Core Points - The fifth extraordinary general meeting of shareholders of Liaoning Dingjide Petrochemical Co., Ltd. was held on November 13, 2025, with no resolutions rejected [2][3] - The meeting was legally convened and conducted in accordance with the Company Law and the Articles of Association [3][7] - All current directors and supervisors attended the meeting, ensuring full representation [4] Meeting Details - The meeting was held at the company's conference room in Yingkou City, Liaoning Province [2] - Voting was conducted through a combination of on-site and online methods [3] - The meeting was presided over by Chairman Zhang Zaiming [3] Resolutions Passed - A resolution to reduce registered capital, abolish the supervisory board, and amend the Articles of Association was approved [5] - Several governance documents were revised and approved, including rules for shareholder meetings, board meetings, and management systems for fundraising and related party transactions [6][7] - The resolution to reappoint the accounting firm was also passed [7] Legal Verification - The meeting was witnessed by Shanghai Jinmao Law Firm, confirming that all procedures complied with legal and regulatory requirements [7]

新京报讯 11月13日，泉惠石化工业园区管委会发布《关于中化泉州石化有限公司一装置发生火情的通报》。 ...

Report Industry Investment Rating - Not provided Core View of the Report - The PP market is expected to experience weak and volatile movements in the near term. The downstream demand is in the peak season, but the follow - up of orders such as plastic weaving is limited, and the inventory reduction of petrochemicals is normal. The supply - side has new production capacity put into operation and an increase in maintenance devices, and the cost - side crude oil price has declined [1]. Summary by Directory 1. Market Analysis - PP downstream operating rate increased by 0.52 percentage points to 53.14% week - on - week, remaining at a relatively low level in the same period over the years. The plastic weaving operating rate rose by 0.26 percentage points to 44.46%, with a slight increase in orders but slightly lower than the same period last year. On November 13th, new maintenance devices such as the old line of CNOOC Daxie were added, causing the PP enterprise operating rate to drop to around 82%, a neutral - low level, and the production ratio of standard drawstring dropped to around 24%. Petrochemicals are de - stocking normally, and the current petrochemical inventory is at a neutral level in the same period in recent years. The cost - side crude oil supply surplus has become more of a consensus, leading to a decline in oil prices. There is new production capacity of 400,000 tons/year put into operation at PetroChina Guangxi Petrochemical in mid - October, and there has been a slight increase in maintenance devices recently [1]. 2. Futures and Spot Market Conditions - **Futures**: The PP2601 contract fluctuated with a reduction in positions, closing at 6480 yuan/ton, up 0.39%, below the 20 - day moving average. The trading volume decreased by 8169 lots to 628,423 lots [2]. - **Spot**: PP spot prices in most regions remained stable, with drawstring prices ranging from 6260 to 6570 yuan/ton [5]. 3. Fundamental Tracking - **Supply**: On November 13th, new maintenance devices such as the old line of CNOOC Daxie were added, and the PP enterprise operating rate dropped to around 82%, a neutral - low level [7]. - **Demand**: As of the week ending November 7th, the PP downstream operating rate increased by 0.52 percentage points to 53.14% week - on - week, remaining at a relatively low level in the same period over the years. The plastic weaving operating rate rose by 0.26 percentage points to 44.46%, with a slight increase in orders but slightly lower than the same period last year [7]. - **Inventory**: On Thursday, the early petrochemical inventory decreased by 25,000 tons to 665,000 tons week - on - week, 5,000 tons lower than the same period last year. The petrochemical inventory is currently at a neutral level in the same period in recent years [7]. - **Raw Materials**: The Brent crude oil 01 contract fell below $63 per barrel, and the CFR propylene price in China increased by $10 per ton to $720 per ton [7].

