Market Overview - The battery sector experienced a decline of 2.5% compared to the previous trading day, with Tianji Co. leading the drop [1] - The Shanghai Composite Index closed at 3931.05, down 0.4%, while the Shenzhen Component Index closed at 12980.82, down 0.76% [1] Stock Performance - Notable gainers in the battery sector included: - KunGong Technology (Code: 920152) with a closing price of 30.80, up 7.88% [1] - ST Hezhong (Code: 300477) with a closing price of 4.02, up 7.20% [1] - Tianhua New Energy (Code: 300390) with a closing price of 60.94, up 6.09% [1] - Significant decliners included: - Tianji Co. (Code: 002759) with a closing price of 38.86, down 9.98% [2] - Baosheng Lithium Battery (Code: 688353) with a closing price of 103.99, down 9.33% [2] - Weike Technology (Code: 600152) with a closing price of 8.17, down 9.02% [2] Capital Flow - The battery sector saw a net outflow of 5.242 billion yuan from institutional investors, while retail investors had a net inflow of 5.352 billion yuan [2][3] - The capital flow for specific stocks showed: - Nord Co. (Code: 600110) had a net inflow of 196 million yuan from institutional investors [3] - Xiangtan Electric (Code: 002125) had a net inflow of 195 million yuan from institutional investors [3] - Tianhua New Energy (Code: 300390) had a net inflow of 134 million yuan from institutional investors [3]

Group 1 - The lithium battery electrolyte index experienced a decline of 2% during intraday trading, indicating a downward trend in the sector [1] - Most component stocks in the index saw a decrease, with notable declines from companies such as Xinzhou Bang, Huasheng Lithium Battery, Tianji Stock, Duofluor, and Haike Xinyuan, which fell by 4.82%, 4.80%, 4.54%, 3.81%, and 3.03% respectively [1]

Core Viewpoint - The new materials sector has shown positive performance this week, with the new materials index rising by 0.32%, outperforming the ChiNext index by 3.33% [1][2]. Market and Sector Performance - The synthetic biology index increased by 5.04% over the past five trading days, while semiconductor materials decreased by 1.82%, electronic chemicals fell by 2.23%, biodegradable plastics rose by 1.10%, industrial gases dropped by 0.24%, and battery chemicals surged by 13.83% [1][2]. Price Tracking of Industry Chain - Amino acids: Valine remains at 12,550 CNY/ton, Arginine decreased by 0.47% to 21,400 CNY/ton, Tryptophan remains at 32,500 CNY/ton, and Methionine decreased by 2.22% to 19,800 CNY/ton [3]. - Biodegradable materials: PLA (FY201 injection grade) remains at 17,800 CNY/ton, PLA (REVODE201 film grade) at 17,000 CNY/ton, PBS at 17,500 CNY/ton, and PBAT at 9,800 CNY/ton [3]. - Vitamins: Vitamin A remains at 63,000 CNY/ton, Vitamin E at 52,500 CNY/ton, Vitamin D3 at 212,500 CNY/ton, Calcium Pantothenate at 42,000 CNY/ton, and Inositol at 30,500 CNY/ton [3]. - Industrial gases and wet electronic chemicals: UPSSS grade hydrofluoric acid remains at 11,000 CNY/ton, and EL grade hydrofluoric acid at 6,100 CNY/ton [3]. - Plastics and fibers: Carbon fiber remains at 83,750 CNY/ton, polyester industrial yarn at 8,400 CNY/ton, and aramid at 81,800 CNY/ton, which decreased by 13.44% [3]. Investment Recommendations - The demand for the energy storage industry is surging, leading to continuous price increases for lithium battery materials. Lithium hexafluorophosphate, a key raw material for electrolytes, is crucial for battery performance [4]. - Despite leading companies operating at full capacity, the overall supply remains tight due to previous overcapacity issues, with lithium hexafluorophosphate prices rising to 160,000 CNY/ton, a threefold increase from the July 2025 low of 50,000 CNY/ton [5]. - The price of VC (vinylene carbonate), an important additive in electrolytes, has also increased to 60,000 CNY/ton, reflecting a more than 30% rise from its lowest point [5].

