Core Viewpoint - The chemical industry ETF managed by E Fund has shown positive performance, with significant inflows and growth in both scale and shares, reflecting strong investor interest in the sector [1][2]. Group 1: Index Performance - As of February 4, 2026, the China Petroleum Industry Index (H11057) increased by 0.41%, with key stocks like Sinopec rising by 3.17% and Wanhua Chemical by 3.09% [1]. - Over the past two weeks, the E Fund chemical industry ETF has accumulated a rise of 0.55%, ranking in the top half among comparable funds [1]. Group 2: Liquidity and Trading Volume - The E Fund chemical industry ETF had a turnover rate of 3.05% during the trading session, with a transaction volume of 48.77 million yuan [1]. - The average daily trading volume over the past week reached 160 million yuan [1]. Group 3: Fund Size and Shares - The latest size of the E Fund chemical industry ETF reached 1.595 billion yuan, marking a one-year high [1]. - The total shares of the ETF have also reached 1.466 billion, which is a one-year high [1]. Group 4: Net Inflows - The E Fund chemical industry ETF has seen continuous net inflows for 13 days, with the highest single-day net inflow reaching 391 million yuan, totaling 1.371 billion yuan in net inflows [1]. - The average daily net inflow stands at 105 million yuan [1]. Group 5: Top Holdings - As of January 30, 2026, the top ten weighted stocks in the China Petroleum Industry Index account for 55.71% of the index, including companies like Wanhua Chemical and Sinopec [2].

Group 1 - The chemical sector is experiencing strong capital inflow, with the chemical ETF (159870) seeing a net subscription of 299 million units [1] - High prices of sulfuric acid and sulfur are impacting the cost of wet-process phosphoric acid, leading some wet-process phosphoric acid producers to potentially switch to lower-cost thermal phosphoric acid, which may increase the usage of yellow phosphorus [1] - The demand for phosphoric acid is expected to surge after the Spring Festival, but the production of yellow phosphorus may not keep pace with the increased demand, resulting in a supply-demand mismatch [1] Group 2 - Due to limited supply and a slight increase in demand, yellow phosphorus prices are likely to rise after the Spring Festival [2] - As of February 4, 2026, the CSI Sub-Industry Chemical Theme Index (000813) increased by 0.25%, with notable gains from companies such as Sankeshu (3.07%) and Hongda Co. (2.57%) [2] - The top ten weighted stocks in the CSI Sub-Industry Chemical Theme Index account for 44.82% of the index, including major companies like Wanhua Chemical and Yilong Co. [2]

Investment Rating - The report maintains a "Buy" rating for the company, Shaanxi鼓动力 (601369), highlighting its position as a leading energy conversion equipment manufacturer with a strong focus on "manufacturing + operation + service" synergy [2]. Core Insights - The company has a strong technological foundation in energy conversion equipment, particularly in compressors, and has maintained a high cash dividend policy with a payout ratio exceeding 60% from 2019 to 2024 [10][33]. - The domestic compressed air energy storage market is rapidly expanding, with the company signing multiple projects that enhance its market position [45][57]. - The coal chemical industry is experiencing significant growth, with the company benefiting from various milestone projects in this sector [3][25]. - The industrial gas operation segment is becoming a stable growth engine for the company, contributing significantly to its revenue [26][28]. Summary by Sections Company Overview - Shaanxi鼓动力, established in 1968, specializes in energy conversion equipment manufacturing and related services, achieving international advanced technology levels in its core products [10]. - The company operates in various industrial sectors, including energy conversion equipment, industrial services, and energy infrastructure operations [15]. Market Expansion - The new energy storage capacity in China has grown rapidly, with a cumulative installed capacity of 73.76 million kW by the end of 2024, significantly benefiting the company [45]. - The company has signed contracts for several large-scale compressed air energy storage projects, enhancing its competitive edge in this emerging market [57]. Coal Chemical Industry - The coal chemical sector is strategically important due to China's energy structure, with the company participating in key projects that leverage its technological capabilities [25][3]. - The company has secured contracts for significant coal-to-gas and coal-to-oil projects, positioning itself as a core equipment supplier in the coal chemical industry [25]. Financial Performance - The company has shown stable profitability, with revenue growth from 7.304 billion yuan in 2019 to 10.361 billion yuan in 2021, and a net profit increase from 603 million yuan to 1.042 billion yuan in the same period [33]. - The company maintains a high cash reserve, with 10.955 billion yuan in cash as of Q3 2025, representing 44.32% of total assets, and consistently high dividend payouts [37][33]. Industrial Gas Operations - The company's gas operation business has become a significant revenue driver, with a market share exceeding 82% in domestic air separation compressors [26]. - The revenue from energy infrastructure operations reached 3.962 billion yuan in 2024, accounting for 38.55% of total revenue, reflecting the growth of its gas operation segment [28].

