Group 1: Investment Rating - The report does not mention the industry investment rating. Group 2: Core Views - The game between weak reality and policy expectations continues, and the polysilicon futures market fluctuates widely. The industrial silicon market has a weak fundamental situation currently, but there may be a reduction in production in the southwest region at the end of October. The polysilicon market has high inventory pressure, and the price transmission to downstream products is not smooth. However, relevant policies are expected to be introduced in the long - term, which may bring opportunities for the market [1][3][8]. Group 3: Industry Analysis - Industrial Silicon Market Analysis - On October 21, 2025, the industrial silicon futures price fluctuated. The main contract 2511 opened at 8520 yuan/ton and closed at 8505 yuan/ton, a decrease of 80 yuan/ton (-0.93%) from the previous settlement. The position of the main contract 2511 was 107,518 lots, and the total number of warehouse receipts was 48,851 lots, a decrease of 452 lots from the previous day [1]. - The spot price of industrial silicon remained stable. The price of oxygen - blown 553 silicon in East China was 9300 - 9400 yuan/ton, 421 silicon was 9600 - 9800 yuan/ton, Xinjiang oxygen - blown 553 silicon was 8600 - 8900 yuan/ton, and 99 silicon was 8600 - 8900 yuan/ton. The silicon prices in various regions such as Kunming, Huangpu Port, and the northwest remained stable [1]. - The consumption side: The price of organic silicon DMC was reported at 11100 - 11500 yuan/ton. Last week, the domestic DMC price may have a small trial increase, but it may be under pressure this week if the actual situation does not meet expectations [1]. Export and Import - In September 2025, the export volume of primary - form polysiloxanes of organic silicon in China was 46,900 tons, a month - on - month decrease of 2.47% and a year - on - year increase of 9.57%. From January to September 2025, the cumulative export volume was 420,000 tons, a year - on - year increase of 2.26%. The import volume in September 2025 was 7500 tons, a month - on - month increase of 3.39% and a year - on - year decrease of 8.46%. From January to September 2025, the cumulative import volume was 71,200 tons, a year - on - year decrease of 13.7% [2]. Strategy - The current fundamental situation is weak, but production may decrease in the southwest at the end of October. The industrial silicon futures market is mainly affected by the overall commodity sentiment and policy news. If there are policies to promote capacity withdrawal, the market may rise. The short - term strategy is to operate within a range, and it is advisable to go long on contracts during the dry season at low prices [3]. Group 4: Industry Analysis - Polysilicon Market Analysis - On October 21, 2025, the main contract 2511 of polysilicon futures fluctuated. It opened at 50,210 yuan/ton and closed at 50,715 yuan/ton, a decrease of 1.23% from the previous trading day. The position of the main contract was 52,237 lots (56,806 lots the previous day), and the trading volume was 121,870 lots [4]. - The spot price of polysilicon remained stable. The price of N - type material was 51.00 - 55.00 yuan/kg, and N - type granular silicon was 50.00 - 51.00 yuan/kg. The inventory of polysilicon manufacturers and silicon wafers increased. The polysilicon inventory was 25.30 (a month - on - month change of 5.33%), the silicon wafer inventory was 17.31GW (a month - on - month change of 3.16%), the weekly polysilicon output was 31,000 tons (a month - on - month change of 0.00%), and the silicon wafer output was 14.35GW (a month - on - month change of 11.85%) [6]. - In the silicon wafer market, the price of domestic N - type 18Xmm silicon wafers was 1.35 yuan/piece, N - type 210mm was 1.70 yuan/piece, and N - type 210R silicon wafers was 1.39 yuan/piece. The polysilicon output in October is expected to be about 133,500 tons, an increase from September. There will be a significant reduction in production in the southwest region in November. The silicon wafer production schedule increased significantly in October, but silicon wafer enterprises are expected to reduce production from November to December according to the association's quota [6]. - In the battery cell market, the price of high - efficiency PERC182 battery cells was 0.27 yuan/W, PERC210 battery cells was 0.28 yuan/W, TopconM10 battery cells was 0.31 yuan/W, Topcon G12 battery cells was 0.32 yuan/W, Topcon210RN battery cells was 0.29 yuan/W, and HJT210 half - cell battery was 0.37 yuan/W [7]. - In the component market, the mainstream transaction price of PERC182mm was 0.67 - 0.74 yuan/W, PERC210mm was 0.69 - 0.73 yuan/W, N - type 182mm was 0.66 - 0.68 yuan/W, and N - type 210mm was 0.67 - 0.69 yuan/W [7]. Strategy - The supply - demand fundamental situation of polysilicon is average, with high inventory pressure. The production reduction in October did not meet expectations, and the price transmission to downstream products was not smooth. The cancellation of warehouse receipts in November will suppress the market. The market is affected by anti - involution policies and weak reality, with large price fluctuations. In the long - term, it is suitable to go long at low prices. The short - term strategy is to operate within a range, with the 11th main contract fluctuating between 49,000 - 53,000 yuan/ton and the 12th contract between 51,000 - 57,000 yuan/ton [8]. Group 5: Factors to Watch Industrial Silicon - The resumption of production in the northwest and the shutdown in the southwest; changes in the start - up of polysilicon enterprises; policy disturbances; macro and capital sentiment; and the start - up situation of organic silicon enterprises [5]. Polysilicon - The impact of industry self - discipline on the start - up of upstream and downstream enterprises; the promotion of the spot market by the futures listing; capital sentiment; and policy disturbances [9].

