Report Information - Report Title: Nanhua Futures Silicon Industry Chain Enterprise Risk Management Daily Report - Date: July 2, 2025 - Analysts: Xia Yingying, Yu Weihan - Investment Consulting Business Qualification: CSRC License [2011] No. 1290 [1] Industry Investment Rating - Not provided in the report Core Views - Industrial silicon is in the industrial cycle logic of eliminating backward production capacity, with continuous pressure of oversupply. The supply may increase as the wet season approaches, and the inventory may further accumulate. The demand from downstream industries is mixed, and it is necessary to wait for the inventory to reach a healthy level [3]. - Polysilicon is in the logic of strong supply and weak demand. The photovoltaic rush has overdrafted some future demand. If there are production capacity elimination plans or industrial integration agreements in the future, it is expected to improve the situation of the polysilicon industry [3]. Summary by Relevant Catalogs Industrial Silicon Price and Volatility - The strong pressure level of the industrial silicon futures main contract is 7,600 yuan/ton, with a current 20 - day rolling volatility of 33.2%, a daily increase of 4.11%, and the current volatility's historical percentile (3 - year) is 95.9% [2]. - The closing price of the industrial silicon futures main contract is 8,210 yuan/ton, with a daily increase of 445 yuan (5.73%); the trading volume is 1,643,648 lots, with a daily increase of 413,341 lots (33.60%); the open interest is 386,361 lots, with a daily increase of 25,285 lots (7.00%) [9]. Risk Management Strategies - For inventory management, when the product inventory is high and there is a risk of inventory impairment, short the futures (SI2509) with a hedging ratio of 30%, sell call options (70%), and buy out - of - the - money put options [2]. - For procurement management, when there is a production plan and a risk of raw material price increase, buy long - term futures contracts of industrial silicon according to the production plan, sell put options, and buy out - of - the - money call options [2]. Market Analysis - Bullish factors include limited short - term cost collapse space, low profit valuation, and increased probability of supply - side disturbances; downstream enterprises still have profits, and the approaching wet season will reduce production costs and increase profits, promoting production enthusiasm [6]. - Bearish factors include the approaching wet season leading to increased production capacity in Southwest China and the possible joint production cuts of downstream polysilicon enterprises, weakening demand [7]. Spot and Basis - The latest price of East China 553 industrial silicon is 8,650 yuan/ton, with a daily increase of 150 yuan (1.76%); the basis of East China 553 is 440 yuan/ton, with a daily decrease of 295 yuan (-40.14%) [14]. - The latest price of East China 421 industrial silicon is 8,950 yuan/ton, with a daily increase of 150 yuan (1.7%); the basis of East China 421 is 740 yuan/ton, with a daily decrease of 295 yuan (-28.5%) [14]. Warehouse Receipts - The total number of industrial silicon warehouse receipts is 51,916 lots, a decrease of 221 lots (-0.78%) [23]. Polysilicon Price and Volatility - The strong pressure level of the polysilicon futures main contract is 33,000 yuan/ton, with a current 20 - day rolling volatility of 39.74%, a daily increase of 8.28%, and the current volatility's historical percentile (3 - year) is 83.73% [2]. - The closing price of the polysilicon futures main contract is 35,050 yuan/ton, with a daily increase of 2,350 yuan (7.19%); the trading volume is 411,586 lots, with a daily increase of 150,096 lots (57.40%); the open interest is 95,005 lots, with a daily increase of 33,809 lots (55.25%) [25]. Risk Management Strategies - Similar to industrial silicon, for inventory management, short the futures (PS2509) and use options strategies; for procurement management, buy long - term futures contracts and use options strategies [2]. Market Analysis - Bullish factors include possible future production capacity integration and elimination plans in the industry and the market's trading of the phenomenon of futures - end positions and warehouse receipts [6]. - Bearish factors include the failure of polysilicon enterprise integration and elimination, and the increase in production due to low raw material prices and the approaching wet season [7]. Spot and Basis - The price of polysilicon spot has increased. For example, the price of re - feeding material is 32.5 yuan/kg, with a daily increase of 1 yuan (3.17%) [31]. - The basis of the polysilicon futures main contract is 950 yuan/ton, a decrease of 350 yuan (-26.92%) [31]. Warehouse Receipts - The total number of polysilicon warehouse receipts is 2,600 lots, a decrease of 180 lots compared to the previous day [35]. Other Related Data - The silicon chain index is 0.3577, with a daily increase of 0.0279 (8.46%) [32].

