Core Viewpoint - Fujian Del Technology Co., Ltd. has terminated its IPO process after two years, primarily due to a significant decline in net profit and challenges in the lithium battery materials market [1] Company Overview - Fujian Del focuses on the research, production, and sales of fluorinated new materials, including fluorochemical basic materials, new energy lithium battery materials, special gases, and semiconductor wet electronic chemicals [1] - The company has a current annual production capacity of 5,475 tons of lithium hexafluorophosphate, with an additional 10,000 tons under construction [4] Financial Performance - The company's net profit dropped from 2.21 billion yuan in 2022 to 1.19 billion yuan in 2023, a nearly 50% decline [1] - For 2024, the projected revenue barely reaches 2022 levels, with a net profit of 1.31 billion yuan, only 60% of its peak [1] - The cumulative net cash flow from 2022 to 2024 is 5.87 billion yuan, meeting the new IPO cash flow requirement of 2.5 billion yuan [1] Market Conditions - The price of lithium hexafluorophosphate peaked at 590,000 yuan per ton in February 2022 but has since plummeted to approximately 54,400 yuan per ton by late 2024, marking a significant decline [2] - The average sales price of lithium hexafluorophosphate for Fujian Del from 2022 to 2024 was 277,300 yuan, 109,200 yuan, and 46,400 yuan respectively, while the average procurement price of lithium fluoride was 689,600 yuan, 294,900 yuan, and 131,400 yuan [3] Industry Dynamics - The lithium hexafluorophosphate market is experiencing a supply-demand imbalance, leading to price volatility and a concentration of market share among leading suppliers [2][3] - The company's revenue from its new energy battery materials business has been declining, accounting for 39.73%, 17.01%, and 12.28% of total revenue from 2022 to 2024 [3] Future Plans - Fujian Del has revised its fundraising plan, reducing the IPO target from 30 billion yuan to 19.45 billion yuan, and cut the number of investment projects from seven to three, excluding all projects related to new energy materials [4][5]

Core Viewpoint - The article discusses the termination of the IPO process for Fujian Del Technology Co., Ltd. and the impact of industry cycles on its financial performance, particularly in the lithium battery materials sector [4][5][6]. Group 1: IPO Termination - Fujian Del's IPO was terminated after a two-year process, with the company and its sponsor, Shenwan Hongyuan Securities, voluntarily withdrawing the application without disclosing specific reasons [4][5]. - The new main board listing regulations set a higher cash flow net threshold, which Fujian Del met, but its net profit did not meet the implicit standard of over 100 million yuan for the last year [4][5]. Group 2: Financial Performance - Fujian Del's net profit dropped from 221 million yuan in 2022 to 119 million yuan in 2023, a nearly 50% decline, while its revenue for 2024 is expected to barely reach 2022 levels [4][5]. - The company's revenue from its new energy battery materials business has been declining, accounting for 39.73%, 17.01%, and 12.28% of total revenue over the past three years [7]. Group 3: Market Dynamics - The price of lithium hexafluorophosphate, a key product for Fujian Del, peaked at 590,000 yuan per ton in February 2022 and fell to 54,400 yuan per ton by August 2025, reflecting significant price volatility due to supply-demand imbalances [6][8]. - The average sales price of Fujian Del's lithium hexafluorophosphate decreased from 277,300 yuan in 2022 to 46,400 yuan in 2024, while the gross margin dropped from 44.84% to 7.95% during the same period [6][8]. Group 4: Production Capacity and Future Plans - Fujian Del currently has an annual production capacity of 5,475 tons for lithium hexafluorophosphate, with an additional 10,000 tons under construction [8]. - The company has reduced its IPO fundraising target from 30 billion yuan to 19.45 billion yuan and cut the number of fundraising projects from seven to three, excluding all new energy materials projects [8][9].

