Report Summary 1. Report Industry Investment Rating No relevant information provided. 2. Report Core Views - **Methanol**: The current situation remains poor, with Iranian shutdowns slower than expected. High imports are likely in November, making it difficult to resolve the contradictions in the 01 contract. The issue of port sanctions is expected to be resolved before the end of gas restrictions, and inventory depletion is difficult. Methanol has limited upside potential, and the downside space depends on the inland market. Although coal prices have strengthened recently, they do not affect profits [1]. - **Polyethylene**: The inventory of Sinopec and PetroChina is neutral year - on - year. Upstream Sinopec and PetroChina and coal - chemical enterprises are reducing inventory, while social inventory remains flat. Downstream inventory of raw materials and finished products is also neutral. Overall inventory is neutral. The 09 basis is around - 110 in North China and - 50 in East China. The import profit is around - 200 with no further increase for now. The price of non - standard HD injection molding is stable, and other price differences are fluctuating, with LD weakening. Domestic linear production has decreased recently. Attention should be paid to the LL - HD conversion and US quotations, as well as the commissioning of new plants in 2025 [6]. - **PP**: The upstream Sinopec and PetroChina and mid - stream enterprises are reducing inventory. In terms of valuation, the basis is - 60, the non - standard price difference is neutral, and the import profit is around - 700. Exports have been good this year. The non - standard price difference is neutral. The PDH profit is around - 400, propylene is fluctuating, and the powder production start - up rate is stable. The拉丝 production schedule is neutral. Future supply is expected to increase slightly, and downstream orders are average currently. Under the background of over - capacity, the 01 contract is expected to face moderate to excessive pressure. If exports continue to increase or there are many PDH plant overhauls, the supply pressure can be alleviated to a neutral level [6]. - **PVC**: The basis remains at 01 - 270, and the factory - delivery basis is - 480. Downstream operating rates are seasonally weakening, but there is a strong willingness to hold inventory at low prices. Mid - and upstream inventories are continuously accumulating. In summer, Northwest plants have seasonal overhauls, and the load center is between the spring overhaul and the high production in Q1. In Q4, attention should be paid to the commissioning of new plants and the sustainability of exports. Recent export orders have declined slightly. Coal sentiment is positive, and the cost of semi - coke is stable. The profit of calcium carbide is under pressure due to PVC overhauls. Attention should be paid to whether subsequent export orders can support the high price of caustic soda. The PVC comprehensive profit is - 100. Currently, the static inventory contradiction is accumulating slowly, the cost is stable, downstream performance is average, and the macro - environment is neutral. Attention should be paid to exports, coal prices, commercial housing sales, terminal orders, and operating rates [6]. 3. Summary by Related Catalogs Methanol - **Price Data**: From October 21 - 27, 2025, the power coal futures price remained at 801. The Jiangsu spot price decreased from 2265 to 2232, a decrease of 33. Other regional prices also showed certain fluctuations [1]. - **Profit and Basis**: The import profit remained at around 320 - 326, and the main contract basis and MTO profit also changed [1]. Polyethylene - **Price Data**: From October 21 - 27, 2025, the Northeast Asia ethylene price decreased from 780 to 765 on October 24, and then no data was provided. The prices of North China LL, East China LL, etc. showed an upward trend, with the main contract futures price increasing by 55 [6]. - **Inventory and Other Information**: The two - oil inventory decreased, and the production of domestic linear products decreased recently [6]. PP - **Price Data**: From October 21 - 27, 2025, the prices of Shandong propylene and Northeast Asia propylene remained unchanged. The prices of East China PP, North China PP, etc. fluctuated, and the main contract futures price increased by 37 [6]. - **Inventory and Other Information**: Upstream and mid - stream enterprises are reducing inventory, and the PDH profit is around - 400 [6]. PVC - **Price Data**: From October 21 - 27, 2025, the price of Northwest calcium carbide remained at 2500 on October 24 - 27, and the price of Shandong caustic soda decreased from 822 to 807. The price of calcium carbide - based PVC in East China remained at 4680 [6]. - **Profit and Other Information**: The export profit and comprehensive profit showed certain fluctuations, and the basis remained at - 90 [6].

