1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints of the Report - The international crude oil futures continue to oscillate at a high level. The geopolitical situation in the Middle East and the impact on Russian crude oil exports have led to a tight supply situation. Although the short - term sanctions relief has slightly eased the tightness, the key lies in whether the strait can be unsealed. Investors should view oil prices with an oscillatory mindset [1]. - Chemical product prices have been oscillating recently. The cost of energy is the anchor for chemicals. In the context of reduced supply in oil - chemical industries, processing fees have been compressed. There is an expectation of valuation repair in the future. If the geopolitical situation eases, the decline in upstream energy prices may be greater than that of chemicals; if it persists, chemicals may experience a supplementary increase [1]. - Overall, the energy and chemical sector continues to be in an oscillatory pattern, awaiting the clarity of the geopolitical situation [2]. 3. Summary by Directory 3.1 Market Views 3.1.1 Crude Oil - **Viewpoint**: Geopolitical expectations are fluctuating, and oil prices are oscillating at a high level. - **Main Logic**: The expectation of a possible cooling of the US - Iran situation has led to a weakening of oil prices, but there is still great uncertainty in the geopolitical outlook. The current crude oil market faces a large supply gap, and the potential release of floating storage in Iran and Russia is relatively limited. The pressure on Persian Gulf countries to cut production remains. Future expectation deviations mainly come from the progress of the US - Iran conflict, the passage of oil tankers in the Strait of Hormuz, and attacks on energy facilities. - **Outlook**: Oscillation. Supply shortages persist, and the fluctuation of geopolitical expectations intensifies, so oil prices are expected to oscillate [7]. 3.1.2 Asphalt - **Viewpoint**: The sharp decline in crude oil has driven down the asphalt futures price. - **Main Logic**: Geopolitical factors are the core influence on oil prices. The market's concern about the resumption of US - Iran negotiations has led to a decline in asphalt futures prices. The profit of asphalt refineries has deteriorated rapidly, and there is an expectation of a significant decline in refinery operations. The reduction in asphalt production by various groups may drive up the asphalt - fuel oil spread. The supply of asphalt is expected to further decline, while the demand side has a large inventory accumulation pressure. Currently, the asphalt futures price is undervalued compared to fuel oil and overvalued compared to rebar. - **Outlook**: Oscillation. The absolute price of asphalt is in an overvalued range, and the medium - to - long - term valuation is expected to decline [8]. 3.1.3 High - Sulfur Fuel Oil - **Viewpoint**: High - sulfur fuel oil follows the decline of crude oil. - **Main Logic**: Geopolitical factors are the core driver of oil prices. The market's concern about the resumption of US - Iran negotiations has led to a decline in high - sulfur fuel oil futures prices. The high import dependence and strong geopolitical attributes of fuel oil mean that the tense situation in Iran affects not only the export of Iranian fuel oil and Middle - East fuel oil but also the supply of Middle - East natural gas. However, the Singapore fuel oil cracking spread has fallen from a record high, indicating that the refinery feed demand and power - generation demand may be suppressed by high prices. In the medium - to - long - term, the demand for high - sulfur fuel oil for power generation in the Middle East is gradually being replaced by natural gas and photovoltaics. - **Outlook**: Oscillation. The expected increase in Venezuela's oil production exerts long - term pressure on high - sulfur fuel oil. Short - term attention should be paid to the geopolitical situation in the Middle East [8]. 3.1.4 Low - Sulfur Fuel Oil - **Viewpoint**: Low - sulfur fuel oil follows the decline of crude oil. - **Main Logic**: Low - sulfur fuel oil has fallen from a high level following crude oil, and the market is currently focused on the progress of the geopolitical situation. Low - sulfur fuel oil has strong main - product attributes, and its valuation has been significantly repaired compared to crude oil and asphalt during the oil - price increase. It faces negative factors such as a decline in shipping demand, green - energy substitution, and high - sulfur substitution. The low - sulfur fuel oil - asphalt spread has returned to a high level, and the valuation is in a moderately high state. The high profit is expected to drive an increase in low - sulfur fuel oil production. - **Outlook**: Oscillation. Low - sulfur fuel oil is affected by green - fuel substitution and insufficient high - sulfur substitution demand, but its current valuation is relatively low and it follows the fluctuation of crude oil [10]. 3.1.5 PX - **Viewpoint**: The cost pressure on downstream polyester factories remains significant. - **Main Logic**: The expectation of the end of the US - Iran war and the reopening of the strait has led to a significant correction in international oil prices, and downstream chemicals are expected to be more affected by cost. Fundamentally, the reduction in the operation of domestic and foreign PX plants affects the future supply expectation of PX. Although the polyester sales volume has increased after the sharp decline in oil prices, the current PX/PTA prices are still at a high level, and the cost pressure forces the continuous increase in the expectation of polyester production reduction. The negative feedback on the demand side suppresses the PX price and profit. - **Outlook**: Oscillation. In the short - term, the PX price is guided by cost, with strong support at the bottom. The logic of buying at low prices in the medium - term remains. The positive spread between PX05 - 09 months should be reduced when it is high, and the PXN is expected to maintain a wide - range oscillation [11]. 