Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [2]. Core Insights - The company is actively advancing its mining project and diversifying its business strategy, which is expected to mitigate cyclical fluctuations [5][9]. - The company’s main business is chlor-alkali chemicals, with a focus on PVC resin, alkali products, and calcium carbide, while also expanding into mineral resource development [5][14]. - The company has successfully integrated the mining operations of the subsidiary, Lijiang Mining, which is rich in tantalum, niobium, tin, and tungsten resources [6][18]. Summary by Sections Company Overview - The latest closing price is 10.03 yuan, with a total market capitalization of 6.5 billion yuan [4]. - The company has a debt-to-asset ratio of 46.7% and a negative P/E ratio of -99.80 [4]. Mining Project Progress - The 600,000 tons per annum mining reconstruction project is progressing as planned, with significant milestones achieved, including the successful installation of the shaft frame [7][19]. - The mining project is expected to generate annual revenues of approximately 420 million yuan from various mineral products [19]. Resource Potential - The Lijiang Mining area has substantial mineral reserves, including 52.89 million tons of ore and significant quantities of tin, tungsten, tantalum, and niobium [6][18]. - The tailings from the mining operations also present a significant potential for recovery of valuable metals [6][18]. Financial Projections - Revenue forecasts for 2025, 2026, and 2027 are projected at 1.767 billion, 1.884 billion, and 2.703 billion yuan, respectively, with corresponding net profits of -117.3 million, 62.43 million, and 406 million yuan [11][12]. - The company expects to achieve a significant increase in earnings per share (EPS) from -0.18 in 2025 to 0.63 in 2027 [11]. Strategic Development - The company plans to establish a circular economy industrial park by 2030, aiming for an industrial output value exceeding 2.3 billion yuan [9][20]. - The high-purity quartz sand project is also underway, targeting high-end applications in semiconductors and other advanced fields, with initial sales already recorded [23][25].

Group 1: Company Background and Strategic Moves - The company is a traditional chlor-alkali chemical enterprise, operating in a cyclical industry with significant scale benefits, and is actively seeking business transformation to improve profitability [2] - The acquisition of the bankrupt Limu Mining Company was deemed strategically valuable and aligned with the company's overall development strategy [2][3] Group 2: Current Operations and Developments - Significant resources have been invested in the resumption of operations at Limu Mining, including underground dredging and road construction, with plans to expedite project construction and production [3] - The company has received safety facility design review opinions for a mining project with a capacity of 600,000 tons per annum, and is currently preparing construction plans and approval procedures [3] Group 3: Resource Management and Product Development - Exploration and resource increase are core activities, with ongoing efforts to ensure resource security for stable future production capacity [3] - The company is actively developing quartz sand products as part of its business transformation, focusing on market expansion and customer development [3] Group 4: Industry Challenges and Future Plans - The chlor-alkali industry is facing intense competition, and the company is currently in a loss-making state due to lack of resource advantages [3] - Plans to enhance product value and improve profitability through supply chain adjustments and product structure optimization are underway [3] Group 5: Incentive Plans - The company will adhere to regulatory requirements and disclosure obligations if any equity incentive plans are implemented in the future [3]

氯碱日报 | 2025-12-04 烧碱库存累积，液氯价格有支撑 市场要闻与重要数据 PVC: 期货价格及基差：PVC主力收盘价4541元/吨（-34）；华东基差-61元/吨（+24）;华南基差-51元/吨（+4）。 现货价格：华东电石法报价4480元/吨（-10）；华南电石法报价4490元/吨（-30）。 上游生产利润：兰炭价格800元/吨（+0）；电石价格2880元/吨（+0）；电石利润-50元/吨（+0）；PVC电石法生产毛 利-881元/吨（-33）；PVC乙烯法生产毛利-465元/吨（+51）；PVC出口利润-9.5美元/吨（-0.1）。 PVC库存与开工：PVC厂内库存32.3万吨（+0.7）；PVC社会库存52.8万吨（+0.1）；PVC电石法开工率82.21%（+2.06%）； PVC乙烯法开工率71.12%（-0.19%）；PVC开工率78.85%（+1.37%）。 下游订单情况：生产企业预售量67.0万吨（-0.7）。 烧碱： 期货价格及基差：SH主力收盘价2165元/吨（-46）；山东32%液碱基差116元/吨（+46）。 现货价格：山东32%液碱报价730元/吨（+0）；山东50%液碱 ...