Group 1 - The core issue raised by investors is the recent surge in the price of methyldibutyl ketoxime silane and whether the company produces this product [2] - Dongyue Silicon Materials (300821.SZ) confirmed on October 20 that its main products include silicone rubber, silicone oil, silicone resin, fumed silica, and organic silicon intermediates, but it does not currently produce the mentioned product [2]

Core Viewpoint - Runhe Materials (300727.SZ) has made significant progress in its high-end organic silicon materials project, securing land for construction and aiming to enhance its competitiveness and sustainable development capabilities [1] Group 1: Company Developments - Runhe Materials' wholly-owned subsidiary Zhuhai Runhe has successfully acquired land for the high-end organic silicon materials project, with a land use right transfer price of 43.5863 million yuan [1] - The project is expected to generate an annual output value of 800 million yuan upon full production, strengthening the company's position in the Greater Bay Area's new materials industry [1] Group 2: Industry Insights - The organic silicon industry chain consists of upstream metal silicon, midstream monomers and intermediates, and downstream products like silicone rubber, oils, and resins [2] - The application range of organic silicon materials has expanded from defense to various sectors, including construction, electronics, automotive, and personal care, with significant market shares in construction (25%), electronics (23%), and manufacturing (15%) [2] - The organic silicon market is projected to grow from 3.01 million tons in 2024 to 3.87 million tons by 2029, with a compound annual growth rate of 5.2% [3] - Runhe Materials is focusing on technological and product development to enhance product performance and has a diverse product range, including organic silicon intermediates and deep-processing products [3] - The industry is experiencing a shift due to policies aimed at reducing low-price competition and eliminating outdated production capacity, which is expected to benefit Runhe Materials significantly [3]

Investment Rating - The report maintains an "Overweight" rating for the basic chemical industry [5] Core Views - The supply-demand dynamics for lithium hexafluorophosphate (LiPF6) are marginally improving, with prices expected to continue rising due to strong demand recovery and tight supply conditions [1][3] - The domestic production capacity of LiPF6 is concentrated among a few companies, which are likely to benefit from price increases and improved profitability [2] - The lithium-ion battery materials sector is experiencing robust demand growth, particularly in the electric vehicle and energy storage markets, indicating a broad demand outlook [3] Summary by Sections Supply and Demand Dynamics - The current market operating rate for LiPF6 is 75.43%, with most manufacturers operating at full capacity, leading to a supply shortage [1] - As of October 17, 2025, LiPF6 prices have risen to 75,000 CNY/ton, marking a 16.3% increase from the previous week and a 20.0% increase since the beginning of the year [1] Production Capacity - China's LiPF6 production capacity stands at 442,900 tons/year, with effective capacity at 389,400 tons/year, reflecting a year-on-year growth of 13.7% [2] - Major producers include Tianqi Lithium, Dongyue Group, and others, with significant expansions planned for 2025-2027 [2] Market Demand - The energy storage sector saw a cumulative bidding scale of 211.11 GWh from January to August 2025, with new installations reaching 21.9 GW/55.2 GWh in the first half of 2025, representing year-on-year growth of 69.4% and 76.6% respectively [3] - In the electric vehicle sector, production and sales of new energy vehicles reached 6.968 million and 6.937 million units in the first half of 2025, with year-on-year growth of 41.4% and 40.3% [3]

