Investment Rating - The report maintains a positive outlook on the polyester sector, recommending high-quality companies such as Tongkun Co. and Wankai New Materials, while also suggesting attention to major refining companies like Hengli Petrochemical and Rongsheng Petrochemical [3][33][49]. Core Insights - The report highlights a decline in oil prices in Q2 2025, with Brent crude averaging $66.7 per barrel, down 11.0% quarter-on-quarter and 21.5% year-on-year, impacting upstream oil and gas exploration and production [3][5][18]. - The downstream refining and chemical sector experienced a revenue drop of 10.4% year-on-year in Q2 2025, with net profits down 26.1% [33][35]. - The report notes a tightening supply-demand balance in the polyester sector, with expectations for improved profitability in the upcoming months as the industry enters a seasonal peak [3][51]. Summary by Sections Upstream Oil and Gas Sector - In Q2 2025, the oil and gas exploration and production sector reported revenues of 1,526.15 billion yuan, a decrease of 10.2% year-on-year, and net profits of 87.58 billion yuan, down 21.8% [17][19]. - The average gross margin for the sector was 20.1%, reflecting a decline due to falling oil prices [17][19]. Downstream Refining and Chemical Sector - The refining and chemical sector achieved revenues of 1,608.3 billion yuan in Q2 2025, a year-on-year decrease of 10.4%, with net profits also down 26.1% [33][35]. - The average gross margin for this sector was 16.9%, impacted by inventory losses due to declining oil prices and weak downstream demand [33][35]. Price Trends and Margins - The report indicates that the price spread for major petrochemical products showed mixed results, with some margins improving while others contracted [12][34]. - The PTA-PX price spread was reported at 219 yuan per ton, down 21% quarter-on-quarter, indicating pressure on the PTA segment [12][34]. Recommendations - The report suggests focusing on high-quality companies in the polyester sector, such as Tongkun Co. and Wankai New Materials, due to expected improvements in demand and profitability [3][51]. - It also recommends monitoring major refining companies like Hengli Petrochemical and Rongsheng Petrochemical, which may benefit from cost improvements and competitive advantages [3][49].

Investment Rating - The report maintains a "Positive" outlook on the petrochemical industry [2] Core Insights - In Q2 2025, crude oil prices experienced a decline, leading to a decrease in upstream oil and gas extraction and midstream refining profitability, while downstream polyester profitability showed signs of recovery [4][5] - The overall revenue for the oil and gas extraction and oilfield services sector in Q2 2025 was 1,526.15 billion, a year-on-year decrease of 10.2% and a quarter-on-quarter decrease of 7.1% [19][21] - The report highlights a tightening supply-demand situation in the downstream polyester sector, with expectations for improved market conditions [4] Summary by Sections Oil and Gas Prices - Brent crude oil average prices for April, May, and June 2025 were 66.5, 64.0, and 69.8 USD/barrel, respectively, with a Q2 average of 66.7 USD/barrel, reflecting an 11.0% decrease quarter-on-quarter and an 8.3% decrease year-on-year [4][20] - The report notes that gasoline and diesel prices were adjusted three times upwards and two times downwards, with total reductions of 155 CNY/ton and 150 CNY/ton, respectively [20] Upstream Oil and Gas Sector - The oil and gas extraction and oilfield services sector reported a total revenue of 1,526.15 billion in Q2 2025, with a net profit of 87.58 billion, marking a year-on-year decline of 21.8% [19][21] - The gross margin for the sector was 20.1%, down 0.7 percentage points year-on-year and 0.6 percentage points quarter-on-quarter, primarily due to falling crude oil prices [19][21] Downstream Refining and Chemical Sector - The refining and chemical industry achieved a total revenue of 1,608.3 billion in Q2 2025, with a net profit of 52 billion, reflecting a year-on-year decline of 26.1% [35][37] - The gross margin for the refining sector was 16.9%, down 0.3 percentage points year-on-year and 0.5 percentage points quarter-on-quarter, attributed to inventory losses from falling oil prices and weak downstream demand [35][37] Investment Recommendations - The report recommends focusing on high-quality companies in the polyester sector, such as Tongkun Co. and Wankai New Materials, as well as large refining companies like Hengli Petrochemical and Rongsheng Petrochemical [4] - It also suggests that the overall oil price is expected to maintain a mid-to-high level with a "U" shaped trend, recommending companies with high dividend yields like China National Petroleum and China National Offshore Oil [4]