3.1.6 PTA - **Viewpoint**: The decline in cost has led to an increase in polyester sales volume. - **Main Logic**: The international oil price has fallen from a high level, and the PX price has followed suit. Although the decline in cost has driven an increase in downstream polyester sales volume, the current high cost still exerts great pressure on polyester factories. The short - term spot inventory is still relatively loose, and the basis is weakly sorted. - **Outlook**: Oscillation. It is expected that PTA will maintain a wide - range oscillatory trend in the short - term. The positive spread between TA05 - 09 months should be reduced when it is high. The short - term volatility increases, and it is not recommended to try to catch the top in the short - term [12]. 3.1.7 Pure Benzene - **Viewpoint**: Crude oil and commodity sentiment dominate the fluctuation, and pure benzene oscillates strongly. - **Main Logic**: The current price of pure benzene is mainly dominated by the geopolitical situation, with strong repeatability of disturbances. On the energy side, the low traffic volume in the Strait of Hormuz has led to a tight supply of crude - oil spot and pushed up oil prices. The supply of Asian naphtha is tightening, which may affect the operation of domestic and foreign cracking plants. On the supply side, some refineries have reduced their operations. On the demand side, the downstream profit is acceptable, and there is no negative - feedback pressure. The value of aromatic hydrocarbon blending for oil has increased. - **Outlook**: Oscillation with an upward trend. Affected by the geopolitical situation, the production of domestic and foreign refineries may be reduced, and the de - stocking of pure benzene is advanced [14]. 3.1.8 Styrene - **Viewpoint**: Geopolitics brings positive factors to styrene supply and demand, and styrene oscillates strongly. - **Main Logic**: The styrene price is still dominated by the geopolitical situation, with strong repeatability of disturbances. On the supply side, some plants are under maintenance or have postponed maintenance, and some long - stopped plants are restarting. On the demand side, the overall downstream profit has declined, and the support for the price has weakened. The ethylene price is strong, squeezing the styrene profit, and some factories may reduce production or conduct maintenance in the future. There is an expectation of new exports of styrene. - **Outlook**: Oscillation with an upward trend. Affected by the geopolitical situation, domestic and foreign production may be reduced, and export demand may increase [15]. 3.1.9 Ethylene Glycol - **Viewpoint**: The US - Iran geopolitical situation continues to disturb market sentiment, and ethylene glycol maintains a high - level consolidation. - **Main Logic**: The high - level correction of international oil prices has significantly weakened the support for chemicals. The arrival of ethylene glycol at the main ports will drop to a low level in early April. With exports and regional supply adjustments, the port inventory will be rapidly reduced. The market will continue to oscillate widely when the import supply of ethylene glycol cannot be effectively realized. - **Outlook**: Oscillation. The price will oscillate at a high level in the short - term. It is recommended to buy at low prices in the medium - term, and to maintain a cautious wait - and - see attitude in the short - term. Pay attention to reducing the EG05 - 09 spread when it is high [17]. 3.1.10 Polyester Staple Fiber - **Viewpoint**: The polyester staple - fiber market is highly polarized. Factories are holding up prices, while downstream buyers are waiting and watching. - **Main Logic**: The international oil price fluctuates widely, and the market sentiment strongly games around the geopolitical situation. The prices of polyester raw materials fluctuate in line with the cost. Fundamentally, the supply of polyester staple fiber continues to increase, but the downstream trading is average, and most buyers are waiting and watching. The cost of raw materials held by yarn mills is relatively high, and attention should be paid to the digestion and acceptance ability of the subsequent process. - **Outlook**: Oscillation. The price of polyester staple fiber follows the upstream, and there is certain support for the processing fee at the bottom. The short - term price volatility is large, and cautious operation is recommended [18]. 3.1.11 Polyester Bottle Chips - **Viewpoint**: The cost volatility intensifies, and polyester bottle chips passively follow. - **Main Logic**: The upstream cost has corrected from a high level, and polyester bottle chips have followed the upstream raw materials to rise and then fall. The overall absolute price change is limited. It is expected that the short - term price trend will still mainly follow the upstream cost. The current supply - demand situation of polyester bottle chips is relatively tight, and the overall fundamentals are relatively good. - **Outlook**: Oscillation. The absolute price follows the raw materials, and the support for the processing fee at the bottom is enhanced. The position of going long PR and short TA should be temporarily exited [20]. 