1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The MTO is gradually resuming work, and the ports are realizing inventory reduction. The Middle - East war situation has concerns of escalation, which may affect the methanol market. The port inventory is rapidly decreasing, and the expected import arrivals in April are at a historical low. The MTO demand has passed its low point, and the port basis has strengthened significantly. Coal - based methanol production is operating at high profit, and the spring inspection scale is limited. The inventory of inland factories continues to decline, and the traditional downstream industries are performing well [3]. 3. Summary According to the Directory I. Methanol Basis & Inter - period Structure - The report includes figures showing the methanol basis in different regions (such as Taicang, Lunan, Inner Mongolia North Line, etc.) compared with the main futures contract, and the price differences between different methanol futures contracts (e.g., methanol 01 - 05, 05 - 09, 09 - 01) [6][7][8] II. Methanol Production Profit, MTO Profit, and Import Profit - It presents figures on the production profit of Inner Mongolia coal - based methanol, the MTO profit in the East China region (PP&EG type), and the import price differences (e.g., Taicang methanol - CFR China, CFR Southeast Asia - CFR China, etc.) [6][25][28] III. Methanol开工, Inventory - Figures show the total port inventory of methanol, the MTO/P operating rate (including integrated ones), the inventory of inland factory samples, and the operating rate of Chinese methanol production (including integrated ones) [6][36][42] IV. Regional Price Differences - The report provides figures on regional price differences such as Lubei - Northwest - 280, East China - Inner Mongolia - 550, Taicang - Lunan - 250, etc. [6][39][49] V. Traditional Downstream Profits - It includes figures on the production profits of traditional downstream products such as Shandong formaldehyde, Jiangsu acetic acid, Shandong MTBE isomerization etherification, and Henan dimethyl ether [6][47][56]

Report Industry Investment Rating - Not provided Core Viewpoints - For PTA, short - term观望, long - term maintain long positions, and pay attention to terminal negative feedback [2][9] - For MEG, adopt a wait - and - see approach due to high uncertainty in the far - month balance sheet [9] - For polyester staple fiber, the current valuation is relatively neutral under the situation of weak supply and demand [9] - For natural rubber and 20 - number rubber, the strategy is to wait and see [9] Summary by Product PTA - **Price Changes**: From March 20 to March 26, PTA spot price changed by 100, POY 150D/48F price changed by - 25, and polyester gross profit changed by - 122 [2] - **Device Changes**: Yizheng's 3 million - ton device and Jiaxing Petrochemical's 1.5 million - ton device restarted [2] - **Market Situation**: Near - end TA has both decline and restart, with an increase in the operating rate. Polyester's load - increasing speed slows down, inventory accumulates, basis weakens, and spot processing fees are compressed. PX domestic device's load - reduction slows down, overseas still has production cuts, PXN weakens to a low level, and the aromatics price difference between the US and Asia increases [2] - **Future Outlook**: Although the load - reduction of raw material PX slows down, further production cuts are inevitable under the continuous logistics blockade. The blending oil benefit expands, the static valuation is not high, and TA's own processing fee is at a low level. Polyester's load - increasing slows down and there may be production cuts, but it is difficult to offset the supply - side reduction, so it is expected to maintain de - stocking [2][9] MEG - **Price Changes**: From March 20 to March 26, MEG outer - market price changed by 15, MEG inner - market price changed by 36, and MEG coal - making profit changed by 36 [9] - **Device Changes**: Xinjiang Zhongkun's 600,000 - ton single - line device was under maintenance [9] - **Market Situation**: Near - end domestic oil - based device's load - reduction slows down, and some coal - based devices are under maintenance. The operating rate decreases, port inventory continues to decline, the basis strengthens, and coal - based and ethane - based benefits increase to a high level [9] - **Future Outlook**: Although the load - reduction at home and abroad slows down, there are concerns about the operation stability of Saudi devices due to conflicts. The export/trans - shipment trade may increase, and the arrival volume is expected to decline rapidly under the continuous Middle - East logistics blockade. The short - term de - stocking speed accelerates, and the far - month balance sheet has high uncertainty [9] Polyester Staple Fiber - **Price Changes**: From March 20 to March 26, the price of 1.4D cotton - type staple fiber changed by 185, and the short - fiber profit changed by - 185 [9] - **Device Changes**: Not provided - **Market Situation**: Near - end staple fiber has both maintenance and restart, the operating rate rises to 86.1%, sales decline, inventory accumulates, and spot processing fees improve. On the demand side, the operating rate of polyester yarn continues to increase, raw material inventory decreases, finished - product inventory increases, and benefits improve [9] - **Future Outlook**: As raw materials continue to strengthen, terminal wait - and - see sentiment intensifies. The substitution effect of recycled materials is obvious after the price difference between raw and recycled materials strengthens significantly. Although the processing fee is acceptable, the future operating rate of staple fiber may be restricted by raw material supply, and the current valuation is relatively neutral under the situation of weak supply and demand [9] Natural Rubber & 20 - Number Rubber - **Price Changes**: From March 20 to March 26, the daily change of US - dollar Thai standard spot price is - 5, and the weekly change is 55. The daily change of RU main contract price is 40, and the weekly change is 2550 [9] - **Market Situation**: Not provided - **Future Outlook**: The strategy is to wait and see [9] Styrene - Related Products - **Price Changes**: From March 20 to March 26, the daily change of ethylene (CFR Northeast Asia) is 0, the daily change of pure benzene (CFR China) is 0, and the daily change of styrene (CFR China) is 5 [12] - **Market Situation**: Not provided - **Future Outlook**: Not provided