Core Insights - The China Petroleum and Chemical Industry Index has shown a positive trend, with a 0.98% increase as of November 13, 2025, and significant gains in constituent stocks such as Lianhong Xinke and Cangge Mining [1] - The Petrochemical ETF (159731) has also performed well, with a 0.95% increase and a notable 6.83% rise over the past week, indicating strong investor interest [1][4] - The ETF has seen a net inflow of 8.41 million yuan over the last four days, reaching a total share count of 201 million and a scale of 170 million yuan, both marking a one-year high [1] Performance Metrics - The Petrochemical ETF has recorded a 27.44% increase in net value over the past six months, with a maximum monthly return of 15.86% since its inception [4] - The ETF has outperformed its benchmark with an annualized excess return of 6.31% over the last six months [4] - The top ten weighted stocks in the index account for 56.05% of the total, with Wanhua Chemical and China Petroleum being the most significant contributors [4] Stock Performance - Key stocks and their performance include: - Wanhua Chemical: +0.04%, 10.47% weight - China Petroleum: -0.80%, 7.63% weight - Salt Lake Co.: +6.06%, 6.44% weight - China Petroleum & Chemical: -1.05%, 6.44% weight - Cangge Mining: +6.30%, 3.82% weight [6]

Report Industry Investment Rating - No relevant content provided Core Viewpoints - PP downstream demand is in the peak season, but the follow - up of orders such as plastic weaving is limited, and the market lacks large - scale centralized procurement. With the restart of some maintenance devices and the increase in enterprise operating rates, it is expected that PP will fluctuate weakly in the near future [1] Summary by Directory Market Analysis - PP downstream operating rate increased by 0.52 percentage points to 53.14% week - on - week, at a relatively low level in the same period over the years. The plastic weaving operating rate increased by 0.26 percentage points to 44.46% week - on - week, with a slight increase in orders, slightly lower than the same period last year. On November 12, some maintenance devices such as a line of Guangxi Petrochemical restarted, and the PP enterprise operating rate rose to about 84%, at a neutral level, and the production ratio of standard drawstrings increased to about 26%. Petrochemical inventory is at a neutral - to - high level in the same period in recent years. The cost side is in a narrow - range shock. The supply has increased, while the downstream demand has limited follow - up, and there is no actual anti - involution policy in the PP industry [1] Futures and Spot Market Conditions - Futures: The PP2601 contract decreased in positions and oscillated. The lowest price was 6434 yuan/ton, the highest was 6474 yuan/ton, and it finally closed at 6460 yuan/ton, below the 20 - day moving average, with a decline of 0.11%. The position decreased by 4959 lots to 636592 lots [2] - Spot: The spot prices of PP in various regions were mostly stable, with drawstrings quoted at 6260 - 6570 yuan/ton [3] Fundamental Tracking - Supply: On November 12, some maintenance devices such as a line of Guangxi Petrochemical restarted, and the PP enterprise operating rate rose to about 84%, at a neutral level [4] - Demand: As of the week of November 7, the PP downstream operating rate increased by 0.52 percentage points to 53.14% week - on - week, at a relatively low level in the same period over the years. The plastic weaving operating rate increased by 0.26 percentage points to 44.46% week - on - week, with a slight increase in orders, slightly lower than the same period last year [4] - Inventory: On Wednesday, the early petrochemical inventory decreased by 20,000 tons to 690,000 tons week - on - week, 10,000 tons higher than the same period last year. Petrochemical inventory is at a neutral - to - high level in the same period in recent years [4] Raw Material End - Brent crude oil contract 01 oscillated around $64 per barrel, and the CFR propylene price in China remained flat week - on - week at $710 per ton [6]

Core Insights - The A-share merger and acquisition (M&A) market has entered a new active cycle since last year, reflecting the overall trend of China's economy towards stability and quality improvement [1] - The M&A market serves as an important window for observing China's economic conditions and corporate vitality [1] Group 1: M&A Market Dynamics - The M&A market is seen as a blue ocean for discovering corporate value, with significant enhancements in the resilience and vitality of China's economy and capital markets due to systematic reforms [6] - Global investors have reached a consensus on investing deeply in China, with M&A being a crucial method for optimizing resource allocation and enhancing the quality and investment value of listed companies [6] Group 2: Sector-Specific Trends - A-share technology companies are accelerating their breakthroughs through M&A to achieve technological upgrades and market expansion, particularly in future industries like AI, quantum information, and biotechnology [6] - Traditional industries such as textiles, light industry, steel, and petrochemicals are facing performance and valuation pressures, prompting them to strengthen their core businesses and accelerate transformation through M&A [6] Group 3: Strategic M&A by Industry Leaders - A-share industry leaders are shifting from simple scale expansion to strategic M&A for industry chain integration and global layout, thereby enhancing their core competitive advantages [7] - For instance, China Shipbuilding's merger with China Shipbuilding Industry Corporation has created the world's largest and most complete shipbuilding enterprise, with a market value steadily increasing to 270 billion yuan [7]

