Group 1: Report Information - Report Name: Log Futures Daily Report [1] - Date: January 23, 2026 [1] - Author: Cao Jianlan [1] Group 2: Investment Rating - No investment rating information provided. Group 3: Core Views - The spot market is firm, with some specifications in Jiangsu region experiencing price increases due to low inventory. The 03 contract has less inventory pressure due to low inventory and expected reduction in later shipments. However, the demand remains weak, limiting the upside potential. Recently, the log futures have declined with increasing positions, and the current price has fallen below the cost line. In the short - term, the price is expected to have certain support. It is advisable to go long at low prices in the range of 750 - 800 [3] Group 4: Price and Basis Futures Prices - On January 22, the price of Log 2601 was 772.5, down 2.5 (-0.32%) from January 21; Log 2603 was 768.5, up 4.5 (0.59%); Log 2605 was 786.0, up 4.5 (0.58%); Log 2607 was 799.5, up 4.5 (0.57%) [2] Spot Prices - The price of Rizhao Port 3.9A small radiata pine remained at 680.0 on January 22 and 21; 3.9A medium radiata pine at 740; 3.9A large radiata pine at 850. Taicang Port 4A small radiata pine was 700 on January 22, up 10 (1.45%) from January 21; 4A medium radiata pine was 770, up 10 (1.32%); 4A large radiata pine remained at 800. Rizhao Port spruce 11.8 was 1150 on January 22, down 10 (-0.86%) from January 21 [2] Basis - The basis of the main contract on January 22 was -28.5, down 4.5 from January 21 [2] Outer - market Quotes - The CFR price of 4 - meter medium A radiata pine remained at 110 US dollars/JAS cubic meter on January 23 and January 16; the CFR price of 11.8 - meter spruce remained at 124 euros/JAS cubic meter [2] Import Cost - The RMB - US dollar exchange rate on January 23 was 6.965, up 0.01 from January 22. The import theoretical cost (calculated at 15% over - size) was 754.54 yuan on January 23, up 0.71 from January 22 [2] Group 5: Supply Monthly Supply - As of December 31, the port freight volume was 204.0 million cubic meters, up 14.8 (7.82%) from November 30. The number of ships at the port was 55.0, up 6.0 (12.24%) from 49.0 [2] Forecasted Shipments - From January 19 - January 25, 2026, the number of pre - arriving New Zealand log ships at 13 Chinese ports was 11, the same as last week (0% week - on - week increase), and the total arrival volume was about 350,000 cubic meters, down 19,000 cubic meters (5% week - on - week decrease) [3] Group 6: Inventory and Demand Inventory - As of January 16, the total domestic coniferous log inventory was 2.57 million cubic meters, down 120,000 cubic meters from last week (-4.46%) [2][3] Demand - As of January 16, the daily average log outbound volume was 61,600 cubic meters, up 4,100 cubic meters from last week (7%) [3]

Core Insights - The company, Guizhou Lingsheng Wood Industry Co., Ltd., achieved a total sales revenue of 340 million yuan in the previous year, with exports exceeding 2 million yuan, marking a steady start for its international business [1] - The company emphasizes quality control in its production process, maintaining a daily output of 4,000 to 5,000 sheets of wood [1] - As a provincial-level "specialized, refined, and innovative" small giant enterprise and green factory, the company has developed a circular economy model, converting wood waste into biomass fuel or charcoal [1] Production and Operations - The company operates an automated production line that efficiently produces high-quality wood panels for custom furniture, which are shipped to regions including Sichuan, Chongqing, and Southeast Asia [1] - The company has established a comprehensive industrial chain that includes seedling cultivation, furniture board processing, waste utilization, and the production of various wood products [1] Market Strategy - The company is focused on developing new products, including a dedicated workshop for flame-retardant panels and a decorative paper production line set to launch in the second half of the year [2] - The company aims to deepen its market presence within a 500-kilometer radius of Guizhou while actively exploring Southeast Asian markets and establishing trade routes to Central Asia [2]

Core Viewpoint - Kangxin New Materials (600076.SH) experienced a significant drop in stock price following the announcement of acquiring a 51% stake in Yubang Semiconductor for 392 million yuan, raising concerns about the valuation and market reaction [1][2]. Group 1: Acquisition Details - The acquisition involves a cash payment of 392 million yuan for a 51% stake in Yubang Semiconductor, with a pre-investment valuation of 688 million yuan, reflecting a substantial increase of 430.80% over its net asset value of 130 million yuan [1]. - The stock price of Kangxin New Materials initially surged to a limit-up before the announcement, leading to scrutiny from the Shanghai Stock Exchange regarding the transaction's rationale and valuation [1]. Group 2: Company Response and Market Context - In response to inquiries, the company stated that premium acquisitions are common in the current market environment, and they engaged professional intermediaries for asset evaluation [2]. - The management indicated that the company's main business has faced continuous losses for several years, prompting a strategic shift towards the semiconductor sector, which is supported by government policies [2]. - The company is conducting an internal review regarding the stock price fluctuations and asserts that there are no undisclosed matters that should have been reported [2].

