Core Viewpoint - China's high dependence on imported oil is a strategic choice influenced by domestic production challenges and global market dynamics [1][32]. Group 1: Domestic Oil Production Challenges - China consumes over 700 million tons of oil annually, with more than 70% imported, equating to over 10 million barrels per day [1]. - Proven oil reserves in China are approximately 3.8 billion tons, but most high-quality oil fields are aging and have low extraction efficiency [3][4]. - The majority of oil wells in China have a water cut of 95%, meaning only 5% of extracted liquid is oil, leading to high production costs [4][8]. - The geological complexity of Chinese oil fields results in low single-well output and short well lifespans, with over 70% of reserves classified as low or ultra-low permeability [6][8]. Group 2: Cost and Technology Factors - The average cost of extracting a barrel of oil in China is between $50 and $60, significantly higher than in Middle Eastern countries, where it is below $10 [8]. - Advanced extraction techniques such as water injection and CO2 flooding are required to enhance oil recovery, but these methods are costly and technologically demanding [8][9]. Group 3: Strategic Import Decisions - China's oil imports are a result of strategic considerations, including cost-effectiveness and energy security, rather than mere necessity [11][32]. - The country imports oil from over 50 nations, with major suppliers being Saudi Arabia, Russia, and Iraq, allowing for diversified sourcing [13]. - In 2020, China capitalized on low international oil prices by significantly increasing its oil reserves, demonstrating a strategic approach to procurement [14]. Group 4: Risk Management and Supply Chain - Diversifying oil imports helps mitigate supply risks associated with geopolitical tensions and market fluctuations [16]. - China has established a stable global supply chain through long-term contracts and investments in overseas oil fields, while also moving towards RMB settlements to reduce reliance on the US dollar [17][19]. Group 5: Future Energy Strategy - China is actively pursuing a "de-oil" strategy, recognizing the finite nature of fossil fuels and the need for sustainable energy sources [21][22]. - Investments in new oil and gas fields, as well as advancements in deep-sea drilling technologies, indicate ongoing efforts to enhance domestic production capabilities [23][25]. - The country is rapidly developing renewable energy sources, with wind and solar power installations leading globally, and aims for non-fossil energy to account for 25% of consumption by 2030 [27][30]. Group 6: Conclusion on Energy Security - The current high dependence on oil imports is viewed as a rational strategy that allows for a smoother transition to renewable energy, rather than a vulnerability [30][34]. - Balancing traditional and renewable energy sources is essential for ensuring long-term energy security and enhancing international competitiveness [34].

Core Viewpoint - The article discusses the current trends and developments in the investment banking sector, highlighting the impact of recent economic changes on market dynamics and investment opportunities [1] Group 1: Economic Trends - The investment banking industry is experiencing significant shifts due to rising interest rates and inflation, which are affecting deal-making activities [1] - There is a noted increase in mergers and acquisitions (M&A) as companies seek to consolidate and enhance their market positions amid economic uncertainty [1] Group 2: Market Opportunities - Investment banks are focusing on sectors such as technology and healthcare, which are expected to show resilience and growth potential despite broader economic challenges [1] - The demand for advisory services is increasing as companies navigate complex financial landscapes, creating opportunities for investment banks to expand their service offerings [1] Group 3: Challenges Ahead - Regulatory changes and geopolitical tensions are posing challenges for investment banks, potentially impacting their operational strategies and profitability [1] - Competition among investment banks is intensifying, leading to pressure on fees and margins, which could affect overall industry profitability [1]

BOARD AND MANAGEMENT INTERIM RESULTS PRESENTATION AUGUST 27, 2025 DISCLAIMER This presentation contains forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward-looking terminology such as "believe", "expect", "anticipate", "estimate", "plan", "project", "target", "may", "will" or other similar words that express an indication of actions or results of actions that may or are expected to occur in the future. You should not place undue rel ...

