Summary of the Conference Call on Jinfa Technology and the Modified Plastics Industry Industry Overview - The global modified plastics market size is approximately $428.5 billion in 2023, with a year-on-year growth of 4.6% [2][6] - North America accounts for over 30% of the market share, while China's market size is close to 300 billion RMB, growing by 12.1% year-on-year, significantly outpacing GDP growth [2][6] - China's modification rate is currently at 26%, which is still below the overseas average of 50%, indicating substantial room for improvement [2][6] Key Trends and Developments - Future trends in China's modified plastics sector include an increase in the proportion of specialty engineering plastics and improvements in the quality of general plastics [2][7] - The steel-plastic ratio globally is approximately 1:1, while in China, the ratio for quick-drying pens is 3:7, indicating a significant gap compared to the U.S. (7:3) and Germany (63:37) [2][8] Demand Drivers - The demand for modified plastics in the new energy vehicle (NEV) sector is driven by both sales volume and per-vehicle usage [2][9] - Global NEV sales are projected to reach 17.3 million units in 2024, with China's production expected to be 11.71 million units, reflecting a year-on-year growth of 43.69% [2][10] - The household appliance industry is the largest application field for modified plastics, with an expected sales volume of 180 million units in 2024, growing by 5.41% year-on-year [2][11] Company Insights: Jinfa Technology - Jinfa Technology is one of the largest modified plastics producers globally, with a total capacity of 3.72 million tons and an additional 505,000 tons under construction [3][12] - The company has diversified into specialty engineering plastics, including high-temperature nylon, LCP, and PPSU, and has reduced external dependencies through acquisitions [3][13] - Jinfa's automotive materials sales reached 560,300 tons in 2025, a 21% increase year-on-year, benefiting from the rising penetration of NEVs and weight reduction demands [3][17] - The household appliance materials business grew by 20% in the first half of 2025, driven by customized high-performance ABS products [3][18] Technological Barriers - The modified plastics industry faces technological barriers, particularly in the complexity of modification processes and formulation development [5] - Physical and chemical modifications require precise control over the distribution of additives and specific formulations, which are core competencies of companies in the sector [5] Future Outlook - Jinfa Technology is actively investing in the robotics sector and has established partnerships to provide material solutions, indicating a strategic move towards high-growth industries [3][26] - The company is also focusing on environmental sustainability through the development of high-performance recycled plastics and expanding its recycling capabilities [3][22] Conclusion - The modified plastics industry, particularly in China, presents significant growth opportunities driven by advancements in technology, increasing demand in key sectors like NEVs and household appliances, and the strategic positioning of leading companies like Jinfa Technology [2][3][7][11]

Market Performance - The Hang Seng Technology Index closed at 5902.69, up 1.27% for the day and 31.15% year-to-date[3] - The S&P 500 Index closed at 6512.61, up 0.30% for the day and 10.25% year-to-date[3] - Oracle's stock surged 36% to a record high, with a market capitalization increase of approximately $250 billion, reaching $922.24 billion[9] Sector Highlights - Major technology stocks in Hong Kong saw significant gains, with JD.com up 3.6% and Baidu up over 2%[9] - Financial stocks also performed well, with Agricultural Bank rising 3.5% and China Construction Bank up 2.84%[9] - Semiconductor stocks were active, with SMIC gaining 3.6%[9] Economic Indicators - The U.S. Producer Price Index (PPI) unexpectedly fell by 0.1% month-over-month in August, marking the first decline in four months, strengthening the case for potential interest rate cuts by the Federal Reserve[9] - Japan's manufacturing sentiment index rose to 13, the highest in three years, indicating improved economic confidence[14] Investment Trends - Net inflows from mainland investors into Hong Kong stocks amounted to HKD 7.566 billion on September 10[9] - AI infrastructure stocks like CoreWeave rose by 16.88%, reflecting growing investor interest in the sector[9]