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report The report is the second in the series of in - depth studies on chemical plants. It analyzes the upstream - downstream matching of the polyester industry chain and the marginal plants of futures varieties such as PX, PTA, PR, and PF. PTA enterprises with PX or polyester matching account for 91.6% of the production capacity, PX with downstream matching accounts for 82.0% of the production capacity, and polyester with upstream matching accounts for 72.1% of the production capacity. The marginal plants are identified from aspects like old plants, small single - line production capacity or enterprise scale, high production process costs, and long distances for raw material procurement or product sales [3][4]. 3. Summary According to the Directory 3.1 Polyester Industry Chain Upstream - Downstream Matching Analysis 3.1.1 Group - Based Upstream - Downstream Matching As of the end of July 2025, China's PX, PTA, and polyester production capacities were 4367, 9171.5, and 8894 tons respectively. The theoretical annual PX gap was 1640 tons, and the theoretical annual PTA surplus was 1567 tons. PTA enterprises with PX or polyester matching accounted for 91.6% of the production capacity, PX with downstream matching accounted for 82.0% of the production capacity, and polyester with upstream matching accounted for 72.1% of the production capacity. The enterprises in the polyester industry chain can be classified into four types: those with complete PX/PTA/polyester matching; those mainly with polyester and PTA matching but little PX matching; those with only PX and PTA matching; and those with relatively single matching [10][11]. 3.1.2 Region - Based Upstream - Downstream Matching The production capacity of the polyester industry chain is concentrated in Zhejiang, Jiangsu, Liaoning, Guangdong, Fujian, etc. Except for Shandong having a large surplus of PX for sale, most other regions have PX production capacity gaps or are basically balanced. Zhejiang, Jiangsu, and Liaoning have the largest PX gaps. In terms of PTA, Jiangsu and Zhejiang have large PTA production capacity gaps, while Liaoning, Guangdong, and other regions have PTA surpluses [12][15][16]. 3.2 PX Marginal Plant Analysis As of the end of July 2025, China's total PX production capacity was 4367 tons, with an effective operating capacity of 4254 tons. PX production capacity is mainly distributed in Zhejiang, Liaoning, Jiangsu, Guangdong, Shandong, etc. The marginal PX plants are identified from aspects such as production time, single - set scale, and production process. Old plants (over 20 years in production), small - scale plants (less than 100 tons), and medium - short - process plants (accounting for 17.4% of the total production capacity) are more likely to be marginal plants [20][23][30]. 3.3 PTA Marginal Plant Analysis As of the end of July 2025, the total PTA production capacity was 9171.5 tons, with 836.5 tons having been shut down for more than half a year. PTA production capacity is mainly distributed in coastal areas such as Zhejiang, Jiangsu, Liaoning, Guangdong, and Fujian. The marginal PTA plants are mainly those with a production capacity of less than 200 tons and put into production before 2020, with a total capacity of 1295 tons, accounting for 14.1% [34][40][41]. 3.4 PR Marginal Plant Analysis As of the end of July 2025, the total PR production capacity was 2168 tons, mainly distributed in Jiangsu, Hainan, and Liaoning. The top four bottle - chip manufacturers account for 78% of the total production capacity. The marginal bottle - chip plants are those that meet one or more of the following conditions: long production time, small plant scale, lack of upstream - downstream matching ability of the group, and high freight costs due to long distances for raw material procurement or product sales. A total of 326 tons of production capacity may be marginal plants, accounting for 15% [44][51][54]. 3.5 PF Marginal Plant Analysis As of the end of July 2025, the total PF production capacity was 968.5 tons, mainly distributed in Jiangsu, Zhejiang, and Fujian. The top four short - fiber manufacturers account for 46% of the total production capacity. Plants with a production time of over 20 years are mainly concentrated in Jiangsu and Fujian. Small - scale plants (less than 20 tons) are more likely to be marginal plants. The difference in processing costs between new and old plants is not significant, and the survival of old plants depends more on market dynamic balance [55][57][62].