Core Viewpoint - The domestic retail price of refined oil is expected to decrease as of August 26, 2023, due to a negative change rate in international oil prices during the pricing cycle from August 12 to August 26 [1][3]. Group 1: Price Adjustment Details - The international oil price experienced fluctuations, initially declining and then rising, but remained in a negative change rate range throughout the cycle [3]. - According to data from Zhaochuang Information, as of August 25, the change rate for the reference crude oil was -4.09%, leading to expected reductions of 180 and 175 yuan per ton for gasoline and diesel, respectively [3]. - The price adjustments for 92 gasoline, 95 gasoline, and 0 diesel are expected to decrease by 0.14, 0.15, and 0.15 yuan per liter, respectively [3]. Group 2: Impact on Consumers and Industries - For private car owners, filling a 50L tank of 92 gasoline will save approximately 7 yuan after the price adjustment [3]. - For a typical fuel-consuming vehicle running 2,000 kilometers per month with an average fuel consumption of 8L per 100 kilometers, the fuel cost is projected to decrease by around 10 yuan before the next price adjustment window on September 9, 2025 [3]. - In the logistics sector, a heavy truck running 10,000 kilometers per month with a fuel consumption of 38L per 100 kilometers will see a reduction in fuel costs of approximately 266 yuan before the next price adjustment [3]. Group 3: Market Outlook - The recent rebound in oil prices is viewed as a correction of overly optimistic expectations regarding peace talks, with ongoing market focus on European issues [4]. - The current calculations suggest a potential positive change rate for crude oil prices, indicating an expectation for future increases in domestic refined oil retail prices [4]. - The next price adjustment window is anticipated to be on September 9, 2023, at 24:00 [4].

1. Report Industry Investment Ratings - Crude Oil: Oscillating with an upward bias [1] - Fuel Oil: Oscillating with an upward bias [2] - Asphalt: Oscillating [2] - Polyester: Oscillating with an upward bias [4] - Rubber: Oscillating with an upward bias [4] - Methanol: Oscillating [6] - Polyolefins: Oscillating in a narrow range [7] - Polyvinyl Chloride (PVC): Oscillating with a downward bias [7] 2. Core Views of the Report - The instability of Russian energy facilities has increased, and the progress of the peace agreement lacks a clear timeline. The market has re - priced geopolitical risks, leading to an oscillating rebound in oil prices [1]. - The sanctions on Iran by the US have affected the arrival and delivery of fuel oil cargoes. The Asian low - sulfur fuel oil market structure has weakened, and the high - sulfur fuel oil supply pressure persists. The FU contract is subject to significant sentiment fluctuations and is expected to oscillate with an upward bias [2]. - In August, the actual demand for asphalt was lower than expected. In September, the demand is expected to increase, and the production of asphalt will remain stable. The price will depend on the actual demand [2]. - The improvement in demand expectations has brought positive support to the polyester chain. Short - term supply contractions due to unexpected maintenance of PX and TA, along with the slow recovery of pessimistic sentiment in the crude oil market, have led to a slight price rebound, and there is still room for further increase. The high operating load of ethylene glycol and the reduction of port inventory are beneficial to its price [4]. - The 13th typhoon has affected the supply of natural rubber, and the raw material prices are relatively firm. The export of tires has increased, providing support for demand. The short - term rubber price is expected to oscillate with an upward bias. The planned maintenance of butadiene rubber production facilities will improve the fundamentals, and the butadiene price will oscillate with an upward bias [4][6] - The domestic methanol supply is at a phased low due to multiple device overhauls, and the supply will gradually recover. The short - term arrival of overseas methanol will remain high, but it will decrease in the long term. The methanol price is expected to oscillate [6]. - The production of polyolefins will remain high, and the demand is gradually warming up. The fundamentals are not highly contradictory, and the price will oscillate in a narrow range [7]. - The domestic demand for PVC is gradually recovering, but exports will be weakened by India's anti - dumping policy. The price is expected to oscillate with a downward bias [7]. 3. Summary by Relevant Catalogs 3.1 Research Views - **Crude Oil**: On Monday, oil prices continued to rise. Trump threatened sanctions on Russia and India. The Novoshakhtinsk refinery in Russia caught fire, and the Friendship Pipeline was attacked. India's crude oil imports in July decreased. The instability of Russian energy facilities and geopolitical risks have led to an oscillating rebound in oil prices [1] - **Fuel Oil**: On Monday, the fuel oil futures prices rose. US sanctions on Iran and the ample supply of arbitrage cargoes have affected the market. The low - sulfur fuel oil market structure has weakened, and the high - sulfur fuel oil supply pressure persists. The FU contract is subject to sentiment fluctuations and is expected to oscillate with an upward bias [2] - **Asphalt**: On Monday, the asphalt futures price rose. In August, the demand was lower than expected, but it is expected to increase in September. The production of asphalt will be stable, and the price depends on the actual demand [2] - **Polyester**: On Monday, the polyester futures prices showed mixed trends. The demand improvement and supply contractions due to unexpected maintenance have brought positive support. The price of PX and TA is expected to rise further, and the ethylene glycol price is also supported [4] - **Rubber**: On Monday, the rubber futures prices rose. The typhoon has affected the supply, and the tire export has increased, supporting the demand. The short - term rubber price is expected to oscillate with an upward bias, and the butadiene price will also oscillate with an upward bias [4][6] - **Methanol**: On Monday, the methanol spot prices showed differences. The domestic supply is at a phased low and will gradually recover. The short - term arrival of overseas methanol will remain high but decrease in the long term. The methanol price is expected to oscillate [6] - **Polyolefins**: On Monday, the polyolefin spot prices showed differences. The production will remain high, and the demand is gradually warming up. The price will oscillate in a narrow range [7] - **Polyvinyl Chloride (PVC)**: On Monday, the PVC market prices increased. The domestic demand is gradually recovering, but exports will be weakened. The price is expected to oscillate with a downward bias [7] 3.2 Daily Data Monitoring - The report provides the basis price data of various energy - chemical products on August 26, 2025, including spot prices, futures prices, basis, basis rate, and their changes [8] 3.3 Market News - Norway's Equinor discovered additional oil and gas resources near the Troll oil field in the North Sea, with an estimated total resource volume of 100,000 - 1.1 million cubic meters, equivalent to 600,000 - 6.9 million barrels of recoverable oil equivalent [11] - Nigeria's NNPC stated that almost all pipeline theft has been eliminated through the coordination of defense and intelligence agencies [11] 3.4 Chart Analysis - **4.1 Main Contract Prices**: The report presents the closing price charts of main contracts for various energy - chemical products from 2021 to 2025, including crude oil, fuel oil, asphalt, etc [13][15][17] - **4.2 Main Contract Basis**: The report shows the basis charts of main contracts for various energy - chemical products from 2021 to 2025, including crude oil, fuel oil, etc [27][29][33] - **4.3 Inter - period Contract Spreads**: The report provides the spread charts of different contracts for various energy - chemical products, such as fuel oil, asphalt, etc [40][42][45] - **4.4 Inter - variety Spreads**: The report shows the spread and ratio charts between different varieties, such as crude oil internal and external spreads, fuel oil high - low sulfur spreads, etc [58][60][63] - **4.5 Production Profits**: The report presents the production profit charts of various energy - chemical products, such as ethylene - made ethylene glycol, PP, etc [66][67][69] 3.5 Research Team Member Introduction - The research team includes members such as Zhong Meiyan, Du Bingqin, Di Yilin, and Peng Haibo, each with rich experience and professional titles in the energy - chemical research field [72][73][74]