Core Viewpoint - The BASF (Guangdong) integrated base project has officially commenced operations in Zhanjiang, Guangdong Province, marking it as the largest single foreign investment project by a German company in China with a total investment of approximately 87 billion euros [1] Group 1 - The project represents a significant milestone in foreign direct investment in China, highlighting the growing economic ties between Germany and China [1] - The total investment of 87 billion euros underscores the scale and importance of the project within the context of global industrial investments [1] - The integrated base is expected to enhance BASF's production capabilities and strengthen its market position in the Asia-Pacific region [1]

Summary of Dongyue Group Conference Call Industry and Company Overview - **Company**: Dongyue Group - **Industry**: Refrigerants and Fluoropolymers Key Points and Arguments Refrigerants Market - R32 prices remain high and are better than in 2025, while R22 is recovering with the peak season. The conversion of quotas will depend on market conditions in July-August [2][3] - The overall market environment for refrigerants is good, currently in a price increase cycle, with R22 prices expected to rise due to seasonal demand [3][6] - Export business has faced minor impacts due to war-related disruptions, but order volumes remain substantial [3][6] Fluoropolymers and High-end Materials - Prices for fluoropolymers (e.g., PTFE) are in an upward trend, with stable demand and full order books, leading to expected profit improvements in 2026 compared to 2025 [2][4] - High-end fluoropolymer sales are limited due to long verification cycles for downstream imports and small demand, but breakthroughs have been made in PCB materials [2][5] Financial Performance and Projections - A loss of 380 million in 2025 was primarily due to impairment of old power plants and goodwill. Some impairment will continue in the first half of 2026, but new plants will achieve 100% self-supply of steam and partial external sales [2][5] - Capital expenditures in 2026 will remain high, focusing on power plant project settlements, R32 expansion, and smaller projects, with 5 billion in cash reserves to navigate international uncertainties [2][7][8] Cost Management and Profitability - The price increase of upstream raw materials like methanol and sulfuric acid has limited impact on profitability due to order reserves and the ability to pass on costs to product prices [3][6] - The company maintains a 15% preferential tax rate as a high-tech enterprise, which is expected to remain stable as long as the qualification is upheld [14] Future Outlook - The company is optimistic about 2026, with expectations of improved performance across all major business segments, including refrigerants and fluoropolymers [17] - The new power plant is expected to lower costs in the long term and may allow for external sales of steam, contributing to new revenue streams [5][6] Other Considerations - The company has made preparations for fourth-generation refrigerants, with production capacity expected to expand once market demand increases [10] - The overall loss in other business segments is attributed to multiple factors, including goodwill impairment and increased administrative expenses [6][16] Additional Important Information - The company plans to maintain a stable dividend policy, aiming to provide better returns to investors [9] - The 2025 financial results showed a significant decrease in operating costs due to enhanced internal controls, despite a decline in organic silicon business revenue caused by a fire incident [15]