Core Insights - The prices of live pigs and eggs have both declined significantly during the recent holiday season, with pig prices hitting a four-year low and egg prices reaching near multi-year lows [2] - Pig prices have started to rise again, potentially returning to the 6 yuan per kilogram range, while egg prices remain stagnant, struggling to break through the 3 yuan per kilogram mark [2][4] Group 1: Pig Market Dynamics - The recent increase in pig prices is driven by several factors, including seasonal demand due to colder weather and upcoming traditional food preparations in southern and northern China [4] - After experiencing a price drop, pig farmers are showing a tendency to buy back into the market, contributing to the price recovery [4] - The growth cycle of pigs and the second fattening phase provide more time for market adjustments compared to the shorter egg production cycle [6] Group 2: Egg Market Challenges - Despite a slight increase in egg prices, the overall market remains under pressure due to high production capacity and slow culling rates among egg-laying hens [6][8] - The upcoming Double Eleven shopping festival is expected to have limited impact on egg sales, leading to a prolonged period of low demand post-festival [4][8] - The short production cycle of eggs means that any lack of downstream consumption quickly translates into price pressure, exacerbated by the presence of unsold inventory in cold storage [8]

Report Summary 1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints - PTA supply has contracted as domestic plants have adjusted due to low processing fees. The polyester industry's profit is still constrained by over - capacity from new plant commissions, but the rising crude oil price supports PTA, leading to a slight upward movement in PTA prices after hovering at low levels. [2] - The polyester downstream load remains above 87%, and high polyester load has not led to large inventory accumulation. The demand from the polyester downstream is slightly better than expected, with recent good sales in the polyester market. The market is concerned about the impact of China - US negotiations on textile and clothing demand. [2] - Later, overseas sanctions on some domestic refineries may affect PX supply, which requires continuous attention. [2] 3. Summary by Related Data Price Changes - PTA spot price increased from 4425 to 4450, with a change of 25; MEG inner - market price rose from 4173 to 4187, a change of 14; PTA closing price went up from 4508 to 4518, a change of 10; MEG closing price decreased from 4095 to 4077, a change of - 18. [2] - 1.4D direct - spun polyester staple fiber price increased from 6390 to 6400, a change of 10; short - fiber basis remained unchanged at 178; 11 - 12 spread decreased from 18 to 32, a change of - 14. [2] - Polyester bottle - chip prices in the Jiangsu and Zhejiang markets increased slightly, with the average price rising by 10 yuan/ton. The prices of various types of bottle - chips (e.g., East China water bottle - chips, hot - filling polyester bottle - chips, carbonated - grade polyester bottle - chips) increased by 7. [2] - T32S pure - polyester yarn price remained unchanged at 10300; T32S pure - polyester yarn processing fee decreased from 3910 to 3900, a change of - 10; polyester - cotton yarn 65/35 45S price remained unchanged at 16350. [2] Load and Production - Sales - The direct - spun short - fiber load (weekly) increased from 93.90% to 94.40%; the polyester short - fiber production - sales rate decreased from 77.00% to 51.00%, a change of - 26.00%. [3] - The polyester yarn startup rate (weekly) remained unchanged at 63.50%; the recycled cotton - type load index (weekly) increased slightly from 51.00% to 51.50%. [3]

Report Summary 1. Report Industry Investment Ratings No industry investment ratings are provided in the report. 2. Core Views - **Gold**: The US September CPI data led to market expectations of Fed rate - cuts. The strong US dollar is bearish for gold, but gold buying power remains strong. Gold is expected to oscillate at a high level in the medium - term [1]. - **Soda Ash**: The domestic soda ash market is weakly stable. The 01 contract is expected to oscillate in the short - term, with support at 1220. It is recommended to wait and see or do short - term long on dips [2]. - **Rebar**: The medium - long - term over - capacity in the steel industry may be alleviated, but short - term impact is limited. Rebar demand is improving but at a low level. The price is expected to oscillate at a low level in the short - term [4]. - **Iron Ore**: Supply is relatively stable, and demand is supported by high iron - water levels. However, the profit contraction of steel mills and the end of the peak season limit demand. The price is expected to oscillate in the short - term [5]. - **Coking Coal**: Supply is tightening, and demand from downstream and intermediate sectors is strong. The coal price is strong, and the futures price is expected to be supported in the short - term [6]. - **Pigs**: With increased demand due to lower temperatures and reduced slaughter pressure, the pig price may strengthen after adjustment. The futures price is expected to rebound at the bottom in the short - term [7]. - **Palm Oil**: As the traditional production - reduction season approaches in November, the futures price may recover. However, due to expected ample supply, the spot price is under pressure. The price is expected to oscillate in the short - term [7]. - **Soybeans**: Imported soybean spot market is firm, and domestic demand is strong. Bean 2 is expected to stabilize in the short - term. Domestic new - season soybeans are strong [8]. - **Medium - Long - Term Treasury Bonds**: Liquidity is loose, which supports the bond market. But with the stock market breaking through the previous range, the bond market operation is more difficult. It is expected to oscillate with a slightly bearish bias in the medium - term [9]. - **Silver**: US economic data in October is positive, which is bullish for silver. With a high probability of rate - cuts in October, the downside is limited. It is long - term bullish and short - term oscillating [9]. - **PVC**: Domestic PVC production is expected to increase, while demand is entering the off - season. The price is expected to oscillate in the short - term, with support at 4695 for the 01 contract. It is recommended to wait and see [10]. - **Methanol**: Domestic methanol production is at a high level, and downstream demand is stable. The port inventory is accumulating slightly. The 01 contract is expected to oscillate weakly in the short - term, with resistance at 2300. It is recommended to wait for further stabilization [11]. - **Crude Oil**: The crude oil market is in a game between short - term geopolitical bullish factors and long - term supply - demand bearish factors. A short - term low - level bullish approach is recommended [11]. 3. Summary by Variety Gold - US September CPI rose 3% year - on - year, lower than expected. Core CPI and service inflation slowed. The market fully priced in two 25 - basis - point Fed rate cuts [1]. - The strong US dollar is bearish for gold, but buying power remains strong. Gold may oscillate at a high level in the medium - term [1]. Soda Ash - The national mainstream price of heavy - quality soda ash is 1271 yuan/ton, with stable recent prices. Weekly production is 74.05 tons, down 3.93% week - on - week [2]. - Total inventory of soda ash manufacturers is 170.21 tons, up 0.09% week - on - week. The float glass market has stable start - up, rising inventory, and average trading [2]. Rebar - The blast - furnace start - up rate of 247 steel mills is 84.71%, up 0.44 percentage points week - on - week. The iron - making capacity utilization rate is 89.94%, down 0.39 percentage points [4]. - Steel mill profitability is 47.62%, down 7.79 percentage points week - on - week. Daily average pig - iron output is 239.9 tons, down 1.05 tons week - on - week [4]. Iron Ore - The total inventory of imported iron ore at 45 ports is 14423.59 tons, up 145.32 tons week - on - week. The daily average port clearance volume is 312.65 tons, down 3.07 tons [5]. - The number of ships at ports is 107, down 17. Supply is stable, and demand is supported by high iron - water levels, but profit contraction affects demand [5]. Coking Coal - The capacity utilization rate of independent coking enterprises is 73.47%, down 0.77%. Daily coke production is 64.61 tons, down 0.68 tons [6]. - Coke inventory is 58.64 tons, up 1.35 tons. Coking coal inventory is 1029.70 tons, up 32.33 tons. Supply is tightening, and demand is strong [6]. Pigs - As of October 24, the average slaughter weight of pigs is 123.21 kg, down 0.22 kg. The weekly slaughter start - up rate is 35.3%, down 0.34% [7]. - The profit of purchasing piglets for breeding is - 279.65 yuan/head, up 67.28 yuan/head. The self - breeding profit is - 149.54 yuan/head, up 53.28 yuan/head [7]. Palm Oil - The estimated export volume of Malaysian palm oil from October 1 - 25 is 1283814 tons, down 0.4%. The futures price may recover in November, but spot price is under pressure [7]. Soybeans - In the 43rd week (October 18 - 24), the actual soybean crushing volume of domestic oil mills is 236.74 tons, with a start - up rate of 65.13%. The 