Core Viewpoint - The domestic retail price of refined oil is expected to decrease significantly due to the ongoing weak performance of international crude oil prices, with a predicted reduction exceeding 190 yuan per ton [2][3]. Price Adjustment Overview - The new round of domestic refined oil retail price adjustments is set for August 26, with expectations of a price cut based on the current international crude oil price trends [1]. - Since the beginning of 2025, there have been sixteen rounds of price adjustments, resulting in a cumulative decrease of 225 yuan per ton for gasoline and 215 yuan per ton for diesel compared to the end of last year [3][4]. Market Analysis - The current pricing cycle has seen a negative change rate of -4.41% for the reference crude oil, leading to an anticipated reduction of 0.15 yuan per liter for 92-octane gasoline and 0.16 yuan per liter for 0-octane diesel [2]. - The wholesale prices for gasoline and diesel have also declined, with 92-octane gasoline averaging 7873 yuan per ton (down 0.44%) and 0-octane diesel at 6737 yuan per ton (down 0.71%) as of August 22 [5]. Supply and Demand Factors - The "OPEC+" group is expected to maintain a significant production increase of 548,000 barrels per day, which may influence the international crude oil market negatively [2]. - Despite the ongoing summer travel peak in the U.S. boosting fuel demand, overall global economic data remains weak, potentially constraining future demand for crude oil [2][5].

按照成品油调价时间表，8月26日24时，国内成品油零售限价将迎来新一轮调整时间窗口。 机构跟踪的最新国际原油价格变动状况预测数据显示，本轮成品油零售限价下调幅度远超50元/吨的红 线要求，预计本轮成品油零售限价大概率将下调。 | | 2025年以来发改委成品油调价幅度汇总(单位:元/吨) | | | | --- | --- | --- | --- | | 项目 | 日期 | 汽油 | 柴油 | | 上调 | 1月2日24时 | 70 | 70 | | | 1月16日24时 | 340 | 325 | | | 4月2日24时 | 230 | 220 | | | 6月3日24时 | 65 | 60 | | | 6月17日24时 | 260 | 255 | | | 7月1日24时 | 235 | 225 | | 下调 | 2月19日24时 | -170 | -160 | | | 3月5日24时 | -135 | -130 | | | 3月19日24时 | -280 | -270 | | | 4月17日24时 | -480 | -465 | | | 5月19日24时 | -230 | -220 | | | 7月15日 ...

