Core Viewpoint - The company Xinhecheng reported a significant increase in revenue and profit for the first half of 2025, indicating strong performance in the pharmaceutical and chemical sectors, as well as growth in new materials and nutritional products [2]. Financial Performance - For the first half of 2025, the company achieved a revenue of 11.1 billion yuan, a year-on-year increase of 12.8%, and a net profit attributable to shareholders of 3.6 billion yuan, up 63.5% year-on-year [2]. - The operating cash flow net amount reached 3.243 billion yuan, reflecting a growth of 51.65% [2]. - In Q2 2025, revenue was 5.66 billion yuan, with a year-on-year increase of 5.9%, and a net profit of 1.72 billion yuan, up 29.1% [2]. Sales and Market Opportunities - The company is actively seizing market opportunities in key areas such as nutritional products, new materials, and fragrances, while promoting the market expansion of new products like HA series and tryptophan [2]. - The pharmaceutical and chemical sector remains the main revenue driver, generating 10.016 billion yuan, accounting for 90.23% of total revenue, with a year-on-year growth of 10.34% [4]. Product Segmentation - Nutritional products, as a core business pillar, generated 7.199 billion yuan, representing 64.86% of total revenue, with a year-on-year growth of 7.78% and a gross margin of 47.79%, up 11.93 percentage points [4]. - The fragrance and flavor business achieved revenue of 2.105 billion yuan, accounting for 18.96% of total revenue, with a year-on-year increase of 9.35% and a gross margin of 54.01%, up 4.32 percentage points [4]. - The new materials segment reported revenue of 1.038 billion yuan, a year-on-year increase of 43.75%, with plans for further expansion based on market demand [4]. Project Development - Most projects are progressing steadily, including the joint venture with Sinopec for an 18,000-ton/year liquid methionine project, which has entered trial production [5]. - The Tianjin nylon new materials project has completed compliance approvals and is expected to be operational by 2027 [5].

Core Viewpoint - Xinhecheng (002001.SZ) announced a share buyback program, repurchasing a total of 14,299,692 shares, which represents 0.4653% of the company's total share capital, with a total transaction amount of 309,114,666.59 yuan [1] Summary by Relevant Sections - **Share Buyback Details** - The company repurchased shares through a dedicated securities account via centralized bidding [1] - The highest transaction price was 22.23 yuan per share, while the lowest was 21.25 yuan per share [1] - The total amount spent on the buyback was 309,114,666.59 yuan, excluding transaction fees [1] - **Compliance and Regulations** - The buyback aligns with the company's established share repurchase plan and complies with relevant laws and regulations [1]

浙江新和成股份有限公司 关于回购公司股份进展的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假 记载、误导性陈述或重大遗漏。 浙江新和成股份有限公司（以下简称"公司"）于2025年4月11日召开的第 九届董事会第十一次会议审议通过《关于回购公司股份方案的议案》，同意公司 使用自有资金或回购专项贷款以集中竞价交易的方式回购公司部分社会公众股 份，用于实施股权激励计划或员工持股计划。本次回购金额区间为30,000万元 -60,000万元，回购价格不超过人民币32元/股，具体回购股份的数量及占总股本 的比例以回购期满时实际回购数量为准。本次回购股份的实施期限为自公司董事 会审议通过回购股份方案之日起不超过12个月。 根据公司披露的《关于回购公司股份方案的公告》《回购股份报告书》（公告 编号：2025-010、2025-023）相关规定，若公司在回购期间内发生资本公积转增 股本、派发红利、送红股等除权除息事宜，自股价除权除息之日起，按照中国证 监会及深圳证券交易所的相关规定相应调整回购价格。公司 2025 年 5 月 21 日实 施 2024 年年度权益分派，回购价格由不超过人民币 32 元/ ...