Core Viewpoint - The chemical industry ETF, E Fund (516570), has shown mixed performance with a slight decline of 0.46% recently, while the underlying index, the China Petroleum Industry Index (H11057), has also seen a minor drop of 0.16% as of February 4, 2026 [1]. Group 1: Index Performance - As of February 4, 2026, the China Petroleum Industry Index (H11057) decreased by 0.16% [1]. - The leading stocks in the index included China Petroleum, which rose by 3.02%, and Shanghai Petrochemical, which increased by 1.63% [1]. - The worst performers were Guangdong Hongda, which fell by 4.17%, and Zhongfu Shenying, which dropped by 2.11% [1]. Group 2: ETF Performance - The E Fund chemical industry ETF (516570) had a recent price of 1.09 yuan, with a two-week cumulative increase of 0.55%, ranking it in the top half of comparable funds [1]. - The ETF recorded a turnover rate of 1.84% during the trading session, with a total transaction volume of 29.4586 million yuan [1]. - The ETF's total assets reached 1.595 billion yuan, marking a one-year high [1]. Group 3: Fund Flows - Over the past 13 days, the E Fund chemical industry ETF has experienced continuous net inflows, with a peak single-day inflow of 391 million yuan, totaling 1.371 billion yuan in net inflows [1]. - The average daily net inflow for the ETF was 105 million yuan [1]. Group 4: Top Holdings - As of January 30, 2026, the top ten weighted stocks in the China Petroleum Industry Index accounted for 55.71% of the index, including Wanhua Chemical and China Petroleum [2].

Group 1 - The European chemical industry has experienced a significant increase in plant closures, with capacity losses surging sixfold since 2022, totaling 37 million tons, which accounts for approximately 9% of the total capacity in Europe [1] - The report from Caixin Securities suggests focusing on three main investment themes: leading companies in the polyester industry benefiting from anti-involution policies, companies with strong presence in the western market and advanced overseas layouts in the civil explosives sector, and firms with technological and capacity advantages in specialty plastics like PEEK [1] - As of February 4, 2026, the CSI Sub-Industry Chemical Theme Index (000813) rose by 0.11%, with notable increases in constituent stocks such as Sankeshu (up 4.24%), Hongda Co. (up 3.13%), Hengli Petrochemical (up 1.98%), Jiangnan Chemical (up 1.84%), and Luxi Chemical (up 1.60%) [1] Group 2 - As of January 30, 2026, the top ten weighted stocks in the CSI Sub-Industry Chemical Theme Index (000813) include Wanhua Chemical, Salt Lake Co., Cangge Mining, Tianci Materials, Hualu Hengsheng, Hengli Petrochemical, Juhua Co., Baofeng Energy, Yuntianhua, and Rongsheng Petrochemical, collectively accounting for 44.82% of the index [2] - The Chemical ETF (159870) is closely tracking the CSI Sub-Industry Chemical Theme Index, with various off-market connections available [2]

截至2026年2月4日9:40，中证石化产业指数(H11057)下跌0.17%。成分股方面涨跌互现，中国海油、恒 力石化、荣盛石化（维权）等领涨；广东宏大、华峰化学、浙江龙盛等领跌。石化ETF(159731)下跌 0.20%，最新报价1元。流动性方面，截至2月3日，石化ETF近1周日均成交3.29亿元。从资金净流入方 面来看，石化ETF近20天获得连续资金净流入，合计"吸金"14.57亿元。石化ETF最新份额达17亿份，最 新规模达17.07亿元，创新高。 截至2月3日，石化ETF近2年净值上涨69.29%。从收益能力看，截至2026年2月3日，石化ETF自成立以 来，最高单月回报为15.86%，最长连涨月数为9个月，最长连涨涨幅为60.75%，上涨月份平均收益率为 5.59%。截至2026年2月3日，石化ETF近1年超越基准年化收益为2.31%。 华鑫证券分析称，从化工行业三季报业绩表现来看，行业整体仍处于弱势，各细分子行业业绩涨跌不 一。主要原因是受行业过去两年产能扩张进入新一轮产能周期以及需求偏弱影响，但也有部分子行业表 现超预期，例如润滑油行业等。此外，建议重视草甘膦、化肥、进口替代、纯内需、高股息资 ...