Report Industry Investment Rating No information provided in the report. Core Viewpoints of the Report - This week, the main contract of Shanghai Nickel fluctuated and adjusted, with a weekly decline of 0.22% and an amplitude of 1.65%, closing at 123,450 yuan/ton. The main contract of stainless steel fluctuated, with a weekly increase of 0.39% and an amplitude of 1.74%, closing at 12,720 yuan/ton [7]. - Macroscopically, the bilateral trade agreement between the US and the UK eased market tensions, the US dollar index rose, and China plans to launch high - quality projects worth about 3 trillion yuan. Fundamentally, Indonesia's PNBP policy increased the cost of nickel resource supply, domestic smelters' costs rose, and some faced losses. The production capacity of Indonesian nickel - iron accelerated its release, and production recovered significantly. On the demand side, stainless steel prices weakened, and there was an expectation of production cuts. The demand for new energy vehicles continued to climb but had a limited impact. Recently, domestic inventories fluctuated and decreased, while overseas inventories continued to accumulate. Technically, it is expected to adjust weakly [7]. - For both Shanghai Nickel and stainless steel, it is recommended to wait and see or take short positions with a light position [7]. Summary by Relevant Catalogs 1. Week - to - Week Summary Shanghai Nickel - **Weekly Review**: The main contract of Shanghai Nickel fluctuated and adjusted, with a weekly decline of 0.22% and an amplitude of 1.65%, closing at 123,450 yuan/ton [7]. - **Market Outlook**: Macro factors, policy in Indonesia, cost changes, supply and demand situations, and inventory trends all affect the market. Technically, it is expected to adjust weakly [7]. - **Strategy Recommendation**: Wait and see or take short positions with a light position [7]. Stainless Steel - **Weekly Review**: The main contract of stainless steel fluctuated, with a weekly increase of 0.39% and an amplitude of 1.74%, closing at 12,720 yuan/ton [7]. - **Market Outlook**: Raw material costs, supply, demand, and inventory changes affect the market. Technically, there is a divergence between long and short positions [7]. - **Strategy Recommendation**: Wait and see or take short positions with a light position [7]. 2. Futures and Spot Market - **Price Changes**: As of May 9, the average price of nickel pig iron (1.5 - 1.7%) was 3,500 yuan/ton, unchanged from last week; the average price of nickel - iron (7 - 10%) nationwide was 950 yuan/nickel, down 25 yuan/nickel from last week. The closing price of Shanghai Nickel was 123,450 yuan/ton, down 730 yuan/ton from last week; the closing price of stainless steel was 12,720 yuan/ton, unchanged from last week [13]. - **Basis Changes**: As of May 9, the basis of electrolytic nickel was 1,375 yuan/ton, and the basis of stainless steel was 980 yuan/ton. The basis of Shanghai Nickel decreased, and that of stainless steel increased [16]. - **Ratio Changes**: As of May 9, the price ratio of Shanghai Nickel to stainless steel was 9.71, down 0.06 from last week; the price ratio of Shanghai Tin to Shanghai Nickel was 2.1 yuan/ton, unchanged from last week [20]. - **Net Long Position Changes**: As of May 9, the net long position of the top 20 in Shanghai Nickel increased, and that of stainless steel also increased [26]. 3. Industrial Chain Situation Supply Side - **Nickel Ore and Electrolytic Nickel**: As of May 2, the nickel ore inventory in major ports was 685.43 yuan/ton, up 0.21% from last week. As of May 9, the production profit of electrowon nickel was 675 yuan/ton, down 825 yuan/ton from last week. China's electrolytic nickel production and imports decreased significantly [34][33][36]. - **Nickel Inventory**: As of May 9, the LME nickel inventory was 23,426 tons, down 3,740 tons from last week; the Shanghai Futures Exchange nickel inventory was 27,808 tons, down 2,786 tons from last week [42][43]. Demand Side - **Stainless Steel Production and Trade**: In April 2025, the total output of stainless crude steel was 350.25 tons, a month - on - month decrease of 0.27%. In March 2025, the import volume of stainless steel was 124,800 tons, a month - on - month decrease of 30,900 tons; the export volume was 412,000 tons, a month - on - month increase of 178,100 tons [48]. - **Stainless Steel Inventory**: As of May 9, the stainless steel inventory in Foshan was 339,134 tons, an increase of 10,240 tons from last week; the inventory in Wuxi was 612,232 tons, an increase of 14,674 tons from last week [53]. - **Stainless Steel Production Profit**: As of May 9, the production profit of stainless steel was - 257 yuan/ton, an increase of 192 yuan/ton from last week [57]. - **Downstream Industries**: The real estate industry recovered slowly, while the home appliance industry showed signs of recovery in the peak season. In March 2025, the production and sales of new energy vehicles increased significantly, and the production of construction machinery also increased [60][64].

Core Viewpoint - Sichuan Changhong (600839) experienced a significant increase of 7.05% on May 6, closing at 11.24 yuan, with a trading volume of 4.0658 million shares and a total transaction value of 4.456 billion yuan [1] Group 1: Stock Performance - The stock's turnover rate was 8.81%, indicating active trading [1] - The net inflow of main funds was 412 million yuan, accounting for 9.25% of the total transaction value [1] - Retail investors saw a net outflow of 254 million yuan, representing 5.69% of the total transaction value [1] Group 2: Financing and Margin Trading - In the past five days, the net inflow of financing was 77.44 million yuan, leading to an increase in financing balance [1] - The net inflow of securities lending was 22,100 shares, resulting in an increase in securities lending balance [1] Group 3: Fund Holdings - The top ten public funds holding Sichuan Changhong include 35 funds in total, with the largest being the Southern CSI 500 ETF, holding 47.4598 million shares [1] - The Southern CSI 500 ETF has a scale of 94.872 billion yuan and a recent net value of 5.6288, which increased by 0.48% on April 30 [1] - The fund manager, Luo Wenjie, has managed several products with significant returns, including the Southern CSI 500 ETF and Southern CSI 300 ETF, with returns of 87.7% and 100.74% respectively since their inception [1]