Core Viewpoint - Shanghai Petrochemical, a subsidiary of Sinopec, has launched a new 60K large tow carbon fiber product, filling a gap in the domestic market and achieving international leading performance, with broad application prospects in deep-sea offshore wind power and bridge construction [2][4]. Group 1: Product Development and Performance - The new 60K large tow carbon fiber has a 25% increase in single filament content compared to the 48K variant, with mechanical properties significantly enhanced, including a strength increase of 0.5 GPa and a modulus increase of 20 GPa, enabling a 25% efficiency improvement in production lines [4][6]. - The tensile strength of the 60K carbon fiber bundle exceeds 4.9 GPa, capable of lifting a 1-ton weight, and the elastic modulus can reach over 260 GPa, making it suitable for larger and more powerful deep-sea wind turbine blades [4][6]. Group 2: Technological Advancements - Shanghai Petrochemical has successfully overcome industrial preparation technology challenges for 60K and above large capacity single nozzle production, achieving full-process industrial trial production, marking a domestic first [6][7]. - The company now has production capabilities for nearly 20 different specifications of carbon fiber products, including 3K, 12K, 24K, 48K, and 60K, covering a full spectrum of "general + high performance" and "large tow + small tow" products [6][7]. Group 3: Market Applications and Collaborations - Shanghai Petrochemical is the first in China and the fourth globally to master large tow carbon fiber technology, actively expanding market applications in wind power and other fields [7]. - The company has successfully applied 48K large tow carbon fiber in 131-meter long onshore wind turbine blades, demonstrating its commitment to enhancing the carbon fiber industry chain and supporting "Made in China" initiatives [7][18].

[Important Notice](index=3&type=section&id=Important%20Notice) This section emphasizes the truthfulness, accuracy, and completeness of the company's 2025 semi-annual report, with legal responsibility borne by the Board of Directors, Supervisory Committee, and senior management, noting no profit distribution or capital reserve conversion for the period and warning investors about forward-looking statements - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content and bear legal responsibility[8](index=8&type=chunk) - The company will not distribute 2025 semi-annual profits or convert capital reserves into share capital[8](index=8&type=chunk) - Forward-looking statements regarding future plans and development strategies in the report do not constitute substantive commitments, and investors are advised of investment risks[8](index=8&type=chunk) [Definitions](index=4&type=section&id=Definitions) This section defines common terms used in the report, including company names, governance bodies, geographical areas, reporting period, exchanges, group composition, major shareholders, and relevant laws and regulations, to ensure clear understanding of the report content - "Company," "the Company," or "Shanghai Petrochemical" refers to Sinopec Shanghai Petrochemical Company Limited[9](index=9&type=chunk) - "Reporting Period" refers to the six months ended June 30, 2025[9](index=9&type=chunk) - "The Group" refers to the Company and its subsidiaries[9](index=9&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's key financial performance in the first half of 2025, prepared under PRC GAAP, showing significant declines in revenue and net profit, turning from profit to loss, but a substantial increase in net cash flow from operating activities, also disclosing differences between financial statements prepared under PRC GAAP and IFRS, and non-recurring gains and losses [Key Accounting Data and Financial Indicators (Prepared in Accordance with PRC GAAP)](index=5&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators%20%28Prepared%20in%20Accordance%20with%20PRC%20GAAP%29) The company's key financial data for H1 2025 shows a 9.21% year-on-year decrease in operating revenue, with total profit and net profit attributable to parent company shareholders turning from profit to significant loss, and basic earnings per share also turning negative, however, net cash flow from operating activities increased by 127.78% year-on-year H1 2025 Key Accounting Data and Financial Indicators (RMB thousands) | Indicator | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 39,523,226 | 43,532,806 | (9.21) | | Total (Loss)/Profit | (595,616) | 37,495 | (1,688.52) | | Net (Loss)/Profit Attributable to Parent Company Shareholders | (462,128) | 27,912 | (1,755.66) | | Net Cash Flow from Operating Activities | 778,943 | 341,970 | 127.78 | | Basic (Loss)/Earnings Per Share (RMB per share) | (0.044) | 0.003 | (1,566.67) | | Weighted Average Net Asset (Loss)/Return (%) | (1.870) | 0.113 | Decrease by 1.983 percentage points | [Differences Between Financial Statements Prepared in Accordance with PRC GAAP and IFRS](index=6&type=section&id=Differences%20Between%20Financial%20Statements%20Prepared%20in%20Accordance%20with%20PRC%20GAAP%20and%20IFRS) This section lists the differences in net (loss)/profit and net assets attributable to parent company shareholders when prepared under PRC GAAP and IFRS, showing losses under both standards but with slight variations in specific amounts Differences in Accounting Standards (RMB thousands) | Indicator | Net (Loss)/Profit Attributable to Parent Company Shareholders (Current Period) | Net (Loss)/Profit Attributable to Parent Company Shareholders (Prior Period) | Net Assets Attributable to Parent Company Shareholders (Current Period End) | Net Assets Attributable to Parent Company Shareholders (Current Period Start) | | :--- | :--- | :--- | :--- | :--- | | Under PRC GAAP | (462,128) | 27,912 | 24,305,137 | 25,040,254 | | Under IFRS | (449,274) | 2,845 | 24,293,317 | 25,028,251 | [Non-Recurring Gains and Losses (Prepared in Accordance with PRC GAAP)](index=7&type=section&id=Non-Recurring%20Gains%20and%20Losses%20%28Prepared%20in%20Accordance%20with%20PRC%20GAAP%29) This section details the non-recurring gains and losses for H1 2025, totaling RMB (22,753) thousands, primarily including gains/losses from disposal of non-current assets, government grants, fair value changes of financial assets, and severance benefits H1 2025 Non-Recurring Gains and Losses (RMB thousands) | Non-Recurring Item | Amount | | :--- | :--- | | Gains/Losses from disposal of non-current assets | (23,498) | | Government grants recognized in current profit or loss | 5,260 | | Gains/Losses from changes in fair value of financial assets and liabilities held by non-financial enterprises and disposal gains/losses | 7,230 | | One-off expenses incurred by enterprises due to discontinuation of related operating activities (e.g., severance benefits) | (22,066) | | Other gains and losses meeting the definition of non-recurring items | (890) | | Other non-operating income and expenses apart from the above | 3,240 | | Income tax impact | 8,265 | | Impact on minority interests (after tax) | (294) | | Total | (22,753) | [Board Report](index=8&type=section&id=Board%20Report) The Board Report comprehensively reviews the company's operations in H1 2025, covering business overview, management discussion and analysis, key operating conditions, asset and liability status, investment analysis, and potential risks, the company faced challenges such as global economic slowdown, tariff wars, and geopolitical volatility, leading to decreased revenue and net profit, but improved operating cash flow, the company actively promoted industrial transformation and upgrading, innovation-driven development, and reform management, and outlined market forecasts and work arrangements for the second half of the year [Section 1 Company Business Overview](index=8&type=section&id=Section%201%20Company%20Business%20Overview) This section outlines the company's business nature as a highly integrated petrochemical enterprise, its