44th - week start - up rate is expected to decline slightly [8]. Medium - Long - Term Treasury Bonds - The central bank will conduct 900 billion yuan of MLF operations on October 27, with a net investment of 200 billion yuan. Liquidity is loose, but the bond market operation is difficult due to the stock market [9]. Silver - The US October manufacturing, service, and composite PMI are all better than expected. Economic data is positive for silver, and the downside is limited due to expected rate - cuts [9]. PVC - The price of East China SG - 5 type PVC is 4600 yuan/ton, down 10 yuan/ton. The capacity utilization rate is 76.57%, down 0.12% week - on - week [10]. - Social inventory is 103.52 tons, down 0.13% week - on - week. Domestic production is expected to increase, and demand is entering the off - season [10]. Methanol - The market price of methanol in Jiangsu Taicang is 2240 yuan/ton, down 10 yuan/ton. The domestic weekly capacity utilization rate is 87.4%, down 2.13% [11]. - Port inventory is 151.22 tons, up 2.08 tons week - on - week. The 01 contract is expected to oscillate weakly in the short - term [11]. Crude Oil - After the US sanctions on Russian oil companies, Reliance Industries stops buying Russian oil. The market is in a game between short - term geopolitical and long - term supply - demand factors [11].

Core Viewpoint - The artificial board industry is facing unprecedented operational pressures, with Fenglin Group struggling amid intense market competition [1][2]. Group 1: Performance Decline - Fenglin Group's performance in the first three quarters of this year has significantly declined, with operating revenue showing a marked decrease compared to the same period last year [5]. - Notably, the company has reported a net profit loss, with the loss amount widening compared to the same period last year [6]. - This disappointing performance continues the trend of weak results observed throughout the year [7][8]. Group 2: Market Predicament - The decline in Fenglin Group's performance is not an isolated case but reflects the broader challenges faced by the entire industry [9]. - Domestic particle board production capacity continues to increase, leading to an imbalance between supply and demand, which significantly impacts business operations due to fierce market competition [10]. - In the context of an overall industry downturn, Fenglin Group's main products are experiencing downward pressure on both sales and prices [11]. - To adapt to market changes and maintain reasonable inventory levels, the company has had to adjust its production plans, resulting in increased downtime that further affects profitability [12]. Group 3: Industry Challenges - The crisis in the artificial board industry has persisted for several years, with many companies facing similar operational pressures [13]. - The deep adjustment in the real estate sector continues to suppress demand for artificial boards in the construction and decoration fields, although the custom home market shows some resilience, weakened consumer expectations still affect growth [13]. - Fluctuations in exchange rates in key export markets have weakened the price competitiveness of export products, adding extra pressure on companies primarily engaged in artificial board production [13]. - The intensifying internal competition within the industry has severely squeezed profit margins, making survival during this adjustment period a primary concern for many companies [14]. Group 4: Path Forward - In response to industry challenges, Fenglin Group is actively seeking breakthroughs [15]. - The company's management has previously stated that they will closely monitor market dynamics and flexibly adjust operational strategies [16]. - In the face of fierce market competition, the company needs to better balance capacity utilization and inventory levels to minimize downtime losses while maintaining market share and product pricing [17]. - Industry experts suggest that artificial board companies need to enhance competitiveness through product structure optimization, cost control, and technological upgrades while waiting for an improvement in industry conditions [18]. - Fenglin Group's path forward resembles rowing against the current, necessitating strategies for survival and growth during the industry's winter [19]. - In the absence of significant market demand improvement, competition among companies will increasingly focus on cost control, product differentiation, and market expansion capabilities [20]. - For Fenglin Group, establishing a firm foothold during this industry reshuffle will test the management's wisdom and determination [21].