3.1.12 Methanol - **Viewpoint**: The geopolitical conflict continues, and methanol oscillates within a range. - **Main Logic**: On March 24, 2026, the methanol futures price oscillated weakly. The inland market continued to be in a relatively strong oscillatory state, but the overall procurement intensity of downstream in northern Shandong was average. The inventory of methanol production enterprises and ports has decreased. The overseas situation regarding the US - Iran negotiation is uncertain. - **Outlook**: Oscillation. The situation in Iran is full of uncertainties, and the market tends to trade the geopolitical premium, which is difficult to disappear in the short - term. The price has room to rise but is restricted by the downstream's resistance to high prices and weak demand. - **Risk Factors**: Upward risk: A sharp increase in coal prices, favorable macro - policies, and supply - side disturbances; Downward risk: Downstream negative feedback [23]. 3.1.13 Urea - **Viewpoint**: Urea oscillates and consolidates under the game between long and short positions. - **Main Logic**: On March 24, 2026, urea oscillated weakly. The supply side maintains a high - level daily production, and the market supply is sufficient. The demand side has a weakening agricultural demand and insufficient industrial demand. The inventory of urea enterprises has decreased, and the spot price is suppressed by the policy - guided price. - **Outlook**: Oscillation. The current fundamentals of urea are relatively stable. The supply remains at a high level, and the agricultural demand support is slightly loosened while the industrial demand is moderately recovering. The sustainability of the futures - price increase driven by market sentiment needs to be considered. - **Risk Factors**: Upward risk: A sharp increase in coal prices, favorable macro - factors, and unexpected demand; Downward risk: A sharp decline in coal prices, policy - control risks, and unexpected demand [25]. 3.1.14 LLDPE - **Viewpoint**: The expectation of geopolitical cooling disturbs the market, and LLDPE should be treated with caution. - **Main Logic**: On March 24, the LLDPE futures price fell back, and the market game was intense. The expectation of a possible cooling of the US - Iran situation has led to a sharp decline in oil prices, but there is still great uncertainty in the geopolitical outlook. If the Strait of Hormuz is continuously affected, the import of LLDPE may decrease. The energy - chemical sentiment is still volatile in the short - term, and the refinery operation rate has declined, which still supports the near - term contracts. The spot price fluctuates, and the downstream trading is average. - **Outlook**: Oscillation. The market game is intense under geopolitical disturbances, and the downstream trading is average. - **Risk Factors**: Bullish risk: A decline in oil prices and a weakening of geopolitical disturbances; Bearish risk: An increase in oil prices and a deterioration of the geopolitical situation [29]. 3.1.15 PP - **Viewpoint**: The expectation of geopolitical relaxation disturbs the market, and PP prices fall. - **Main Logic**: On March 24, the PP futures price fell. The expectation of a possible cooling of the US - Iran situation has led to a sharp decline in oil prices, but there is still great uncertainty in the geopolitical outlook. The direct impact on the PP import is limited. The oil - based and PDH profits of PP refineries are still under pressure, which supports the price, while the coal - based profit has been significantly repaired. The overall operation rate is at a low level, and the spot trading is average. - **Outlook**: Oscillation. The spot trading is average, and the market has a fierce long - short game under the disturbance of geopolitical news. - **Risk Factors**: Bullish risk: A decline in oil prices and a weakening of geopolitical disturbances; Bearish risk: An increase in oil prices and a deterioration of the geopolitical situation [30]. 3.1.16 PL - **Viewpoint**: Geopolitical expectations disturb the market, and PL prices fall. - **Main Logic**: On March 24, the PL futures price fell. The reduction in supply has a significant boosting effect, and enterprises' quotations remain firm. Downstream factories purchase as needed, and the actual - order trading is relatively scattered. However, some auctions have a small premium, pushing up the trading center. The short - term powder - material profit is compressed, and the acceptance of downstream factories is limited. - **Outlook**: Oscillation. The operation rate has declined, but the downstream powder - material profit is still under pressure. - **Risk Factors**: Bullish risk: A decline in oil prices and a weakening of geopolitical disturbances; Bearish risk: An increase in oil prices and a deterioration of the geopolitical situation [31]. 