Report Summary 1) Report Industry Investment Rating No information provided. 2) Core View of the Report - Domestic civil LPG prices dropped significantly, while the PG main contract fluctuated upward. With no pressure on inventory and increased downstream purchasing willingness, spot prices are expected to rise slightly. However, propane is still greatly affected by Sino - US tariff policies, so cautious participation is recommended [1]. 3) Summary by Related Catalog Price Changes - **Daily Changes**: Civil LPG prices in some regions showed small rebounds in decline. In the East China region, the price was 4285 (+11), in Shandong it was 4280 (+10), and in South China it was 4400 (+0). The price of ether - post carbon four was 4370 (+0). The lowest delivery location was Shandong. The daily spread was 27 (+69), and the 12 - 01 month spread was 82 (-5). The CP official price was announced slightly higher than expected, with propane and butane at 475 (-20) and 460 (-15) respectively. The FEI price increased to 513.62 (+1.62) dollars/ton [1]. - **Weekly Changes**: The domestic civil LPG price dropped significantly. The cheapest deliverable product was East China civil LPG at 4279 (-66); Shandong was 4360 (+160), and South China was 4405 (-55). The number of warehouse receipts was 2416 lots, with 2300 from Wanhua, 64 more from Yunda, and 52 more from Haiyu Petrochemical. The overseas market price increased significantly [1]. Market Indicators - **Basis and Month Spreads**: The basis was - 69 (-49), the 11 - 12 month spread was 90 (-47), and the 12 - 01 month spread was 113 (-1) [1]. - **Arbitrage Windows and Spreads**: The US - Asia arbitrage window opened. The CP South China arrival discount was 74 (-4). The freight from the US Gulf to Japan was 116 (+0), and from the Middle East to the Far East was 56 (-4). The FEI - MOPI spread narrowed but the switching window was still open. The latest value was - 82.5 (-11.5). The PG - CP spread was 114 (-17); the PG - FEI spread was 79 (-33). The FEI - CP spread was 35 (+15) [1]. Industry Conditions - **Profit and Operating Rate**: The profit of PDH decreased. The PDH operating rate was 71.66% (+2.9 pct) due to the restart of Hebei Haiwei and the increased load of Wanda Tianhong, but the second - phase of Zhongjing shut down again. Next week, Lihuayi Weiyuan is expected to resume production [1]. - **Inventory and Supply**: The arrival volume was at a low level, the external release decreased, and both port inventories and factory warehouses decreased. Chemical demand provided support, and the expectation of combustion demand improved [1].

Core Viewpoint - The company reported a decline in total revenue and net profit for the first three quarters of 2025, with total revenue at 21,134 billion and net profit at 300 billion, reflecting a year-on-year decrease of 10.7% and 32.2% respectively [4] Group 1: Financial Performance - In Q3 2025, the company achieved total revenue of 7,044 billion, down 10.9% year-on-year but up 4.6% quarter-on-quarter, with net profit at 85 billion, a slight decrease of 0.5% year-on-year and an increase of 3.4% quarter-on-quarter [4] - The operating cash flow for the first three quarters was 1,148 billion, an increase of 13.0% year-on-year [5] Group 2: Oil Price and Market Conditions - International oil prices experienced a downward trend, with the average Brent crude price at 70.9 USD/barrel, down 14.4% year-on-year [5] - In Q3 2025, Brent crude futures averaged 68.17 USD/barrel, a decrease of 13.4% year-on-year but an increase of 2.2% quarter-on-quarter [5] Group 3: Business Segment Analysis - Upstream segment profits were impacted by falling oil prices, with a total profit of 381 billion, down 15.8% year-on-year, while Q3 profits were 126 billion, down 12.4% year-on-year but up 5.7% quarter-on-quarter [6][7] - The refining segment saw profits of 70 billion, an increase of 13.7% year-on-year, with Q3 profits at 37 billion, reflecting a significant year-on-year increase [8] - The sales segment reported a profit of 128 billion, down 35.6% year-on-year, with Q3 profits at 34 billion, showing a slight year-on-year increase [9] - The chemical segment faced a loss of 82 billion, worsening by 34 billion year-on-year, with Q3 losses at 41 billion [10]