Core Viewpoint - The report highlights the significant advancements in the space photovoltaic industry, emphasizing the high barriers to entry and the advantages of China's photovoltaic supply chain in accelerating market growth [1][2]. Sub-industry Weekly Core Views Photovoltaics & Energy Storage - There is a resonance between the demand for ground data centers and space computing, with the U.S. demand for "self-controlled" photovoltaic systems intensifying, benefiting core enterprises in the photovoltaic sector [2]. - Major companies in the photovoltaic supply chain are releasing annual performance forecasts, confirming a "performance bottom" in Q4, alongside improved asset quality, positioning them well for a recovery in 2026 [1][2]. Wind Power - The UK government announced the results of the AR7 offshore wind auction, totaling 8.4 GW, exceeding market expectations of 6-7 GW, which strengthens the outlook for domestic supply chain exports amid capacity shortages in Europe [2][4]. Power Grid - The State Grid's investment plan for the 14th Five-Year Plan is set at 4 trillion yuan, a 40% increase from the previous plan, establishing a strong foundation for long-term domestic market growth [3]. - Recent incidents in North America, such as transformer explosions, highlight the ongoing need for infrastructure upgrades, reinforcing the demand for new power grid solutions [3]. Lithium Batteries - New regulations on battery recycling will take effect on April 1, 2026, emphasizing a "vehicle-battery integrated scrapping" system and establishing a digital identity for batteries [3]. - Fulin Precision plans to raise 3.175 billion yuan to enhance its production of lithium iron phosphate and advance its strategic positioning in the industry [3]. Hydrogen and Fuel Cells - Inner Mongolia has optimized the economic viability of green hydrogen projects, with significant sales expected in the hydrogen vehicle market by 2025 [3][5]. - The government is actively supporting the hydrogen industry, indicating an imminent surge in development [3][5]. Recent Significant Industry Events - JunDa Co. has officially launched investments in space photovoltaic projects, expanding its product offerings [4]. - Strategic collaborations have been established between companies like Dongfang Risen and Shanghai Port for advanced photovoltaic technologies [4]. - The results of the UK AR7 offshore wind auction have been announced, with a total capacity of 8.4 GW, surpassing expectations [4].

Group 1 - The chemical raw materials sector increased by 2.76% on February 3, with Jiangtian Chemical leading the gains [1] - The Shanghai Composite Index closed at 4067.74, up 1.29%, while the Shenzhen Component Index closed at 14127.1, up 2.19% [1] - Jiangtian Chemical's stock price rose by 11.39% to 33.75, with a trading volume of 199,700 shares and a transaction value of 652 million yuan [1] Group 2 - The main funds in the chemical raw materials sector experienced a net outflow of 393 million yuan, while retail investors saw a net inflow of 461 million yuan [2] - The trading data for various companies in the sector shows mixed performance, with some stocks like Jiangtian Chemical and Huarong Chemical seeing significant gains, while others like Jinniu Chemical and Luxi Chemical reported declines [2][3] - The net inflow and outflow of funds varied significantly among individual stocks, indicating diverse investor sentiment within the sector [3]

Core Viewpoint - The petrochemical sector is experiencing significant growth, as evidenced by the strong performance of the China Petrochemical Industry Index and related ETFs, indicating a positive market sentiment and investment opportunities in this industry [1][2]. Group 1: Index Performance - As of February 3, 2026, the China Petrochemical Industry Index (H11057) rose by 2.89%, with notable increases in constituent stocks such as Cangge Mining (+6.76%), Hualu Hengsheng (+6.17%), and Guangwei Composites (+5.94%) [1]. - The Petrochemical ETF (159731) increased by 2.87%, reaching a latest price of 1 yuan, and has accumulated a 6.21% rise over the past month [1]. Group 2: Liquidity and Trading Activity - The Petrochemical ETF recorded a turnover rate of 12.19% during the trading session, with a transaction volume of 200 million yuan, indicating active market participation [1]. - Over the past week, the average daily trading volume of the Petrochemical ETF was 329 million yuan [1]. Group 3: Fund Flows and Share Performance - The latest share count of the Petrochemical ETF reached 1.656 billion, marking a one-year high [2]. - The ETF has seen continuous net inflows for 19 days, with a peak single-day net inflow of 348 million yuan, totaling 1.413 billion yuan in net inflows [2]. Group 4: Return Metrics - Since its inception, the Petrochemical ETF has achieved a maximum monthly return of 15.86%, with the longest streak of consecutive monthly gains being 9 months and a total increase of 60.75% during that period [2]. - The average return during the months of increase is 5.59% [2]. Group 5: Index Composition - As of January 30, 2026, the top ten weighted stocks in the China Petrochemical Industry Index include Wanhua Chemical, China Petroleum, and Yilong Co., among others, collectively accounting for 55.71% of the index [2].