Core Viewpoint - The artificial board industry is facing unprecedented operational pressures, with Fenglin Group struggling amid intense market competition [1][2]. Group 1: Performance Decline - Fenglin Group's performance in the first three quarters of this year has been poor, with significant declines in revenue compared to the same period last year [4]. - Notably, the company has turned to a loss, with the loss amount widening compared to the same period last year [5]. - This disappointing performance continues the trend of weak results for Fenglin Group throughout the year, as indicated in its semi-annual report [6]. Group 2: Market Dilemma - The decline in Fenglin Group's performance is not an isolated case but a reflection of the broader challenges facing the industry [7]. - The domestic particle board production capacity continues to increase, leading to an imbalance between supply and demand, significantly impacting business operations [7]. - In the context of an overall industry downturn, Fenglin Group faces downward pressure on both sales and prices of its main products, necessitating adjustments in production plans and increased downtime, further affecting profitability [8]. Group 3: Industry Challenges - The crisis in the artificial board industry has persisted for several years, with many companies experiencing similar operational pressures [9]. - The deep adjustment in the real estate sector continues to suppress demand for artificial boards in the construction and decoration fields, while the custom home market, despite showing some resilience, is still affected by weakened consumer expectations [9]. - Fluctuations in exchange rates in key export markets have weakened the price competitiveness of export products, adding extra pressure on companies primarily engaged in artificial board businesses [9]. - Increasing internal competition has severely squeezed profit margins, making survival during this adjustment period a primary concern for many companies [9]. Group 4: Path Forward - In response to industry challenges, Fenglin Group is actively seeking breakthroughs [10]. - The management has indicated a commitment to closely monitor market dynamics and flexibly adjust operational strategies [11]. - To navigate intense market competition, the company aims to better balance capacity utilization and inventory levels, minimize downtime losses, and maintain market share and product pricing [11]. - Industry experts suggest that artificial board companies need to enhance competitiveness through product structure optimization, cost control, and technological upgrades while waiting for an industry recovery [11]. - Fenglin Group's path forward resembles rowing against the current, requiring strategies for survival and growth during the industry's winter [12].

Group 1: Report Industry Investment Rating - No relevant content Group 2: Core Viewpoints of the Report - Due to some domestic reforming units reducing their load, the load of PX units has declined. On the supply side, the supply of PTA has contracted, with Ningbo Yisheng Petrochemical's Phase 4 reducing its load by 50% until the end of the month. The processing fee of PTA has continued to be low. Industry profits are still constrained by over - capacity due to the commissioning of new devices. The downstream load of polyester has remained above 90%. Although the "Golden Nine and Silver Ten" period has ended, the demand for textile and clothing is still acceptable. In the later stage, the operating rate of PTA may decline further. With the rebound of crude oil prices, PTA has risen accordingly. Bottle chips and staple fibers continue to fluctuate with costs [2] Group 3: Summary by Related Catalogs 1. Price Changes - PTA spot price increased from 4370 to 4425, with a change of 55; MEG inner - market price rose from 4107 to 4173, a change of 66; PTA closing price went from 4482 to 4508, up 26; MEG closing price increased from 4051 to 4095, a gain of 44; 1.4D direct - spun polyester staple fiber price rose from 6365 to 6390, up 25; short - fiber basis decreased from 184 to 178, a decline of 6; 11 - 12 spread increased from 10 to 18, a change of 28; polyester staple fiber cash flow increased from 240 to 246, up 6; 1.4D direct - spun and imitation large - chemical spread increased from 965 to 990, up 25; East China water bottle chip price rose from 5663 to 5670, up 7; hot - filled polyester bottle chip price rose from 5663 to 5670, up 7; carbonated - grade