Core Viewpoint - Longi Green Energy held its 2024 annual shareholder meeting on June 30, where all proposals were approved by shareholders, including a board restructuring and updates on production capacity and industry challenges [1][2]. Group 1: Board Restructuring - The most significant agenda item was the restructuring of Longi Green Energy's board, with five non-independent directors and three independent directors elected, resulting in a new board of nine members [1]. - Founder Li Zhenguo confirmed his exit from the board to focus on research, while his daughter Li Shuxuan joined the new board and was appointed to the nomination committee [1]. - Chairman and CEO roles will be consolidated under Zhong Baoshan, who indicated that internal operations will remain consistent despite the changes in titles [1]. Group 2: Production Capacity and Industry Insights - Longi Green Energy's BC second-generation product output reached 2 GW in June, with expectations to increase to 3 GW in September and 4 GW in November, aiming for a total annual capacity of 50 GW by year-end [2]. - Current operational rates include a 60% utilization for silicon wafers, full production for batteries, and a 70-75% utilization for modules [2]. - The company is navigating industry challenges, emphasizing the need for market-driven solutions versus government interventions for industry consolidation [2]. Group 3: Future Business Directions - Hydrogen energy is a key focus for Longi Green Energy, driven by global decarbonization needs, although it remains in a growth phase due to high costs and the necessity for a supportive regulatory environment [2]. - The company is also exploring perovskite technology, acknowledging existing technical challenges and setting ambitious targets for efficiency and reliability, with a potential market entry around 2030 [2].

Group 1 - The event focused on the theme of "Mergers and Acquisitions Empowering High-Quality Development," emphasizing the role of M&A in promoting high-quality growth for companies [1][2] - The Beijing Listed Companies Association (北上协) aims to explore how M&A can positively impact companies in the new economic landscape, facilitating their transition to high-quality development [1][2] - The event highlighted the importance of standardized, transparent, and efficient M&A activities in enhancing market vitality and improving the quality of listed companies [1][2] Group 2 - The Beijing Listed Companies Association is planning to establish a M&A service platform to enhance government guidance and market vitality, focusing on key sectors to promote M&A activities [2] - The current environment is characterized by ongoing policy benefits for M&A, with a surge in demand for industrial integration, marking a new golden period for corporate mergers and acquisitions [2][3] - The event serves as a strategic response to global economic changes and domestic industrial upgrades, providing new ideas and directions for companies to optimize resource allocation [3]

