporting the replacement of consumer goods and equipment upgrades, which is expected to positively impact demand in the petrochemical sector [2] - The top ten weighted stocks in the Zhongzheng Petrochemical Industry Index account for 56.73% of the index, with leading companies such as Wanhua Chemical, China Petroleum, and China Petrochemical being key contributors to the index's performance [2][4] - The petrochemical industry is anticipated to benefit from improved demand in downstream sectors such as consumer goods, home appliances, automobiles, and real estate, driven by supportive policies [2]