polyester bottle chip price rose from 5763 to 5770, up 7; outer - market water bottle chip price rose from 745 to 750, up 5; bottle - chip spot processing fee decreased from 551 to 489, a decline of 62.13; T32S pure polyester yarn price rose from 10280 to 10300, up 20; T32S pure polyester yarn processing fee decreased from 3915 to 3910, a decline of 5; cotton 328 price rose from 14560 to 14575, up 15; polyester - cotton yarn profit decreased from 1626 to 1604, a decline of 22.25; 1.4D imitation large - chemical price remained unchanged at 5400; polyester - cotton yarn 65/35 45S price remained unchanged at 16350 [2] 2. Market Conditions - **Short - fiber Market**: The main futures of polyester staple fiber rose by 30 to 6160. In the spot market, the prices of polyester staple fiber production plants were stable, the prices of traders fluctuated, downstream buyers purchased as needed, and spot - futures buying decreased, with general trading volume. The price range of 1.56dtex*38mm semi - bright (1.4D) polyester staple fiber in the East China market was 6120 - 6460 (cash on the spot, tax - included, self - pick - up), 6240 - 6580 in the North China market (cash on the spot, tax - included, delivered), and 6130 - 6370 in the Fujian market (cash on the spot, tax - included, delivered) [2] - **Bottle - chip Market**: The mainstream negotiation price of polyester bottle chips in the Jiangsu and Zhejiang markets was 5650 - 5740 yuan/ton, with the average price increasing by 25 yuan/ton compared to the previous working day. On the day, polyester raw material PTA and bottle - chip futures fluctuated upwards. Most supply - side offers were raised, downstream terminal purchases maintained rigid demand, market trading was light, and the price center of bottle chips moved upwards [2] 3. Load and Production and Sales Data - The weekly load of direct - spun staple fibers increased from 93.90% to 94.40%, a change of 0.01; the production and sales rate of polyester staple fibers decreased from 138.00% to 77.00%, a decline of 61.00%; the weekly starting rate of polyester yarn remained unchanged at 63.50%; the weekly load index of recycled cotton - type increased from 51.00% to 51.50%, a change of 0.01 [3]

Report Summary 1. Report Industry Investment Rating - No investment rating information is provided in the report. 2. Core Viewpoints - Due to some domestic reforming units reducing their loads, the load of PX units has declined. The supply of PTA has contracted, with Ningbo Yisheng Petrochemical Phase 4 reducing its load by 50% until the end of the month. PTA's processing fee has remained low, and industry profits are still constrained by over - capacity due to new device commissioning. The downstream load of polyester has remained above 90%. Despite the end of the "Golden Nine and Silver Ten" period, the demand for textile and clothing is still acceptable. In the later period, the operating rate of PTA may decline further. The rebound in crude oil prices has led to a rise in PTA prices, and bottle chips and short fibers continue to fluctuate with costs [2]. 3. Summary by Relevant Indicators Price Indicators - PTA spot price increased from 4320 to 4370, a change of 50; MEG inner - market price rose from 4075 to 4107, a change of 32; PTA closing price went up from 4414 to 4482, a change of 68; MEG closing price increased from 4004 to 4051, a change of 47; 1.4D direct - spinning polyester staple fiber price rose from 6340 to 6365, a change of 25; short - fiber basis decreased from 218 to 184, a change of - 34; 11 - 12 spread increased from 8 to 10, a change of 2; polyester staple fiber cash flow increased from 240 to 246, a change of 6; 1.4D imitation large - chemical fiber price remained unchanged at 5400; the price difference between 1.4D direct - spinning and imitation large - chemical fiber increased from 940 to 965, a change of 25; East China water bottle chip price increased from 5594 to 5663, a change of 69; hot - filling polyester bottle chip price increased from 5594 to 5663, a change of 69; carbonated - grade polyester bottle chip price increased from 5694 to 5763, a change of 69; outer - market water bottle chip price increased from 740 to 745, a change of 5; bottle - chip spot processing fee increased from 535 to 551, a change of 15.53; T32S pure polyester yarn price remained unchanged at 10280; T32S pure polyester yarn processing fee decreased from 3940 to 3915, a change of - 25; polyester - cotton yarn 65/35 