Group 1 - The core viewpoint of the article highlights the current state and trends in the wood processing industry in China, indicating a slight decline in the number of enterprises in this sector [1] - As of January to November 2025, the number of enterprises in the wood processing and related products industry stands at 13,438, which is a decrease of 46 compared to the same period last year, reflecting a year-on-year decline of 0.34% [1] - The wood processing and related products industry accounts for 2.56% of the total industrial enterprises in China [1] Group 2 - The article references a report by Zhiyan Consulting, which provides insights into the competitive landscape and investment scale forecast for the wood processing industry from 2026 to 2032 [1] - The report indicates that the threshold for large-scale industrial enterprises has been raised from an annual main business income of 5 million to 20 million yuan since 2011 [1] - Zhiyan Consulting is recognized as a leading industry consulting firm in China, specializing in in-depth industry research and providing comprehensive solutions for investment decision-making [1]

Group 1 - The company announced the acquisition of a 51% stake in Wuxi Yubang Semiconductor Technology Co., Ltd. for approximately 392 million yuan, which will make Yubang Semiconductor a subsidiary included in the company's consolidated financial statements [1] - Yubang Semiconductor, established in 2014, specializes in integrated circuit manufacturing and provides repair equipment, aiming to regenerate the value of equipment through precise repairs, along with supplying components, consumables, and technical support [1] - The company primarily engages in the research, production, and sales of container flooring, high-quality new wood composite materials, prefabricated wooden structure building components, and related services, with key products including all-wood composite container flooring and various types of high-quality new wood composite materials [1]

Core Viewpoint - Shandong Port Rizhao Port is transforming from a "timber channel" to an "industrial engine," showcasing the integration of port, industry, and city development, with significant advancements in timber import and processing capabilities [1]. Infrastructure Development - As the largest timber import port in China, Shandong Port Rizhao Port has six dedicated timber berths and the largest timber fumigation warehouse in the country, with an annual fumigation capacity of 1 million cubic meters, supporting timber imports effectively [1]. - By 2025, the port is expected to import over 10 million cubic meters of raw timber, accounting for one-third of the national total, covering 35 varieties from over 30 countries and regions [1]. Logistics and Technology Integration - The port has established a seamless land-sea transport corridor, with regular operations of the "New Zealand-Rizhao-Heze/Wuwei" timber sea-rail intermodal train, effectively addressing logistics bottlenecks for inland areas [2]. - Advanced technologies such as 5G, AI, and blockchain have been integrated into operations, enhancing efficiency and reducing time costs for enterprises [2]. - Customs innovations like "two-step declaration" and "appointment inspection" have significantly reduced the time from docking to customs clearance, preserving timber quality and profitability [2]. Value Chain Enhancement - The port is shifting from low-end processing to deep intelligent manufacturing by creating a comprehensive value chain system that includes logistics, trade, processing, and services [3]. - The establishment of a national-level imported timber trade processing demonstration zone is facilitating this transformation, allowing for efficient processing of timber products near the port [3]. Product Diversification and Innovation - Companies are increasingly focusing on high-value products, with examples of creative wooden products achieving significant sales, contributing to over 50% of revenue for some firms [5]. - The integration of cultural elements and modern design into products has led to substantial profit increases compared to traditional timber processing [5]. Regional Economic Impact - The development of the timber industry has led to the establishment of over 400 timber processing and trading enterprises in the area, creating a comprehensive industry chain from trade to waste utilization [6]. - The growth of the timber sector has positively impacted related industries, creating over 20,000 jobs and enhancing local economic conditions [7]. - Future plans include building an international timber trading center and increasing timber processing capacity to over 6 million cubic meters, aiming for an annual output value exceeding 15 billion yuan [7].