Summary of China Chemical's Conference Call Company Overview - **Company**: China Chemical - **Industry**: Chemical Engineering Key Points Contract and Revenue Goals - The company aims to sign new contracts worth **370 billion** yuan in 2025, with a revenue target of **196 billion** yuan and a profit target of **7.5 billion** or **7.6 billion** yuan, all showing growth compared to the previous year [2][3][4] Current Performance and Market Outlook - As of May 2025, the new contract amount reached **150.8 billion** yuan, a nearly **10%** decrease year-on-year, falling short of the **185 billion** yuan target for the first half of the year [3][4] - The company expects a rebound in the second half, driven by the release of contracts related to the Xinjiang coal chemical project and growth in overseas orders [2][3] Xinjiang Coal Chemical Project - The Xinjiang coal chemical project is projected to have a contract value of approximately **40 billion** yuan in 2025, significantly higher than the **22 billion** yuan in 2024 [2][19] - The overall investment in Xinjiang's coal chemical sector is expected to reach around **500 billion** yuan over the next **5-6 years** [19] Production and Technology Updates - The Jiuri New Materials project has upgraded to a second-generation catalyst, achieving a load of **80%-85%** as of mid-June 2025, with plans to reach full production in Q2 [2][5][6] - The company has no immediate plans for third or fourth-generation technology upgrades for adiponitrile but is exploring better processes [8] Product Focus and Market Strategy - The company is actively promoting the domestic substitution of nylon 66 and strengthening partnerships with leading industry clients such as Shenyang Chemical and Wanhua Chemical [10][12] - Current product offerings include adiponitrile, hexamethylenediamine, and nylon 66, with a focus on maintaining competitive pricing strategies [11][15] Overseas Market Expansion - The company is deepening its presence in the "Belt and Road" markets, particularly in South Asia and ASEAN, with an expected overseas market expansion scale of **140 billion** yuan in 2025, up from over **120 billion** yuan last year [2][4][16] - Key target regions include Indonesia, Vietnam, Malaysia, and the Middle East, with a focus on oil and gas and chemical market collaborations [17][18] Strategic Initiatives - The company has adopted a "135" strategy aimed at high-quality development through technological innovation and internal management improvements [3][25] - There are no current plans for a second phase of the equity incentive program due to regulatory constraints and high performance expectations [24] Financial Management and Future Outlook - The company is facing increased pressure on cash flow and project returns but is implementing measures to enhance contract selection and collection efforts [25][26] - Future dividend policies are under consideration, with potential improvements suggested based on recent trends among state-owned enterprises [26] Conclusion - China Chemical is navigating a challenging market environment with strategic initiatives aimed at growth in both domestic and international markets, while focusing on technological advancements and operational efficiency to meet its ambitious targets for 2025 [2][3][4][25]

Group 1 - The core viewpoint highlights the synergy between capital market reforms and industrial upgrades in Zhejiang, leading to a new landscape for high-quality economic development [1] - Since the release of the "Six Merger Guidelines," there have been 315 disclosed merger and acquisition (M&A) transactions in Zhejiang, involving a total amount of 75.5 billion yuan [1][2] - The M&A activities are characterized by a significant increase in both quantity and quality, with domestic acquisitions accounting for over 90% of the transactions, predominantly led by private enterprises [2] Group 2 - The focus on industrial synergy in M&A is evident, with strategic acquisitions aimed at resource integration and enhancing core competitiveness [2] - Notable cases include ChipLink's acquisition of 72.33% of ChipLink Yuezhou's shares, and Bochuang Technology's acquisition of Changxin Sheng, which exemplify the trend of "1+1>2" through technological collaboration [2][3] - Traditional industries are also experiencing a "second entrepreneurship," with over 25% of M&A cases in the equipment manufacturing sector, aligning with Zhejiang's manufacturing strengths [3] Group 3 - The majority of M&A transactions are small-scale, with about 75% of deals valued below 200 million yuan, indicating a high frequency of flexible transactions [3] - However, larger transactions are also prominent, with over 70 deals exceeding 200 million yuan, totaling over 64 billion yuan, showcasing the ambition of leading enterprises [3] - The innovative application of payment tools has further enhanced market efficiency, with cash-based acquisitions making up over 80% of the total value [3] Group 4 - The active M&A market in Zhejiang is supported by regulatory bodies and local government initiatives, focusing on the implementation of M&A policies [4] - The Zhejiang Securities Regulatory Bureau has conducted extensive training and outreach to ensure compliance and understanding of new policies among market participants [4] - Local policies encourage listed companies to engage in industrial chain integration, with over 20 M&A transactions disclosed by provincial state-owned enterprises since 2025 [4] Group 5 - The recognition of industrial integration by the capital market is growing, with regulatory measures fostering a supportive environment for M&A activities [5] - The emergence of typical M&A cases is expected to boost market confidence and encourage further integration efforts [5] - The capital market is anticipated to play a crucial role in promoting new productive forces and guiding resources towards industrial integration and transformation [5] Group 6 - The Zhejiang Securities Regulatory Bureau plans to continue enforcing M&A policies while maintaining market order and preventing fraudulent activities [6] - Future prospects for the Zhejiang M&A market include fostering new productive forces, transforming traditional industries, and enhancing global competitiveness [6] - The region aims to become a benchmark for capital markets serving the real economy through effective M&A practices [6]