Core Insights - The threshold for entering the 2025 China Manufacturing Enterprises Top 500 list has increased to 17.365 billion yuan, up by 303 million yuan from the previous year [1] - The total revenue of the top 500 manufacturing enterprises reached 5.168 trillion yuan [1] - The top three companies on the list are China Petroleum & Chemical Corporation, China Baowu Steel Group, and Hengli Group [1] Innovation and R&D - The R&D intensity of the top 500 manufacturing enterprises is 2.45%, an increase of 0.03 percentage points from the previous year [1] - The number of effective patents held by these enterprises is 1.6632 million, with 803,800 being invention patents, representing increases of 11.34% and 12.07% respectively compared to the previous year [1] Industry Structure and Performance - Industries such as communication equipment manufacturing and computer & office equipment have seen average revenue growth exceeding 10% [1] - The semiconductor integrated circuit and panel manufacturing industries have experienced average profit growth of over 100% [1] Export Performance - The proportion of overseas revenue for the top 500 manufacturing enterprises has risen to 19.10%, an increase of 0.87 percentage points from the previous year [1]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies [1]. Core Insights - The domestic key refining projects' price spread this week is 2516 CNY/ton, down by 19 CNY/ton (1% decrease) compared to the previous week, while the foreign key refining projects' price spread is 1181 CNY/ton, down by 12 CNY/ton (1% decrease) [2]. - In the polyester sector, the average prices for POY, FDY, and DTY are 6704, 6936, and 7982 CNY/ton respectively, with week-on-week changes of -86, -143, and -39 CNY/ton. The weekly average profits for POY, FDY, and DTY are 79, -33, and 64 CNY/ton respectively [2]. - The operating rate for polyester filament is 91.5%, which is a slight increase of 0.1 percentage points week-on-week [2]. - The downstream weaving machine operating rate is 62.2%, down by 0.2 percentage points week-on-week [2]. - The average price of PX this week is 831.9 USD/ton, down by 3.7 USD/ton, with a price spread compared to crude oil of 338.7 USD/ton, down by 11.6 USD/ton [2]. - The report highlights several listed companies in the refining and polyester sectors, including Hengli Petrochemical, Rongsheng Petrochemical, Hengyi Petrochemical, Tongkun Co., and Xin Fengming [2]. Summary by Sections 1. Refining Sector - Domestic refined oil prices for gasoline, diesel, and aviation kerosene have increased this week [2]. - The average price of Brent crude oil is 67.6 USD/barrel, with a week-on-week increase of 1.6% [9]. 2. Polyester Sector - The average prices for POY, FDY, and DTY are 6704, 6936, and 7982 CNY/ton respectively, with corresponding week-on-week changes [9]. - The inventory days for POY, FDY, and DTY are 20.6, 28.8, and 31.5 days respectively, with slight increases week-on-week [9]. - The operating rates for PX, PTA, and MEG are 85.3%, 75.5%, and 70.9% respectively [9]. 3. Chemical Sector - The report provides insights into the average prices and profit margins for various chemical products, including PX and PTA [9]. - The average price of PX is 831.9 USD/ton, with a decrease in the price spread compared to crude oil [9].

Group 1 - The core viewpoint of the articles highlights the growth in China's chemical fiber industry, with a projected production of 7.35 million tons in May 2025, representing a year-on-year increase of 5.2% [1] - Cumulative production from January to May 2025 is reported at 35.037 million tons, showing a cumulative growth of 5.5% [1] - The articles reference a market analysis report by Zhiyan Consulting, which covers the operational status and investment prospects of the chemical fiber industry in China from 2025 to 2031 [1][2] Group 2 - Listed companies in the chemical fiber sector include Xinxiang Chemical Fiber, Hengli Petrochemical, Huafeng Superfiber, and others [1] - Zhiyan Consulting is recognized as a leading industry consulting firm in China, providing comprehensive industry research reports and tailored services [2]

Core Insights - The 2025 World Manufacturing Conference was held in Hefei, where the list of China's Top 500 Manufacturing Enterprises was released, marking the 21st consecutive year of publication by the China Enterprise Confederation [1] - Jiangsu province had 54 companies on the list, ranking third in terms of the number of companies, following Zhejiang and Shandong [1] Summary by Categories R&D and Innovation - The total R&D intensity of the Top 500 enterprises was 2.45%, an increase of 0.03 percentage points from the previous year [1] - The number of valid patents reached 1.6632 million, with invention patents accounting for 803,800, representing increases of 11.34% and 12.07% respectively compared to the previous year [1] Revenue and Financial Performance - The proportion of overseas revenue to total revenue increased to 19.10%, up by 0.87 percentage points from the previous year [1] - The entry threshold for the Top 500 list rose from 11.091 billion to 17.365 billion yuan, while total revenue increased from 40.24 trillion to 51.68 trillion yuan, and total assets grew from 44.33 trillion to 53.31 trillion yuan [1] Notable Companies - Two companies from Jiangsu ranked in the top ten: Hengli Group with revenue of 871.5 billion yuan ranked 3rd, and Shenghong Holding Group with revenue of 565.6 billion yuan ranked 10th [1] - In the sub-list of R&D intensity, Zhengda Tianqing Pharmaceutical Group ranked 3rd with an R&D intensity of 17.35% [1]

