Core Viewpoint - The graphite electrode sector has seen a significant increase of 4.01% as of November 13, with 23 stocks rising, led by companies such as Shangtai Technology, Zhongke Electric, and Putailai, which rose by 8.60%, 8.33%, and 8.28% respectively [1] Group 1: Market Performance - The graphite electrode concept ranked 8th in terms of percentage increase among various sectors [1] - The sector experienced a net inflow of 1.326 billion yuan from major funds, with 14 stocks receiving net inflows, and 6 stocks exceeding 100 million yuan in net inflow [2] - The top net inflow was from Hesheng Silicon Industry, which saw a net inflow of 333 million yuan, followed by Putailai, Zhongke Electric, and Fangda Carbon with net inflows of 330 million yuan, 185 million yuan, and 179 million yuan respectively [2] Group 2: Fund Flow Ratios - Hesheng Silicon Industry, Putailai, and Baotailong had the highest net inflow ratios at 12.12%, 10.90%, and 9.01% respectively [3] - The trading volume and turnover rates for leading stocks in the sector were notable, with Hesheng Silicon Industry showing a trading increase of 7.90% and a turnover rate of 3.87% [3] - Other companies like Zhongke Electric and Fangda Carbon also demonstrated significant trading activity with increases of 8.33% and 4.08% respectively [3][4]

Market Performance - The graphite electrode sector increased by 1.51%, ranking 8th among concept sectors, with 17 stocks rising, including Fangda Carbon which hit the daily limit, and others like Baotailong and Dongfang Carbon with increases of 7.19%, 5.81%, and 4.32% respectively [1] - The top gainers in the market today included the cultivated diamond sector at 6.08% and perovskite battery sector at 2.98%, while the Chinese AI 50 sector saw a decline of 1.76% [1] Capital Flow - The graphite electrode sector experienced a net inflow of 510 million yuan, with 10 stocks receiving net inflows, and 7 stocks seeing inflows exceeding 10 million yuan, led by Fangda Carbon with a net inflow of 591 million yuan [1] - The leading stocks in terms of net inflow ratios were Fangda Carbon at 36.84%, followed by Zhongke Electric at 5.22% and Baotailong at 5.06% [2] Stock Performance - Fangda Carbon had a daily increase of 9.98% with a turnover rate of 6.06% and a main capital flow of 590.57 million yuan [2] - Zhongke Electric and Baotailong also showed positive performance with increases of 4.26% and 7.19% respectively, alongside notable turnover rates of 12.94% and 19.10% [2]

Group 1 - The graphite electrode concept increased by 2.28%, ranking 8th among concept sectors, with 18 stocks rising, including He Sheng Silicon Industry, which hit the daily limit, and Shangtai Technology, Suotong Development, and Baichuan Co., which rose by 8.08%, 7.82%, and 5.36% respectively [1] - The main capital inflow into the graphite electrode sector was 491 million yuan, with 11 stocks receiving net inflows, and 7 stocks seeing inflows exceeding 50 million yuan, led by He Sheng Silicon Industry with a net inflow of 363 million yuan [2][3] - The top stocks by net inflow ratio included He Sheng Silicon Industry at 24.70%, Suotong Development at 8.50%, and Xiangfenghua at 8.14% [3] Group 2 - The top gainers in the graphite electrode sector included He Sheng Silicon Industry with a daily increase of 10.01% and a turnover rate of 2.30%, followed by Suotong Development with a 7.82% increase and a turnover rate of 11.07% [3][4] - The stocks with the largest declines included Baotailong, which fell by 2.40%, and Fua'an Co. and Longjiang Transportation, which decreased by 1.73% and 1.62% respectively [1][4] - The overall performance of the graphite electrode sector reflects a positive trend in investor sentiment, as evidenced by the significant capital inflows and the number of stocks experiencing gains [2][3]