operating model, and industry environment, the company primarily processes crude oil into refining and chemical products, mainly sold in the East China region, facing a global economic slowdown, the company actively adjusted its product structure, optimized technology, and emphasized green and low-carbon development [Description of the Company's Main Business, Operating Model, and Industry Conditions During the Reporting Period](index=8&type=section&id=Description%20of%20the%20Company%27s%20Main%20Business%2C%20Operating%20Model%2C%20and%20Industry%20Conditions%20During%20the%20Reporting%20Period) The company is a highly integrated petrochemical enterprise in Jinshanwei, Shanghai, primarily processing crude oil into various refining and chemical products, with most sales in China, especially East China, facing a global economic slowdown and a cyclical trough in the chemical market, the company actively adjusted its product structure, optimized process technology, and promoted green and low-carbon development - The company is a highly integrated petrochemical enterprise, primarily processing crude oil into refining and chemical products, with its main market in East China[15](index=15&type=chunk) - Global economic growth has slowed, and the chemical market is at a cyclical bottom, but China's "green transformation," "domestic substitution," and "industrial upgrading" present strategic opportunities for the industry[15](index=15&type=chunk) - The company leverages its integrated advantages to adjust product structure, improve product quality, optimize process technology, and promote energy saving, consumption reduction, and green low-carbon development[15](index=15&type=chunk) [Analysis of Core Competencies During the Reporting Period](index=8&type=section&id=Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies include its integrated refining and chemical capabilities, superior geographical location, and extensive production and operation experience, located in the core Yangtze River Delta, it boasts a complete logistics system and supporting facilities, offering advantages in transportation costs and timely delivery, while enhancing sustainable development through product structure optimization and production technology - The company is one of China's major integrated refining and chemical petrochemical enterprises, possessing strong overall scale capabilities[16](index=16&type=chunk) - Key competitive advantages include quality, geographical location (core Yangtze River Delta, proximity to customers, convenient transportation), and vertical integrated production[16](index=16&type=chunk) - The company has over 50 years of petrochemical production, operation, and management experience, actively adjusting and optimizing product structure to improve comprehensive resource utilization efficiency[16](index=16&type=chunk) [Section 2 Management Discussion and Analysis](index=9&type=section&id=Section%202%20Management%20Discussion%20and%20Analysis) This section details the company's H1 2025 operations, facing complex domestic and international economic conditions and industry competition, resulting in decreased revenue and net profit, the company actively responded to challenges, advancing high-quality development projects, safety and environmental management, industrial transformation, and innovation-driven initiatives, it also provided market forecasts and outlined five key work arrangements for the second half of the year to achieve annual targets [Management Discussion and Analysis of Operating Performance During the Reporting Period](index=9&type=section&id=Management%20Discussion%20and%20Analysis%20of%20Operating%20Performance%20During%20the%20Reporting%20Period) In H1 2025, the company faced challenges from global economic slowdown, tariff wars, and geopolitical volatility, leading to a 9.17% year-on-year decrease in revenue and a pre-tax loss of RMB 583 million, despite this, the company made progress in production, project construction, safety and environmental protection, industrial transformation, and innovation, with detailed market forecasts and work arrangements for the second half of the year - In H1 2025, the Group's revenue was **RMB 39.50 billion**, a year-on-year decrease of **9.17%**; pre-tax loss was **RMB 583 million**, a year-on-year increase in loss of **RMB 595 million**[18](index=18&type=chunk) - Total main commodity production in H1 was **5.5768 million tons**, a year-on-year decrease of **4.35%**; crude oil processing was **6.3249 million tons**, a year-on-year decrease of **4.93%**[19](index=19&type=chunk) - Overall safety and environmental risks are controllable, with **100%** compliance rates for industrial wastewater discharge, controlled exhaust gas, and proper disposal of hazardous waste[20](index=20&type=chunk) [Key Operating Performance During the Reporting Period](index=16&type=section&id=Key%20Operating%20Performance%20During%20the%20Reporting%20Period) This section analyzes the changes in the company's major financial statement items for H1 2025, showing a 34.35% increase in R&D expenses, income tax turning from expense to income, a significant 1755.66% decrease in net profit attributable to parent company shareholders, and a substantial 127.78% increase in net cash flow from operating activities H1 2025 Changes in Major Financial Statement Items (RMB thousands) | Item | 2025 | 2024 | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | R&D Expenses | 130,190 | 96,904 | 34.35 | Increase in R&D projects | | Other Income | 7,909 | 12,915 | (38.76) | Decrease in government grants | | Asset Impairment Losses | (416,854) | (111,483) | Not applicable | Provision for inventory impairment of RMB 417 million | | Income Tax (Income)/Expense | (134,702) | 6,097 | (2,309.32) | Recognition of deferred income tax assets due to tax losses | | Net (Loss)/Profit Attributable to Parent Company Shareholders | (462,128) | 27,912 | (1,755.66) | Year-on-year decrease in operating performance | | Net Cash Flow from Operating Activities | 778,943 | 341,970 | 127.78 | Decrease in cash paid for goods and services | | Net Cash Flow from Investing Activities (Generated)/(Used) | 737,782 | (585,464) | Not applicable | Increase in recovered time deposits | | Net Cash Flow from Financing Activities (Used)/(Generated) | (1,295,408) | 1,342,692 | (196.48) | Increase in net cash outflow from borrowings obtained and repaid | [Analysis of Operating Performance by Industry, Product, or Region](index=18&type=section&id=Analysis%20of%20Operating%20Performance%20by%20Industry%2C%20Product%2C%20or%20Region) This section analyzes the company's main business operations by industry, product, and region, both revenue and cost for refining and chemical products decreased, but the gross profit margin for chemical products significantly improved, regionally, revenue in East China decreased, while export revenue sharply declined H1 2025 Main Business by Industry and Product (RMB thousands) | By Industry or Product | Operating Revenue | Operating Cost | Gross Profit Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Refining Products | 26,856,886 | 21,007,197 | 21.78 | (12.96) | (12.68) | Decrease by 0.26 percentage points | | Chemical Products | 8,536,089 | 7,872,977 | 7.77 | (3.41) | (10.31) | Increase by 7.10 percentage points | | Petrochemical Product Trading | 3,860,183 | 3,820,628 | 1.02 | 22.65 | 23.31 | Decrease by 0.53 percentage points | | Others | 60,727 | 56,343 | 7.22 | (77.06) | (78.33) | Increase by 5.42 percentage points | H1 2025 Main Business Revenue by Region (RMB thousands) | Region | Main Business Revenue | YoY Change in Main Business Revenue (%) | | :--- | :--- | :--- | | East China | 37,920,115 | (6.13) | | Other Regions in China | 367,563 | 24.36 | | Exports | 1,026,207 | (57.47) | [Analysis of Assets and Liabilities](index=19&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) This section analyzes significant changes in the company's balance sheet for H1 2025, cash and cash equivalents and prepayments