Group 1: Report Industry Investment Rating - No information provided Group 2: Core Viewpoints of the Report - The current log market has weak supply and demand, with spot prices at a low level. In the Jiangsu region, due to low inventory, there is a shortage of some specifications of spot goods and price increases. The 03 contract has less inventory pressure due to low inventory and the expectation of reduced later shipments. However, the weak demand situation is difficult to change, and the upward adjustment space is limited. Overall, there is insufficient contradiction, and the upward and downward driving forces are limited. It is expected that the market will mainly fluctuate in the range of 760 - 800. If the price rebounds to the upper limit of the range, short - selling on rallies can be considered [2] Group 3: Summary by Relevant Catalogs Futures and Spot Prices - Futures prices: On January 16, the price of log 2601 was 770.0, unchanged from the previous day; log 2603 was 778.5, down 2.0 from the previous day with a decline of - 0.26%; log 2605 was 790.0, unchanged; log 2607 was 801.0, down 0.5 from the previous day with a decline of - 0.06%. The basis of the main contract was - 38.5, up 2.0 from the previous day [1] - Spot prices: The prices of various types of radiation pine and spruce in Rizhao Port and Taicang Port remained unchanged on January 16 compared with the previous day. The CFR price of 4 - meter medium - A radiation pine was 110 US dollars/JAS cubic meter, and the CFR price of 11.8 - meter spruce was 124 euros/JAS cubic meter, both unchanged [1] Cost: Import Cost Calculation - On January 19, the RMB - US dollar exchange rate was 6.966, up 0.003 from the previous day with a change of 0%. The import theoretical cost was 754.72 yuan, up 0.34 yuan from the previous day with a change of 0% [1] Supply: Monthly - In December, the port freight volume was 204.0 million cubic meters, up 14.8 million cubic meters from November with a growth rate of 7.82%. The number of ships at the port was 55.0, up 6.0 from the previous period with a growth rate of 12.24% [1] Inventory: Main Port Inventory - As of January 9, the total inventory of domestic coniferous logs was 269 million cubic meters, up 2 million cubic meters from the previous week. The inventory in Shandong was 196.0 million cubic meters, up 1.0 million cubic meters from the previous week with a growth rate of 0.51% [1][2] Demand - As of January 9, the daily average log出库量 was 5.75 million cubic meters, up 0.1 million cubic meters from the previous week. The demand in Shandong decreased slightly, while that in Jiangsu increased. The daily average log出库量 in Shandong was 2.79 million cubic meters, down 0.1 million cubic meters from the previous week with a decline of - 3%; in Jiangsu, it was 2.35 million cubic meters, up 0.18 million cubic meters from the previous week with a growth rate of 8% [2] Arrival Forecast - From January 12 to January 18, 2026, 15 New Zealand log ships are expected to arrive at 13 Chinese ports, 6 more than the previous week with a week - on - week increase of 67%. The total arrival volume is about 48.6 million cubic meters, 18.1 million cubic meters more than the previous week with a week - on - week increase of 59% [2]

1. Report Industry Investment Rating - No information provided on the industry investment rating 2. Core View of the Report - The current log market has weak supply and demand, with spot prices at a low level. In the Jiangsu region, due to low inventory, there is a shortage of some specifications of spot goods, leading to price increases. The 03 contract has less inventory pressure due to low inventory and the expectation of a decrease in later shipments. However, the weak demand situation is difficult to change, and the upside potential is limited. Overall, there is insufficient contradiction and limited upward and downward drivers. It is expected that the futures market will mainly fluctuate in the range of 760 - 800. If the price rebounds to the high end of the range, short - selling can be considered [2] 3. Summary by Relevant Catalogs 3.1 Futures and Spot Prices - Futures prices: The prices of log contracts such as log2601, log2603, log2605, and log2607 showed small increases or remained unchanged on January 15 compared to January 14, with the largest increase of 0.19% for log2607. The main contract basis decreased by 1.0 [1] - Spot prices: The prices of many types of logs in ports such as Rizhao and Taicang remained stable, except for the 4A small and medium - sized radiata pine in Taicang Port, which increased by 1.47% and 1.35% respectively. The ex - port quotes for radiata pine 4 - meter medium A and spruce 11.8 meters remained unchanged [1] 3.2 Cost: Import Cost Calculation - The RMB - US dollar exchange rate decreased slightly from 6.967 on January 15 to 6.963 on January 16, and the import theoretical cost decreased by 0.49 yuan to 754.32 yuan [1] 3.3 Supply: Monthly - Port inventory increased by 14.8 million cubic meters to 204.0 million cubic meters in December compared to November, a growth rate of 7.82%. The number of ships in the port increased by 6 to 55, a growth rate of 12.24% [1] 3.4 Inventory: Main Port Inventory (Weekly) - As of January 9, the total inventory of coniferous logs in China was 269 million cubic meters, an increase of 2 million cubic meters compared to January 2, with a growth rate of 0.75%. The inventory in Shandong was 196 million cubic meters, an increase of 1 million cubic meters compared to January 2, with a growth rate of 0.51% [1] 3.5 Demand - As of January 9, the daily average log出库 volume in China was 5.75 million cubic meters, an increase of 0.1 million cubic meters compared to the previous week. The daily average log出库 volume in Shandong decreased by 0.1 million cubic meters to 2.79 million cubic meters, a decrease of 3%, while that in Jiangsu increased by 0.18 million cubic meters to 2.35 million cubic meters, an increase of 8% [2] 3.6 Forecast of Arrival of New Logs - From January 12 - January 18, 2026, 15 New Zealand log ships are expected to arrive at 13 Chinese ports, an increase of 6 compared to the previous week, a week - on - week increase of 67%. The total arrival volume is about 48.6 million cubic meters, an increase of 18.1 million cubic meters compared to the previous week, a week - on - week increase of 59% [2]