Core Viewpoint - Lithium hexafluorophosphate is a key raw material for electrolytes, significantly impacting battery energy density, fast charging performance, and safety stability [2][3] Supply and Demand Analysis - The demand for lithium hexafluorophosphate has surged due to the explosive growth in the downstream electric vehicle and energy storage industries, leading to a significant increase in procurement by electrolyte manufacturers [2] - Despite leading companies operating at full capacity, the overall supply remains tight due to the industry clearing caused by previous years of overcapacity, making it difficult for many small and medium-sized enterprises to quickly resume production [2] - As of November 17, 2025, the price of lithium hexafluorophosphate has risen to 160,000 yuan/ton, more than tripling from the price bottom of 50,000 yuan/ton in July 2025, with potential for further price increases as market supply tightness may persist until 2026 [2][3] Price Trends of Additives - The explosive demand for energy storage has also driven up the price of an important additive in electrolytes, vinylene carbonate (VC), which has increased to 60,000 yuan/ton, representing a more than 30% rise from its bottom price [3] - The new production capacity for VC takes approximately 12 months to establish, while the resumption of idle production lines requires 3-4 months, indicating that short-term supply cannot quickly fill the gap [3] - VC is characterized by high entry barriers due to its heavy asset nature, and companies in the industry have been cautious about expanding production after years of losses, with the average price expected to reach 100,000 yuan/ton by 2026 [3] Investment Recommendations - Companies to watch in the lithium hexafluorophosphate supply chain include Tianji Co., Ltd. (002759.SZ), Tianci Materials (002709.SZ), Xinzhou Bang (300037.SZ), Shenzhen New Star (603978.SH), and Duofluor (002407.SZ) [2] - For VC, recommended companies include Huasheng Lithium Battery (688353.SH), Haike New Source (301292.SZ), Lianhong Technology, and Taihe Technology (300801.SZ) [3]

Investment Rating - The report maintains a "B" rating for the new materials sector, indicating a positive outlook for the industry [2]. Core Insights - The demand for energy storage is surging, leading to a continuous increase in lithium battery material prices. Lithium hexafluorophosphate, a key raw material for electrolytes, has seen its price rise to 160,000 CNY/ton, a threefold increase from the low of 50,000 CNY/ton in July 2025. This price surge is expected to persist due to tight supply conditions, which may last until 2026 [4][5]. - The report highlights the significant growth in procurement volumes for lithium hexafluorophosphate by electrolyte manufacturers, driven by the booming demand from the electric vehicle and energy storage sectors [4]. - The report suggests focusing on the lithium hexafluorophosphate supply chain, recommending companies such as Tianji Co., Tianqi Materials, Xinzhou Bang, Shenzhen New Star, and Duofluo [4]. Summary by Sections 1. Market Performance - The new materials index increased by 0.32%, outperforming the ChiNext index by 3.33%. Over the past five trading days, the battery chemicals sector rose by 13.83%, while semiconductor materials and electronic chemicals declined by 1.82% and 2.23%, respectively [2][17]. 2. Price Tracking - As of November 14, 2025, the price of valine remained stable at 12,550 CNY/ton, while arginine decreased by 0.47% to 21,400 CNY/ton. The price of vitamin D3 was 212,500 CNY/ton, unchanged from the previous week [3][28]. - The price of biodegradable plastics, such as PLA, remained stable at 17,800 CNY/ton for injection molding grade and 17,000 CNY/ton for film blowing grade [32]. 3. Investment Recommendations - The report emphasizes the high entry barriers in the industry and the cautious expansion of companies due to years of losses. It predicts that the average price of VC (vinylene carbonate), an important additive in electrolytes, could reach 100,000 CNY/ton by 2026 [5]. - Companies to watch include Huasheng Lithium Battery, Haike New Source, Lianhong Technology, and Taihe Technology [5].

Core Points - The company held its second extraordinary general meeting of shareholders in 2025 on November 18, 2025, with a combination of on-site and online voting [4][5] - The meeting was legally convened and all resolutions passed were valid [16] Group 1: Meeting Attendance - A total of 1,012 shareholders participated in the meeting, representing 141,306,298 shares, which is 28.7348% of the total voting shares [5] - Among them, 4 shareholders voted on-site representing 110,174,030 shares (22.4040%), while 1,008 shareholders voted online representing 31,132,268 shares (6.3308%) [5] Group 2: Resolutions Passed - The following resolutions were approved during the meeting: - Amendment to the Articles of Association: 141,126,498 shares in favor (99.8728%) [8] - Independent Director Work System: 141,139,098 shares in favor (99.8817%) [9] - Financial Assistance Management System: 141,145,698 shares in favor (99.8863%) [10] - Fundraising Management System: 141,146,498 shares in favor (99.8869%) [11] - Appointment of Accounting Firm: 141,144,498 shares in favor (99.8855%) [12] - Related Party Transaction Decision-Making System: 141,142,198 shares in favor (99.8839%) [13] - Management Compensation System: 141,132,698 shares in favor (99.8771%) [14] - Election of Non-Independent Directors: 141,135,098 shares in favor (99.8788%) [15] Group 3: New Board Members - The company elected Mr. Wang Xiangdong as a non-independent director, with a term starting from the approval date [18] - Mr. Wang has a background in engineering and has held various positions within the company [19] - The company also elected Mr. Lin Qingquan as a representative director from employees, with a term until the board's term ends [20]