Core Viewpoint - The 20th Central Committee's Fourth Plenary Session has approved the "Suggestions on Formulating the 15th Five-Year Plan for National Economic and Social Development," outlining a grand blueprint for China's development over the next five years, emphasizing ecological civilization and green transformation as key priorities [1][2]. Group 1: Achievements in Ecological Civilization and Green Development - During the "14th Five-Year" period, significant progress has been made in ecological civilization and green development, with PM2.5 concentrations in cities expected to drop to 29.3 micrograms per cubic meter by 2024, a 16.3% decrease from 2020 [2]. - The proportion of good water quality in surface water has surpassed 90%, with major rivers like the Yangtze and Yellow Rivers maintaining Class II water quality for several consecutive years [2]. - The area of ecological protection and restoration has exceeded 120 million acres, with forest coverage steadily increasing to over 25%, contributing to approximately 25% of the world's new greening area [2]. - The share of non-fossil energy consumption is projected to rise from 15.9% in 2020 to 19.8% by 2024, with renewable energy generation capacity surpassing coal power for the first time [2]. Group 2: Future Directions for Green Development - The 20th Central Committee emphasizes the need to enhance green development momentum, advocating for a balance between high-quality development and environmental protection, and promoting the integration of new technologies with green industries [4]. - Pollution prevention and ecological system optimization are highlighted as key tasks, focusing on precise and scientific approaches to tackle environmental challenges [4]. - The establishment of a new energy system is deemed crucial, with a focus on developing renewable and clean energy while ensuring energy security [4]. - Achieving carbon peak and carbon neutrality goals is prioritized, with a call for innovation in green technology and the establishment of a comprehensive carbon emission control system [4]. - The promotion of a green lifestyle is essential for building a beautiful China, encouraging societal participation in sustainable practices and green consumption [4].

Core Viewpoint - China Petroleum & Chemical Corporation (Sinopec) reported a decline in revenue and net profit for the first three quarters of 2025, primarily due to falling oil prices and weak demand in the refined oil sector [1][2]. Financial Performance - For the first three quarters of 2025, Sinopec achieved operating revenue of 2,113.441 billion yuan, a year-on-year decrease of 10.69% - The net profit attributable to shareholders was 29.984 billion yuan, down 32.23% year-on-year - The basic earnings per share (EPS) was 0.25 yuan, reflecting a 32.51% decline compared to the previous year [1] - In Q3 2025, the company reported operating revenue of 704.389 billion yuan, a year-on-year decrease of 10.88% but a quarter-on-quarter increase of 4.56% [1][2]. Segment Performance - The exploration and development segment generated an operating profit of 35.5 billion yuan, down 72 million yuan year-on-year - The refining segment saw a slight improvement, while the marketing and chemical segments experienced declines in profitability [2] - In Q3, the operating profits for each segment were 11.9 billion yuan (exploration), 3.7 billion yuan (refining), 2.7 billion yuan (marketing), and -2.9 billion yuan (chemical), with mixed quarter-on-quarter performance [2]. Exploration and Development - Sinopec increased its exploration efforts, with exploration expenses rising by 31.9% to 8.4 billion yuan - The company achieved an oil and gas equivalent production of 394.48 million barrels, a year-on-year increase of 2.2% [3]. Refining and Chemical Production - The refining segment optimized its processing load, producing 186 million tons of crude oil, a decrease of 2.2% year-on-year, and 111 million tons of refined oil, down 4.7% [4] - The chemical segment saw an increase in production, with ethylene output rising by 15.4% to 11.59 million tons and synthetic resin production increasing by 11.8% to 16.71 million tons [4]. Industry Outlook - The domestic oil refining capacity is expected to be capped at 1 billion tons, with the current expansion nearing policy limits - Sinopec, as a leading player in the petrochemical industry, is anticipated to benefit from the ongoing consolidation and exit of inefficient capacities in the sector [5]. - Profit forecasts for Sinopec indicate a net profit of 40.41 billion yuan in 2025, with expected growth rates of -19.7%, 9.8%, and 21.6% for the following years [5].