1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The market is affected by demand drag, and attention should be paid to the US - Iran peace talks. The EG load continues to decline, and the port starts to reduce inventory. The domestic supply of ethylene glycol decreases due to concerns about the stability of upstream raw material supply, and overseas supply is also at a low level. The demand side shows that polyester and weaving loads are difficult to further increase, and downstream acceptance of high - price raw materials is low. It is recommended to cautiously go long on hedging at low prices, as inventory reduction is expected to accelerate in March and April [1][2][3] 3. Summary According to Relevant Catalogs Price and Basis - Yesterday, the closing price of the EG main contract was 5,036 yuan/ton (a change of - 83 yuan/ton from the previous trading day, a decrease of 1.62%), the EG spot price in the East China market was 4,863 yuan/ton (a change of - 373 yuan/ton from the previous trading day, a decrease of 7.12%), and the EG East China spot basis was - 47 yuan/ton (a month - on - month increase of 8 yuan/ton) [1] Production Profit and Operating Rate - According to Longzhong data, the production gross profit of ethylene - based EG was - 283 US dollars/ton (a month - on - month decrease of 35 US dollars/ton), and the production gross profit of coal - based syngas - based EG was 526 yuan/ton (a month - on - month decrease of 252 yuan/ton) [1] International Price Difference - Not elaborated in the content other than the mention of the chart "Ethylene glycol international price difference: US FOB - China CFR" [18] Downstream Sales, Production, and Operating Rate - The polyester and weaving loads are difficult to further increase, the downstream acceptance of high - price raw materials is low, the voices of production reduction are increasing, the sales of filament have been continuously sluggish recently, the inventory of filament and staple fiber has rapidly accumulated, and the polyester load is lower than that of the same period last year. If the downstream does not replenish inventory continuously, the load may decline [2] Inventory Data - According to CCF data released every Monday, the inventory of MEG in the main ports of East China was 1.039 million tons (a month - on - month increase of 28,000 tons), and the main ports had a slight inventory increase last week. This week, the total planned arrival volume at the main ports in East China is 117,000 tons, and the arrival volume at the secondary ports is 10,000 tons, and the inventory is expected to remain stable [1]

Report Information - Report Title: Methanol Polyolefin Morning Report [1] - Report Date: March 25, 2026 [1] - Research Team: Energy and Chemicals Team of the Research Center [1] Methanol - On March 24, 2026, the prices of Jiangsu spot, South China spot, Lunan discounted to the market, Southwest discounted to the market, Hebei discounted to the market, and Northwest discounted to the market were 3210, 3275, 3025, 2450, 2985, and 3030 respectively [2]. - The daily changes of Jiangsu spot, South China spot, Lunan discounted to the market, Southwest discounted to the market, Hebei discounted to the market, and Northwest discounted to the market were -85, -50, 40, 0, 225, and 27 respectively [2]. - The import profit was 27, the main contract basis was 23, and the MTO profit was -1106 [2]. Plastic (PE) - On March 24, 2026, the prices of Northeast Asia ethylene, North China LL, East China LL, East China LD, and East China HD were 1450, 8650, 9100, 11250, and 9150 respectively [11]. - The daily changes of North China LL, East China LL, East China LD, and East China HD were -550, -25, 200, and 150 respectively [11]. - The import profit was -345, the main contract futures price was 8918, the basis was -250, the two - oil inventory was 81, and the warehouse receipts were 4666 [11]. Polypropylene (PP) - On March 24, 2026, the prices of Shandong propylene, Northeast Asia propylene, East China PP, North China PP, Shandong powder, and East China copolymer were 9000, 1180, 9865, 9325, 9240, and 9460 respectively [19]. - The daily changes of East China PP, North China PP, Shandong powder, and East China copolymer were -590, -250, -80, and -56 respectively [19]. - The export profit was 80, the main contract futures price was 9793, the basis was 150, the two - oil inventory was 81, and the warehouse receipts were 15927 [19]. Polyvinyl Chloride (PVC) - On March 24, 2026, the prices of Northwest calcium carbide, Shandong caustic soda, calcium - carbide - based in East China, ethylene - based in East China, calcium - carbide - based in South China, and calcium - carbide - based in Northwest were 2735, 742, 5820, 5500, 5450, and 5600 respectively [19]. - The daily changes of Northwest calcium carbide, Shandong caustic soda, calcium - carbide - based in East China, and calcium - carbide - based in Northwest were 85, 20, -180, and -30 respectively [19]. - The import price (CFR China) was 1050, the export profit was 2011, the Northwest comprehensive profit was 356, the North China comprehensive profit was -244, and the basis (high - end delivery product) was -30 [19]

