Core Viewpoint - The company has adjusted its 2025 Restricted Stock Incentive Plan, reducing the number of incentive recipients and the total number of restricted shares to be granted due to some recipients opting out [1][4]. Decision Procedures and Disclosure - The company held its fourth board meeting on July 3, 2025, where it approved the adjustments to the incentive plan and related proposals, ensuring compliance with relevant regulations [1][2]. - The supervisory board verified the adjustments and provided necessary opinions on the incentive plan [2][3]. Adjustments and Results - The number of incentive recipients has been reduced from "no more than 59" to "52," and the total number of restricted shares granted has been adjusted from "no more than 1.361 million shares" to "1.046 million shares" [4]. - The adjusted incentive plan includes a detailed list of recipients and the number of shares allocated to each, with the total shares representing 0.379% of the company's current total share capital [4]. Impact of Adjustments - The adjustments to the incentive plan are in line with relevant laws and regulations and are not expected to materially affect the company's financial status or operational results [5]. Supervisory Board Opinion - The supervisory board agrees that the adjustments comply with relevant regulations and do not harm the interests of the company or its shareholders [5]. Legal and Financial Advisory Opinions - Legal opinions confirm that the necessary authorizations and approvals for the adjustments have been obtained, and the changes comply with applicable laws [6]. - Independent financial advisors affirm that the adjustments meet the required conditions and that the granting of restricted shares aligns with the incentive plan's regulations [6][7].

Meeting Information - The company will hold its second extraordinary general meeting of shareholders in 2025 on June 30, 2025 [1][2] - The meeting will be convened by the company's fourth board of directors [1] - The meeting complies with relevant laws and regulations, including the Company Law and the Shenzhen Stock Exchange listing rules [1][2] Voting Procedures - The meeting will utilize a combination of on-site and online voting methods, allowing shareholders to vote through the Shenzhen Stock Exchange trading system and internet voting system [2] - The record date for shareholders to participate in the meeting is June 24, 2025 [2] - Shareholders can appoint proxies to attend and vote at the meeting, and the proxy does not need to be a shareholder [2][3] Agenda Items - The agenda includes proposals related to the company's 2025 restricted stock incentive plan and its management methods, which have been approved by the board and supervisory committee [2][3] - Specific proposals include the draft of the incentive plan, the assessment management method, and the authorization for the board to handle related matters [2] Registration and Contact Information - Registration for the meeting will occur on June 25, 2025, with specific time slots for shareholders to register [4] - The registration location is the company's office in Lhasa Economic and Technological Development Zone [4] - Contact information for the company is provided for any inquiries regarding the meeting [4]

Investment Rating - The report maintains a positive outlook on the chemical industry, suggesting to focus on new materials and price increase themes [1][6]. Core Insights - The chemical sector saw an overall increase of 2.61% in the second week of June, outperforming the Shanghai Composite Index by 1.47 percentage points [1][11]. - Key stocks that performed well include Lianhua Technology (+53.11%), Lingpai Technology (+34.39%), and Keheng Co. (+31.13%) [1][11]. - The report highlights the importance of monitoring specific companies such as Dawn Co. for DVA products, Anli Co. for expanding customer applications, and Kent Catalysts for its low valuation and growth potential [4]. Industry Performance - The chemical sector's dynamic PE is at 24.58 times, which is lower than the average PE of 9.86 times since 2015 [1][11]. - In the second week of June, 18 sub-industries within the chemical sector increased, while 12 decreased. The top five gaining sub-industries were pesticides (+7.51%), civil explosives (+4.4%), fluorochemicals and refrigerants (+3.99%), potassium fertilizers (+3.8%), and other plastic products (+2.78%) [2][14]. Price and Spread Trends - The report lists the top five products with the highest weekly price increases: liquid chlorine (+11.83%), hydrochloric acid (+4.62%), WTI crude oil (+3.99%), photovoltaic-grade trichlorosilane (+3.03%), and ethyl acrylate (+2.48%) [3][19]. - The top five products with the largest price spread increases were PTA spread (+31.3%), PX (CFR China) spread (+29.84%), and propylene (propane-based) spread (+22.09%) [3][40]. Inventory Changes - Significant inventory changes were noted, with ethylene glycol increasing by 41.96% and polyester filament increasing by 17.4%. Conversely, glyphosate and potassium chloride saw decreases of 7.91% and 5.91%, respectively [4][60].