Core Viewpoint - Yicheng New Energy's Q3 2025 report reveals a contradictory picture of revenue growth, narrowing losses, and tight cash flow, alongside high accounts receivable [1][3]. Financial Performance - For Q3 2025, the company reported revenue of 9.41 billion yuan, a year-on-year increase of 20.23%, while net loss was 950.34 million yuan, with a non-recurring net loss of 985.18 million yuan [1]. - Year-to-date revenue reached 30.1 billion yuan, up 12.79% year-on-year, but net loss was 2.65 billion yuan, showing a reduction in losses compared to the previous year [1]. - The operating cash flow net amount was -357 million yuan, a decrease of 406 million yuan year-on-year, indicating ongoing cash flow issues [1][4]. Business Transformation - The company has undergone significant strategic adjustments, moving from substantial losses in 2024 to a path of recovery, albeit with challenges [1][2]. - The decline in revenue in 2024 was primarily due to a sharp drop in battery cell sales and falling prices of graphite electrode products [1][2]. Cash Flow Crisis - The cash flow situation remains dire, with a net cash flow decrease of 816.14% year-on-year and accounts receivable reaching 2.246 billion yuan, a 37.34% increase from the beginning of the year [4]. - Accounts receivable and notes receivable combined amount to approximately 2.703 billion yuan, accounting for 89.78% of revenue, indicating that most sales have not converted into actual cash flow [4]. - The company's monetary funds stood at 1.285 billion yuan against interest-bearing liabilities of 4.363 billion yuan, resulting in a monetary funds to current liabilities ratio of only 30.83%, highlighting weak short-term debt repayment capacity [4]. Strategic Layout - Yicheng New Energy is focusing on "high-end carbon materials" and "new energy storage" as its main business areas, having divested from the loss-making photovoltaic cell business [5][6]. - The acquisition of Shanxi Meishanhu Company has strengthened the company's graphite electrode production capacity, with an expected increase in overall profitability [6]. - The company is also expanding its new energy storage capabilities through acquisitions and partnerships, including a framework cooperation agreement with CATL's subsidiary [6]. - The strategic restructuring is supported by the controlling shareholder, China Pingmei Shenma Group, which is undergoing a strategic merger with Henan Energy Group, potentially providing new resource integration opportunities [6]. Industry Insight - Yicheng New Energy's experience reflects broader trends in China's renewable energy sector, emphasizing the need for companies to balance innovation with stability amid technological changes and market fluctuations [7]. - The path to profitability and sustainable cash flow remains a critical challenge for the company, as it seeks to navigate its transformation [7].

Market Overview - The Shanghai Composite Index lost and regained the 4000-point mark, while the ChiNext Index experienced a pullback after reaching a high. The total market turnover was 2.17 trillion yuan, a decrease of 191.3 billion yuan compared to the previous trading day [1] - Sectors such as Fujian, military industry, and port shipping saw gains, while non-ferrous metals, wind power equipment, and oil and gas sectors faced the largest declines [1] Key Stocks - Jinfu Technology (300128) rose by 20.06% to 8.68 yuan with a turnover of 28.73 million yuan [2] - Chutian Technology (300328) increased by 20.04% to 11.32 yuan, marking a self-limit increase [2] - Jianglong Shipbuilding (300289) surged by 19.98% to 15.07 yuan, driven by military equipment and law enforcement orders [2][11] - Haixia Innovation (300300) gained 19.97% to 9.19 yuan, continuing its strong performance [2][3] - Fangda Carbon (600516) rose by 10.08% to 5.68 yuan, with significant institutional buying [15] Institutional Activity - The top net purchases on the day included Duofluor (2.22 billion yuan), Jianglong Shipbuilding (1.93 billion yuan), and Fangda Carbon (1.79 billion yuan) [2][4] - The top net sales were led by Hengbao Co. (2 billion yuan), Sixuan New Materials (1.82 billion yuan), and Shanghai Jahwa (1.80 billion yuan) [5][19] Sector Highlights - The storage chip sector saw strong performance with Yingxin Development achieving a seven-day limit increase, while quantum technology stocks like Dahua Intelligent also performed well [3] - The military equipment sector, particularly Jianglong Shipbuilding, benefited from increased orders and government contracts [11][14] Trading Dynamics - The market experienced a significant turnover with notable fluctuations in stock prices, particularly in sectors related to military and technology [1][3] - The trading volume and turnover rates indicated active participation from both retail and institutional investors, reflecting a mixed sentiment in the market [2][4]