decreased substantially, while accounts receivable, other current assets, other non-current assets, and long-term borrowings significantly increased, short-term borrowings were fully repaid, and accounts payable and long-term borrowings grew considerably H1 2025 Changes in Assets and Liabilities (RMB thousands) | Item | Amount as of June 30, 2025 | Share of Total Assets as of June 30, 2025 (%) | Amount as of December 31, 2024 | Share of Total Assets as of December 31, 2024 (%) | Change (%) | Main Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 8,433,777 | 20.09 | 12,096,477 | 28.96 | (30.28) | Purchase of time deposits reclassified as other non-current assets | | Derivative Financial Assets | 100,162 | 0.24 | 49 | – | 204,312.24 | Purchase of crude oil and refined oil swap contracts | | Accounts Receivable | 1,959,309 | 4.67 | 701,587 | 1.68 | 179.27 | Increase in accounts receivable from refined oil sales | | Prepayments | 42,795 | 0.10 | 146,453 | 0.35 | (70.78) | Decrease in prepaid naphtha consumption tax | | Other Current Assets | 251,323 | 0.60 | 57,543 | 0.14 | 336.76 | Increase in input VAT to be deducted | | Other Non-Current Assets | 2,528,474 | 6.02 | – | – | Not applicable | Purchase of two-year and three-year time deposits | | Short-term Borrowings | – | – | 1,500,940 | 3.59 | (100.00) | Repayment of short-term borrowings | | Derivative Financial Liabilities | 87,191 | 0.21 | – | – | Not applicable | Purchase of crude oil and refined oil swap contracts | | Accounts Payable | 4,619,975 | 11.01 | 2,730,914 | 6.54 | 69.17 | Increase in accounts payable for crude oil purchases | | Taxes Payable | 895,443 | 2.13 | 1,388,147 | 3.32 | (35.49) | Decrease in consumption tax and VAT payable | | Long-term Borrowings | 386,572 | 0.92 | 67,685 | 0.16 | 471.13 | New long-term borrowings to supplement funding needs for engineering projects | | Treasury Shares | – | – | 56,159 | 0.13 | (100.00) | Cancellation of repurchased H-shares | [Analysis of Investment Status](index=21&type=section&id=Analysis%20of%20Investment%20Status) This section analyzes the company's investment status, noting no entrusted wealth management, entrusted loans, or use of raised funds during the reporting period, performance of major subsidiaries and associates varied, with some subsidiaries experiencing decreased net profit, while Shanghai Jinfie and Zhejiang Jinlian saw increased net losses, the company continued to advance non-raised fund projects and held financial assets measured at fair value and derivative investments for hedging purposes - During the reporting period, the company had no entrusted wealth management, entrusted loans, or use of raised funds[48](index=48&type=chunk)[49](index=49&type=chunk) - Shanghai Toufa and Jinshan Lianmao experienced a year-on-year decrease in net profit, while Shanghai Jinfie and Zhejiang Jinlian saw a year-on-year increase in net losses[52](index=52&type=chunk)[55](index=55&type=chunk) - The company continued to advance the Shanghai Petrochemical Thermal Power Unit Clean Efficiency Improvement Project and the 30,000 tons/year Large Tow Carbon Fiber Relocation Project[54](index=54&type=chunk) - The company held financial assets measured at fair value totaling **RMB 632,392 thousands**, primarily including accounts receivable financing and commodity swap contracts[56](index=56&type=chunk) - The company uses derivative financial instruments such as commodity swap contracts to manage commodity price risk, with no hedge ineffectiveness arising during the reporting period[57](index=57&type=chunk) [Other Disclosures](index=26&type=section&id=Other%20Disclosures) This section discloses significant risks the company may face, including cyclical fluctuations in the oil and petrochemical markets, rising crude oil prices and difficulty in cost transfer, uncertainties in capital expenditures and financing needs, environmental regulatory impacts, monetary policy adjustments and RMB exchange rate fluctuations, related party transaction risks, and major shareholder control risks - The cyclical nature of the oil and petrochemical markets and fluctuations in crude oil and petrochemical product prices may adversely affect the Group's operations[58](index=58&type=chunk)[59](index=59&type=chunk) - The Group faces risks related to imported crude oil procurement and the inability to transfer all increased costs due to rising crude oil prices[58](index=58&type=chunk) - The Group's development plans involve moderate capital expenditures and financing needs, with certain risks and uncertainties[58](index=58&type=chunk) - Adjustments in monetary policy and fluctuations in the RMB exchange rate may adversely affect the Group's business and operating results[62](index=62&type=chunk) - Related party transactions may adversely affect the Group's business and economic benefits, and the major shareholder, Sinopec Corp., holds an absolute controlling position, potentially exerting influence[63](index=63&type=chunk) [Significant Matters](index=29&type=section&id=Significant%20Matters) This section details the company's significant matters during the reporting period, including profit distribution plans, fulfillment of commitments, appointment of accounting firms, major lawsuits and arbitrations, penalties against the company and its executives, equity incentive plans, major related party transactions, and performance of significant contracts, the company distributed 2024 annual cash dividends in July 2025 and continued various daily operating and investment-related transactions with related parties [Ordinary Share Profit Distribution or Capital Reserve Conversion Plan](index=29&type=section&id=Ordinary%20Share%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's 2024 annual profit distribution plan, approved at the 2024 annual general meeting, involved a cash dividend of RMB 0.02 per share (tax inclusive), totaling RMB 210,852,350, which was distributed in July 2025, no new profit distribution or capital reserve conversion plan was proposed for the reporting period - The 2024 annual profit distribution plan has been approved, with a cash dividend of **RMB 0.02 per share** (tax inclusive), totaling **RMB 210,852,350**[64](index=64&type=chunk) - The cash dividend was announced on July 17, 2025, and uploaded to the Hong Kong Stock Exchange and Shanghai Stock Exchange websites on July 16, 2025[64](index=64&type=chunk) - During the reporting period, the company will not distribute 2025 semi-annual profits or convert capital reserves into share capital[8](index=8&type=chunk)[65](index=65&type=chunk) [Fulfillment of Commitments](index=29&type=section&id=Fulfillment%20of%20Commitments) This section describes the fulfillment of commitments made by Sinopec Corp., the company's actual controller, regarding share reform, pledging continued support for Shanghai Petrochemical's development as a relevant business platform, which has been strictly adhered to, during the reporting period, there were no non-operating fund occupations by controlling shareholders or other related parties, nor any irregular guarantees - Sinopec Corp. committed to continue supporting Shanghai Petrochemical's subsequent development after the completion of its share reform and to use it as a platform for future related businesses, a commitment that has been strictly fulfilled[66](index=66&type=chunk) - During the reporting period, there were no non-operating fund occupations by controlling shareholders or other related parties[68](index=68&type=chunk) - During the reporting period, the company had no irregular guarantees[69](index=69&type=chunk) [Appointment and Dismissal of Accounting Firms](index=30&type=section&id=Appointment%20and%20Dismissal%20of%20Accounting%20Firms) During the reporting period, the company did not change its accounting firm, continuing to receive services from the original firm - During the reporting period, the company did not change its accounting firm[70](index=70&type=chunk) [Major Litigation and Arbitration