Core Insights - China Petroleum & Chemical Corporation (Sinopec) reported Q3 2025 earnings slightly below expectations, with operating revenue of 704.4 billion yuan, a year-on-year decrease of 10.9%, and a net profit attributable to shareholders of 8.5 billion yuan, a year-on-year decrease of 0.5% [1] Group 1: Oil and Gas Exploration - The exploration segment's profit declined year-on-year due to falling oil and gas prices, with oil equivalent production reaching 132 million barrels, an increase of 3% year-on-year. Crude oil production increased by 1% and natural gas production increased by 4%, while crude oil prices fell by 15% and natural gas prices fell by 8%, leading to a 2% increase in segment revenue but a 10% decrease in operating profit [1] Group 2: Refining and Product Supply - Refining processing volume was 66 million tons, an increase of 3.8% year-on-year, with gasoline production down by 2.8%, diesel down by 0.3%, kerosene up by 10.5%, and chemical light oil up by 7.1%. Total sales of refined oil products were 59 million tons, a decrease of 5% year-on-year, attributed to ongoing demand weakness due to electrification. However, refining profits improved year-on-year, with refining unit profit at 1 USD per barrel of oil equivalent, an improvement of 1.3 USD per barrel [1] Group 3: Chemical Sector - The chemical sector faced significant profit pressure due to the continuous release of new domestic capacity, resulting in a unit profit loss of 0.8 USD per barrel of oil equivalent, which is an increase in loss by 0.3 USD per barrel [2] Group 4: Profit Forecast and Investment Rating - The profit forecast for 2025-2027 is maintained at 43.5 billion, 53.6 billion, and 64.1 billion yuan, with corresponding price-to-earnings ratios of 15, 12, and 10 times. Assuming a dividend payout ratio of 70%, the expected dividend yield for A-shares in 2025 is 4.6%, 5.6%, and 6.7%, while for H-shares it is 6.6%, 8.2%, and 9.7%. The investment rating remains "Buy" [2]

Core Viewpoint - The article emphasizes that green development is a fundamental aspect of China's modernization, with the "14th Five-Year Plan" laying the groundwork for a comprehensive green transition, aiming for a harmonious coexistence between humans and nature through systemic reforms [1][2]. Systematic Transformation - The "14th Five-Year Plan" has established a solid foundation for green transformation, with China building the world's largest renewable energy system, expected to generate 3.46 trillion kilowatt-hours by 2024, which is 1.6 times that of the end of the "13th Five-Year Plan" [1]. - China has also developed the largest electric vehicle charging network globally, with a ratio of 2 charging stations for every 5 electric vehicles, and has maintained the highest production and sales of new energy vehicles for ten consecutive years [1]. Green Transition Framework - The "15th Five-Year Plan" is a critical period for achieving significant improvements in ecological and environmental conditions, focusing on increasing the share of renewable energy, implementing dual control of carbon emissions, and promoting green low-carbon transitions in key sectors [2][3]. - The plan aims to systematically integrate green development with economic core elements, emphasizing that green transformation is essential for high-quality economic growth [2]. Carbon Emission Control - The dual control system for carbon emissions is highlighted as a guiding principle for the green transition, with the "15th Five-Year Plan" marking the first five years of this shift, aiming for peak carbon emissions by 2030 [2][3]. - The establishment of the world's largest carbon trading market, covering over 60% of national CO2 emissions, is a significant step in this direction [3]. Industry Transformation - The plan outlines a dual approach to industry transformation: increasing the scale of green low-carbon industries, projected to reach approximately 11 trillion yuan, and implementing energy-saving measures in key sectors like steel and petrochemicals, aiming to save over 150 million tons of standard coal [4]. - The focus will be on creating a differentiated and scientifically reasonable carbon emission quota distribution mechanism, enhancing carbon emission statistics, and establishing effective regulatory frameworks [4]. New Energy System - The "15th Five-Year Plan" emphasizes the construction of a new energy system, aiming to increase the share of renewable energy and ensure the reliable replacement of fossil fuels [5][6]. - By the end of the "15th Five-Year Plan," it is expected that most new electricity demand will be met by clean energy sources, with a significant reduction in coal's share in energy consumption [5][6]. Future Vision - The vision for energy development includes a robust focus on non-fossil energy, efficient use of fossil fuels, and the establishment of a new power system that supports the integration of renewable energy [6]. - The comprehensive green transition is expected to reshape China's development model and contribute to global ecological civilization, moving towards a more sustainable and harmonious relationship with nature [6].

Core Viewpoint - China Petroleum & Chemical Corporation (Sinopec) reported a decline in revenue and net profit for the first three quarters of 2025, primarily due to falling oil and gas prices [1] Financial Performance - Total revenue for the first three quarters was 2.1 trillion yuan, a year-on-year decrease of 10.7% [1] - Net profit attributable to shareholders was 29.98 billion yuan, down 32.2% year-on-year [1] - Operating cash flow net amount was 114.78 billion yuan, an increase of 13% year-on-year [1] - In Q3 alone, revenue was 704.39 billion yuan, a decline of 10.9% year-on-year, while net profit was 8.5 billion yuan, down 0.5% [1] Business Segment Performance - The chemical segment was the only loss-making sector, with an EBITDA loss of 8.22 billion yuan [2] - In exploration and development, oil and gas equivalent production reached 394.48 million barrels, a 2.2% increase year-on-year, with a profit of 38.08 billion yuan [2] - The refining segment processed 186 million tons of crude oil, producing 11 million tons of refined oil, with an EBITDA of 7 billion yuan [2] Capital Expenditure - Total capital expenditure for the first three quarters was 71.6 billion yuan, focused on capacity building and technological upgrades [3] - Capital expenditure in exploration and development was 41.6 billion yuan, while refining accounted for 10.6 billion yuan [3] - The marketing and distribution segment had a capital expenditure of 5.5 billion yuan, and the chemical segment accounted for 12.9 billion yuan [3]