Group 1 - The company, Xinhecheng, stated on August 30 that it currently does not have a cholesterol production line [1]

Group 1 - The company does not currently have a cholesterol production line [2] - An investor inquired about the progress and expected production date of a 500 tons/year cholesterol production line project [2]

Core Viewpoint - The company has demonstrated robust growth in its financial performance and is actively pursuing various projects to enhance its market presence and product offerings [1][2][3] Financial Performance - In the first half of 2025, the company reported revenue of 11.1 billion yuan, a year-on-year increase of 12.76% - Total profit reached 4.229 billion yuan, reflecting a 56.68% increase compared to the previous year - Net profit attributable to shareholders was 3.603 billion yuan, up 63.46% year-on-year [1] Project Progress - The liquid methionine project, a joint venture with Sinopec, has entered trial production, with plans for maintenance in early September - The new materials segment generated revenue of 1.038 billion yuan, a 43.75% increase, driven by demand in the new energy sector - The Tianjin nylon new materials project is in the approval stage, with production expected to start in 2027 - The flavor and fragrance segment reported revenue of 2.105 billion yuan in the first half of 2025, with ongoing efforts to optimize product structure [2] Business Strategy and Market Expansion - The company is enhancing production capacity in the nutrition sector and expanding into cutting-edge biotechnology, including amino acids and new materials - Products are being exported to over 100 countries, with an export ratio of 58.04% in the first half of 2025 - Future investment will focus on the new materials sector, including the Tianjin nylon project and new biopharmaceutical products in the vitamin segment [3] Shareholder Returns - The company maintains a stable profit distribution policy, with cumulative dividends amounting to 15.5 billion yuan, representing 30% to 50% of annual net profit - A cash dividend of 2 yuan per 10 shares is proposed for the first half of 2025, totaling 612 million yuan, pending shareholder approval [3]

Financial Performance - The company achieved a revenue of 11.1 billion CNY, representing a year-on-year growth of 12.76% [3] - The total profit reached 4.2 billion CNY, marking a significant increase of 56.68% compared to the previous year [3] - Net profit attributable to shareholders was 3.6 billion CNY, reflecting a growth of 36.03% [3] Business Segments - The liquid methionine project is in trial production, with a capacity of 180,000 tons/year, and is expected to undergo maintenance for 3-4 weeks [3] - The new materials segment generated a revenue of 1.038 billion CNY, up 43.75% year-on-year, driven by demand in new energy and high-end manufacturing [4] - The fragrance and flavor segment reported a revenue of 2.105 billion CNY, with plans for product optimization and expansion [4] Strategic Initiatives - The company is focusing on international expansion, with exports accounting for 58.04% of total sales, reaching over 100 countries [6] - Future investments will prioritize new materials, including the nylon project in Tianjin, expected to commence production in 2027 [6] - The company plans to distribute cash dividends of 6.12 CNY per share, totaling 1.5 billion CNY, subject to shareholder approval [8] Market Outlook - The company aims to enhance its competitive edge through innovation and a focus on sustainable development, aligning with the "anti-involution" policy to foster a healthy market environment [8] - The strategic focus will remain on fine chemicals, health nutrition, new materials, and raw pharmaceutical ingredients [6]

Core Insights - The report emphasizes that the chemical industry is entering a new phase of capital expenditure, with a focus on the rebalancing of supply and demand following the release of production capacity during the 14th Five-Year Plan period [2][6] - The report indicates that the bottom of the cycle is becoming clearer, with potential price increases for chemical products driven by demand recovery and supply stability in the second half of the year [2][6] Industry Overview - The current cycle has reached its tail end, with a total of 12 quarters of decline since Q3 2022, following a 7-quarter expansion from Q4 2020 to Q2 2022 [10][12] - The report outlines that the chemical industry has experienced three significant price fluctuation cycles since 2010, with the latest cycle characterized by a demand-driven recovery followed by a supply-side pressure [8][10] Investment Recommendations - The report suggests focusing on sectors with relatively low valuations, such as sucralose (recommended: Jinhe Industrial), pesticides (recommended: Yangnong Chemical, Runfeng Shares), and MDI (recommended: Wanhua Chemical) [3][4] - It highlights the importance of domestic demand in countering tariff impacts, recommending companies in refrigerants and fertilizers [3][4] - The report identifies investment opportunities in sectors with upcoming capacity releases, such as organic silicon (recommended: Xin'an Chemical) and spandex [3][4] Price and Profitability Trends - The report notes that many sub-industry product prices remain at historical lows, with specific prices for spandex, PA6, and other fibers at 0%, 4%, and 5% of historical levels respectively [28] - It mentions that the chemical industry has seen a slight recovery in profitability in Q1 2025, although the overall performance remains under pressure [27][25] Supply and Demand Dynamics - The report indicates that the global chemical capital expenditure is on a downward trend, with domestic companies experiencing a slowdown in investment while still facing significant pressure to convert projects into fixed assets [22][32] - It also states that both domestic and international markets are entering a replenishment phase in 2025, which may influence inventory levels and pricing strategies [35][36]