Matters](index=30&type=section&id=Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had no major litigation or arbitration matters - During the reporting period, the company had no major litigation or arbitration matters[71](index=71&type=chunk) [Penalties and Rectification for Listed Company, its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controller](index=31&type=section&id=Penalties%20and%20Rectification%20for%20Listed%20Company%2C%20its%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) During the reporting period, the company, its directors, supervisors, senior management, controlling shareholder, and actual controller were not subject to any investigations, compulsory measures, criminal liabilities, or administrative penalties by any competent authorities - During the reporting period, the company, its directors, supervisors, senior management, controlling shareholder, and actual controller were not subject to any investigations, compulsory measures, criminal liabilities, or administrative penalties by competent authorities[72](index=72&type=chunk) [Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period](index=31&type=section&id=Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller%20During%20the%20Reporting%20Period) During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled effective court judgments or overdue large debts, maintaining a good integrity status - During the reporting period, the company and its controlling shareholder and actual controller had no unfulfilled effective court judgments or overdue large debts[73](index=73&type=chunk) [Company Equity Incentive Plan Status](index=31&type=section&id=Company%20Equity%20Incentive%20Plan%20Status) During the reporting period, the company neither granted A-share stock options under its equity incentive plan, nor were any A-share stock options exercised, cancelled, or expired by grantees, there was also no granting, exercise, or cancellation of H-share stock options - During the reporting period, the company neither granted A-share stock options under its equity incentive plan, nor were any A-share stock options exercised by grantees, or cancelled or expired[74](index=74&type=chunk) - The company also had no granting, exercise, or cancellation of H-share stock options[74](index=74&type=chunk) [Major Related Party Transactions](index=31&type=section&id=Major%20Related%20Party%20Transactions) This section discloses multiple significant related party transactions between the company and its controlling shareholder Sinopec Corp., actual controller Sinopec Group, and their associates, including product supply, sales services, comprehensive services, financial services, technology R&D, warehousing services, and steam sales, these transactions were conducted on normal commercial terms and complied with relevant approval and disclosure procedures [1. Related Party Transactions Related to Daily Operations](index=31&type=section&id=1.%20Related%20Party%20Transactions%20Related%20to%20Daily%20Operations) The company signed multiple framework agreements with Sinopec Group, Sinopec Corp., and their associates, covering raw material procurement, product sales, sales agency, construction and installation, engineering design, insurance services, property leasing, comprehensive services, financial services, technology R&D, and warehousing services, during the reporting period, raw material procurement amounted to RMB 24,913,702 thousands, and sales of petroleum and petrochemical products amounted to RMB 29,622,870 thousands - The company signed "Product Mutual Supply and Sales Service Framework Agreements" and "Comprehensive Service Framework Agreements" with Sinopec Group and Sinopec Corp., valid until December 31, 2025[75](index=75&type=chunk) - A "Financial Services Framework Agreement" was signed with Sinopec Finance Company to provide financial services, with an annual transaction limit not exceeding **RMB 200 million**[75](index=75&type=chunk) H1 2025 Daily Related Party Transaction Amounts (RMB thousands) | Type of Related Party Transaction | Related Party | 2025 Annual Maximum Limit | Transaction Amount for Current Period | Proportion of Similar Transaction Amount | | :--- | :--- | :--- | :--- | :--- | | Raw Material Procurement | Sinopec Group, Sinopec Corp. and their associates | 119,847,000 | 24,913,702 | 77.09% | | Sales of Petroleum and Petrochemical Products | Sinopec Corp. and its associates | 93,873,000 | 29,622,870 | 74.95% | | Petrochemical Industry Insurance Services | Sinopec Group | 140,000 | 60,749 | 100.00% | | Technology R&D Services (provided by the Company to Sinopec Corp.) | Sinopec Corp. | 180,000 | 7,730 | 100% | | Warehousing Services | Baishawan Branch | 114,000 | 57,000 | 93.20% | [2. Related Party Transactions Involving Acquisition or Disposal of Assets or Equity](index=35&type=section&id=2.%20Related%20Party%20Transactions%20Involving%20Acquisition%20or%20Disposal%20of%20Assets%20or%20Equity) The company's wholly-owned subsidiary, Shanghai Toufa, signed a "Supplemental Agreement to the Equity Forward Transfer Agreement" with Sinopec Capital, changing the completion deadline for acquiring 49.9% equity in Langfang Feize Composite Materials Technology Co., Ltd. to before December 31, 2026 - Shanghai Toufa signed a "Supplemental Agreement to the Equity Forward Transfer Agreement" with Sinopec Capital, changing the completion deadline for acquiring **49.9%** equity in Feize Company to before December 31, 2026[81](index=81&type=chunk) - Sinopec Capital is **51%** owned by Sinopec Group, the company's actual controller, making this transaction a related party transaction for the company[81](index=81&type=chunk) [3. Major Related Party Transactions Involving Joint External Investment](index=35&type=section&id=3.%20Major%20Related%20Party%20Transactions%20Involving%20Joint%20External%20Investment) During the reporting period, the company had no major related party transactions involving joint external investment - During the reporting period, the company had no major related party transactions involving joint external investment[82](index=82&type=chunk) [4. Related Party Debts and Credits](index=36&type=section&id=4.%20Related%20Party%20Debts%20and%20Credits) This section lists the company's debts and credits with related parties, as of the end of the reporting period, funds provided to related parties totaled RMB 14,354 thousands, and funds provided by related parties to the company totaled RMB 206,048 thousands, these transactions were conducted on normal commercial terms and did not affect the company's independence H1 2025 Related Party Debts and Credits (RMB thousands) | Related Party | Relationship | Period-end Balance of Funds Provided to Related Parties | Period-end Balance of Funds Provided by Related Parties to Listed Company | | :--- | :--- | :--- | :--- | | Sinopec Corp. and its subsidiaries, joint ventures, associates, and Sinopec Group and its subsidiaries | Controlling shareholder and actual controller and their associates | 14,354 | 206,048 | - The period-end balance of funds provided by the Group to related parties primarily consists of accounts receivable; the period-end balance of funds provided by related parties to the Group primarily consists of accounts payable[84](index=84&type=chunk) - Related party transaction prices are determined based on state pricing, guidance prices, or market prices, and do not significantly affect the company's independence[84](index=84&type=chunk) [5. Financial Services Between the Company and Related Finance Companies, and Between Company-Controlled Finance Companies and Related Parties](index=36&type=section&id=5.