Group 1 - The core point of the article highlights that as of August 22, the shareholders of Continental Oil and Gas have pledged 16.33% of the total share capital, ranking 503rd in the market [1] - The total number of shares pledged by the shareholders amounts to 678 million shares, with a total market value of 1.633 billion yuan [1] - Continental Oil and Gas Co., Ltd. is primarily engaged in oil exploration and development, investment in petrochemical projects, and related engineering technical development, consulting, and services [1] Group 2 - The company's main products include oil and gas sales, and it also engages in the sale of materials and equipment needed for petrochemical products and pipeline construction [1] - The company has seen a stock price increase of 5.24% over the past year [2] - The chairman of the company is Chen Huanlong [1]

Core Viewpoint - The rise of emerging industries in China is expected to lead the polymer sector into the next decade, focusing on opportunities in new materials related to electric vehicles, aerospace, drones, robotics, and advanced communication technologies like 5G/6G [1][13]. Group 1: Emerging Industry Directions - Sinopec and PetroChina are focusing on new energy sectors such as hydrogen energy, while also emphasizing the development of new materials like carbon fiber and biotechnology [1][2]. - PetroChina's strategic plan includes a three-step approach: "clean replacement, strategic replacement, and green transformation," aiming for all production energy consumption to come from green energy by 2033 [2][3]. Group 2: New Materials Development - PetroChina is actively developing high-end polyolefins, specialty fibers, high-performance synthetic rubber, and specialty lubricants, achieving significant breakthroughs in nylon production technology [4]. - The company has also made advancements in carbon fiber technology, with plans to invest approximately 129.9 million yuan to build a 1,400 tons/year high-performance carbon fiber facility [4][5]. Group 3: Renewable Energy and AI Integration - Sinopec is expanding its renewable energy portfolio, including hydrogen, solar, wind, and geothermal energy, while also enhancing its oil and gas market share [8][9]. - The company is investing in artificial intelligence capabilities, establishing a unified data governance system, and building supercomputing centers to support its technological advancements [8][9]. Group 4: Battery and Lightweight Materials - Sinopec has developed advanced materials for batteries, including high-nickel ternary cathode materials and specialized separators, with significant market share in the domestic lithium battery sector [9][10]. - The company is also focusing on lightweight materials, achieving production capabilities for various grades of aviation gasoline and carbon fiber [10][11]. Group 5: Hydrogen Energy Initiatives - As China's leading hydrogen energy company, Sinopec is investing in the entire hydrogen energy supply chain, including production, storage, and distribution [11]. - The company plans to establish a hydrogen energy fund to further expand its investments in the renewable energy sector [11].

Core Insights - China National Petroleum Corporation's Changqing Oilfield has achieved a historic milestone by storing over 1 million tons of carbon dioxide, marking a significant advancement in CCUS technology [1][2] - The implementation of CO2 injection as a medium for oil extraction has improved oil recovery efficiency by 25% compared to traditional water-based methods [1] - Changqing Oilfield has developed a unique "Changqing Model" for CCUS, addressing 15 key challenges across three major areas: reservoir, injection and production, and surface engineering [1] CCUS Industrialization Efforts - During the 14th Five-Year Plan, Changqing Oilfield is deploying three large-scale CCUS industrial projects in Shaanxi, Gansu, and Ningxia provinces, each with a capacity of 1 million tons [2] - The CCUS-EOR trial in the Shaanxi Jiyuan Oilfield has expanded to 11 injection and 47 production wells, achieving an injection capacity of 100,000 tons per year [2] - The Ningxia oil region has established a collaborative model involving government, oil and gas production companies, and large coal chemical enterprises, with a current injection capacity of 400,000 tons per year [2] Environmental Impact - The 1 million tons of carbon stored is equivalent to planting over 54 million trees, highlighting the ecological benefits of the CCUS initiatives [2] - With the rollout of three million-ton projects, Changqing Oilfield anticipates further breakthroughs in carbon storage over the next five years [2] - The company aims to refine project construction around three technical models: tight oil area drive, low permeability gravity-assisted drive, and shale oil energy supplementation, contributing to China's dual carbon goals [2]