Core Points - Company announced the establishment of a project company to implement a high-end organic silicon new materials project in Zhuhai Economic and Technological Development Zone [2] - The company has successfully obtained the land use rights for the project construction site and signed a contract with the Zhuhai Natural Resources Bureau [2] Company Developments - On March 24, 2025, the company held its third board meeting and approved the investment proposal for the new project [2] - A wholly-owned subsidiary, Zhuhai Runhe, was established with a registered capital of RMB 50 million [2] - The subsidiary successfully won the bidding for the land use rights necessary for the project [2]

Core Viewpoint - Dongyue Group (00189) has experienced a significant decline in stock price, dropping over 7% in a single day and more than 16% for the week, primarily due to poor financial performance from its subsidiary Dongyue Silicon Materials [1] Financial Performance - Dongyue Silicon Materials (300821.SZ) is expected to report a net profit decline of approximately 96.27% to 97.40% year-on-year for the first three quarters [1] - The net profit, excluding non-recurring gains and losses, is anticipated to decrease by about 87.10% to 88.14% year-on-year [1] Market Impact - The decline in sales revenue and gross margin is attributed to the fluctuating prices of silicone products [1] - Operational losses due to a fire incident at the synthetic phase B bed have negatively impacted the company's performance [1]

Core Viewpoint - Dongyue Group (00189) has experienced a significant decline in stock price, dropping over 16% this week, with a current price of 10.54 HKD and a trading volume of 401 million HKD [1] Financial Performance - Dongyue Silicon Materials (300821), a non-wholly owned subsidiary of Dongyue Group, is expected to report a net profit decline of approximately 96.27% to 97.40% year-on-year for the first three quarters [1] - The net profit, excluding non-recurring gains and losses, is anticipated to decrease by about 87.10% to 88.14% year-on-year [1] Market Conditions - The decline in sales revenue and gross margin for the company's main products is attributed to the fluctuating prices of silicone products [1] - Additionally, operational losses due to a fire incident affecting the synthesis phase B bed have negatively impacted performance [1]

Report Summary 1) Report Industry Investment Rating - Not provided in the given content 2) Core View of the Report - The fundamentals of the industrial silicon market show both supply and demand increasing. The continuous resumption of production by large northwest manufacturers drives up industrial silicon output. On the demand side, affected by the resumption of production in Qinghai and the ramping - up of new capacities in other regions, the production schedule of polysilicon in October is expected to increase. With the organic silicon production schedule in October being basically stable, silicon prices may fluctuate [1] 3) Summary According to Relevant Content Futures Market - SI2510: Closing price is 8660, change rate is 1.23%, and open interest is 1183 [1] - SI2511: Closing price is 8570, change rate is - 0.12%, and open interest is 142381 [1] - SI2512: Closing price is 8945, change rate is - 0.28%, and open interest is 112415 [1] - SI2601: Closing price is 8875, change rate is - 0.34%, and open interest is 124630 [1] - SI2602: Closing price is 8885, change rate is - 0.34%, and open interest is 22957 [1] Spot Market - In the East China region: 553 (non - oxygen - passing) price is 9300 with no change; 553 (hydrogen - passing) price is 9400 with no change; 421 price is 9700 with no change; 441 price is 9650, up 200; 3303 price is 10550 with no change; 553 (flux - passing) price is 9450 with no change [1] - At Huangpu Port: 421 price is 10100 with no change; 553 (hydrogen - passing) price is 9300 with no change [1] - At Tianjin Port: 421 price is 9850 with no change; 553 (hydrogen - passing) price is 9600 with no change [1] - In Sichuan: 421 price is 9750 with no change [1] - DMC price is 11300 with no change; 107 glue price is 11500, down 2000; polysilicon (dense material, per kilogram) price is 51.25 with no change; average price of aluminum alloy ADC12 is 21050, up 50 [1] Price Spread - SI2510 - SI2511 spread is 90, up 120; SI2511 - SI2512 spread is - 375, up 10; 421 spot - 553 oxygen - passing spot spread is 300 with no change; basis (East China 553 spot - main contract) is 830, down 50 [1] Warehouse and Warehouse Receipt - Total warehouse capacity is 280,000 tons. The total number of warehouse receipts yesterday was 42684, and today it is 42090, a decrease of 594 [1] Industry News - The environmental impact assessment public participation first - phase information of the 90,000 - ton organic silicon product project of Jiangxi Fuxin Organic Silicon Technology Co., Ltd. was released on the Jiujiang government website [1]

