Fundraising Overview - The company raised a total of RMB 2,776,683,957.38 from its initial public offering, with all funds received by March 30, 2022 [1] - As of June 30, 2025, the total amount of funds used from the IPO was RMB 2,787,050,000.00, with a remaining balance of RMB 416,321,811.25 [1][2] Fund Utilization - The funds were allocated as follows: RMB 883,144,104.24 directly to project expenditures, RMB 1,102,864,694.13 for replacing pre-invested project funds, and RMB 450,000,000.00 for supplementing working capital [1] - The company has not used idle funds to temporarily supplement working capital during the reporting period [2] Fund Management - The company established a dedicated fund management system to ensure proper use and disclosure of the raised funds, adhering to regulatory guidelines [1] - Funds are stored in three dedicated accounts with specific banks, ensuring strict approval processes for fund usage [1] Investment Projects - The company has not experienced any abnormal situations regarding its investment projects, and all projects are progressing as planned [2] - The company utilized RMB 93,204.40 million of excess funds for a new project aimed at producing 30,000 tons of high-performance carbon fiber, with all funds fully contributed by June 30, 2024 [2][3] Cash Management - The company approved a plan to manage idle funds, allowing for investment in low-risk financial products with a maximum limit of RMB 67,413.77 million [2] - As of June 30, 2025, the company redeemed all cash management products, totaling RMB 12,280 million [3] Compliance and Reporting - The company has complied with all regulations regarding the use and disclosure of raised funds, with no violations reported [2] - There have been no changes in the use of fundraising projects during the reporting period [2]

Core Viewpoint - The company has a current capacity of 325,000 tons for spandex and plans to expand by 300,000 tons, with the first phase of 100,000 tons already in production. Future industry expansion will mainly focus on leading enterprises, ensuring an orderly release of supply. Additionally, the company has significant cost advantages in raw material procurement, energy, labor, and equipment at its Chongqing base, leading to superior cost control [1] Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 12.137 billion yuan, a year-on-year decrease of 11.70%, and a net profit attributable to shareholders of 983 million yuan, down 35.23% year-on-year. Revenue for Q1 and Q2 was 6.314 billion and 5.823 billion yuan, with net profits of 504 million and 479 million yuan respectively [2] - The average market prices for spandex 40D and adipic acid in the first half of 2025 were 23,725 yuan/ton and 7,622 yuan/ton, reflecting year-on-year declines of 15% and 22%. The price spread for spandex and adipic acid decreased by 11% and 21% year-on-year, respectively, impacting the company's overall performance [3] Group 2: Industry Dynamics - The spandex and adipic acid price spreads have narrowed, putting pressure on the company's performance in the first half of 2025. Revenue from spandex was 4.215 billion yuan, down 9.43% year-on-year, with a gross margin of 18.65%, up 3.68 percentage points. Adipic acid revenue was 4.471 billion yuan, down 15.01%, with a gross margin of 4.37%, down 11.08 percentage points [3] - The company currently has a spandex capacity of 325,000 tons, and once the Chongqing base's 300,000 tons of differentiated spandex project is fully operational, annual capacity will exceed 500,000 tons, solidifying its leading position in the global spandex industry. The Chongqing base has clear cost advantages in energy, labor, and transportation [4] Group 3: Future Growth Prospects - The domestic adipic acid capacity is expected to reach 4.1 million tons by 2024, with an overall operating rate of 60%-70%. The demand for adipic acid is anticipated to grow rapidly due to breakthroughs in domestic hexamethylenediamine production technology and the large-scale production of biodegradable materials [4] - The company is planning projects for 300,000 tons of hexamethylenediamine and 300,000 tons of PBAT, which are expected to drive future demand for adipic acid by nearly 1 million tons [5] - The company is also investing in projects to enhance its industrial chain, including a 1.204 billion yuan investment for a 120,000-ton PTMEG project and a 5.02 billion yuan investment for a 1.1 million-ton natural gas integration project, which will strengthen its competitive advantage and profitability [6]