Core Viewpoint - The Jiangsu Provincial Department of Industry and Information Technology has announced the preparation for the expansion of the Lianyungang Petrochemical Industrial Base, which is one of the seven major petrochemical industrial bases in China [1] Summary by Relevant Sections Expansion Details - The current planned area of the Lianyungang Petrochemical Industrial Base is 61.34 square kilometers, with an additional planned area of 9.8 square kilometers for the expansion [1] - The expansion area is defined by the boundaries: east to National Highway 228, south to No. 9 Road, west to Jinkang Road, and north to Taihe Road [1] - After the expansion, the total area will be 71.14 square kilometers, divided into two sections [1] Industry Structure - The Lianyungang Petrochemical Industrial Base has established an industrial structure characterized by "refining and chemical integration + high-end new materials + green energy" [1] - The base has attracted three leading enterprises, including: - Shenghong's refining and chemical integration project, representing the "aromatic and olefin" dual-chain petrochemical industry [1] - The high-end petrochemical industry chain represented by the Lianyungang Petrochemical Light Hydrocarbon Comprehensive Utilization Project, invested by Satellite Chemical [1] - The Sinochem Lianyungang Circular Economy Industrial Park, which utilizes upstream and downstream products within the base to form a mutually supportive composite industrial chain [1]

Core Viewpoint - The strategic collaboration between Quanzhou Petrochemical Co., Ltd. and Chenghe Technology Co., Ltd. has successfully developed a high-end transparent polypropylene product, RP340R, marking a significant advancement in domestic production capabilities for high-end applications such as food packaging [1] Group 1: Product Development - The RP340R product features high transparency, rigidity, and excellent processing performance, with significantly optimized haze index, meeting both domestic and international standards for food contact materials and environmental requirements [1] - The product is suitable for various applications, including food containers and high-end household goods, providing a strong domestic alternative to imported products [1] Group 2: Company Capabilities - Quanzhou Petrochemical leverages advanced polypropylene facilities and an integrated "production-sales-research-application" operational model, having previously developed multiple high-value transparent polypropylene products and accumulated substantial process optimization experience [1] - Chenghe Technology, a leading enterprise in the field of polymer material additives, possesses internationally advanced nucleating agent technology that significantly enhances the optical performance and processing stability of resins [1] Group 3: Industry Challenges - The collaboration has successfully addressed the industry challenge of balancing transparency and mechanical performance, which has been a significant hurdle in the development of high-end polymer products [1]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated recurring EBITDA was $150 million, a 104% increase compared to the previous year [7] - Operating cash consumption was approximately $62 million, with a cash position of about $1.3 billion at the end of the quarter, sufficient to cover debt maturities over the next 27 months [7][20] - Corporate leverage stood at approximately 14.7x at the end of Q3 2025, primarily due to lower EBITDA over the last twelve months [21] Business Line Data and Key Metrics Changes - In Brazil, the utilization rate at petrochemical plants was lower due to a scheduled shutdown, with recurring EBITDA of $205 million, a 35% increase from the previous quarter [10] - The utilization rate of the green ethylene plant was 40%, down 31 percentage points from the previous quarter, impacted by lower demand from Asian markets [11] - The United States and Europe segment saw a higher utilization rate due to normalization of operations, but results remained negative due to weakened demand [12] Market Data and Key Metrics Changes - The global macroeconomic scenario in 2025 was marked by moderate growth, decelerating inflation, and high interest rates, impacting industrial activity and resin processing demand [8][9] - Most international petrochemical spreads fell to historically low levels due to excess installed capacity and weakened demand [9] - In Brazil, resin sales decreased due to higher polyethylene imports and lower polypropylene demand, although this was offset by increased sales of key chemicals [10] Company Strategy and Development Direction - The company is focused on implementing a global resilience and transformation program to generate sustainable value and mitigate cash consumption [22] - The transformation program includes initiatives to optimize naphtha-based production, increase gas base flexibility, and migrate to renewable products [22] - The company plans to expand the Rio de Janeiro plant's capacity, adding 220,000 tonnes per year of ethylene capacity, with an estimated investment of BRL 4.2 billion [30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the prolonged downturn in the petrochemical industry, with expectations of a challenging environment until at least 2030 [36][38] - The company anticipates a modest recovery in the petrochemical sector towards the end of the decade, driven by structural excess supply and moderate demand growth [38] - Management emphasized the importance of resilience initiatives to mitigate the impacts of the downturn and ensure competitiveness [40] Other Important Information - The company signed an agreement related to the Alagoas geological event, with a total payment of BRL 1.2 billion, of which BRL 139 million has already been paid [18] - The company has established 79 action plans globally, with the potential to capture around $400 million in EBITDA and $500 million in cash generation for 2025 [23] - The chlor soda plant in Alagoas was hibernated to enhance the competitiveness of PVC production by importing EDC [28] Q&A Session Summary Question: When will a decision on the restructuring be made? - The company is currently completing diagnostics and discussions regarding its capital structure, with no options discarded or confirmed at this time [50][51] Question: What was the main economic driver for weak volumes this quarter? - The demand for resins is closely tied to Brazilian GDP, with a projected drop of about 4% for PE and PP in the coming months, but a 3% growth expected for PVC due to the sanitation law [53][55] Question: What is the timeline and expected impact of the Transforma Rio project? - The project will begin its engineering phase now and is expected to be completed by 2028 or 2029, potentially adding just under $200 million per year to EBITDA [58][59] Question: What is the status of the agreement in Alagoas? - The agreement involves a total payment of BRL 1.2 billion over ten years, with initial installments aligned with the company's projected financial condition [63][64] Question: How does the company view the impact of movements in China on the market? - China is expected to increase its ethylene and propylene production significantly, which will impact global supply and demand dynamics, leading to a prolonged downward cycle [78][79]