Group 1 - Tianyima plans to acquire 51% of Xingyun Kaiwu's shares for cash and 49% through share issuance, making Xingyun Kaiwu a wholly-owned subsidiary [1] - Since the implementation of the "Six Merger Rules," the Shenzhen Stock Exchange has seen 903 new merger and acquisition disclosures totaling 423.5 billion yuan, with significant asset restructurings increasing by 222% year-on-year [1] - The Shenzhen Stock Exchange aims to enhance regulatory services and support quality merger and acquisition projects to contribute to high-quality economic development [1] Group 2 - The merger and acquisition activity in the Shenzhen market has significantly increased, with a focus on core business and enhancing competitiveness [2] - Guosen Securities' acquisition of Wanhua Securities is a notable example of market-driven integration in the financial services sector, enhancing Guosen's market coverage in the Guangdong-Hong Kong-Macao Greater Bay Area [2] - The successful practice of market-driven mergers in the financial services industry demonstrates the importance of optimizing resource allocation and enhancing industry competitiveness [3] Group 3 - The continuous support from regulatory bodies and policy initiatives has contributed to the sustained heat in the merger and acquisition market [4] - The revised major asset restructuring management measures aim to simplify review processes and innovate transaction tools, facilitating resource integration for listed companies [4] - The China Securities Regulatory Commission is committed to improving the regulatory framework for listed companies to enhance their core competitiveness and operational performance [4] Group 4 - The ongoing policy support is expected to highlight the resource integration effects and strategic synergy value in the merger and acquisition market [5] - Future mergers are likely to focus on high-end manufacturing, new energy, and artificial intelligence, with an increase in cross-border mergers [5] - Innovative merger models, such as reverse mergers and spin-offs, may integrate with digital tools for more flexible resource allocation [5]

本报记者 彭衍菘 公募排排网最新数据显示，截至6月24日，今年以来已有23家公募机构参与了37家A股上市公司定向增发（以下简称"定 增"），认购总额达109.17亿元。 "公募机构参与定向增发对上市公司具有多重战略价值。"晨星（中国）基金研究中心高级分析师代景霞向《证券日报》记 者表示，资金赋能层面，公募机构可为成长型及科技型企业注入关键发展资金，尤其满足其在研发创新、产能扩张、市场拓展 等核心环节的资本需求，公募机构参与能有效助力企业突破技术瓶颈或落地重大项目，加速战略目标落地。 代景霞表示，在治理优化层面，公募机构作为专业投资者参与，可推动上市公司股权结构多元化，形成更均衡的治理架 构。在价值背书层面，公募机构严谨的投研体系与决策流程，参与上市公司定增本质上是对企业发展潜力、管理效能及投资价 值的专业认证，有利于向市场传递积极信号，吸引更多增量资金关注，显著提升企业资本品牌影响力，为后续融资活动等构筑 信任基础。 中观层面，公募机构参与定增，可以促进产业升级和创新。代景霞认为，公募机构参与的部分定增项目，能引导资金流向 成长型、科技型产业，推动产业升级和创新发展。同时也可以推动产业整合和协同发展，对于一些 ...

Core Viewpoint - The recent trend of mergers and acquisitions (M&A) led by central state-owned enterprises (SOEs) is characterized by large scale and rapid execution, with a total of 16 significant M&A cases disclosed as of June 23, 2025 [2][3] Group 1: M&A Activity - Electric Power Investment Energy plans to acquire 100% equity of Baiyinhua Coal Power, while Xiamen Port intends to acquire 70% equity of Container Terminal Group [2] - The integration of resources by leading central SOEs is expected to enhance their valuation and market expectations for quality asset re-evaluation [2][3] - The acceleration of industrial consolidation is evident, with major SOEs like State Power Investment Group and China Huadian Group actively disclosing significant asset restructuring plans [4] Group 2: Strategic Focus - The focus of M&A activities is shifting towards "hard technology," with central SOEs targeting sectors such as semiconductors, artificial intelligence, new energy, biomedicine, and high-end equipment [5] - Companies like BGI Genomics are pursuing acquisitions to strengthen their position in the electronic design automation (EDA) industry, indicating a strategic move towards enhancing core technology capabilities [5] - Specialized integration efforts are being made by firms like Lanke High-tech to improve their overall solution capabilities in the energy equipment sector, thereby increasing their competitive advantage [5]