3.1.17 PVC - **Viewpoint**: The impact is mainly from sentiment, and PVC should be treated with caution. - **Main Logic**: At the macro level, the market is currently gaming the US - Iran peace talks, and the commodity sentiment has cooled down. The geopolitical conflict has not been substantially alleviated, and there are still expectations of cost support and supply disturbances in the energy - chemical sector. At the micro level, both domestic and foreign production has been reduced, and the PVC inventory has been reduced. The overall supply is decreasing, the downstream operation rate has improved, the enthusiasm for chasing price increases is not high, the overseas price has soared, and the export signing is average this week. The cost of ethylene - based PVC has increased, and enterprises are in a loss state. - **Outlook**: Oscillation. The market is gaming the US - Iran peace talks, and the sentiment in the chemical sector has cooled down. If the geopolitical situation is not substantially alleviated, there is still a risk of chlorine - alkali production reduction, and the market should be cautiously optimistic. - **Risk Factors**: Bullish risk: Geopolitical cooling and less - than - expected PVC de - stocking; Bearish risk: Geopolitical heating up and an increase in PVC exports [33]. 3.1.18 Caustic Soda - **Viewpoint**: The geopolitical sentiment has declined, and caustic soda should be treated with caution. - **Main Logic**: At the macro level, the market is currently gaming the US - Iran peace talks, and the commodity sentiment has cooled down. The geopolitical conflict has not been substantially alleviated, and there are still expectations of cost support and supply disturbances in the energy - chemical sector. At the micro level, both domestic and foreign production has been reduced, the caustic - soda export has improved, and there is an expectation of inventory reduction. The alumina marginal - device profit is poor, and production reduction has been realized. The demand for caustic soda has been marginally boosted. The inventory of large alumina factories in Shandong has been reduced. The enthusiasm for chasing price increases of 32% caustic soda is average. The export orders continue, and the price of 50% caustic soda has been raised. The overall supply is decreasing. - **Outlook**: Oscillation. The market is gaming the US - Iran peace talks, and the sentiment in the chemical sector has cooled down. If the geopolitical situation is not substantially alleviated, there is still a risk of chlorine - alkali production reduction, and the market should be cautiously optimistic. - **Risk Factors**: Bullish risk: Geopolitical cooling and weak spot market; Bearish risk: Geopolitical heating up and supply reduction [

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Green Methanol and Wind Power Industry - **Production Capacity**: Green methanol production is expected to enter a rapid growth phase, with deliveries projected at 300,000 to 320,000 tons in 2026 and a conservative estimate of over 600,000 tons by the end of 2027, fully covering Maersk's demand of 500,000 tons under long-term contracts [1][2] Core Insights and Arguments - **Cost and Pricing**: The unit cost is controlled between 4,000 and 4,100 RMB per ton, with potential for reduction through economies of scale, lower hydrogen procurement costs, and improved wind power efficiency. The base delivery price is set at 880 USD per ton, with upward potential due to supply gaps [1][5] - **Order Reserves and Client Structure**: Maersk has a new order of 200,000 tons expected to be fulfilled in the first half of 2026, with Hapag-Lloyd's intention to increase its order from 200,000 tons to 300,000 tons. The upcoming IMO vote in October 2026 is anticipated to catalyze new contracts with clients like COSCO and CMA CGM [1][7] - **Wind Turbine Business**: Expected sales in Q1 2026 are 1.9 GW, with average prices of 1,500 RMB for onshore, 3,000 RMB for domestic offshore, and 2,600 RMB for overseas sales. The annual export target remains at 6 GW [1][8][10] Additional Important Insights - **Wind Power Bidding and Market Conditions**: Domestic onshore wind bidding is expected to reach 125-130 GW in 2026, indicating a stable market environment. Plans to transfer 400-500 MW of wind farms are in place, with a target premium of over 1.8 times [3][11] - **Operational Performance**: Since production began in 2025, operational metrics have largely met expectations, although corn straw storage has slightly underperformed due to winter conditions, leading to a price increase to 450-460 RMB per ton [4][5] - **Future Cost Reduction Paths**: Future cost reductions are anticipated from optimizing variable costs, reducing hydrogen procurement costs, and improving electricity cost efficiency through increased wind power generation [5][6] - **Delivery Schedule for 2026**: Q1 2026 deliveries are expected to be slightly lower at around 70,000 tons, with subsequent quarters ramping up to approximately 90,000 tons in Q4 [6][9] Market Dynamics and Risks - **Geopolitical Risks**: The Middle East situation has disrupted overseas deliveries, affecting approximately 200 MW of projects. Biomass storage prices have slightly increased due to climate impacts [3][9] - **Client Engagement and Order Progress**: Ongoing discussions with Maersk for additional orders are expected to finalize by mid-2026, with potential new clients emerging as the IMO vote approaches [7][16] Future Outlook - **Green Methanol Demand**: The primary application for green methanol remains in maritime transport, with significant demand expected as EU regulations tighten. Other sectors like aviation and land transport are also being explored for potential adoption [13][14] - **Wind Power Installation and Project Progress**: The outlook for offshore wind installations in 2026 is optimistic, with expectations of over 10 GW of installations despite some project delays [15][16] This summary encapsulates the critical insights and projections from the conference call, highlighting the growth potential and challenges within the green methanol and wind power sectors.