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report The report presents the top ten convertible bonds for December 2025, analyzing each bond's issuer, including its financial performance, business scope, and key attractions [1][3][4]. 3. Summary by Company 3.1 Zhongte Convertible Bond - **Company Profile**: A globally leading specialized special steel material manufacturing enterprise with a production capacity of about 20 million tons of special steel materials per year [11]. - **Financial Performance**: In 2024, its operating income was 109.203 billion yuan (YoY -4.22%), and the net profit attributable to the parent was 5.126 billion yuan (YoY -10.41%). In the first three quarters of 2025, the operating income was 81.206 billion yuan (YoY -2.75%), and the net profit attributable to the parent was 4.33 billion yuan (YoY +12.88%) [11]. - **Company Highlights**: It is one of the world's most comprehensive special steel enterprises in terms of variety and specifications, with leading market shares in core products such as bearing steel and automotive steel. It has a complete industrial chain and strong cost - control capabilities, and is actively seeking external expansion [12]. 3.2 Shanlu Convertible Bond - **Company Profile**: Mainly engaged in road and bridge engineering construction and maintenance, and actively expanding into other fields. It has a complete business and management system [29]. - **Financial Performance**: In 2024, its operating income was 71.348 billion yuan (YoY -2.3%), and the net profit attributable to the parent was 2.322 billion yuan (YoY +1.47%). In the first three quarters of 2025, the operating income was 41.354 billion yuan (YoY -3.11%), and the net profit attributable to the parent was 1.41 billion yuan (YoY -3.27%) [29]. - **Company Highlights**: Controlled by the Shandong Provincial State - owned Assets Supervision and Administration Commission, it has the concept of "China Special Valuation". It is expected to benefit from infrastructure construction in Shandong and the "Belt and Road" initiative [30]. 3.3 Hebang Convertible Bond - **Company Profile**: With advantages in salt mines, phosphate mines, and natural gas supply, it has completed the basic layout in the chemical, agricultural, and photovoltaic fields [44]. - **Financial Performance**: In 2024, its operating income was 8.547 billion yuan (YoY -3.13%), and the net profit attributable to the parent was 31 million yuan (YoY -97.55%). In the first three quarters of 2025, the operating income was 5.927 billion yuan (YoY -13.02%), and the net profit attributable to the parent was 93 million yuan (YoY -57.93%) [44]. - **Company Highlights**: Its phosphate mines and salt mines contribute stable profits, and the liquid methionine business has high - margin performance [45]. 3.4 Huayuan Convertible Bond - **Company Profile**: Focused on building a complete vitamin D3 upstream - downstream industrial chain, with products including cholesterol, vitamin D3, and chemical preparations [57]. - **Financial Performance**: In 2024, its operating income was 1.243 billion yuan (YoY +13.58%), and the net profit attributable to the parent was 309 million yuan (YoY +60.76%). In the first three quarters of 2025, the operating income was 936 million yuan (YoY -0.2%), and the net profit attributable to the parent was 234 million yuan (YoY -3.07%) [57]. - **Company Highlights**: It is a leader in NF - grade cholesterol and 25 - hydroxyvitamin D3 products. It is expanding its product matrix and has a layout in the pharmaceutical manufacturing field [58]. 3.5 Xingye Convertible Bond - **Company Profile**: One of the first joint - stock commercial banks approved by the State Council and the People's Bank of China, evolving into a modern financial service group [71]. - **Financial Performance**: In 2024, its operating income was 212.226 billion yuan (YoY +0.66%), and the net profit attributable to the parent was 77.205 billion yuan (YoY +0.12%). In the first three quarters of 2025, the operating income was 161.234 billion yuan (YoY -1.82%), and the net profit attributable to the parent was 63.083 billion yuan (YoY +0.12%) [71]. - **Company Highlights**: It has stable asset quality and scale growth, with a large number of corporate and retail customers [72]. 3.6 Huanxu Convertible Bond - **Company Profile**: A global leader in electronic manufacturing design, providing value - added services to brand customers [81]. - **Financial Performance**: In 2024, its operating income was 60.691 billion yuan (YoY -0.17%), and the net profit attributable to the parent was 1.652 billion yuan (YoY -15.16%). In the first three quarters of 2025, the operating income was 43.641 billion yuan (YoY -0.83%), and the net profit attributable to the parent was 1.263 billion yuan (YoY -2.6%) [81]. - **Company Highlights**: It is a leading manufacturer of smart wearable SiP modules, with advanced packaging technologies and a global production layout [82]. 