Core Viewpoint - The petrochemical industry listed companies are categorized into four sub-sectors: oil and gas resources, oil service equipment, petrochemicals, and downstream materials. In Q3 2025, the average price of Brent crude oil was $68.17 per barrel, showing a year-on-year decline. The performance of each sub-sector is as follows: (1) upstream oil and gas resources saw a decline in profitability year-on-year but maintained a certain level of profit; (2) the oil service equipment sector achieved positive year-on-year net profit growth; (3) the petrochemical sector overall saw an increase in profitability year-on-year; (4) in the downstream materials sector, products like photovoltaic film, carbon fiber, synthetic biology, biodegradable plastics, and inkjet materials experienced significant year-on-year profit improvements [1]. Oil and Gas Resources - In Q3 2025, the upstream oil and gas extraction sector achieved a net profit attributable to shareholders of 85.341 billion yuan, a year-on-year decrease of 7% but a quarter-on-quarter increase of 6%. The three major oil companies increased cost reduction and efficiency efforts, achieving a net profit of 83.225 billion yuan, down 6.9% year-on-year but up 6.2% quarter-on-quarter [1]. Oil Service Equipment - The oil service equipment sector saw steady profit growth, with a total net profit attributable to shareholders of 3.598 billion yuan in Q3 2025, representing a year-on-year increase of 12% but a quarter-on-quarter decrease of 14%. The petrochemical sector continued to grow, with a total net profit of 7.233 billion yuan, a year-on-year increase of 299.67% and a quarter-on-quarter increase of 12% [2]. Petrochemical Sector - The petrochemical sector's overall profitability continued to grow, with a total net profit of 7.233 billion yuan in Q3 2025, reflecting a year-on-year increase of 299.67% and a quarter-on-quarter increase of 12%. The private refining sector saw profit growth, achieving a net profit of 2.615 billion yuan, up 23.28% quarter-on-quarter. However, the light refining sector experienced a profit decline, with a net profit of 0.851 billion yuan, down 29.46% quarter-on-quarter. The coal chemical sector also saw a slight profit decrease, with a net profit of 4.037 billion yuan, down 2.55% quarter-on-quarter [2]. Downstream Materials - In Q3 2025, the downstream materials sector achieved a total net profit of 0.555 billion yuan, a year-on-year increase of 73.27% and a quarter-on-quarter increase of 47.30%. Specific products such as photovoltaic film, polyester bottle sheets, electrolytes, carbon fiber, and polyester films saw significant quarter-on-quarter profit growth of 68.11%, 38.75%, 37.17%, 3.30%, and 50.51%, respectively. Conversely, synthetic biology, biodegradable plastics, and inkjet materials experienced quarter-on-quarter profit declines of 17.31%, 36.78%, and 22.47%, respectively [3].