Group 1 - Fujian Del Technology Co., Ltd. has withdrawn its IPO application, which was initially aimed at raising 3 billion yuan but later adjusted to 1.945 billion yuan, marking a 35% reduction in fundraising size [1][9] - The company stated that the withdrawal is to "focus on existing core businesses," which is seen as a pragmatic choice in response to tightening IPO reviews [1][13] - The company has been on a two-year journey for its IPO, which began on June 30, 2023, and ended on August 22, 2025, when the application was terminated [1] Group 2 - The fluorochemical industry is recognized as a "golden industry" with significant downstream market potential, characterized by high technology content, high added value, and high growth [2] - As of the end of 2023, China's fluorochemical enterprises have reached over 1,000, with total production capacity exceeding 10 million tons and total output surpassing 7 million tons, generating over 500 billion yuan in total output value [2] - The government has emphasized the need to improve the fluorochemical industry chain and reduce import dependency in its "14th Five-Year Plan" [2] Group 3 - The company focuses on high-end fluorochemical products, including fluorinated electronic specialty gases and lithium battery materials, which are crucial for the semiconductor and new energy sectors [3] - The company aims to enhance its competitive edge by addressing national strategic needs and developing a series of import substitution products [3] - The company has established a strong position in the fluorinated electronic specialty gas sector, representing a significant achievement in domestic R&D and technology innovation [5] Group 4 - The company has received numerous accolades, including being recognized as a national high-tech enterprise and a "little giant" in specialized and innovative enterprises [4] - It has also been awarded various national honors for innovation and technology advancement, showcasing its commitment to research and development [4] Group 5 - As of March 31, 2025, the company had 305 domestic and 6 foreign authorized invention patents, and it has undertaken several national and provincial key research projects [5] - The company is the first in China to achieve large-scale production of electronic-grade trifluorochloromethane, filling a significant gap in the semiconductor materials sector [5] Group 6 - The company’s total share capital before the issuance was 1,038,783,619 shares, with the issuance planned to be between 115,420,403 and 183,314,756 shares [6] - The company has no controlling shareholder, with the largest shareholder holding 15.60% of the shares [6] Group 7 - The company reported revenues of 1.698 billion yuan, 1.418 billion yuan, and 1.687 billion yuan for the years 2022, 2023, and 2024, respectively [6] - The net profit attributable to the parent company for the same years was 184 million yuan, 35.7355 million yuan, and 86.18 million yuan [6] Group 8 - The company’s asset-liability ratio has increased from 4.79% in 2022 to 12.98% in 2024 for the parent company, indicating a rising leverage [7] - The company’s operating income and net profit have shown fluctuations, with a notable decline in net profit in 2022 compared to 2021 [7][23] Group 9 - The company’s main products include specialty gases, wet electronic chemicals, and lithium battery materials, with a significant portion of revenue coming from existing customers [20] - The company has seen a substantial increase in orders for specialty gases, particularly due to a framework agreement with a major client [21] Group 10 - The company’s net profit in 2022 decreased significantly due to rising costs and increased management expenses, with a notable drop in gross profit margin [25][30] - The decline in gross profit was primarily attributed to the falling prices of lithium hexafluorophosphate while raw material costs continued to rise [29][30]

Group 1: Rare Earth - The Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Natural Resources released interim measures for total quantity control management of rare earth mining and smelting separation on August 22 [1] - The new management measures indicate a comprehensive upgrade in the regulatory level and scope of rare earth production control, potentially leading to a tightening of supply and an increase in rare earth prices [1][1] - Analysts predict that the domestic rare earth supply will continue to be tight, driving prices upward [1] Group 2: Innovative Pharmaceuticals - China's pharmaceutical industry ranks second globally, with approximately 30% of innovative drugs under research [2] - Since the 14th Five-Year Plan, 387 children's drugs and 147 rare disease drugs have been approved for market, addressing the medication needs of key populations [2] - Analysts believe that the rise of innovative drugs is sustainable, with significant potential for individual products and companies with leading technology platforms [2] Group 3: Photovoltaics - The China Photovoltaic Industry Association issued an initiative to strengthen industry self-discipline and maintain fair competition, urging downstream enterprises to optimize bidding rules [3] - Analysts expect that the photovoltaic industry will see a recovery in long-term profitability as supply-side policies progress and as the industry addresses current challenges [3][3] - The adjustment of polysilicon prices is anticipated to be accepted by the downstream market, leading to a return of component prices to cost levels [3] Group 4: Carbon Emissions - The Central Committee and the State Council released opinions on promoting green and low-carbon transformation and strengthening the national carbon market [4] - By 2027, the national carbon trading market is expected to cover major industrial sectors, with a significant increase in carbon emission quota prices from 46.60 yuan/ton in 2021 to 91.82 yuan/ton in 2024 [4][4] - The total transaction volume of carbon emission quotas reached 1.89 billion tons in 2024, with a total transaction value of 18.114 billion yuan, marking a new annual high [4] Group 5: Storage - Huawei is set to launch a new AI SSD on August 27, aimed at addressing traditional SSD shortcomings in the AI field [5] - The new SSD is expected to enhance data efficiency, which is crucial for enterprise productivity in the era of AI [5] - Analysts highlight the importance of high-performance storage in the training and inference processes of large models, positioning Huawei as a key player in the infrastructure of computing power [5] Group 6: Brain-Computer Interface - A multi-center clinical trial for brain-machine interface technology focusing on precise diagnosis and treatment of hydrocephalus has been initiated by top medical institutions in China [6] - This project marks a significant advancement in brain-machine interface technology, expanding its applications beyond traditional areas [6] - The integration of brain-machine interface technology into medical services has been facilitated by recent policy support from the National Medical Insurance Administration [6] Group 7: Forestry - The People's Bank of China and other regulatory bodies issued a notification to support high-quality development in forestry through financial measures [7] - The forestry sector is evolving beyond traditional timber production to include carbon sink development and ecological tourism [7] - The industry is expected to cover various fields, employing over 100 million people and contributing significantly to the economy [7]