3.7 Chongyin Convertible Bond - **Company Profile**: The earliest local joint - stock commercial bank in the upper reaches of the Yangtze River and Southwest China, listed on the Hong Kong Stock Exchange and selected for the "Leading Bank" program [94]. - **Financial Performance**: In 2024, its operating income was 13.679 billion yuan (YoY +3.54%), and the net profit attributable to the parent was 5.117 billion yuan (YoY +3.8%). In the first three quarters of 2025, the operating income was 11.74 billion yuan (YoY +10.4%), and the net profit attributable to the parent was 4.879 billion yuan (YoY +10.19%) [94]. - **Company Highlights**: Benefiting from the Chengdu - Chongqing economic circle strategy, it has stable asset - scale growth and a reasonable credit strategy [96]. 3.8 Tianye Convertible Bond - **Company Profile**: The first industrial enterprise of the Xinjiang Production and Construction Corps and a leading enterprise in the chlor - alkali chemical industry, with an integrated circular economy industrial chain [103]. - **Financial Performance**: In 2024, its operating income was 11.156 billion yuan (YoY -2.7%), and the net profit attributable to the parent was 68 million yuan (YoY +108.83%). In the first three quarters of 2025, the operating income was 7.97 billion yuan (YoY +2.2%), and the net profit attributable to the parent was 7 million yuan (YoY -28.79%) [103]. - **Company Highlights**: The cost of caustic soda production is relatively fixed, and it plans to increase the dividend frequency and has coal - mine projects in progress [106]. 3.9 Aorui Convertible Bond - **Company Profile**: A company focusing on the R & D, production, and sales of complex APIs and preparations, leading in several technical fields [119]. - **Financial Performance**: In 2024, its operating income was 1.476 billion yuan (YoY +16.89%), and the net profit attributable to the parent was 355 million yuan (YoY +22.59%). In the first three quarters of 2025, the operating income was 1.237 billion yuan (YoY +13.67%), and the net profit attributable to the parent was 354 million yuan (YoY +24.58%) [119]. - **Company Highlights**: It has an optimized distributor network, expanding preparation products, and high - quality customer resources [120]. 3.10 Yushui Convertible Bond - **Company Profile**: The largest water supply and drainage integrated enterprise in Chongqing, with a stable monopoly position in the local market [133]. - **Financial Performance**: In 2024, its operating income was 6.999 billion yuan (YoY -3.52%), and the net profit attributable to the parent was 785 million yuan (YoY -27.88%). In the first three quarters of 2025, the operating income was 5.568 billion yuan (YoY +7.21%), and the net profit attributable to the parent was 779 million yuan (YoY +7.1%) [133]. - **Company Highlights**: It has a high market share in Chongqing, is expanding externally, and has effective cost - control measures [134].

Group 1 - The chlor-alkali and PVC industries are facing significant profit pressures, with the potential for widespread losses in December [1][2] - The caustic soda producers have the ability to maintain prices despite the challenges, but substantial price increases are unlikely; future attention should be on production cuts by companies [2] - PVC demand remains strong in sectors such as agricultural irrigation, urban drainage, construction materials, packaging, and electrical cables, but the current consumption season is weak with high social inventory levels [2] Group 2 - Although PVC spot prices have seen a slight rebound following futures, the fundamentals remain weak, limiting the rebound potential [2] - The main futures players have chosen to exit the market recently, indicating a reduced willingness among short sellers to continue pressuring prices [2] - The ability of caustic soda producers to support PVC prices exists, but significant price increases are still challenging; monitoring of production cuts will be crucial moving forward [2]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Views - The chemical sector has shown positive performance with the Shanghai Composite Index rising by 1.4%, the ChiNext Index by 4.54%, and the CSI 300 by 1.64% during the week. The CITIC Basic Chemical Index increased by 3.49%, and the Shenwan Chemical Index rose by 2.98% [2][14] - Key sub-industries within the chemical sector have experienced varied performance, with membrane materials leading at 7.48% growth, followed by titanium dioxide at 5.85% and chlor-alkali at 4.57% [2][17] Summary by Sections Industry Dynamics - Wanhua Chemical announced a price increase of $200/ton for MDI products in Southeast Asia and South Asia starting December 1, 2025, due to market conditions and supply stability [3] - South Korea raised anti-dumping duties on PET film imports from China, significantly increasing the tax rate on Tianjin Wanhua's products from 3.84% to 