%20Financial%20Services%20Between%20the%20Company%20and%20Related%20Finance%20Companies%2C%20and%20Between%20Company-Controlled%20Finance%20Companies%20and%20Related%20Parties) This section discloses the company's deposit business with Sinopec Finance Company, with total deposits and withdrawals of RMB 49,696,648.6 thousands during the reporting period, resulting in a zero period-end balance, there were no loan businesses during the reporting period H1 2025 Deposit Business with Sinopec Finance Company (RMB 10,000s) | Related Party | Relationship | Beginning Balance | Total Deposits for Current Period | Total Withdrawals for Current Period | Period-end Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Sinopec Finance Company | Subsidiary of ultimate holding company | – | 4,969,664.86 | 4,969,664.86 | – | - As of June 30, 2025, the deposits between the company and its subsidiaries and Sinopec Finance Company were demand deposits[86](index=86&type=chunk) - During the reporting period, the company had no loan business with Sinopec Finance Company[88](index=88&type=chunk) [Significant Contracts and Their Performance](index=37&type=section&id=Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no entrustment, contracting, or leasing matters that generated profits exceeding 10% (inclusive) of the company's total profit for the current period, nor any guarantee matters or other significant contracts - During the reporting period, there were no entrustment, contracting, or leasing matters that generated profits exceeding **10%** (inclusive) of the company's total profit for the current period[89](index=89&type=chunk) - During the reporting period, the company had no guarantee matters[90](index=90&type=chunk) - During the reporting period, the company had no other significant contracts[91](index=91&type=chunk) [Explanation of Progress in Use of Raised Funds](index=37&type=section&id=Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) This section states that the explanation of progress in the use of raised funds is not applicable for the current reporting period - Explanation of progress in use of raised funds is not applicable[92](index=92&type=chunk) [Explanation of Other Significant Matters](index=37&type=section&id=Explanation%20of%20Other%20Significant%20Matters) This section states that the explanation of other significant matters is not applicable for the current reporting period - Explanation of other significant matters is not applicable[92](index=92&type=chunk) [Changes in Ordinary Shares and Shareholder Information](index=38&type=section&id=Changes%20in%20Ordinary%20Shares%20and%20Shareholder%20Information) This section details the changes in the company's ordinary share capital in H1 2025, primarily due to the cancellation of repurchased H-shares, leading to a decrease in total shares, it also reports the total number of shareholders and the shareholding of the top ten shareholders, confirming no change in the controlling shareholder and actual controller [Changes in Ordinary Share Capital During the Reporting Period](index=38&type=section&id=Changes%20in%20Ordinary%20Share%20Capital%20During%20the%20Reporting%20Period) During the reporting period, the company's ordinary share capital decreased by 132,610,000 shares, primarily due to the cancellation of repurchased H-shares, changing the total number of shares from 10,675,227,500 to 10,542,617,500 H1 2025 Changes in Ordinary Share Capital | Share Class | Quantity Before Change | Proportion Before Change (%) | Change in Quantity | Quantity After Change | Proportion After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | RMB Ordinary Shares | 7,328,813,500 | 68.65% | – | 7,328,813,500 | 69.52% | | Overseas Listed Foreign Shares | 3,346,414,000 | 31.35% | (132,610,000) | 3,213,804,000 | 30.48% | | Total Shares | 10,675,227,500 | 100% | (132,610,000) | 10,542,617,500 | 100% | - The company cancelled repurchased H-shares totaling **132,610,000 shares** on March 3, 2025, and June 12, 2025, respectively[93](index=93&type=chunk) [Issuance of Securities](index=38&type=section&id=Issuance%20of%20Securities) During the reporting period, the company did not issue any securities, and apart from the disclosed H-share cancellation, there were no changes in the company's total shares, shareholder structure, or asset-liability structure due to bonus issues, rights issues, or other reasons, as of the end of the reporting period, the company had no internal employee shares - During the reporting period, the Group did not issue any securities[94](index=94&type=chunk) - Except for the disclosed H-share cancellation, there were no changes in the company's total shares, shareholder structure, or asset and liability structure due to bonus issues, rights issues, or other reasons[95](index=95&type=chunk) - As of the end of the reporting period, the company had no internal employee shares[96](index=96&type=chunk) [Shareholder Information](index=38&type=section&id=Shareholder%20Information) As of the end of the reporting period, the total number of ordinary shareholders was 90,340, among the top ten shareholders, China Petrochemical Corporation held 51.81% of the shares, and HKSCC Nominees Limited held 28.18% - As of the end of the reporting period, the total number of ordinary shareholders was **90,340**[97](index=97&type=chunk) Shareholding of Top Ten Shareholders as of the End of the Reporting Period | Shareholder Name | Share Class | Number of Shares Held at Period End | Shareholding Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | China Petrochemical Corporation | A-share | 5,462,155,000 | 51.81% | State-owned Legal Person | | HKSCC Nominees Limited | H-share | 2,970,776,780 | 28.18% | Overseas Legal Person | | Hong Kong Securities Clearing Company Limited | A-share | 71,915,641 | 0.68% | Overseas Legal Person | | Zhang Mucheng | A-share | 49,564,000 | 0.47% | Domestic Natural Person | - Among the top ten shareholders with no selling restrictions, China Petrochemical Corporation held **5,462,155,000 RMB ordinary shares**[100](index=100&type=chunk) [Strategic Investors or General Legal Persons Becoming Top Ten Shareholders Due to New Share Placement](index=41&type=section&id=Strategic%20Investors%20or%20General%20Legal%20Persons%20Becoming%20Top%20Ten%20Shareholders%20Due%20to%20New%20Share%20Placement) This section states that the situation of strategic investors or general legal persons becoming top ten shareholders due to new share placement is not applicable - Not applicable for strategic investors or general legal persons becoming top ten shareholders due to new share placement[101](index=101&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=41&type=section&id=Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - During the current reporting period, there were no changes in the company's controlling shareholder or actual controller[101](index=101&type=chunk) [Interests and Short Positions of Major Shareholders in the Company's Shares and Related Shares](index=42&type=section&id=Interests%20and%20Short%20Positions%20of%20Major%20Shareholders%20in%20the%20Company%27s%20Shares%20and%20Related%20Shares) As of June 30, 2025, China Petrochemical Corporation held 51.81% of the company's A-shares as a beneficial owner, Corn Capital Company Limited and Yardley Finance Limited and their associates also held certain H-share interests and short positions Major Shareholders' Interests in the Company's Ordinary Shares as of June 30, 2025 | Shareholder Name | Interests Owned or Deemed to be Owned (shares) | Percentage of Total Issued Shares of the Company (%) | Capacity | | :--- | :--- | :--- | :--- | | China Petrochemical Corporation | 5,462,155,000 A-share(L) | 51.81 | Beneficial Owner | | Corn Capital Company Limited | 200,020,000 H-share(L) | 1.90 | Beneficial Owner | | Kong Xianhui | 200,020,000 H-share(L) | 1.90 | Interest in Controlled Corporation | | Yardley Finance Limited | 200,020,000 H-share(L) | 1.90 | Security Interest in Shares | | Chen Jianxin | 200,020,000 H-share(L) | 1.90 | Interest in Controlled Corporation | - Sinopec Group directly and indirectly owned **69.64%** of Sinopec Corp.'s issued share capital and was deemed to have an interest in the A-shares of the company directly held by Sinopec Corp.