Group 1 - The 2025 World Manufacturing Conference opened in Hefei, Anhui Province, with the release of the 2025 China Manufacturing Enterprises Top 500 list, where the revenue threshold for inclusion reached 17.365 billion yuan, an increase of 303 million yuan from the previous year [1] - The total operating revenue of the 2025 China Manufacturing Enterprises Top 500 reached 51.68 trillion yuan, with China Petroleum & Chemical Corporation ranking first at 2.931956 trillion yuan, followed by China Baowu Steel Group and Hengli Group in second and third places respectively [1] - Innovation capability is identified as a key driving force for the development of Chinese manufacturing enterprises, with a research and development intensity of 2.45% and a total of 1.6632 million effective patents, including 803,800 invention patents, reflecting a year-on-year growth of 12.07% [1] Group 2 - The average revenue growth in industries such as communication equipment manufacturing and computer and office equipment exceeded 10%, while the semiconductor integrated circuit and panel manufacturing industries saw average profit growth of over 100% [1] - The internationalization of the top 500 Chinese manufacturing enterprises is accelerating, with overseas operating revenue accounting for 19.10% of total operating revenue, an increase of 0.87 percentage points from the previous year [1] - The top five provinces with the highest number of enterprises in the 2025 China Manufacturing Enterprises Top 500 are Zhejiang, Shandong, Jiangsu, Guangdong, and Hebei [1]

Company Overview - Hengli Petrochemical Co., Ltd. is located at 52 Gangxing Road, Victoria Plaza, Zhongshan District, Dalian, Liaoning Province, established on March 9, 1999, and listed on August 20, 2001 [1] - The company's main business includes the research, production, and sales of polyester fibers, polyester films, steam, electricity, PTA production, and refining and petrochemical businesses [1] - The revenue composition of the main business is as follows: refining products 45.92%, PTA 31.10%, polyester products 19.24%, and others 3.73% [1] Financial Performance - As of June 30, 2025, Hengli Petrochemical achieved operating revenue of 103.944 billion yuan, a year-on-year decrease of 7.68% [2] - The net profit attributable to shareholders for the same period was 3.050 billion yuan, a year-on-year decrease of 24.08% [2] - Cumulative cash dividends since the A-share listing amount to 26.136 billion yuan, with 7.602 billion yuan distributed in the last three years [3] Stock Market Activity - On September 18, Hengli Petrochemical's stock price decreased by 2.01%, closing at 16.55 yuan per share, with a trading volume of 233 million yuan and a turnover rate of 0.20% [1] - The total market capitalization is approximately 116.497 billion yuan [1] - Year-to-date, the stock price has increased by 11.07%, with a decline of 4.28% over the last five trading days and a 1.55% decrease over the last 20 days [1] Shareholder Information - As of June 30, 2025, the number of shareholders is 74,400, a decrease of 0.75% from the previous period [2] - The average circulating shares per person increased by 0.75% to 94,588 shares [2] - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 239 million shares, an increase of 23.2252 million shares compared to the previous period [3]

Core Viewpoint - Hengli Petrochemical Co., Ltd. has announced its profit distribution plan for the first half of 2025, which includes a cash dividend of 0.08 yuan per share, totaling approximately 563.13 million yuan [4][6]. Distribution Plan - The profit distribution plan was approved at the third extraordinary general meeting of shareholders held on September 9, 2025 [2]. - The distribution is based on a total share capital of 7,039,099,786 shares [4]. - Cash dividends will be distributed to all shareholders registered with China Securities Depository and Clearing Corporation Limited, Shanghai Branch, as of the close of trading on the day before the equity registration date [3]. Implementation Details - Cash dividends will be distributed through the clearing system of China Securities Depository and Clearing Corporation Limited [5]. - Shareholders who have completed designated transactions can receive their cash dividends on the distribution date at their designated securities firms [5]. - For shareholders who have not completed designated transactions, dividends will be held by China Securities Depository and Clearing Corporation Limited until the transactions are completed [5]. Taxation Information - Individual shareholders holding shares for over one year will not be subject to personal income tax on dividends [7]. - For shares held for less than one month, the actual tax rate on dividends will be 20% [8]. - For qualified foreign institutional investors (QFII), a 10% withholding tax will apply, resulting in a net cash dividend of 0.072 yuan per share [8]. Investor Communication - The company will hold a half-year performance briefing on September 30, 2025, from 13:00 to 14:00, to discuss its operating results and financial indicators [11][12]. - Investors can submit questions for the briefing from September 23 to September 29, 2025 [11][13].