36.98% [3] Investment Themes - **Tire Sector**: Domestic tire companies are becoming increasingly competitive, with a focus on scarce growth targets. Recommended companies include Sailun Tire, Senqcia, General Motors, and Linglong Tire [4] - **Consumer Electronics**: A gradual recovery in consumer electronics is anticipated, benefiting upstream material companies. Key players in the panel supply chain include Dongcai Technology, Stik, Light Optoelectronics, and Ruile New Materials [4] - **Phosphate Chemicals**: Supply constraints due to environmental policies and increasing demand from the new energy sector are tightening the supply-demand balance. Recommended companies include Yuntianhua, Chuanheng Co., Xingfa Group, and Batian Co. [5] - **Fluorochemicals**: The reduction of production quotas for second-generation refrigerants is stabilizing profitability, with a focus on companies like Jinshi Resources and Juhua Co. [5] - **Economic Recovery**: As the economy improves, leading chemical companies are expected to benefit significantly from price and demand recovery. Recommended companies include Wanhua Chemical, Hualu Hengsheng, and Baofeng Energy [9] - **Vitamin Supply Disruptions**: BASF's supply issues with vitamins A and E are expected to create market imbalances, with companies like Zhejiang Medicine and New Hecheng recommended for attention [9] Sub-Industry Reviews - **Polyurethane**: Pure MDI prices in East China rose to 19,700 RMB/ton, a 1.55% increase week-on-week, with operating rates stable at 68% [30] - **Tire Industry**: Full steel tire operating rates increased to 63.91%, while semi-steel tire rates decreased to 72.37% [54] - **Fertilizers**: Urea prices rose to 1,679.1 RMB/ton, with operating rates for urea at 86.4% [67][68] - **Vitamins**: Vitamin A prices remained stable at 63 RMB/kg, while Vitamin E prices fell by 2.88% to 50.5 RMB/kg [86][87] - **Fluorochemicals**: Fluorspar prices decreased to 3,350 RMB/ton, with a decline in operating rates to 34.12% [91]

Group 1 - The Shenzhen Stock Exchange issued a regulatory letter to Shenyang Chemical Co., Ltd. regarding false disclosures in annual reports from 2018 to 2021 [1] - The company and several key personnel, including the board secretary and independent directors, failed to fulfill their duties and were held responsible for the violations of the stock listing rules [1][2] - As of the report date, Shenyang Chemical's market capitalization is 3.1 billion yuan [3] Group 2 - For the first half of 2025, Shenyang Chemical's revenue composition was 63.14% from the polyether chemical industry, 35.95% from the chlor-alkali chemical industry, and 0.9% from other businesses [2]

Report Summary 1) Report Industry Investment Rating No relevant content provided. 2) Core View of the Report - The PVC market is expected to experience weak and volatile trends in the near term. The supply side shows an increase in PVC开工率, while the downstream开工率 continues to decline slightly. The cancellation of India's BIS policy on PVC has limited positive impact, and factors such as high inventory, falling prices of coking coal and coke futures, and the end of maintenance of some production enterprises suppress market sentiment [3]. 3) Summary by Related Catalogs a) Market Analysis - PVC prices are oscillating downward, and the 01 basis is at -46 yuan/ton, in a neutral to low level [3][5][13]. b) Supply Side - The upstream calcium carbide prices in the northwest region are stable. The PVC开工率 has increased by 0.32 percentage points to 78.83% week-on-week, remaining at a relatively high level in recent years [3][18]. - New production capacities include 400,000 tons/year of Tianjin Bohua operating at full capacity, and 300,000 tons/year each of Gansu Yaowang and Jiaxing Jiahua operating at low loads after commissioning [3]. c) Demand Side - The downstream PVC开工率 continues to decline slightly, still at a relatively low level, although it exceeds the levels of the past two years [3]. - The real estate market is still in the adjustment phase. From January to October 2025, national real estate development investment was 735.63 billion yuan, a year-on-year decrease of 14.7%. Various indicators such as sales area, new construction area, and completion area all showed significant year-on-year declines. As of the week ending November 23, the weekly transaction area of commercial housing in 30 large and medium-sized cities increased by 18.56% week-on-week but remained at the lowest level in recent years [23]. d) Export - India has terminated the BIS policy on PVC, alleviating concerns about China's PVC exports to India. The anti-dumping duty is also likely to be cancelled, and last week's export orders increased week-on-week [3]. e) Inventory - As of the week ending November 20, PVC social inventory increased by 0.41% week-on-week to 1.0326 million tons, 23.47% higher than the same period last year. The inventory is still relatively high [24].