Financial Data and Key Metrics Changes - GrafTech achieved a 9% year-over-year increase in sales volume, reaching nearly 29,000 metric tons in Q3 2025 [4][14] - The company generated positive adjusted EBITDA of $13 million for the quarter, compared to a negative $6 million in the prior year [24] - Net cash from operating activities was $25 million, with adjusted free cash flow of $18 million, strengthening liquidity to $384 million as of the end of September [6][26] Business Line Data and Key Metrics Changes - Sales volume in the U.S. grew by 53% year-over-year in Q3, contributing to a total year-to-date increase of 39% [5][15] - The average selling price for the third quarter was approximately $4,200 per metric ton, representing a 7% decline compared to the prior year [16][24] - Cash costs per metric ton were $3,795, reflecting a 10% year-over-year decline [18][20] Market Data and Key Metrics Changes - Global steel production outside of China was approximately 206 million tons in Q3 2025, up nearly 2% year-over-year [7][8] - In the U.S., steel production grew by 2% year-to-date compared to 2024, while EU steel output decreased by 4% year-to-date [8][9] - World Steel projects a 1.8% growth in U.S. steel demand for 2026 and a 3.2% growth in Europe [9][10] Company Strategy and Development Direction - GrafTech aims to increase sales volume and market share while improving average pricing by shifting geographic sales mix to higher price regions [29][30] - The company is focused on disciplined, value-focused growth rather than volume for volume's sake, especially in light of challenging pricing dynamics [15][16] - Long-term, GrafTech is bullish on the shift towards electric arc furnace steelmaking, which is expected to drive demand for graphite electrodes [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about early signs of recovery in the steel market, driven by infrastructure spending and trade actions [42][43] - The company remains committed to maintaining a culture of safety and achieving zero injuries [12][13] - Management highlighted the importance of trade protection measures and their potential positive impact on the steel industry and graphite electrode demand [10][32] Other Important Information - GrafTech's liquidity position includes $178 million in cash and $107 million available under its revolving credit facility [26][27] - The company is on track for a cumulative reduction of over 30% in cash costs per metric ton since the end of 2023 [6][21] Q&A Session Summary Question: Should we expect any other kind of deferred revenue benefits? - Management indicated that the recent deferred revenue recognition was a one-time event and no further benefits are expected [39] Question: What are the current demand and price environment dynamics? - Management noted that the market is oversupplied, making it challenging to push pricing, but there are signs of positive momentum in steel demand [41][42] Question: What is the status of GrafTech's engagement in the battery-related materials market? - Management stated that while there is excess capacity, the market is still developing, and they are positioned to support raw material supply for battery production [46][47] Question: Have the tariffs on Indian material had any impact on imports? - Management expressed confidence that the tariffs would support their market position and negotiations moving forward [54] Question: Any updates on public-private partnerships? - Management highlighted the importance of a healthy electrode industry to support steelmaking and expressed confidence in GrafTech's role in the domestic supply chain [58][60] Question: Has U.S. pricing improved sequentially from the prior quarter? - Management indicated that U.S. pricing is flat to slightly up compared to the prior quarter, with annual contracts limiting price movement [64]