Core Insights - The development of the organic silicon industry is being driven by national strategies such as "Made in China 2025" and "14th Five-Year Plan for Industrial Green Development," which open up broader application areas for organic silicon products [1] - The market demand for industrial cleaning agents, particularly in precision manufacturing sectors like semiconductors and electronics, is on the rise, with the potential market demand reaching 300 billion yuan [1] - Runhe Materials (300727.SZ) has established itself as a leading manufacturer of ultra-pure MM materials, achieving a product purity of 99.999% and catering to high-tech industries [1][2] Industry Overview - The organic silicon industry in China has formed a complete supply chain from upstream raw materials to high-end terminal products, with leading companies reducing energy costs through vertical integration and expanding into high-value sectors like semiconductors and renewable energy [1] - As of the end of 2024, China's organic silicon production capacity is expected to reach 3.44 million tons, accounting for 76% of global capacity, solidifying China's position as the largest producer of organic silicon [2] - The industry is experiencing a shift from "scale expansion" to "technical deepening," driven by emerging demands in sectors such as photovoltaics and electric vehicles [3] Company Developments - Runhe Materials focuses on the research, production, and sales of organic silicon deep-processing products, with a diverse product range including electronic/new energy, industrial/additives, and personal care/medical products [2] - The company has successfully launched its cooling liquid products, which are characterized by excellent antioxidant properties and high thermal conductivity, finding applications in various thermal management scenarios [3] - Runhe Materials has a strong patent portfolio with 80 patents, including 62 invention patents, which supports its competitive edge in high-value and innovative product offerings [3] Market Trends - The demand for organic silicon products is expected to continue growing, particularly in high-demand emerging application areas such as computing power, consumer electronics, new energy, semiconductor chips, and personal care products [4] - The trend towards high-performance, functional, composite, and green organic silicon products positions domestic manufacturers favorably against imports, enhancing their competitive advantage [5]

Group 1: Market Overview - The Hang Seng Index fell by 0.20%, down 52 points, closing at 25,837 points, while the Hang Seng Tech Index dropped by 1.3% [1] - The early trading volume in the Hong Kong stock market reached HKD 188.8 billion [1] Group 2: Banking Sector - Most bank stocks rose, with expectations of stable annual performance and increased attractiveness of dividend value; China Merchants Bank rose by 4.26%, Chongqing Bank by 3%, and CITIC Bank by 2.49% [1] Group 3: Shipping Sector - Shipping stocks experienced a broad increase, with expectations that the mutual port fees between China and the U.S. will boost freight rates; DeXiang Shipping rose by 5% and Orient Overseas International by 2% [1] Group 4: Solar Industry - Solar stocks saw gains, with recent developments indicating a reduction in internal competition and Chinese solar companies securing overseas contracts; Xinyi Solar rose by 5.7%, Flat Glass Group by 6%, and GCL-Poly Energy by 4.8% [1] Group 5: Education Sector - Fenbi (粉笔) stock rose over 3% following the relaxation of age restrictions for national exams, with institutions optimistic about the potential growth of AI-based exam preparation classes [2] Group 6: Alcohol Industry - Zhenjiu Li Du (珍酒李渡) stock increased by over 6% as Tang Xiangyang took over as CEO, overseeing core brand operations [3] Group 7: Semiconductor Sector - Semiconductor stocks opened high but fell; Huahong Semiconductor dropped by 10% and SMIC by over 6%, with analysts noting that recent events involving Wentai Technology may temporarily impact market sentiment [3] Group 8: Securities Sector - Yaocai Securities (耀才证券金融) experienced a decline of over 9% after a previous surge of 34%, following the approval of Ant Group's acquisition by the Hong Kong Securities and Futures Commission [4] Group 9: Chemical Sector - Dongyue Group (东岳集团) fell by over 7% due to declining prices of silicone products, with its subsidiary reporting a profit drop of up to 97% in the first three quarters [5] Group 10: Gaming Sector - Gaming stocks continued to decline, with Melco International Development down by over 5% and Sands China by over 4% [6]