[102](index=102&type=chunk) [Directors, Supervisors, Senior Management, and Other Information](index=43&type=section&id=Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Other%20Information) This section discloses changes in shareholdings, stock options, personnel changes, and interests of the company's directors, supervisors, and senior management in the company or associated corporations, during the reporting period, some executives retired, the company repurchased and cancelled H-shares, and confirmed compliance with the Corporate Governance Code and Model Code for Securities Transactions, environmental information and rural revitalization efforts were also disclosed [Changes in Shareholdings](index=43&type=section&id=Changes%20in%20Shareholdings) During the reporting period, the shareholdings of the company's current and former directors, supervisors, and senior management remained largely unchanged, with only Huang Xiangyu, Zhang Feng, and Chen Hongjun holding a small number of A-shares H1 2025 Changes in Shareholdings of Directors, Supervisors, and Senior Management (shares) | Name | Position | Beginning Shareholding | Period-end Shareholding | Change in Shareholding During Reporting Period | | :--- | :--- | :--- | :--- | :--- | | Guo Xiaojun | Executive Director, Chairman | Not held | Not held | No change | | Du Jun | Executive Director, Deputy General Manager, CFO | Not held | Not held | No change | | Huang Xiangyu | Executive Director, Deputy General Manager | 140,000 | 140,000 | No change | | Zhang Feng | Supervisor | 10,000 | 10,000 | No change | | Chen Hongjun | Supervisor | 31,400 | 31,400 | No change | [Stock Options Held by Directors, Supervisors, and Senior Management During the Reporting Period](index=44&type=section&id=Stock%20Options%20Held%20by%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20During%20the%20Reporting%20Period) During the reporting period, the company's directors, supervisors, and senior management did not hold any company stock options - During the reporting period, the company's directors, supervisors, and senior management did not hold any company stock options[107](index=107&type=chunk) [Changes in the Company's Directors, Supervisors, and Senior Management During the Reporting Period](index=45&type=section&id=Changes%20in%20the%20Company%27s%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20During%20the%20Reporting%20Period) Mr. Guan Zemin, the company's former Vice Chairman and Executive Director, resigned from his positions on February 26, 2025, due to reaching retirement age - Mr. Guan Zemin, the company's former Vice Chairman and Executive Director, resigned from his positions as Vice Chairman, Executive Director, Vice Chairman of the Strategy and ESG Committee, and General Manager on February 26, 2025, due to reaching retirement age[108](index=108&type=chunk) [Interests and Short Positions of Directors, Chief Executive, and Supervisors in the Company's or its Associated Corporations' Shares, Related Shares, or Debentures](index=45&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%2C%20Chief%20Executive%2C%20and%20Supervisors%20in%20the%20Company%27s%20or%20its%20Associated%20Corporations%27%20Shares%2C%20Related%20Shares%2C%20or%20Debentures) As of June 30, 2025, directors and supervisors such as Huang Xiangyu, Zhang Feng, and Chen Hongjun held a small number of the company's A-shares, but no other directors, chief executive, or supervisors held any disclosable interests or short positions in shares or related shares Interests of Directors, Chief Executive, and Supervisors in the Company's Shares as of June 30, 2025 | Name | Position | Number of Shares Held (shares) | Percentage of Total Issued Shares of the Company (%) | Capacity | | :--- | :--- | :--- | :--- | :--- | | Huang Xiangyu | Executive Director and Deputy General Manager | 140,000A-share(L) | 0.0013 | Beneficial Owner | | Zhang Feng | Supervisor | 10,000A-share(L) | 0.0001 | Beneficial Owner | | Chen Hongjun | Supervisor | 31,400A-share(L) | 0.0003 | Beneficial Owner | - Except for those disclosed above, as of June 30, 2025, no directors, chief executive, or supervisors of the company held any disclosable interests or short positions in any shares, related shares, or debentures of the company or its associated corporations[109](index=109&type=chunk) [Changes in Information of Directors and Supervisors](index=46&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Supervisors) Independent Non-Executive Director Mr. Chen Haifeng's position changed, no longer serving as Senior Director of GCL New Energy Holdings Limited from April 2025, and becoming Investment Manager of Jiangsu Shengkun Investment Management Co., Ltd. from May 2025, apart from this, there were no other changes in director and supervisor information during the reporting period - Independent Non-Executive Director Mr. Chen Haifeng ceased to be Senior Director of GCL New Energy Holdings Limited from April 2025 and became Investment Manager of Jiangsu Shengkun Investment Management Co., Ltd. from May 2025[110](index=110&type=chunk) [Audit and Compliance Management Committee](index=46&type=section&id=Audit%20and%20Compliance%20Management%20Committee) On August 19, 2025, the company's Audit and Compliance Management Committee convened a meeting to review the Group's financial report for the reporting period and discussed risk management, internal control, compliance management, and financial reporting matters - On August 19, 2025, the company's Audit and Compliance Management Committee reviewed the Group's financial report for the reporting period and discussed risk management, internal control, compliance management, and financial reporting matters[111](index=111&type=chunk) [Purchase, Sale, and Redemption of the Company's Securities](index=46&type=section&id=Purchase%2C%20Sale%2C%20and%20Redemption%20of%20the%20Company%27s%20Securities) During the reporting period, the company repurchased 77,240,000 H-shares, paying RMB 84,117 thousands, previously repurchased H-shares totaling 132,610,000 shares were cancelled on March 3, 2025, and June 12, 2025 - During the current reporting period, the company repurchased **77,240,000 H-shares** from the Hong Kong Stock Exchange, paying a consideration of **RMB 84,117 thousands**[112](index=112&type=chunk) H1 2025 H-share Repurchase Details | Repurchase Month | Number of Shares Repurchased | Highest Purchase Price Per Share (HKD/share) | Lowest Purchase Price Per Share (HKD/share) | Total Price (HKD) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 23,670,000 | 1.20 | 1.11 | 27,230,208.0 | | February 2025 | 17,306,000 | 1.23 | 1.18 | 20,874,535.2 | | April 2025 | 12,414,000 | 1.18 | 1.14 | 14,359,041.6 | | May 2025 | 23,850,000 | 1.23 | 1.16 | 28,878,311.4 | - The company cancelled a total of **132,610,000 repurchased H-shares** on March 3, 2025, and June 12, 2025[112](index=112&type=chunk) [Compliance with Corporate Governance Code](index=47&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) During the reporting period, the company complied with all code provisions contained in Appendix C1 of the Hong Kong Listing Rules' Corporate Governance Code - During the current reporting period, the company complied with all code provisions contained in Appendix C1 of the Hong Kong Listing Rules' Corporate Governance Code[113](index=113&type=chunk) [Compliance with Model Code for Securities Transactions](index=47&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions) The company adopted and implemented the Model Code for Securities Transactions and confirmed with all directors and supervisors their full compliance during the reporting period, no non-compliance by senior management was found - The company adopted and implemented the Model Code for Securities Transactions and obtained written confirmations from all directors and supervisors that they fully complied with the Model Code for Securities Transactions during the reporting period[114](index=114&type=chunk) - The company did not find any instances of non-compliance with the Model Code for Securities Transactions by senior management[114](index=114&type=chunk) [Environmental Information of