Core Viewpoint - The report from Xiangcai Securities indicates that the supply-demand dynamics of spandex are expected to improve, leading to a potential recovery in industry prosperity as outdated production capacity exits and new capacity expansions are delayed [1][2]. Supply Side Summary - China is the largest producer of spandex globally, but the industry has faced overcapacity due to rapid expansion in recent years, resulting in weak market conditions and price margins at historical lows [2]. - The exit of outdated production capacity is anticipated, exemplified by Taekwang Industrial's decision to cease operations at its subsidiary in China, which had an annual production capacity of 27,000 tons and has been suffering significant losses [2]. - Some new capacity expansions are being postponed, such as Huafeng Chemical's adjustment of its differentiated spandex expansion project from an annual capacity of 300,000 tons to 250,000 tons, with the completion date pushed from February 2025 to December 2026 [2]. Demand Side Summary - Future demand for spandex is expected to grow due to consumption upgrades, with an anticipated increase in penetration rates and additive ratios in various textile products [1][2]. - Spandex is recognized for its excellent performance characteristics, including high elongation, low elastic modulus, good fatigue resistance, low density, corrosion resistance, and aging resistance, making it a valuable textile material [1].

Market Overview - The chemical fiber sector experienced a decline of 2.29% on August 27, with Hengda Hailong leading the drop [1] - The Shanghai Composite Index closed at 3800.35, down 1.76%, while the Shenzhen Component Index closed at 12295.07, down 1.43% [1] Stock Performance - Haiyang Technology (603382) saw a significant increase of 9.99%, closing at 39.53 with a trading volume of 212,300 shares and a transaction value of 800 million [1] - Shunma Co. (600810) increased by 4.81%, closing at 10.03 with a trading volume of 609,800 shares and a transaction value of 609 million [1] - Hengda Hailong (000677) declined by 4.60%, closing at 5.39 with a trading volume of 416,800 shares and a transaction value of 230 million [2] Capital Flow - The chemical fiber sector experienced a net outflow of 382 million from institutional investors, while retail investors saw a net inflow of 279 million [2] - The sector's overall capital flow indicates a mixed sentiment, with institutional investors pulling back while retail investors are more active [2] Individual Stock Capital Flow - 聚合顺 (605166) had a net inflow of 32.18 million from institutional investors, while retail investors experienced a net outflow of 55.09 million [3] - 彩蝶实业 (603073) saw a net outflow of 2.03 million from institutional investors but a net inflow of 4.75 million from retail investors [3] - 华鼎股份 (601113) had a net outflow of 3.94 million from institutional investors, with retail investors contributing a net inflow of 8.94 million [3]

Group 1 - The chemical fiber sector increased by 2.11% on August 26, with Haiyang Technology leading the gains [1] - The Shanghai Composite Index closed at 3868.38, down 0.39%, while the Shenzhen Component Index closed at 12473.17, up 0.26% [1] - Haiyang Technology's stock price rose by 10.01% to 35.94, with a trading volume of 84,100 shares and a transaction value of 293 million yuan [1] Group 2 - The main funds in the chemical fiber sector experienced a net outflow of 7.12 million yuan, while retail funds saw a net outflow of 16.51 million yuan [3] - Speculative funds had a net inflow of 23.63 million yuan [3]

Core Viewpoint - The A-share market showed mixed performance with the Shanghai Composite Index declining by 0.39% while the Shenzhen Component Index increased by 0.26% as of the close on August 26 [1] Market Performance - Shanghai Composite Index closed at 3868.38 points with a trading volume of 11141.88 billion yuan - Shenzhen Component Index closed at 12473.17 points with a trading volume of 15648.32 billion yuan - ChiNext Index closed at 2742.13 points with a trading volume of 7414.35 billion yuan [1] Sector Performance - The top-performing sectors included: - Gaming sector with a rise of 2.17% - Chemical fiber sector with a rise of 1.89% - Agricultural product processing sector with a rise of 1.85% [1] - The sectors that experienced declines included: - Medical services sector with a drop of 2.26% - New metal materials sector with a drop of 1.97% - Chemical pharmaceuticals sector with a drop of 1.06% [1]