Group 1 - The core point of the article is that Kangxin New Materials reported a total of 40,153 registered shareholders as of January 10, 2026 [2]

Group 1: Investment Rating - No investment rating information is provided in the report. Group 2: Core View - The log futures fluctuated yesterday, with the main contract LG2603 closing at 772.5 yuan per cubic meter. The spot prices of the main benchmark delivery products remained unchanged. The 01 contract continued to be deeply discounted for delivery, and the buyer's willingness to take delivery was still poor. The current log futures price fluctuates little. With low inventory and expected reduction in later shipments, the inventory pressure is small. However, the demand remains weak, limiting the upside potential. Overall, the contradictions are insufficient, and the upward and downward driving forces are limited. It is expected that the futures price will mainly fluctuate within a range [2][3]. Group 3: Summary of Relevant Catalogs Futures and Spot Prices - The price of log2601 on January 5 was 753.5, up 16.5 (2.24%) from December 31. The price of log2603 was 772.5, down 3.5 (-0.45%). The price of log2605 was 785.0, down 1.5 (-0.19%). The 01 - 03 spread increased by 20.0, and the 01 - 05 spread increased by 18.0. The 03 contract basis increased by 3.5 [2]. - The spot prices of most radiation pine and spruce in ports such as Rizhao and Taicang remained unchanged, except for the Rizhao Port spruce 11.8, which decreased by 20 (-1.69%) [2]. - The CFR price of 4 - meter medium - grade A radiation pine decreased by 2 (-1.79%), and the CFR price of 11.8 - meter spruce remained unchanged [2]. Cost: Import Cost Calculation - The RMB - US dollar exchange rate on January 5 was 6.976, with a 0% change from January 4. The import theoretical cost (calculated at a 15% over - size) was 755.73 yuan, down 12.83 (-2%) from January 4 [2]. Supply: Monthly - The port shipping volume in the 48th week was 191.4 million cubic meters, up 2.2 (1.16%) from the 47th week. The number of new ships in the 49th week was 52.0, up 3.0 (6.12%) [2]. Inventory: Main Port Inventory (Weekly) - As of December 26, the total domestic coniferous log inventory was 254 million cubic meters, down 6 million cubic meters (-2.31%) from the previous week. In Shandong, it was 185.20, up 3.9 (2.15%); in Jiangsu, it was 52.10, down 9.4 (-15.30%) [2][3]. Demand: Daily Average Out - bound Volume (Weekly) - As of December 26, the daily average out - bound volume of logs was 5.83 million cubic meters, down 0.49 million cubic meters (-8%) from the previous week. In Shandong, it was 2.79, down 0.55 (-16%); in Jiangsu, it was 2.52, down 0.08 (-3%) [2][3]. Forecast of Arrival of New Zealand Coniferous Logs at 13 Chinese Ports - From December 29, 2025, to January 4, 2026, it is expected that 15 ships of New Zealand coniferous logs will arrive, an increase of 6 ships (67% week - on - week) compared with the previous week. The total arrival volume is 51.05 million cubic meters, an increase of 20.45 million cubic meters (66.8% week - on - week) [3].