Group 1: Technology and Innovation - The company aims to become a world-class chemical new materials technology enterprise, enhancing its core competitiveness through management and technology leadership [2] - R&D investment for 2025 is projected to reach CNY 1.656 billion, with a consistent R&D expense ratio exceeding 3.5%, maintaining industry leadership [2] - The company has developed high-performance superabsorbent polymers (SAP) that are at an internationally leading level, becoming a global partner for top hygiene product companies [2] Group 2: Hydrogen Energy Initiatives - The company is focusing on hydrogen energy as a key future industry, aligning with national strategies for green hydrogen and low-carbon economy [3] - A hydrogen loading platform with a daily capacity of 900,000 NM3 has been established at the Lianyungang base, supplying enterprises within a 300 km radius [3] - Future plans include the continuous development of high-value-added chemicals using hydrogen as a raw material, contributing to the national hydrogen energy industry's high-quality development [3] Group 3: Financial Performance and Strategy - In 2025, the company anticipates a decline in profitability, with indicators such as gross margin and ROE showing slight decreases due to temporary price weaknesses in some products [3] - The company plans to enhance core industry competitiveness and implement operational reforms to strengthen long-term competitive advantages [3] - The company is committed to achieving its annual operational goals despite external market fluctuations, demonstrating strong resilience and management capabilities [3] Group 4: Project Updates - Ongoing strategic projects are progressing as planned, with updates to be disclosed externally [3]

Report Industry Investment Rating - Not provided Core Viewpoint - The PVC price is expected to fluctuate strongly in the near term if the Strait of Hormuz fails to resume navigation. The high social inventory pressure has been alleviated to some extent, but the real - estate improvement still takes time [1]. Summaries by Relevant Catalogs 1.行情分析 - The calcium carbide price in the upstream Northwest region rose by 35 yuan/ton. The PVC operating rate decreased by 1.23 percentage points to 80.12%, dropping to a neutral level in the same period in recent years. The average downstream operating rate of PVC increased by 2.33 percentage points to 41.66% in the fourth week after the Spring Festival, but it was 4.79 percentage points lower than the same lunar period last year. Some overseas device loads decreased, and export prices rose significantly. The social inventory decreased for the first time after the Spring Festival, but it was still high. The real - estate was still in the adjustment stage, and the improvement needed time. The PVC had an anti - involution expectation, and the upstream raw material supply was tight. Some ethylene - based plants would reduce their operating loads this week [1]. 2.期现行情 - The PVC2605 contract opened lower and oscillated with a decrease in positions. The lowest price was 5851 yuan/ton, the highest was 6063 yuan/ton, and it finally closed at 5853 yuan/ton, above the 20 - day moving average, with a decline of 4.41%. The position volume decreased by 50885 lots to 753229 lots [2]. 3.基差方面 - On March 24, the mainstream price of calcium carbide - based PVC in East China dropped to 5720 yuan/ton. The futures closing price of the V2605 contract was 5853 yuan/ton. The current basis was - 133 yuan/ton, strengthening by 27 yuan/ton, and the basis was at a relatively low level [3]. 4.基本面跟踪 Supply - Ethylene - based plants such as Qingdao Gulf and Xinpu Chemical reduced their operating loads. The PVC operating rate decreased by 1.23 percentage points to 80.12%, dropping to a neutral level in the same period in recent years. New production capacities of several companies were put into production or in trial production in 2025 [4]. Demand - The real - estate was still in the adjustment stage. In January - February 2026, national real - estate development investment was 961.2 billion yuan, a year - on - year decrease of 11.1%. The sales area, new construction area, construction area, and completion area all had significant year - on - year declines. As of the week of March 22, the commercial housing transaction area in 30 large and medium - sized cities increased by 13.10% week - on - week, but it was still at a relatively low level in the same period over the years [5]. Inventory - As of the week of March 19, the PVC social inventory decreased by 2.55% week - on - week to 1.3713 million tons, 64.47% higher than the same period last year. The social inventory decreased for the first time after the Spring Festival, but it was still high [6].