Investment Rating - The report maintains a "Buy" rating for key companies in the green hydrogen and green ammonia sector, specifically China Energy Engineering Corporation (601868.SH) and Huadian Heavy Industries (601226.SH) [4]. Core Insights - The green hydrogen industry is driven by three main factors: energy security, policy planning, and economic viability [11]. - Green hydrogen is produced through renewable energy-powered electrolysis, achieving near-zero carbon emissions during production [11]. - The report predicts significant market potential, estimating that by 2030, China's hydrogen demand could reach 38.1 million tons, with green hydrogen sales market space projected to be between 57.2 billion to 114.3 billion CNY [11][29]. Summary by Sections 1. Industry Drivers - **Driver 1: Energy Security** Rising oil and gas prices emphasize the urgent need for energy security, with China's oil self-sufficiency rate projected at 56%-61% and natural gas at 23%-26% from 2020 to 2024. The geopolitical situation in the Middle East has further exacerbated supply risks, leading to a 40% increase in WTI crude oil prices and a 119% increase in LNG prices from early 2026 to March 6, 2026 [20][21]. - **Driver 2: Policy Support** The government is intensifying support for hydrogen projects, with the first batch of pilot projects announced, covering various hydrogen production and storage methods. Subsidies are being provided for both investment and operational phases, with specific examples including a maximum subsidy of 13 CNY per kilogram for projects producing over 100 tons of green hydrogen annually in Yunnan Province [27][28]. - **Driver 3: Cost Reduction** The costs of green hydrogen production are decreasing due to lower electricity prices and equipment costs. The price of alkaline electrolyzers is expected to drop from approximately 7 million CNY per set in 2023 to a range of 4.6 to 5.88 million CNY by 2025, a reduction of about 30% [43][41]. 2. Market Potential - The report estimates that the average annual market space for electrolyzers in China from 2026 to 2030 will be between 14.3 billion to 29.3 billion CNY, with green hydrogen's penetration rate in the hydrogen demand projected at 15%-30% [29][11]. 3. Company Analysis - **China Energy Engineering Corporation** Currently has an operational capacity of 200,000 tons and plans for nearly 900,000 tons per year in green ammonia production [4]. - **Huadian Heavy Industries** Backed by China Huadian, the company is involved in the entire hydrogen energy value chain, producing both alkaline and PEM electrolyzers [4]. 4. Financial Metrics - **China Energy Engineering Corporation** Current stock price: 2.89 CNY, with a target price of 3.38 CNY, indicating a potential upside [4]. - **Huadian Heavy Industries** Current stock price: 11.44 CNY, with a target price of 9.32 CNY, also suggesting a favorable investment opportunity [4].

Group 1: Report Industry Investment Rating - Not provided in the content Group 2: Core Views of the Report - The prices of oil and gas are rising, and due to the cold snap, coal prices are also strong, providing cost support for chemicals. Chemicals also have some industry benefits. Before the Spring Festival, there is an expectation of spring maintenance, and the market anticipates the possible "Golden March and Silver April" consumption peak after the Spring Festival. The futures prices have limited adjustment space and will generally fluctuate [2]. - Crude oil still has the possibility of geopolitical risks, and chemicals should be treated with a fluctuating mindset [3]. Group 3: Summary by Variety Crude Oil - **View**: Geopolitical premium fluctuates, and oil prices continue to oscillate. Supply pressure persists, but geopolitical premium may fluctuate. It should be viewed as oscillating in the short - term [3][6]. - **Main Logic**: Global on - land crude oil inventories have been accumulating, overseas refined oil inventories are under pressure, and the supply surplus pattern remains. The shutdown of Kazakhstan's Tengiz oilfield supports the Western market. Geopolitics is the short - term focus, and previous military actions between Iran and Israel had little impact on oil supply. If relevant tail risks materialize, oil prices are likely to rise and then fall. If the Iranian situation eases, oil prices may approach the lower limit of the oscillation range [6]. Asphalt - **View**: The high valuation of asphalt is gradually being revised downward, and it is expected to oscillate weakly in the medium - term [3][6][7]. - **Main Logic**: OPEC+ will suspend production increases in Q1, and the partial lifting of sanctions on Venezuela will increase its oil production and exports. The current asphalt market is still trading the reduction of discounts due to the US selling Venezuelan oil at the current price, which supports asphalt costs. However, it will lead to abundant long - term supply, which is a major negative for asphalt. The US - Iran situation has not further escalated, and the decline in crude oil has led to the downward revision of asphalt's high valuation. The supply and demand of asphalt are both weak, and inventory accumulation pressure is high [6]. High - Sulfur Fuel Oil - **View**: The geopolitical premium of fuel oil has declined, and it is expected to oscillate. Venezuelan oil production growth expectations will long - term pressure high - sulfur fuel oil, and short - term attention should be paid to the geopolitical situation in the Middle East [3][7]. - **Main Logic**: OPEC+ will suspend production increases, and the US is helping Venezuela increase oil production, leading to a strong expectation of a surge in heavy - oil supply, which pressures high - sulfur fuel oil in the long - term. The US - Iran situation has temporarily cooled, and the geopolitical premium of fuel oil has significantly declined. Although Iraq may resume fuel - oil power generation in the short - term, high floating storage in the Asia - Pacific region and the replacement of fuel - oil power generation by natural gas and photovoltaics