1. Report's Investment Rating for the Industry - No information provided in the report. 2. Core View of the Report - As of 2025, the global annual ethylene production capacity has exceeded 230 million tons. The ethylene production capacity expansion in the Americas, Middle East, and Europe faces challenges, while Asia will be the core contributor to global ethylene production capacity growth. - Europe, Japan, and South Korea are likely to shut down ethylene production capacity due to high raw material costs, competitive disadvantages under global over - capacity, and regional structural problems. After that, China may become the global core beneficiary and supply mainstay with its multiple advantages [4][8]. 3. Summary by Relevant Catalogs 3.1 America: Ethane Cracking Project Commissioning Pace May Slow Significantly - In 2025, the total ethylene production capacity in the Americas reached 60.338 million tons/year, with the United States accounting for 77.74% of the regional capacity at 46.907 million tons/year, being the core contributor to future ethylene production capacity growth in the Americas [10]. - The U.S. ethylene process mainly uses ethane. After three stages of development, the U.S. ethane cracking project will see a significant slowdown in the commissioning pace after 2025, mainly because of the decline in ethane supply growth and weakening ethylene market demand. The high - grade and easily - mined resources in core shale gas production areas are decreasing, the single - well production decline is accelerating, and the overall natural gas production has entered a medium - low growth stage. Also, the ethane recovery ratio is approaching the upper limit, and the ethylene demand growth has slowed down [14][16][20]. 3.2 Middle East: Facing Ethane Resource Constraints - As of 2025, the total ethylene production capacity in the Middle East was 35.67 million tons/year, with Saudi Arabia being the largest producer with a capacity of 17.63 million tons/year, accounting for 49.42%. After 2015, the growth rate of ethylene production capacity in the Middle East slowed significantly due to ethane resource constraints. The supply of NGLs in OPEC countries has decreased, and the ethane recovery ratio is saturated. Ethylene production in the Middle East is showing a trend of heavier raw materials [26][29][31]. 3.3 Europe: High Energy Costs and Weak Demand - As of 2025, the total ethylene production capacity in Europe was about 30.8 million tons/year, with Germany being the largest producer with a capacity of 5.82 million tons/year, accounting for 18.87%. European ethylene production has high costs due to a naphtha - based raw material structure, high energy prices, policy constraints, and industrial layout issues. The demand for ethylene in Europe is weak. Since 2021, the demand has declined significantly, and in 2025, the demand was about 23 million tons with a growth rate of only 1.71% [32][36][37]. 3.4 Asia: Will Contribute the Main Incremental Production Capacity Globally - As of 2025, the total ethylene production capacity in Asia reached about 110 million tons/year, with China being the largest producer with a capacity of about 62 million tons/year, accounting for 56.58%. From 2026 - 2027, Asia will still have a large amount of new ethylene production capacity, and China may be the main contributor. In 2026, China may have 9.11 million tons/year of new production capacity put into operation, with a production capacity growth rate of up to 14.69% [44][48][49]. 3.5 Europe, Japan, and South Korea: Likely to Shut Down Ethylene Production Capacity Concentratedly - The shutdown of ethylene production capacity in Europe, Japan, and South Korea is mainly due to high raw material costs, competitive disadvantages under global over - capacity, and regional structural problems. After the shutdown, China may become the global core beneficiary and supply mainstay due to its leading global ethylene production capacity scale, scale - effect of refining and chemical integration plants, diversified raw material routes, and lower costs compared to the single naphtha route in Europe, Japan, and South Korea [50][52].