45S price remained unchanged at 16350; cotton 328 price increased from 14530 to 14560, a change of 30; polyester - cotton yarn profit decreased from 1654 to 1626, a change of - 27.92; primary three - dimensional hollow (with silicon) price remained unchanged at 6920; hollow short - fiber 6 - 15D cash flow decreased from 661 to 608, a change of - 53.47; primary low - melting - point short - fiber price remained unchanged at 7310 [2]. Market Conditions - Short - fiber: The main futures of polyester staple fiber rose 78 to 6136. In the spot market, the prices of polyester staple fiber production plants were mainly negotiated, the prices of traders were rising, downstream purchases were few, and the market was mainly replenished through futures - spot trading, with trading volume increasing. The price range of 1.56dtex*38mm semi - glossy natural white (1.4D) polyester staple fiber in the East China market was 6120 - 6460, in the North China market was 6240 - 6580, and in the Fujian market was 6100 - 6400 [2]. - Bottle chips: The mainstream negotiation price of polyester bottle chips in the Jiangsu and Zhejiang markets was 5620 - 5720 yuan/ton, with the average price rising 30 yuan/ton compared to the previous working day. The prices of polyester raw material PTA and bottle - chip futures rebounded, most supply - side quotations increased, the procurement enthusiasm of downstream terminals remained at the rigid - demand level, the market trading atmosphere was average, and the price center of bottle chips moved up slightly [2]. Load and Production and Sales Indicators - The direct - spinning short - fiber load (weekly) increased from 93.90% to 94.40%, a change of 0.01; polyester staple fiber production and sales decreased from 72.00% to 66.00%, a change of - 6; polyester yarn startup rate (weekly) remained unchanged at 63.50%; recycled cotton - type load index (weekly) increased from 51.00% to 51.50%, a change of 0.01 [3]

Core Viewpoint - The company, Jinlongyu, has announced the sale of its wholly-owned subsidiary, Zhalai Teqi Hefeng Agricultural Co., Ltd., to optimize its asset structure amid ongoing losses and financial difficulties [1][2]. Group 1: Asset Sale and Financial Implications - Jinlongyu's subsidiary, which previously handled its beet sugar business, has been sold due to continuous losses and insolvency, reflecting the company's need to streamline operations [1][2]. - The sale includes a significant debt waiver arrangement, with Jinlongyu potentially waiving up to 197 million RMB in debts to facilitate the transaction [2][3]. - As of the announcement date, Zhalai Company reported total assets of 239.02 million RMB, total liabilities of 377.95 million RMB, and a net loss of 34.65 million RMB [3]. Group 2: Project Delays and Performance Issues - Jinlongyu has faced multiple delays in its fundraising projects, with ten projects failing to meet expected returns in the first half of the year [4]. - The company has been struggling with underutilized production capacity, with oil extraction and refining capacity utilization rates at 56.94% and 49.97%, respectively, indicating a significant overcapacity issue [4]. - The company’s revenue growth has been modest, with a 5.67% increase in revenue and a 60.07% increase in net profit in the first half of the year, primarily driven by improvements in the feed raw materials segment [5][6]. Group 3: Market Position and Competitive Landscape - Jinlongyu holds a leading market share in edible oils and has a strong presence in packaged rice and flour, but faces challenges in a shrinking consumer demand environment [6]. - The company has been attempting to pivot towards high-end products and expand its product lines into new categories, but these efforts have had limited impact on overall performance [6]. - The competitive landscape in the flour processing industry is intensifying, with larger players increasing capacity, leading to lower-than-expected project returns for Jinlongyu [4][5]. Group 4: Financial Health and Risks - Jinlongyu's financial health is concerning, with a debt ratio of 56% and significant short-term and long-term interest-bearing liabilities, raising liquidity risk [7]. - The company’s cash-to-short-term debt ratio is only 0.53, indicating potential challenges in meeting short-term obligations [7]. - The net profit margin remains low, with projections of around 0.5% for 2023 and 2024, despite a slight recovery in the first half of the year [6][7].