Group 1 - The report highlights a shift in the macro narrative affecting the A-share market, driven by internal policies aimed at demand stimulation and external factors such as a weakening dollar [5][6]. - The report identifies a rotation in investment focus from TMT and manufacturing sectors to other areas, suggesting a potential shift in market dynamics [5][6]. - The report emphasizes the importance of high-low switching strategies in the technology sector, recommending stocks like Kunlun Wanwei, Leisai Intelligent, and Jingchen Co. for investment [5][10][14]. Group 2 - Kunlun Wanwei is focusing on AI business development, with significant advancements in AI chip research and application, leading to a positive outlook for its commercialization potential [10][11]. - Leisai Intelligent is expanding its market share in the automation sector, leveraging its strong product matrix and partnerships to capture growth opportunities [14][15]. - Jingchen Co. is experiencing robust growth in its AIoT and WiFi chip segments, with significant sales increases and a strong customer base [19][20]. Group 3 - Conch Cement is positioned to benefit from supply-side reforms and industry policy improvements, which are expected to enhance profitability and market conditions [24][25]. - Luzhou Laojiao is implementing proactive marketing strategies to adapt to market cycles, aiming to capture demand in emerging consumer segments [30][31]. - Jerry Holdings is poised for recovery as it capitalizes on the resurgence of high-end liquor demand and maintains a strong digital marketing framework [34][35]. Group 4 - New Hope Liuhe is leveraging its integrated supply chain advantages in the fine chemical sector, focusing on vitamin and amino acid production to enhance competitiveness [39][40]. - Xinhecheng is expected to benefit from rising prices in the vitamin market and increased demand for its amino acid products, supported by its strong production capabilities [39][41]. - Newnovel is projected to see significant revenue growth driven by its innovative drug pipeline, particularly in the oncology sector [43][44]. Group 5 - The report anticipates that the financial technology sector, represented by companies like Zhinan Zhen, will continue to grow as it transitions into comprehensive financial service providers [48][49]. - Zhinan Zhen's strategic acquisitions and capital operations are expected to enhance its market position and profitability in the coming years [48][50].

Investment Rating - The report maintains a "Strong Buy" rating for the company [2][4]. Core Views - The company achieved a revenue of 11.101 billion yuan in the first half of 2025, representing a year-on-year increase of 12.76%, and a net profit of 3.603 billion yuan, up 63.46% year-on-year [3]. - The increase in market prices for core products such as vitamins and methionine has driven the company's revenue growth [3]. - The company is progressing steadily with new product and project developments, enhancing its product system [4]. Financial Performance - The nutrition segment's revenue grew by 7.78% to 7.200 billion yuan, while the flavor and fragrance segment's revenue increased by 9.35% to 2.105 billion yuan [3]. - The overall gross margin rose significantly by 8.78 percentage points to 45.89%, contributing to the substantial increase in net profit [3]. - The gross margin for the nutrition segment improved by 11.93 percentage points to 47.79%, and for the flavor and fragrance segment, it increased by 4.32 percentage points to 54.01% [3]. Project Development - The company is advancing its projects, including a joint venture with Sinopec for an 180,000 tons/year liquid methionine project, which has entered trial production [4]. - The Tianjin nylon new materials project has completed compliance approvals for energy and land resources [4]. - Ongoing upgrades and management improvement projects are progressing steadily, with new project planning being conducted in an orderly manner [4]. Profit Forecast - The profit forecast for the company remains unchanged, with expected net profits of 6.197 billion yuan, 7.006 billion yuan, and 7.796 billion yuan for 2025, 2026, and 2027 respectively, corresponding to EPS of 2.02 yuan, 2.28 yuan, and 2.54 yuan [4][5]. - The current stock price corresponds to P/E ratios of 12, 11, and 10 for the years 2025, 2026, and 2027 respectively [4].