Financial Data and Key Metrics Changes - GrafTech International achieved a 9% year-over-year increase in sales volume, reaching nearly 29,000 metric tons in Q3 2025 [4][14] - The company generated positive adjusted EBITDA of $13 million for the quarter, compared to a negative $6 million in the prior year [24] - Net cash from operating activities was $25 million, with adjusted free cash flow of $18 million, strengthening liquidity to $384 million as of the end of September [6][26] Business Line Data and Key Metrics Changes - Sales volume in the U.S. grew by 53% year-over-year in Q3, contributing to a cumulative sales volume growth of over 20% since the end of 2023 [5][15] - The average selling price for the third quarter was approximately $4,200 per metric ton, representing a 7% decline compared to the prior year [16][24] - Cash costs per metric ton were $3,795, reflecting a 10% year-over-year decline, with expectations for a full-year decline of approximately 10% in cash COGS per metric ton for 2025 [19][24] Market Data and Key Metrics Changes - Global steel production outside of China was approximately 206 million tons in Q3 2025, up nearly 2% year-over-year [7] - In the U.S., steel production grew 2% year-to-date compared to 2024, while EU steel output decreased by 4% year-to-date [8][9] - World Steel projects a 1.8% growth in U.S. steel demand for 2026 and a 3.2% growth in Europe, driven by infrastructure investment and defense spending [9][10] Company Strategy and Development Direction - The company is focused on increasing sales volume and market share, improving average pricing by shifting geographic sales mix to higher price regions, and reducing costs [29][30] - GrafTech is committed to serving customers with excellence and building long-term partnerships based on performance and reliability [11][30] - The company is well-positioned to capitalize on the expected growth in electric arc furnace (EAF) steel production, particularly in the U.S. and EU [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential recovery in the steel market, citing early signs of rebound and positive momentum in steel production and demand [7][29] - The company remains bullish on the structural tailwinds supporting the shift towards EAF steelmaking, with significant new capacity planned in the U.S. [30][31] - Management highlighted the importance of trade protection measures and their potential positive impact on the steel industry and graphite electrode demand [10][32] Other Important Information - The company reported a net loss of $28 million for the third quarter, an improvement from a net loss of $36 million in the prior year [24] - GrafTech's liquidity position includes $178 million in cash and $107 million available under its revolving credit facility, with no borrowings outstanding [26][27] - The company is committed to maintaining a culture of safety, aiming for zero injuries and strong safety performance [12] Q&A Session Summary Question: Should we expect any other kind of deferred revenue benefits? - Management indicated that no further deferred revenue is expected, as the recent recognition was a one-time event related to a long-standing receivable [39] Question: What are the current demand and price environment dynamics? - Management noted that the market is oversupplied, making it challenging to push pricing, but expressed optimism for future pricing improvements due to positive momentum in the steel industry [41][42] Question: What is the status of GrafTech's engagement in the battery-related materials market? - Management stated that while there is excess capacity, the market is still developing, and they are positioned to support partners in the battery supply chain [44][45] Question: Have the tariffs on Indian material impacted imports into the U.S.? - Management believes the tariffs present an opportunity for GrafTech, as they expect to continue gaining market share in the U.S. [47][48] Question: Any updates on public-private partnerships? - Management emphasized the importance of a healthy electrode industry to support the steel sector and expressed confidence in GrafTech's role in the domestic supply chain [51][54]

Market Overview - The A-share market opened lower with all three major indices declining: Shanghai Composite Index down 0.11%, Shenzhen Component Index down 0.2%, and ChiNext Index down 0.36% [1] Sector Performance - Gold stocks opened higher, with Baoding Technology hitting the daily limit, and Western Gold and Sichuan Gold rising over 4%. Spot gold prices reached a new high of $4,380 in early trading [1] - The graphite electrode sector saw initial gains, with Suotong Development increasing over 6%, and Xiangfenghua and Shangtai Technology rising over 3% [1] - The innovative drug sector remained active, with Huabang Health rising over 6%, and Aosaikang and Yifang Bio increasing over 4% [1] - The cultivated diamond sector experienced a correction, with Strength Diamond falling over 5%, and Chuanjiang New Material and Yellow River Windfall dropping over 4% [1]

Market Overview - The A-share market opened lower, with the Shanghai Composite Index down 0.11%, the Shenzhen Component down 0.2%, and the ChiNext Index down 0.36% [1] Sector Performance - Gold stocks opened higher, with Baoding Technology hitting the daily limit, and Western Gold and Sichuan Gold rising over 4%. Spot gold reached a new high of $4,380 in early trading [1] - The graphite electrode sector saw initial gains, with Suotong Development up over 6%, and Xiangfenghua and Shangtai Technology rising over 3% [1] - The innovative drug sector remained active, with Huabang Health increasing over 6%, and Aosaikang and Yifang Bio rising over 4% [1] - The cultivated diamond sector experienced a correction, with Power Diamond down over 5%, and Chuanjiang New Material and Yellow River Windfall down over 4% [1]

Group 1 - The company currently has a total of 15 subsidiaries within its consolidated financial statements [2] - The main business focuses are high-end carbon materials and new energy storage [2] - The industry layout includes multiple sectors in the new energy and new materials industries, with key activities in new energy including the development, construction, and operation of new energy and energy storage power stations, as well as lithium-ion batteries and photovoltaic battery components [2] Group 2 - In the new materials sector, the primary business involves ultra-high power graphite electrodes and anode materials [2]