Report Industry Investment Rating - Not provided Core Viewpoints - PTA supply side is contracting, with Ningbo Yisheng Petrochemical Phase 4 reducing its load by 50% until the end of the month. PTA processing fees remain low, and industry profits are still constrained by overcapacity due to new device commissions. Polyester downstream load remains above 90%, but high load has not led to significant inventory accumulation. With the end of the peak seasons, there are concerns that textile and clothing demand will be affected by the trade war. PTA's operating rate may decline further, and it is difficult for PTA to have an independent market due to the falling crude oil prices. Bottle chips and short fibers continue to fluctuate with costs [2] Summary by Relevant Catalogs Price and Index Changes - PTA spot price increased from 4315 to 4320, PTA closing price rose from 4384 to 4414 [2] - MEG inner - market price decreased from 4100 to 4075, MEG closing price increased from 4003 to 4004 [2] - 1.4D direct - spun polyester staple fiber price decreased from 6355 to 6340, short - fiber basis increased from 199 to 218 [2] - 11 - 12 spread increased from 4 to 8, polyester staple fiber cash flow increased from 240 to 246 [2] - 1.4D imitation large - chemical fiber price decreased from 5450 to 5400, the spread between 1.4D direct - spun and imitation large - chemical fiber increased from 905 to 940 [2] - East China water bottle chip price decreased from 5602 to 5594, hot - filled polyester bottle chip price decreased from 5602 to 5594 [2] - Carbonated - grade polyester bottle chip price decreased from 5702 to 5694, outer - market water bottle chip price remained at 740 [2] - Bottle chip spot processing fee decreased from 539 to 535, T32S pure polyester yarn price remained at 10280 [2] - T32S pure polyester yarn processing fee increased from 3925 to 3940, polyester - cotton yarn 65/35 45S price remained at 16350 [2] - Cotton 328 price increased from 14480 to 14530, polyester - cotton yarn profit decreased from 1663 to 1654 [2] - Primary three - dimensional hollow (with silicon) price remained at 6920, hollow short - fiber 6 - 15D cash flow increased from 657 to 661 [2] - Primary low - melting - point short - fiber price remained at 7310 [2] Market Conditions - Short fiber: The main futures of polyester staple fiber rose 2 to 6070. The spot market is mainly price negotiation by production factories, with traders' prices fluctuating in a range. Downstream buyers purchase as needed, and market transactions are cautious. The price of 1.56dtex*38mm semi - bright natural white (1.4D) polyester staple fiber in the East China market is 6090 - 6460, in the North China market is 6210 - 6580, and in the Fujian market is 6060 - 6400 [2] - Bottle chips: The mainstream negotiation price of polyester bottle chips in the Jiangsu and Zhejiang markets is 5570 - 5710 yuan/ton, with the average price unchanged from the previous working day. PTA and bottle chip futures fluctuate slightly, most supply - side offers are stable, downstream terminal procurement enthusiasm is average, and market trading atmosphere is light [2] Load and Production and Sales - Direct - spun short - fiber load (weekly) decreased from 93.90% to 94.40%, polyester staple fiber production and sales decreased from 77.00% to 66.00% [3] - Polyester yarn startup rate (weekly) remained at 63.50%, regenerated cotton - type load index (weekly) decreased from 51.50% to 51.00% [3]