Investment Rating - The report maintains a positive outlook on the chemical sector, emphasizing the value of allocation in this area due to macroeconomic factors and domestic policy changes [3][4]. Core Insights - The report highlights the expected increase in oil supply led by non-OPEC countries and a significant growth in overall supply, while global GDP is projected to maintain a growth rate of 2.8%. However, demand growth for oil may slow due to tariff policies [3][4]. - The anticipated interest rate cuts by the Federal Reserve and domestic anti-involution measures are expected to boost the Producer Price Index (PPI), enhancing the allocation value in the chemical sector. Price increases for titanium dioxide and phosphate fertilizers are noted, with specific companies recommended for investment [3][4]. - The report identifies a recovery in the domestic computing power chain and suggests that companies involved in this sector will benefit from ongoing developments in domestic chip design and AI applications [3][4]. Summary by Sections Industry Dynamics - Oil supply is expected to increase significantly, with non-OPEC countries leading the way. Global GDP growth is stable at 2.8%, but demand growth for oil may face challenges due to tariff impacts. Coal prices are anticipated to stabilize, while natural gas export facilities in the U.S. may reduce import costs [3][4]. Chemical Sector Allocation - The report suggests focusing on the chemical sector due to favorable macroeconomic conditions. Price adjustments in titanium dioxide and phosphate fertilizers are highlighted, with specific companies such as Yuntianhua and Hubei Yihua recommended for investment [3][4]. Investment Analysis - Traditional cyclical stocks and specific segments within the chemical industry are recommended for investment. Companies like Wanhua Chemical and Baofeng Energy are highlighted for their potential growth. The report also emphasizes the importance of monitoring the performance of various chemical products and their pricing trends [3][4][17].

Investment Rating - The report indicates a positive outlook for the basic chemical industry, particularly for refrigerants and glyphosate, with a focus on the refining sector due to policy catalysts [1][4]. Core Insights - Glyphosate prices continue to rise, driven by strong downstream demand and sufficient orders from overseas markets, with the price reaching 26,899 CNY/ton, an increase of 200 CNY/ton from the previous week [3][17]. - The demand for refrigerants, particularly R32, is increasing due to high summer temperatures, with R32 prices rising by 1,000 CNY/ton to 58,500 CNY/ton [4][32]. - The refining industry is gaining attention due to policy changes in South Korea and China, which may lead to capacity reductions and increased operational efficiency [4][5]. Summary by Sections (1) Key Chemical Product Price Tracking - The report tracks significant price changes in various chemical products, with notable increases in acrylic acid and PTA, while some products like tetrachloroethylene saw declines [13][14]. (2) Polyurethane: MDI and TDI Price Trends - MDI prices have decreased due to weak demand from end-users, while TDI prices have also dropped amid seasonal demand pressures [15][16]. (3) Agricultural Chemicals: Glyphosate and Urea Price Increases - Glyphosate prices are on the rise, with a reported weekly production of 8,600 tons and a slight decrease in inventory levels [17][21]. - Urea and potassium chloride prices have also increased, attributed to export agreements and tight supply conditions [21][25]. (4) Fluorochemicals: R32 and Refrigerant Price Increases - R32 and other third-generation refrigerants have seen price increases due to steady demand and supply constraints [26][32]. (5) Tire Industry: Rubber and Additive Price Movements - The report notes fluctuations in rubber prices, with a slight increase in styrene-butadiene rubber and stable prices for other additives [34][36].