Core Viewpoint - The article highlights the increasing activity of local state-owned enterprises (SOEs) in acquiring publicly listed companies since 2025, indicating a strategic shift towards capital investment and industrial integration in the Chinese market [1][2][11]. Group 1: Acquisition Trends - Since 2025, there have been 20 cases of control changes due to local SOE acquisitions, marking a historical high [3]. - Local SOEs are actively pursuing acquisitions with a focus on specific industries, aiming to align with local industrial chains [3][11]. - The acquisition trend is characterized by a significant interest in small to medium-sized enterprises, with 80% of the targeted companies having a market value below 100 billion yuan [3][4]. Group 2: Regional Activity - Jiangsu province has been the most active, announcing four acquisitions, followed by Zhejiang and Anhui with three each [5]. - Nearly half of the acquisitions are cross-regional, indicating a shift towards a more integrated approach to industrial chain management [5]. Group 3: Industry Focus - Traditional industries remain a priority, with significant activity in sectors such as basic chemicals, machinery, and non-ferrous metals [7]. - Manufacturing projects, particularly in automotive parts, are highly favored due to their potential to drive local economic indicators [9][16]. Group 4: Motivations Behind Acquisitions - Local SOEs aim to enhance their investment attraction capabilities and optimize corporate credit ratings through acquisitions [11][16]. - The acquisitions are also seen as a means to address overcapacity issues and promote local economic development [11][16]. Group 5: Challenges and Considerations - There are concerns regarding the effectiveness of these acquisitions, with some local SOEs facing difficulties post-acquisition due to misaligned business models and management conflicts [10][14]. - Issues such as a lack of industry understanding and management conflicts are prevalent, leading to potential failures in achieving desired outcomes [17][18]. Group 6: Future Directions - A collaborative approach involving industrial capital and SOEs is suggested to mitigate risks and enhance integration capabilities [18]. - The need for local SOEs to respect market logic and industry dynamics is emphasized to ensure successful acquisitions and subsequent industrial upgrades [18].

Core Viewpoint - The article discusses the surge of local state-owned enterprises (SOEs) acquiring publicly listed companies in 2025, highlighting the strategic logic and market effects behind these moves [2][3]. Group 1: Acquisition Trends - Since 2025, there have been 20 cases of control changes due to local SOE acquisitions, marking a historical high [5]. - Local SOEs are increasingly targeting small to medium-sized enterprises, with 80% of acquired companies having a market value below 100 billion yuan [5]. - The trend reflects a shift in local government strategies from traditional incentives to more targeted acquisitions aligned with local industrial maps [5][7]. Group 2: Industry and Regional Focus - The most active regions for acquisitions include Jiangsu, Zhejiang, and Anhui, with a notable number of cross-regional acquisitions [7]. - Traditional industries remain a focus, with significant activity in sectors like basic chemicals, machinery, and non-ferrous metals [9][11]. - Local SOEs prefer manufacturing projects, particularly in automotive parts, which can drive local fixed asset investments [11]. Group 3: Motivations and Challenges - Local SOEs aim to enhance their investment capabilities and optimize corporate ratings through acquisitions, which can alleviate fiscal pressures [19]. - However, challenges arise from misaligned industry knowledge and management conflicts, often leading to poor integration and operational issues post-acquisition [21][22]. - The article emphasizes the need for a balanced approach to acquisitions, suggesting collaboration with industry capital to mitigate risks and enhance management expertise [23].