in the Middle East are long - term negatives for high - sulfur fuel oil. The three driving forces supporting high - sulfur fuel oil are showing a cooling trend, but the expansion of the asphalt - fuel oil spread may increase the processing demand for fuel oil [7]. Low - Sulfur Fuel Oil - **View**: The futures price of low - sulfur fuel oil fluctuates widely and is expected to oscillate. It is affected by the substitution of green fuels and high - sulfur fuels, with limited demand space, but its current valuation is low and it follows crude - oil fluctuations [3][9]. - **Main Logic**: The futures price of low - sulfur fuel oil follows crude - oil fluctuations. The expected release of Venezuelan oil has led to an increase in the Brent - Dubai crude oil spread and a rebound in the low - high sulfur spread. Low - sulfur fuel oil has strong product attributes and is supported. However, it faces negative factors such as a decline in shipping demand, green - energy substitution, and high - sulfur substitution. The export tax - refund rate of low - sulfur fuel oil has an advantage over refined oil, and the pressure of reducing oil and increasing chemicals is likely to be transmitted to low - sulfur fuel oil, resulting in a trend of increasing supply and decreasing demand [9]. PX - **View**: The bottom of polyester load is relatively confirmed, and PX's profitability has stabilized. In the short - term, PX prices will seek upward drivers without new negatives, and PXN is expected to remain in the range of [300, 350] dollars/ton [10][11]. - **Main Logic**: Crude - oil prices oscillate in a range, naphtha remains stagnant, and PX strengthened significantly in the afternoon. Macroeconomic利好 policies were successively introduced, boosting market sentiment. There were rumors of individual factories' far - month maintenance plans, which stimulated the market. The bottom of polyester's new - year start - up is confirmed, and PTA's good profitability supports the upstream, so PX's profitability has stabilized after half a month of correction [11]. PTA - **View**: Funds have flowed in again, and TA's profit has expanded. It is expected to oscillate strongly in the short - term, and the TA05 - 09 maintains a positive - spread logic [11][12]. - **Main Logic**: International oil prices are tepid, the commodity - market sentiment is positive, and TA rose rapidly in the afternoon with a large increase in positions and inflow of funds. Fundamentally, the low point of downstream polyester load is confirmed, and demand has bottomed out. Without new negatives, prices are expected to be warm in the short - term. With the rapid rise of futures prices, the basis is expected to be weak overall [12]. Pure Benzene - **View**: Port de - stocking is obvious, and pure benzene oscillates strongly. Short - term high inventory may limit the increase, but there will be a quarterly improvement [13][15]. - **Main Logic**: The East - China pure - benzene port has de - stocked for the first time in two months. Low - price pure benzene and strong downstream styrene have created a market waiting for a rise. Downstream profit - locking has pushed up the price of pure benzene. There is a possibility of the US canceling the 15% tariff on South Korean pure benzene. In the chemical industry, pure benzene, with a relatively low valuation, has become a long - position choice for funds [15]. Styrene - **View**: Supply and demand are tight, and styrene has been oscillating strongly recently. If there is no unexpected significant increase in supply or major negative news from crude oil, it will continue to oscillate strongly in the short - term under the repeated stimulation of exports [16]. - **Main Logic**: The strength of styrene comes from export disturbances, geopolitical disturbances leading to rising crude - oil prices, and a positive overall commodity atmosphere. The expected inventory accumulation in January has been reversed, and the non - integrated device profit is relatively high. Before the restart of Sinochem Quanzhou in late January, the supply - demand pattern is favorable [16]. Ethylene Glycol - **View**: The main - port inventory continues to accumulate, and ethylene glycol is in a difficult situation. In the short - term, prices will remain in a range, and the long - term inventory - accumulation pressure is still large, so the rebound height is limited [17][18]. - **Main Logic**: Overseas imports are still large, and there is obvious seasonal inventory - accumulation pressure. Domestic supply is shrinking slowly, some port inventories are tight, and polyester factories are gradually reducing production, making it difficult to reverse the weak pattern [18]. Short - Fiber - **View**: Short - fiber moderately follows the rise, and profits are compressed. Prices will follow the upstream for adjustment, and processing fees are under some pressure [19][20]. - **Main Logic**: Upstream polyester raw materials have risen sharply, and short - fiber sales have improved slightly. However, due to the strong short - term cost, short - fiber profits are under pressure, and the absolute price is expected to moderately follow the rise [20]. Polyester Bottle - Chip - **View**: Supply continues to compress, and processing fees have a repair expectation. The absolute value will follow the raw materials, and the support for processing fees at the bottom has increased [21]. - **Main Logic**: Upstream polyester raw materials rose in the afternoon, and polyester bottle - chips followed the cost increase. The trading atmosphere was good, and the price of polyester bottle - chips will mainly follow the upstream in the short - term, with support for processing fees at the bottom [21]. Methanol - **View**: The inland area remains weak, and there is a long - short game in the coastal area. Methanol will oscillate in a range in the short - term [24]. - **Main Logic**: The inland market has a pattern of strong supply and weak demand, and producers are actively reducing prices to clear inventory. Coastal port high - inventory pressure is significant, and the