Core Points - Tianji Co., Ltd. announced the election of Mr. Lin Qingquan as the employee representative director of the fifth board of directors during the employee representative meeting held on November 18, 2025 [2] Summary by Category - **Company Announcement** - Tianji Co., Ltd. held an employee representative meeting on November 18, 2025, where the election of Mr. Lin Qingquan was approved [2] - **Board of Directors** - Mr. Lin Qingquan was elected as the employee representative director for the fifth board of directors [2] - **Meeting Details** - The meeting took place in the company's first-floor conference room [2]

Group 1 - The company announced the convening of its second extraordinary general meeting of shareholders for 2025 on November 18, 2025 [2] - The meeting approved the proposal to elect a non-independent director for the fifth board of directors [2] - Mr. Wang Xiangdong was elected as a non-independent director of the company [2]

Group 1 - The core viewpoint of the articles indicates that the chemical sector is experiencing a significant price increase driven by specific sub-sectors such as lithium mining and phosphorus chemicals, which are expected to continue to perform well in the future [1][6] - The Wind Chemical Index (882101.WI) has shown a cumulative increase of over 12% from October 17 to November 17, significantly outperforming the Shanghai Composite Index's 1.43% during the same period [2][3] - The recent sharp decline in the chemical sector on November 18, with a drop of 3.45% in the Wind Chemical Index, raises questions about whether this is a market correction or an opportunity for further investment [5] Group 2 - The surge in the chemical sector is attributed to price hikes in products within the fluorochemical, phosphorus chemical, and organic silicon markets, reflecting strong demand and limited supply [3][4] - The influx of capital into chemical ETFs, with the Penghua Chemical ETF (159870.OF) seeing a net inflow of over 154 billion yuan in three months, highlights the market's recognition of the price increase logic in the chemical sector [4] - The current low price-to-book (PB) ratio of 2.2 indicates an increasing investment value in the chemical industry, particularly in phosphorus chemicals, which are experiencing supply-demand imbalances due to new demands from lithium battery materials [6]

Summary of Key Points Core Viewpoint - The trading volume of the Shanghai and Shenzhen Stock Connect reached a total of 218.17 billion, with significant movements in various sectors, particularly in cultural media and AI application stocks, while notable sell-offs occurred in lithium battery-related stocks [1]. Group 1: Trading Volume and Major Stocks - The total trading amount for the Shanghai Stock Connect was 100.56 billion, while the Shenzhen Stock Connect was 117.61 billion [2]. - The top traded stocks in the Shanghai Stock Connect included Industrial Fulian (16.03 billion) and Guizhou Moutai (11.71 billion), while in the Shenzhen Stock Connect, Ningde Times (54.55 billion) led the trading [3][4]. Group 2: Sector Performance - The cultural media sector saw the highest net inflow of funds, amounting to 33.85 billion, while the new energy sector experienced the largest net outflow of 260.30 billion [5][6]. - AI application stocks showed strong performance, with notable gains, while sectors like batteries, coal, and steel faced declines [4]. Group 3: ETF Trading - The top ETF by trading volume was the Hong Kong Securities ETF, with a transaction amount of 8.81 billion, followed by the Hong Kong Innovative Drug ETF at 6.26 billion [9][10]. - The China Securities 1000 ETF saw a remarkable increase in trading volume, growing by 205% compared to the previous trading day [11]. Group 4: Futures Positions - In the futures market, the IF contract saw a higher increase in short positions compared to long positions, indicating a bearish sentiment [12]. Group 5: Institutional Activity - Significant sell-offs were observed in lithium battery stocks, with Tianqi Materials facing a sell-off of 3.85 billion from two institutions, and other stocks like Tianji and Duofluo also experiencing large sell-offs [13][14]. - Conversely, stocks like Liou Co. and N Hengkun saw substantial net inflows, indicating interest from institutional investors [7].