Group 1 - The core viewpoint of the news is that Jinglin Asset Management has conducted research on Yahua Group, focusing on its lithium and civil explosives businesses, highlighting its leading position in lithium production and future growth plans [1] - Yahua Group is a major producer of lithium salt products, particularly battery-grade lithium hydroxide, with stable product quality exceeding national standards, serving top global automotive and battery manufacturers [1] - The company is advancing its Yaan Lithium Phase III project, with a 30,000-ton lithium carbonate production line expected to be operational by 2024, and a 30,000-ton lithium hydroxide production line under construction, aiming for a total lithium salt capacity of nearly 130,000 tons by the end of 2025 [1] Group 2 - Yahua Group's customer base includes long-term agreements with major international clients such as TESLA, LGES, and Panasonic, with top clients accounting for 90% of revenue by 2024 [1] - The company has diversified its lithium supply channels through self-controlled and purchased mines, with a processing capacity of 2.3 million tons of raw ore annually from its Kamativi lithium mine in Zimbabwe [1] - Yahua Group is expanding its civil explosives business internationally, with established operations in New Zealand, Australia, and Africa, and plans to enhance its market presence in Zimbabwe and Australia [1]

Group 1 - A-share market experiences a surge in short-term trading related to the civil explosives concept, with companies such as Poly United, Yipuli, and Gaozheng Minbao hitting the daily limit up [1] - Chongqing Port and Huhua Co. saw their stock prices increase by over 5%, indicating strong market interest [1] - Kailong Co. and Jiangnan Chemical also experienced upward movement in their stock prices, reflecting a broader trend in the sector [1]

Core Points - The company announced a cash dividend of 0.20 CNY per share (before tax) for its A shares [1] - The total cash dividend distribution amounts to 214,338,537.80 CNY based on a total share capital of 1,071,692,689 shares [1] - Key dates include the record date on June 4, 2025, and the ex-dividend date on June 5, 2025 [1] Dividend Distribution Plan - The profit distribution plan was approved by the company's shareholders meeting [1] - The cash dividend will be distributed to all shareholders registered with the China Securities Depository and Clearing Corporation Limited, Shanghai Branch, as of the close of trading on the record date [1] Taxation Information - For individual shareholders holding unrestricted circulating shares, the actual cash dividend after tax is 0.18 CNY per share due to a 10% withholding tax [4][6] - Shareholders holding shares for less than one month will incur a 20% tax on the full dividend amount, while those holding for more than one month but less than one year will incur a 10% tax [3] - Qualified Foreign Institutional Investors (QFII) will also receive a net dividend of 0.18 CNY per share after a 10% withholding tax [6]

Core Viewpoint - The A-share market experienced a surge in concept stocks related to civil explosives, with notable gains in several companies towards the market's close [1] Company Summaries - Poly Union reached its daily limit up, indicating strong investor interest and confidence in its performance [1] - Jinao Bo hit the daily limit up during trading, reflecting positive market sentiment [1] - Other companies such as Gaozheng Civil Explosives, Tongde Chemical, and Xuefeng Technology also saw significant increases, suggesting a broader trend in the civil explosives sector [1]

Investment Rating - The report maintains a recommendation for the chemical industry, indicating a positive outlook for the sector [6]. Core Viewpoints - The report highlights the significant price increases in active dyes (+10%) and PTA (+3.17%), suggesting potential investment opportunities in companies related to these products [4][20]. - It recommends focusing on companies like Huaitong Co., which is expected to benefit from the application of modified plastics in the robotics sector, and Runtong Co., which may gain from the rising prices of active dyes [5]. Industry Performance - In the first week of May, the chemical sector (Shenwan) experienced a decline of 0.50%, slightly underperforming the Shanghai A-share index, which fell by 0.49% [2][12]. - The dynamic PE ratio for the chemical sector stands at 24.05, which is lower than the average PE of 11.90 since 2015 [2][12]. Sub-industry Trends - Among the 15 sub-industries, five saw increases, with daily chemical products leading at +8.85%, while five sub-industries experienced declines, with synthetic leather dropping by -8.89% [3][15]. Price and Spread Trends - The report lists the top five products with the highest weekly price increases: active dyes (+10%), PTA (+3.17%), and butadiene (+2.86%) [4][20]. - The report also notes significant changes in price spreads, with the melamine spread increasing by +73.47% and the PTA spread by +39.52% [4][36]. Inventory Changes - Key products with notable inventory changes include potassium chloride (-17.88%) and epoxy propane (-8.96%), indicating shifts in supply dynamics [5][56].