shutdown of the Zhejiang Xingxing device has further weakened the MTO external - procurement demand. Short - term negatives are stronger than the positives of overseas macro uncertainties [24]. Urea - **View**: New orders at low prices have improved, and urea has stabilized and oscillated. The market has no substantial guiding information, and the trading rhythm is adjusted according to prices. In the short - term, the fundamentals have little change, and it will oscillate [25]. - **Main Logic**: The daily production of urea remains at a high level, and the supply of goods is sufficient. The demand for compound fertilizers and other industries is relatively rigid, and the agricultural demand in the Jiangsu and Anhui regions is also advancing. After several days of price decline, new orders at low prices have improved, and the market has temporarily stabilized [25]. LLDPE (Plastic) - **View**: Maintenance has slightly decreased, and plastic will oscillate. In the short - term, it will oscillate [29]. - **Main Logic**: Oil prices oscillate, and the supply - surplus pattern remains. The low production in Kazakhstan supports the Western market, and geopolitics is the short - term focus. Fundamentally, the pressure has been released, and after the rebound, the profits of various production methods have been repaired. Maintenance has decreased recently, and demand is in the off - season. However, considering the expected macro - consumption policy support and the improvement in inventory and downstream confidence, the downside space is limited [29]. PP - **View**: Maintenance and macro - expectations still provide support, and PP should be viewed as oscillating. It will oscillate in the short - term [30]. - **Main Logic**: Oil prices oscillate, and the supply - surplus pattern remains. The low production in Kazakhstan supports the Western market, and geopolitics is the short - term focus. The profits of various PP production methods have been repaired, and the upside space is limited. The downstream is in the off - season, and trading volume has decreased recently. However, considering the expected macro - consumption policy support and short - term maintenance support, the downside space is limited [30]. PL - **View**: Supply has tightened, and PL will oscillate. It will oscillate in the short - term [31]. - **Main Logic**: The PDH maintenance expectation still provides support. Individual domestic devices have stopped, and the market supply has tightened again. However, downstream follow - up is weak, suppressing the overall buying rhythm. Enterprises mainly maintain stable prices for sales, and the actual - order price range has little change. Short - term powder profits fluctuate slightly, and downstream demand support in the off - season is limited [31]. PVC - **View**: "Rushing for exports" provides support, and the downside space should be carefully considered. It is expected to oscillate. The cancellation of export tax - refunds and the expected increase in the external - market price may promote short - term export - rushing, but in the long - term, the fundamentals are still under pressure, and the market will be oscillating [34]. - **Main Logic**: At the macro - level, the export tax - refund for PVC will be cancelled on April 1st. At the micro - level, short - term "rushing for exports" may promote de - stocking, but long - term supply - demand expectations are still under pressure. Profits have improved, boosting the production willingness of marginal enterprises. Downstream start - up is seasonally weak, and restocking willingness is poor. Upstream price increases are not conducive to export orders, and the sustainability of this week's export orders needs to be observed. The supply of calcium carbide has decreased while demand has increased, and its price may be boosted. The supply - demand of caustic soda is weak, and its profit is squeezed, and the price is under pressure [34]. Caustic Soda - **View**: It has a low valuation and weak expectations, and it is running weakly. Inventory pressure is large, and with stable costs, profits may still be squeezed, and the market will run weakly [35]. - **Main Logic**: The weak reality of caustic soda continues, and inventory is still accumulating. Alumina marginal - device profits are poor, and production cuts may be slow. Weiqiao's caustic - soda inventory is high, and the purchase price has been lowered again. The commissioning of 4.8 million tons of alumina in Guangxi in Q1 2026 will marginally boost caustic - soda demand. Non - aluminum start - up is weakening, and the restocking willingness of the middle and lower reaches is not high. Upstream start - up has changed little, and caustic - soda production remains at a historical high. The "rushing for exports" of epichlorohydrin supports the price of liquid chlorine, and the short - term cost of caustic soda may be stable [35]. Group 4: Variety Data Monitoring Energy and Chemical Daily Indicator Monitoring - **Inter - period Spreads**: Data on the inter - period spreads of various varieties such as Brent, Dubai, PX, PTA, MEG, etc. are provided, including the latest values and changes [36]. - **Basis and Warehouse Receipts**: Data on the basis and warehouse receipts of varieties like asphalt, high - sulfur fuel oil, low - sulfur fuel oil, etc. are given, including the latest values and changes [37]. - **Inter - variety Spreads**: Data on the inter - variety spreads of different combinations such as PP - 3MA, TA - EG, L - P, etc. are provided, including the latest values and changes [38]. Chemical Basis and Spread Monitoring - Not detailed in the content, only the variety names are listed. Commodity Index - **Comprehensive Index**: The comprehensive index is 2414.16, down 0.15%. The commodity 20 index is 2773.48, down 0.23%. The industrial - products index is 2308.47, down 0.34% [281]. - **Energy Index**: On January 20, 2026, the energy index was 1099.40, with a daily decline of 0.37%, a 5 - day decline of 2.59%, a 1 - month increase of 2.61%, and a year - to - date increase of 1.18% [283].