Core Points - China Petroleum & Chemical Corporation (Sinopec) repurchased 4.776 million shares on October 30 at a price range of HKD 4.100 to HKD 4.220, totaling HKD 19.723 million [2] - The stock closed at HKD 4.120 on the same day, reflecting a decrease of 2.37%, with a total trading volume of HKD 931 million [2] - Year-to-date, Sinopec has conducted 22 repurchase transactions, acquiring a total of 175 million shares for a cumulative amount of HKD 794 million [2] Repurchase Details - Date: October 30, 2025; Shares repurchased: 477.60 thousand; Highest price: HKD 4.220; Lowest price: HKD 4.100; Total amount: HKD 19.723 million [2] - Previous repurchase on September 26, 2025; Shares repurchased: 453.00 thousand; Highest price: HKD 4.070; Lowest price: HKD 4.050; Total amount: HKD 18.4045 million [2] - Another repurchase on September 25, 2025; Shares repurchased: 810.00 thousand; Highest price: HKD 4.090; Lowest price: HKD 4.050; Total amount: HKD 32.9711 million [2]

Core Viewpoint - The successful commissioning of the Guangxi Petrochemical Ethylene Project marks the completion of the largest million-ton ethylene project in Southwest China, showcasing advancements in China's petrochemical industry and its shift towards integrated refining and chemical production [1] Investment and Financial Aspects - The total investment in the project exceeds 30 billion RMB, highlighting significant financial commitment to enhance the petrochemical sector [1] - The project is expected to reduce oil products by 3.49 million tons annually and increase chemical production by 3.06 million tons, indicating a strong potential for revenue generation and market supply improvement [1] Technological Innovations - The project features the world's largest diesel adsorption separation device, which improves raw material utilization efficiency by over 15% compared to traditional methods, addressing structural issues in China's petrochemical industry [1] - It includes China's first set of 80,000 tons/year SBS and 120,000 tons/year functionalized styrene-butadiene rubber facilities, along with the world's first largest dual-variable frequency motor ethylene refrigeration compressor, showcasing significant technological advancements [1] Environmental and Operational Efficiency - The project achieves 100% green electricity for its new power consumption, and its energy consumption indicators for refining and ethylene facilities exceed national benchmark standards, promoting sustainability in operations [1] - The establishment of a "resource-product-green application" circular chain indicates a commitment to environmentally friendly practices within the industry [1]

Core Insights - The successful launch of the Guangxi Petrochemical Ethylene Project marks a significant transition for China National Petroleum Corporation (CNPC) from refining to integrated refining and chemical production in the southwestern region of China [1][2] - The project, with a total investment exceeding 30 billion RMB, features the world's largest diesel adsorption separation unit and aims to enhance raw material utilization efficiency by over 15% compared to traditional processes [1][2] Investment and Production Capacity - The Guangxi Petrochemical Ethylene Project includes a core ethylene unit with an annual capacity of 1.2 million tons, along with 14 chemical units and 2 refining units [2] - Upon completion, the project is expected to reduce oil products by 3.49 million tons annually and increase chemical production by 3.06 million tons, addressing domestic supply gaps in high-end polyolefins and functional rubber [2] Environmental and Economic Impact - The project achieves 100% green electricity for its new power consumption and meets energy consumption standards that exceed national benchmarks, contributing to China's dual carbon goals [2] - It is anticipated to transform Guangxi's industrial landscape from basic chemicals to high-end chemical new materials, supporting the development of a trillion-level green chemical new materials industry cluster aimed at the ASEAN market [2] Product Range and Market Reach - The first batch of chemical products includes a variety of materials such as polyethylene films, polypropylene, and SBS, which are essential for sectors like agriculture, food packaging, and electronics [2] - The successful shipment of these products is expected to provide high-quality raw material support to downstream markets, effectively filling regional supply gaps in high-end chemical products [2] Strategic Importance - The Guangxi Petrochemical Ethylene Project is a key initiative under China's national petrochemical industry planning and a major project for CNPC during the 14th Five-Year Plan [5] - The project is viewed as a crucial driver for economic development in the Guangxi region, facilitating a shift from fuel to material production in the local petrochemical industry [5]