Company Overview - Beijing Tongyi New Material Technology Co., Ltd. is located in Tongzhou District, Beijing, established on February 10, 1999, and listed on October 19, 2021. The company specializes in the research, production, and sales of ultra-high molecular weight polyethylene (UHMWPE) fibers and composite materials [1]. Financial Performance - For the period from January to March 2025, the company achieved operating revenue of 253 million yuan, representing a year-on-year growth of 126.90%. The net profit attributable to the parent company was 43.4 million yuan, reflecting a year-on-year increase of 147.35% [2]. - Cumulative cash dividends distributed by the company since its A-share listing amount to 136 million yuan [3]. Shareholder Information - As of March 31, 2025, the number of shareholders for Tongyi New increased to 8,393, up by 0.87% from the previous period. The average number of circulating shares per shareholder decreased by 0.86% to 26,701 shares [2]. - Notable new institutional shareholders include Qianhai Kaiyuan Jiaxin Mixed A (001765), holding 5.0176 million shares, and Hai Futong Stock Mixed (519005), holding 1.2311 million shares [3]. Market Activity - On August 25, the stock price of Tongyi New increased by 1.18%, with a trading volume of 185 million yuan. The financing buy-in amount for the day was 25.56 million yuan, while the financing repayment was 35.86 million yuan, resulting in a net financing buy-in of -10.30 million yuan [1]. - The total balance of margin trading for Tongyi New as of August 25 was 189 million yuan, accounting for 3.65% of the circulating market value, indicating a high level compared to the past year [1].

Group 1 - The company reported a revenue of 700,730,431.04 yuan for the first half of 2025, representing a year-on-year decrease of 6.98% [2] - The net profit attributable to shareholders of the listed company was 33,250,815.16 yuan, showing a year-on-year increase of 8.81% [2]

Market Overview - On August 25, the chemical fiber sector rose by 0.07% compared to the previous trading day, with Montai High-tech leading the gains [1] - The Shanghai Composite Index closed at 3883.56, up 1.51%, while the Shenzhen Component Index closed at 12441.07, up 2.26% [1] Stock Performance - Montai High-tech (300876) closed at 31.20, with a gain of 3.35% and a trading volume of 21,900 lots, totaling a transaction value of 67.62 million yuan [1] - Other notable stocks included: - Tongyi Zhong (688722) at 23.10, up 1.18%, with a trading volume of 79,900 lots [1] - Huilong New Materials (301057) at 24.20, up 1.04%, with a trading volume of 57,300 lots [1] - Huaxi Co. (000936) at 7.77, up 0.91%, with a trading volume of 348,300 lots [1] Capital Flow - The chemical fiber sector experienced a net outflow of 312 million yuan from institutional investors, while retail investors saw a net inflow of 171 million yuan [2] - The capital flow for individual stocks showed: - Hengshen New Materials (000782) had a net inflow of 19.89 million yuan from institutional investors [3] - Huaxi Co. (000936) had a net inflow of 15.09 million yuan from institutional investors [3] - Tianfulong (603406) saw a net outflow of 13.26 million yuan from retail investors [3]

Group 1 - The current bullish trend in A-shares is supported by various sources of incremental capital, including long-term funds such as insurance and pension funds, active trading by margin financing and private equity, and increasing foreign interest in A-shares [1][2][3] - There are signs of residents moving their savings into the market, although this is still in the early stages, which could provide a key driving force for the continuation of a "slow bull" market [1][3] - The focus for future investments should be on new technologies and growth sectors, such as domestic computing power, robotics, and AI applications, alongside major financial and new consumption sectors [2][3] Group 2 - The current market is characterized by a "healthy bull" phase, where good holding experiences and profit effects continue to attract incremental capital [2][3] - The market's sustainability is attributed to its healthy structural characteristics, allowing existing capital to continuously find trading opportunities [2][3] - Future market trends will require new allocation clues rather than merely relying on liquidity and the abundance of capital [2][3] Group 3 - Analysts emphasize that this market rally is not driven by retail investors but rather by smart money, focusing on industrial trends and performance [2][3] - As products issued in 2020-2021 approach breakeven, a transition between old and new capital is expected, which will be crucial for the market's continuation [2][3] - The market is anticipated to maintain upward momentum, supported by a potential interest rate cut cycle and a recovery in manufacturing investment [4]