Interim Business Results - Operating revenue reached RMB 23.32 billion, a 4% year-over-year increase[11] - Profit from operations amounted to RMB 2.91 billion, an 8% year-over-year increase[11] - Total profit reached RMB 2.57 billion, a 7% year-over-year increase[11] - EBITDA reached RMB 6.48 billion, a 10% year-over-year increase[11] - Net profit reached RMB 2.08 billion, a 22% year-over-year increase[11] - EPS reached RMB 0.41, a 24% year-over-year increase[11] Business Segments - Drilling segment operating profit increased by RMB 0.31 billion year-over-year[16] - Technology segment maintained relatively high profitability[15] Operational Efficiency - Cost profit margin increased from 10% in 1H2024 to 11.2% in 1H2025[28] - Operating profit margin increased from 11.1% in 1H2024 to 12.4% in 1H2025[28] Overseas Operations - Overseas sales revenue and profitability have continued to grow[41]

Core Viewpoint - The petrochemical industry must leverage technological innovation, circular economy, carbon management, and equipment upgrades to become a leader in carbon reduction efforts [1][2]. Group 1: Equipment Upgrades - Equipment upgrades are essential for energy saving and carbon reduction, serving as an "efficiency enhancer" [1]. - Cuohua Group's Huaxing Chemical implemented variable frequency transformations on sulfuric acid plant pumps and SO2 fans, saving 1.7145 million kWh of electricity and 1.2 million yuan in electricity costs annually [1]. - Cuohua Liuguo Chemical upgraded air compressors to permanent magnet variable frequency models, reducing ineffective operation and saving 170,000 kWh of electricity annually, equivalent to 20.89 tons of standard coal [1]. - Cuohua Organic Chemical customized high-efficiency pumps using multi-condition hydraulic optimization technology, saving 117,000 kWh of electricity and reducing CO2 emissions by 96.5 tons annually [1]. Group 2: Intelligent Management - Intelligent management acts as an "accelerator" for energy saving and carbon reduction [2]. - Huaxing Chemical implemented a "dual-engine" management system to dynamically monitor 87 key energy consumption indicators, ensuring timely optimization of energy-saving measures [2]. - Liuguo Chemical utilized pressure recovery technology to achieve 3.2 million kWh of annual electricity generation from recycled water [2]. - Cuohua Group's New Bridge Mining Company established an intelligent pump room for unattended operation, saving 200,000 kWh of electricity annually [2]. Group 3: Green Energy Alternatives - Transitioning from fossil fuels to renewable energy is an effective pathway to achieve carbon neutrality [2]. - Cuohua Group actively applies technologies such as cogeneration, clean coal gasification, and waste heat power generation to enhance energy utilization efficiency [2]. - The company is exploring joint ventures for photovoltaic power generation projects to increase green electricity usage and has developed a clear roadmap for green electricity replacement [2]. - Cuohua Group prioritizes the deployment of photovoltaic power on factory rooftops and idle land, while also exploring low-carbon energy applications like green hydrogen and biomass energy [2]. Group 4: Overall Impact - The practice demonstrates that green transformation is not merely a cost burden for companies but a core source of competitive advantage [2]. - Embedding energy saving and carbon reduction into the development foundation is crucial for leading the industry in carbon reduction efforts, ultimately achieving a win-win situation for economic and ecological benefits [2].