Listed Companies and their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=47&type=section&id=Environmental%20Information%20of%20Listed%20Companies%20and%20their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company has been included in the list of enterprises required to disclose environmental information by law and provided an inquiry index for its environmental information disclosure report List of Enterprises Required to Disclose Environmental Information by Law | Serial Number | Enterprise Name | Inquiry Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Sinopec Shanghai Petrochemical Company Limited | https://e2.sthj.sh.gov.cn:8081/jsp/view/hjxxgk/index.jsp | [Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc.](index=47&type=section&id=Specific%20Progress%20in%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20etc.) The company continued to invest in educational assistance, improving the educational environment of Ban'go Middle School in Tibet, and planned multiple rural revitalization activities, investing a total of RMB 38 thousands in educational assistance during the reporting period - The company continued to improve the educational environment of Ban'go Middle School in Tibet and carried out various educational activities[116](index=116&type=chunk) - The company planned work schemes such as training for key teachers from Ban'go Middle School in Shanghai, study tours for outstanding students in Shanghai, and establishing the "Sinopec Chaoyang" Scholarship and Teaching Fund[116](index=116&type=chunk) - During the reporting period, the company invested a total of **RMB 38 thousands** in educational assistance[116](index=116&type=chunk) [Review Report on Interim Financial Information](index=48&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) KPMG reviewed the company's condensed consolidated interim financial information prepared in accordance with IFRS, the review concluded that nothing came to their attention to suggest that the interim financial information was not prepared, in all material respects, in accordance with IAS 34 "Interim Financial Reporting" - KPMG has reviewed the company's condensed consolidated interim financial information prepared in accordance with IFRS[117](index=117&type=chunk) - The scope of the review is substantially less than that of an audit, and therefore no audit opinion is expressed[118](index=118&type=chunk) - The review concluded that nothing came to their attention that caused them to believe the interim financial information was not prepared, in all material respects, in accordance with IAS 34 "Interim Financial Reporting"[119](index=119&type=chunk) [A. Unaudited Condensed Consolidated Interim Financial Information Prepared in Accordance with IFRS](index=49&type=section&id=A.%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information%20Prepared%20in%20Accordance%20with%20IFRS) This section presents the company's unaudited condensed consolidated interim financial information prepared in accordance with IFRS, including the income statement, statement of comprehensive income, balance sheet, statement of changes in equity, and cash flow statement, along with detailed notes to the financial statements, overall, it shows the company turning from profit to loss in H1 2025, but with improved operating cash flow [Consolidated Income Statement](index=49&type=section&id=Consolidated%20Income%20Statement) The company's H1 2025 consolidated income statement shows a year-on-year decrease in revenue, a significant increase in gross loss, a substantial expansion of operating loss, and net profit attributable to shareholders turning from profit to loss H1 2025 Consolidated Income Statement Key Data (RMB thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 39,499,530 | 43,489,664 | | Net Sales | 33,498,305 | 37,496,528 | | Gross Loss | (640,538) | (65,928) | | Operating Loss | (742,003) | (167,366) | | (Loss)/Profit Before Income Tax | (582,762) | 12,428 | | (Loss)/Profit for the Period | (448,060) | 6,331 | | Net (Loss)/Profit Attributable to Shareholders of the Company | (449,274) | 2,845 | | Basic (Loss)/Earnings Per Share | RMB (0.0425) | RMB0.0003 | [Consolidated Statement of Comprehensive Income](index=50&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) The company's H1 2025 consolidated statement of comprehensive income shows a loss for the period of RMB (448,060) thousands, compared to a profit in the prior period, other comprehensive income (after tax) was RMB 15,416 thousands, mainly from net changes in cash flow hedge reserves, total comprehensive income attributable to shareholders of the

Core Viewpoint - China Petrochemical Corporation (Sinopec) has successfully developed a new 60K large tow carbon fiber product, marking a significant advancement in the domestic market and filling a gap in the industry [1][2] Group 1: Product Development - The 60K large tow carbon fiber is a domestically developed product by Sinopec Shanghai Petrochemical, expanding its range of carbon fiber products to nearly 20 models across different tow specifications including 24K, 48K, and 60K [1] - This development allows Sinopec to establish a full spectrum of carbon fiber products, categorized into "general-purpose + high-performance" and "large tow + small tow" [1] Group 2: Industry Impact - Carbon fiber, known as the "king of new materials" and "black gold," has superior properties, being less than one-fourth the weight of steel while having 7 to 9 times the strength, and is resistant to corrosion [1] - The new 60K carbon fiber is expected to enhance production efficiency and support the production of downstream composite materials, particularly in applications such as deep-sea wind power [2] - Sinopec is the first company in China to achieve industrial production of 60K large tow carbon fiber, following its earlier success with 48K carbon fiber [2]

Core Viewpoint - The article highlights the rapid development of the high-performance carbon fiber industry in China, emphasizing the establishment of large-scale production projects and the increasing capacity of various companies in this sector [4][5][6]. Group 1: Industry Developments - The Shenshan Special Cooperation Zone has approved a high-performance carbon fiber project with a planned annual production capacity of 10,000 tons, divided into two phases, with construction expected to start in October 2025 and full production by December 2029 [4]. - The carbon fiber industry in China is experiencing accelerated industrialization, with multiple projects being established, leading to a cluster development model centered around leading enterprises [4]. - Zhongfu Shenying has built a production base with an annual capacity exceeding 20,000 tons, including various grades of carbon fiber, some of which have entered the aerospace sector [4]. Group 2: Company Highlights - Zhongjian Technology has established a production capacity of several thousand tons of T700-grade carbon fiber, with applications in aerospace and sports leisure [5]. - Sinopec Shanghai Petrochemical has built the first domestic 1,000-ton T800 carbon fiber production line, with a current capacity of 24,000 tons/year for precursor fibers and 12,000 tons/year for carbon fibers [5]. - Guangwei Composites is one of the earliest companies to achieve carbon fiber localization, with a current production capacity at the level of 10,000 tons [6]. Group 3: Industry Challenges - The high-performance carbon fiber industry faces several bottlenecks, including technological barriers in precursor fiber preparation, which is a long-standing shortcoming in China [7]. - The equipment level for production processes such as spinning and carbonization needs improvement, as the stability and consistency of domestic equipment are still lacking [7]. - The market structure for high-performance carbon fiber is concentrated in wind power and sports leisure, with limited demand from aerospace and high-end equipment sectors, hindering the development of high-end products [7].