Financial Performance - In 2024, the company achieved operating revenue of CNY 7.716 billion, a year-on-year decrease of 35.14% [2] - Net profit attributable to shareholders was CNY 257 million, an increase of 539.36% year-on-year [2] - In Q1 2025, operating revenue was CNY 1.537 billion, down 17.03% year-on-year [2] - Net profit attributable to shareholders for Q1 2025 was CNY 82.464 million, up 452.32% year-on-year [2] - Total assets at the end of Q1 2025 were CNY 14.070 billion, with net assets attributable to shareholders at CNY 10.589 billion [2] Business Overview Lithium Industry - The company entered the lithium industry in 2013 and currently operates two lithium mines: Sichuan Lijiagou and Zimbabwe's Kamativi [3] - It has three production bases for lithium salt products, with a total lithium hydroxide capacity of 63,000 tons and lithium carbonate capacity of 36,000 tons [5] - A new lithium hydroxide production line of 30,000 tons is expected to be completed in 2025, increasing total lithium salt capacity to nearly 130,000 tons [5] Explosives Industry - The company has an industrial explosives production capacity of over 260,000 tons and nearly 90 million detonators [4] - It actively participates in industry consolidation and has expanded its business across various regions, including Sichuan, Xinjiang, Tibet, and others [4] - The company provides approximately 70% of the explosive products for the Sichuan section of the Sichuan-Tibet Railway [10] Resource Management Lithium Resource Control - The company holds a 68% controlling interest in the Kamativi lithium mine, with an annual processing capacity of 2.3 million tons of lithium ore [7] - The self-sufficiency rate for lithium concentrate is expected to improve in Q2 2025 as production ramps up [9] Customer Base - The company has established strong relationships with major clients in the lithium sector, including Tesla, Panasonic, and CATL [8] - A significant portion of the company's orders comes from overseas clients, indicating a robust international market presence [8] Overseas Expansion - Since acquiring New Zealand's Red Bull Company in 2013, the company has developed a strong capability for overseas expansion [11] - It aims to leverage its cost and efficiency advantages in the explosives sector to enhance its business in Africa and Australia [12]

Group 1: Yidelong - Yidelong is addressing geopolitical challenges in 2024 through global layout and differentiated strategies, significantly enhancing overseas factory capacity [1] - The company's R&D focuses on motors, power supplies, battery management, and automation, aiming to improve customer satisfaction through customized development [1] - Yidelong is performing well in industrial control, medical, and communication sectors, while focusing on commercial vehicles in the automotive sector [1] - Cost reduction is achieved through supply chain management optimization, and the company is increasing its dividend payout ratio based on a healthy balance sheet and sufficient cash flow without affecting capital expenditures [1] Group 2: Guangdong Hongda - In Q1, Guangdong Hongda's gross margin for civil explosives increased compared to the same period last year, showing overall stability despite short-term market price and raw material price fluctuations [2] - The company anticipates an increase in gross margin for civil explosive products as the industry consolidation accelerates, although regional differences in market conditions may lead to structural variations in margins [2] - Revenue growth in Xinjiang is attributed to new contracts in mining services, while business expansion in Tibet is driven by successful operations at major mining projects [2] - The company is implementing a "going out" strategy, focusing on overseas markets along the Belt and Road Initiative, particularly in South America and South Africa [2] - Increased equipment procurement and other expenditures in Q1 resulted in a cash outflow due to expanded business scale, with plans to gradually inject civil explosive capacity into Xuefeng Technology based on market demand [2] Group 3: Jingzhida - In 2024, Jingzhida's gross margin for new display business lines is declining due to changes in product structure, with a reduced proportion of Cell segment products [3] - The semiconductor business line's revenue share has risen to over 30%, with core components of testing machines being self-sourced, leading to improved gross margins [3] - By Q1 2025, the revenue share of the semiconductor business line is expected to exceed 70%, causing fluctuations in overall gross margin due to product structure changes [3] - The company is advancing the localization of core components for storage testing machines to ensure supply chain security and enhance gross margins [3]