Group 1: Market Trends in AI and Computing Power - China's computing power platforms are accelerating construction, with 10 provinces officially connected, and a projected growth of over 40% in intelligent computing power by 2025 [8] - Deepseek has optimized data formats UE8M0 FP8 to address the computing power limitations of domestic AI chips, with Zhongke Shuguang completing a full industry chain layout in computing power [11] - The domestic supernode penetration rate is expected to accelerate, with significant performance elasticity anticipated for related companies like Shengke Communication and Feiling Kesi [16][18] Group 2: Company Performance and Developments - Cambridge Technology reported a 15.48% revenue increase and a 51.12% net profit increase in the first half of 2025, driven by high-end product breakthroughs and AI data center demand [20][21] - Shengyi Electronics achieved a revenue of 3.769 billion (up 91%) and a net profit of 531 million (up 452%) in the first half of 2025, with a focus on the 800G market [22] - Haiguang Information's DCU series products are among the few domestic GPGPU products capable of full precision floating-point and various integer data calculations, leading to a 36.74% increase in stock price [25][26] Group 3: Liquid Cooling Technology - AI model updates and application deployments are driving demand for liquid cooling solutions, with the global AI liquid cooling market expected to reach $8.6 billion by 2026 [35] - The main liquid cooling medium is expected to shift towards perfluorinated compounds, with companies like Xinzhou Bang and Bayi Shikong showing significant stock price increases [36][40] - The cessation of PFAS production by 3M by the end of 2025 presents an opportunity for Chinese fluorochemical companies to enter the high-end market, with Sanmei Co. experiencing a stock surge [38][39] Group 4: Investment Opportunities - The potential for investment in companies related to AI and computing power is highlighted, with significant stock price increases observed in companies like Zhongke Shuguang, Cambridge Technology, and Haiguang Information [11][20][25] - The liquid cooling market is also seen as a growth area, with companies like Xinzhou Bang and Sanmei Co. benefiting from the transition to liquid cooling technologies [36][38]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a significant increase in performance for the first half of 2025, with revenue reaching 2.83 billion yuan (up 38.6% year-on-year) and net profit attributable to shareholders at 990 million yuan (up 159.2% year-on-year) [2][6]. - The growth in revenue and profit is primarily driven by the continuous rise in refrigerant prices, with the second quarter alone generating revenue of 1.62 billion yuan (up 49.4% year-on-year) and net profit of 590 million yuan (up 159.0% year-on-year) [2][6]. - The company plans to distribute a cash dividend of 3.20 yuan per 10 shares (tax included) to all shareholders [6]. Financial Performance - In Q2, the company sold 35,000 tons of refrigerants (up 3.1% year-on-year, up 28.6% quarter-on-quarter) at an average price of 40,300 yuan per ton (up 55.1% year-on-year, up 7.8% quarter-on-quarter) [12]. - The average domestic market prices for refrigerants R22, R32, R134a, and R125 increased by 5.7%, 12.8%, 6.8%, and 4.1% respectively compared to Q1 2025 [12]. - The company expects the upward trend in refrigerant prices to continue, with projected revenues of 2.46 billion, 3.21 billion, and 3.67 billion yuan for 2025, 2026, and 2027 respectively [12]. Industry Outlook - The refrigerant industry is experiencing a sustained recovery, and the company, as one of the industry leaders, is expected to benefit significantly from the improved industry conditions [12]. - The company is actively enhancing its integrated supply chain in the fluorochemical industry, with several projects in various stages of development [12].

Group 1 - The China Chemical Industry Theme Index (000813) saw a strong increase of 1.83% as of August 25, 2025, with notable gains from constituent stocks such as Sanmei Co., Ltd. (603379) up 10.00%, Xinzhoubang (300037) up 9.85%, and Sankeshu (603737) up 6.76% [1] - The Chemical ETF (159870) rose by 1.80%, reaching a latest price of 0.68 yuan and a total scale exceeding 9 billion yuan [1] - The chemical sector experienced significant growth, particularly in sub-sectors like fluorine chemicals, chlor-alkali, phosphate fertilizers, and phosphorus chemicals, with leading paint company Sankeshu showing substantial gains [1] Group 2 - According to Zheshang Securities, the penetration rate of immersion liquid cooling is expected to increase, leading to a significant rise in demand for fluorinated liquids [2] - Future research predicts that the global immersion cooling liquid market for data centers will reach 970 million USD by 2030, with a compound annual growth rate (CAGR) of 21.2% over the next few years [2] - Perfluoropolyether (PFPE) is anticipated to become a mainstream product in the fluorinated cooling liquid market due to its excellent chemical stability, thermal stability, high thermal conductivity, high dielectric strength, and non-corrosive properties [2] Group 3 - As of July 31, 2025, the top ten weighted stocks in the China Chemical Industry Theme Index (000813) include Wanhua Chemical (600309), Yalake Co., Ltd. (000792), and Juhua Co., Ltd. (600160), collectively accounting for 43.54% of the index [3]

Group 1 - The core point of the article is that Fujian Del Technology Co., Ltd. has terminated its main board IPO application due to the withdrawal of the application by the company and its sponsor [1] - The Shanghai Stock Exchange announced the termination of the IPO review process based on relevant regulations [1] - Fujian Del's IPO application was accepted on June 30, 2023, and it entered the inquiry stage on July 27, 2023 [1] Group 2 - Fujian Del primarily engages in the research, production, and sales of fluorine-based materials, including fluorochemical basic materials, new energy lithium battery materials, special gases, and semiconductor wet electronic chemicals [1]