Market Overview - The refining and trading sector increased by 0.42% compared to the previous trading day, with Yueyang Xingchang leading the gains [1] - The Shanghai Composite Index closed at 3860.5, down 0.26%, while the Shenzhen Component Index closed at 13005.77, up 0.63% [1] Stock Performance - Yueyang Xingchang (000819) closed at 17.98, up 3.39% with a trading volume of 120,100 shares and a turnover of 214 million yuan [1] - Shanghai Petrochemical (600688) closed at 2.82, up 1.81% with a trading volume of 964,800 shares and a turnover of 271 million yuan [1] - Other notable stocks include Baoli International (300135) at 4.27, up 1.67%, and Shenyang Chemical (000698) at 4.35, up 1.16% [1] Capital Flow - The refining and trading sector experienced a net outflow of 128 million yuan from institutional investors, while retail investors saw a net inflow of 59.4 million yuan [2] - The overall capital flow indicates a mixed sentiment, with institutional investors withdrawing funds while retail investors are entering the market [2] Individual Stock Capital Flow - China Petroleum (601857) had a net inflow of 145 million yuan from institutional investors, but saw net outflows from both retail and speculative investors [3] - Guanghui Energy (600256) experienced a net inflow of 41 million yuan from institutional investors, while also facing outflows from speculative and retail investors [3] - Yueyang Xingchang (000819) had a net inflow of 29 million yuan from institutional investors, but also saw outflows from speculative and retail investors [3]

Core Insights - The article discusses the production trends of petroleum coke in China, highlighting a decrease in output for the year 2025 compared to previous years [1] Industry Overview - According to the National Bureau of Statistics, China's petroleum coke production in July 2025 is projected to be 2.65 million tons, reflecting a year-on-year decline of 2.1% [1] - Cumulative production from January to July 2025 is reported at 18.282 million tons, which represents a cumulative decrease of 4.4% compared to the same period in the previous year [1] Company Insights - The article lists several companies involved in the petroleum coke industry, including Huajin Co., Yuancheng Energy, Shanghai Petrochemical, Huaxi Energy, Wanhua Chemical, Hengli Petrochemical, Rongsheng Petrochemical, Xin'ao Co., and Sinopec Capital [1] - The report by Zhiyan Consulting provides an analysis of the development trends and investment potential in the petroleum coke industry from 2025 to 2031 [1]

Core Insights - The global energy demand is rising, particularly in developing countries, leading to increased reliance on oil and gas [1][10] - Continuous tubing is increasingly applied in oil and gas field development due to its efficiency and flexibility, especially in unconventional resource extraction [1][10] - The continuous tubing industry is evolving with advancements in technology, resulting in higher strength, better corrosion resistance, and longer service life [1][10] - The market size of China's continuous tubing industry is projected to reach 4.342 billion yuan in 2024, reflecting a year-on-year increase of 3.1% [1][10] Industry Overview - Continuous tubing, also known as coiled tubing, is made from low-carbon alloy steel and is characterized by its flexibility and continuous length, which can reach several kilometers [3][8] - The tubing must withstand high pressures (up to 70 MPa) and harsh downhole conditions, necessitating high strength and excellent plasticity [3][8] Industry Chain - The upstream of the continuous tubing industry involves the production of raw materials, primarily high-strength low-alloy steel and special alloy materials [8] - The midstream focuses on the manufacturing of continuous tubing, while the downstream encompasses its application in oil and gas field operations such as workover, drilling, completion, and logging [8] Market Dynamics - China's crude oil production is expected to rise from 191.506 million tons in 2017 to 212.823 million tons in 2024, with a 1.3% year-on-year increase in the first half of 2025 [9][10] - The growth in production is supported by both mature oil fields and new fields, contributing to a stable increase in demand for continuous tubing [9][10] Competitive Landscape - The global continuous tubing service market is highly concentrated, with major players like Schlumberger, Halliburton, and Baker Hughes holding about 60% of the market share [10] - Domestic companies are increasing R&D investments to enhance their product offerings and achieve domestic substitution for high-end products [10] Development Trends - The future of the continuous tubing industry is expected to focus on high-strength tubing to meet the demands of deeper wells [13] - There is a push towards the intelligent and automated development of the industry, incorporating fiber optics for remote monitoring and real-time decision-making [14] - The application of continuous tubing is expanding beyond traditional oil and gas sectors into geothermal energy development, driven by the need for corrosion-resistant and high-insulation materials [15]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國石化上海石油化工股份有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00338 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 3,470,472,000 | RMB | | 1 RMB | | 3,470,472,000 | | 增加 / 減少 (-) | | | | | | RMB | | | | 本月底結存 | | | 3,470,472,000 | RMB | | 1 RMB | | 3,470,472,000 | | 2. 股份分類 | 普通股 | 股份類別 | ...

Core Viewpoint - The carbon fiber industry is showing signs of recovery in the first half of the year, with most companies reporting positive revenue growth after a challenging two years due to supply-demand mismatches and weak downstream demand [1]. Industry Overview - The recovery is attributed to technological breakthroughs and the advancement of large and small tow fibers, leading to a more complete industrial chain [1]. - Rapid release of downstream demand, particularly in the high-value aerospace market and the emerging low-altitude economy represented by eVTOL, is driving growth [1]. - Significant demand for carbon fiber in the wind power sector and the electric vehicle industry is also noted, with carbon fiber structural components and carbon-ceramic brake discs gaining traction [1]. Company Performance - **Zhongjian Technology**: Achieved revenue of 464 million yuan, a year-on-year increase of 59.46%, and net profit of 208 million yuan, up 99.15% [2]. - **Zhongfu Shenying**: Reported revenue of 922 million yuan, a 25.86% increase, with net profit of 11.93 million yuan. Notable sales growth in small tow products and significant increases in the wind power sector [3]. - **Jilin Chemical Fiber**: Revenue of approximately 2.635 billion yuan, a 48.39% increase, with carbon fiber product revenue soaring by 368.31% [3]. - **Guangwei Composites**: Revenue of 1.201 billion yuan, a 3.87% increase, with a notable 47.95% growth in the new energy sector [4]. - **AVIC High-tech**: Revenue of 2.747 billion yuan, a 7.87% increase, focusing on aerospace new materials and advanced manufacturing technologies [4]. - **Shanghai Petrochemical**: Revenue of 39.5 billion yuan, a 9.17% decrease, but plans to enhance carbon fiber production and expand applications in various sectors [4]. - **Jinggong Technology**: Revenue of 1.061 billion yuan, a 10.31% increase, with a significant portion from carbon fiber equipment [4]. - **Jinbo Co., Ltd.**: Revenue of 411 million yuan, a 19.69% increase, with positive prospects in carbon/ceramic brake discs due to the rapid development of the new energy vehicle sector [4]. - **Boyun New Materials**: Revenue of 396 million yuan, a 30.98% increase, with a significant contribution from aerospace applications [5]. - **Chuangjiang New Materials**: Revenue of 28.803 billion yuan, a 16.05% increase, with net profit of 251 million yuan, driven by effective capacity release and product upgrades [6]. Market Trends - The carbon fiber industry's recovery is supported by the release of application-side demand, with companies like Zhongfu Shenying and Shanghai Petrochemical planning expansions [6]. - The industry is experiencing a phase of technological advancement and application expansion, indicating a clear trend towards recovery and growth [6].

Core Viewpoint - The article emphasizes the significance of high-performance fibers, particularly carbon fiber, aramid fiber, and ultra-high molecular weight polyethylene fiber, in various industries such as aerospace, defense, and transportation, highlighting their superior mechanical properties and applications in advanced materials [6][10][12]. Industry Overview - The carbon fiber industry is characterized by a concentration of production capacity among a few key players, with significant contributions from companies like Jilin Carbon Valley, Zhongfu Shenying, and Guangwei Composite [43][46]. - The global carbon fiber market is experiencing a trend of capacity expansion, driven by increasing demand in sectors like wind energy and military equipment [46][49]. Carbon Fiber Characteristics - Carbon fiber exhibits exceptional mechanical properties, including tensile strength exceeding 3500 MPa, which is 7-9 times stronger than steel, and a density that is one-fourth that of steel [8][10]. - The material is resistant to high temperatures (up to 2000°C in non-oxidizing atmospheres) and low temperatures (-180°C), making it suitable for a wide range of applications [8][10]. Production Process - The production of carbon fiber involves several stages, including the synthesis of polyacrylonitrile (PAN) fibers, oxidation, carbonization, and surface treatment to create carbon fiber products [17][23]. - Different production methods, such as wet spinning and dry-jet wet spinning, are employed to optimize the quality and characteristics of the final product [30][24]. Market Dynamics - The domestic carbon fiber market is expected to see significant growth, with projections indicating an increase in production capacity to 15.3 million tons per year by the end of 2023, and potentially reaching 26 million tons by 2025 [46][48]. - The supply of acrylonitrile, a key raw material for carbon fiber production, is also on the rise, with domestic production capacity expected to improve significantly [38][31]. Competitive Landscape - Major manufacturers in the carbon fiber sector are expanding their production capabilities, with significant investments planned for new facilities and technology upgrades [46][44]. - The competitive landscape is marked by a few dominant players, with Jilin Chemical Fiber leading in production capacity, followed by Zhongfu Shenying and Guangwei Composite [45][39].