Report Industry Investment Rating - Not provided Core Viewpoints - EB2605 fluctuated and declined, closing at 10,242 yuan/ton with a 3.67% drop. International oil prices rebounded after a sharp decline. In China, the supply of styrene may maintain a downward trend as the spring maintenance expectations are gradually realized and the upstream ethylene supply contraction restricts the increase in industry operating rates. The downstream industries are showing differentiation, with the EPS industry increasing its operating load due to good profits, while the PS and ABS industries have low profits and reduced operating rates. Overall, the supply and demand of styrene in China are performing well, and the visible inventory is expected to remain at a neutral level and be smoothly destocked. Currently, the cost side is still the dominant factor for styrene prices, and short - term styrene futures are expected to fluctuate with oil prices [2] Summary by Directory Futures Market - The closing price of the futures main contract of styrene is 10,242 yuan/ton, with a change of 888,114 compared to the previous period. The 3 - month contract closing price is 10,631 yuan/ton, a decrease of 219. The trading volume of the active futures contract of styrene is not fully provided. The long position volume of the top 20 holders is - 32,284, the net long position volume is 205,118 (a decrease of 11,451), and the short position volume is - 35,605. The total number of warehouse receipts is 284,821 (an increase of 3,046) [2] Spot Market - The spot price of styrene is 10,610 yuan/ton, with no change. The mainstream prices in Northeast, South, North, and East China are 10,950 yuan/ton, 11,250 yuan/ton, 10,800 yuan/ton, and 10,850 yuan/ton respectively, with changes of 925, 825, and 785 [2] Upstream Situation - The intermediate price of ethylene CFR Northeast Asia is 25 US dollars/ton, and the price of ethylene FD US Gulf is 1,451 US dollars/ton (a decrease of 66.5). The spot prices of pure benzene in the US Gulf (FOB), Taiwan (CIF), and Rotterdam (FOB) are 1064.5 US dollars/ton, 410 US dollars/ton, and - 20 US dollars/ton respectively. The market prices of pure benzene in South, East, and North China are 8,400 yuan/ton, 8,760 yuan/ton, and 8,450 yuan/ton respectively, with changes of 0 and 700 [2] Industry Situation - The overall operating rate of styrene is 70.46% (a decrease of 1.33%), and the national inventory is 178,210 tons (a decrease of 13,640). The total inventory in the East China main port is 168,400 tons (an increase of 5,900) [2] Downstream Situation - The operating rates of EPS, ABS, PS, UPR, and styrene - butadiene rubber are 3.22%, 61% (a decrease of 0.3), - 0.1, 51.6% (a decrease of 1), and 74.06% (a decrease of 1.59) respectively [2] Industry News - From March 13th to 19th, the overall production of Chinese styrene factories was 353,400 tons, a decrease of 1.86% compared to the previous period, and the factory capacity utilization rate was 70.46%, a decrease of 1.33%. The consumption of downstream EPS, PS, and ABS was 265,800 tons, an increase of 1.8% compared to the previous week. As of March 19th, the factory inventory of styrene was 178,200 tons, a decrease of 7.11%. As of March 23rd, the inventory in the East China port was 168,400 tons, an increase of 3.63%, and the inventory in the South China port was 50,000 tons, an increase of 35.14%. As of March 20th, the non - integrated profit of styrene was - 99.05 yuan/ton, and the integrated profit was 761.89 yuan/ton [2]

Investment Rating - The report maintains a "Buy" investment rating for the company [7] Core Insights - The company achieved a total revenue of 460.68 billion yuan in 2025, representing a year-on-year growth of 0.92%, while the net profit attributable to shareholders decreased by 12.54% to 5.31 billion yuan [4] - The core business profitability remains stable, with a non-GAAP net profit of 6.29 billion yuan, reflecting a 4.02% year-on-year increase, driven primarily by the functional chemicals segment [4] - The company is actively expanding its overseas market, with international revenue reaching 7.77 billion yuan, a year-on-year increase of 39.96% [4] Summary by Relevant Sections Financial Performance - In Q4 2025, the company reported a revenue of 11.30 billion yuan, down 15.52% year-on-year and 0.12% quarter-on-quarter, with a net profit of 1.56 billion yuan, down 34.61% year-on-year but up 53.83% quarter-on-quarter [4] - The functional chemicals segment generated revenue of 25.87 billion yuan, up 19.19% year-on-year, accounting for 56.16% of total revenue, with a gross margin increase of 4.45 percentage points to 24.80% [4] - The polymer materials segment faced challenges, with revenue declining by 26.91% to 8.76 billion yuan and a gross margin decrease of 6.48 percentage points to 28.57% [4] Cash Flow and Cost Structure - The company reported a net cash flow from operating activities of 9.61 billion yuan, despite a year-on-year decline of 9.29%, indicating strong cash flow to support ongoing projects and R&D investments [5] - The expense structure showed optimization, with sales, management, financial, and R&D expense ratios remaining stable or decreasing slightly [5] Growth Prospects - The company is positioned as a leading player in the domestic light hydrocarbon integrated production sector, with significant cost advantages and ongoing project developments [7] - Forecasts for net profit attributable to shareholders for 2026, 2027, and 2028 are 7.41 billion yuan, 8.68 billion yuan, and 10.22 billion yuan, respectively, with corresponding P/E ratios of 11.7, 10.0, and 8.5 [7]