Report Industry Investment Rating - The investment view is that the short - term market has no obvious drivers, and it is expected to be mainly in a range - bound state, which is rated as "oscillating" [3] Core View of the Report - The spot price of caustic soda is declining slightly, and the futures market is oscillating weakly. Factors such as supply, demand, inventory, profit, and valuation all have different impacts on the market, resulting in an overall situation of weak fluctuations [3] Summary by Directory Part One: Main Views and Strategy Overview - **Supply**: This week, maintenance decreased and production increased. The weekly domestic caustic soda production rose by 0.8 tons to 84 tons. The average capacity utilization rate of sample enterprises with a capacity of 200,000 tons and above was 84.6%, a week - on - week increase of 0.5%. There were regional differences in load changes [3] - **Demand**: Alumina production declined, and non - aluminum demand was weak. The capacity utilization rate of the viscose staple fiber industry was 90.09%, a week - on - week increase of 0.59%. The comprehensive startup rate in the Jiangsu and Zhejiang regions remained flat [3] - **Inventory**: Although there was some destocking, the inventory of sample enterprises increased. The factory inventory of fixed liquid caustic soda sample enterprises with a capacity of 200,000 tons and above was 427,600 tons (wet tons), a week - on - week increase of 6.32% and a year - on - year increase of 80.65%. The national liquid caustic soda sample enterprise storage ratio increased [3] - **Profit**: The average weekly profit of Shandong chlor - alkali enterprises was 2 yuan/ton, a week - on - week decrease of 97%. The average price of liquid chlorine in Shandong was 44 yuan/ton, a week - on - week decrease of 31.90% [3] - **Valuation**: The spot price was neutral, the absolute futures price was low, and the near - month contract was at a discount [3] - **Macro Policy**: The anti - involution sentiment in the energy and chemical sector subsided, and the market traded based on fundamentals [3] - **Investment View and Strategy**: The short - term market is expected to oscillate. There are no suggestions for unilateral and arbitrage trading [3] Part Two: Review of Futures and Spot Market - **Futures Market**: The futures market was range - bound. The Shandong spot market was weak, and the futures had weak bottom support. The liquid chlorine price was higher than in the first half of the year, and the chlor - alkali profit was close to the break - even line. The subsequent supply pressure may increase, and the spot price is expected to decline oscillatingly [9] - **Spot Market**: The spot price was declining slightly [7] - **Position**: The total position increased, and the far - month contracts saw an increase in positions [25] Part Three: Fundamental Data of Caustic Soda Supply and Demand - **Electricity Price**: Coal supply was tight, and electricity prices rose [33] - **Production**: Maintenance in North China decreased, and production increased [37] - **Chlor - Alkali Profit**: The comprehensive chlor - alkali profit decreased [38] - **Downstream Price**: The alumina price declined, and non - aluminum prices were weak [41] - **Alumina**: Alumina production recovered, and inventory accumulated. Due to the end of maintenance and the commissioning of new plants, the production rate in Henan increased significantly [53][54] - **Non - Aluminum Demand**: Non - aluminum production remained stable but was lower than the same period last year. Non - aluminum demand entered the seasonal off - season, and production started to decline [64][65] - **Liquid Chlorine Downstream**: The production rate rebounded [72] - **Subsequent Maintenance**: Multiple enterprises in different regions have maintenance plans, including full - stop, half - load, and planned maintenance at different times [77]

Summary of Conference Call Records Industry Overview - **Chlor-alkali Industry**: The PVC market is facing significant challenges due to weak real estate demand and export uncertainties. As of mid-October, the profit from externally sourced calcium carbide for PVC has further declined, reaching below negative 300 yuan, and expanding to a range of negative 350 to 400 yuan [1][3]. - **Soda Ash**: The industry is expected to see new capacity coming online in 2025, maintaining supply pressure. Soda ash prices have slightly decreased to around 2,450 yuan, with ECU profits falling to the range of 200 to 300 yuan, which is an improvement compared to August and September [1][6]. Key Points on PVC Market - **Capacity and Production**: By 2025, PVC capacity is projected to reach 33.94 million tons, with an increase of 2.6 million tons, marking an 8.3% growth, the highest in nearly a decade. However, weak real estate demand and export uncertainties are expected to keep the market fundamentals weak [2][4]. - **Inventory Levels**: PVC inventory levels are significantly higher than in previous years, with the latest inventory at 505,900 tons, a year-on-year increase of approximately 25%. High inventory is attributed to new capacity, reduced maintenance, and insufficient demand [5]. - **Export Outlook**: The export volume is expected to slightly decline in Q4 compared to Q3 due to the Indian anti-dumping policy being a core variable. However, the recent removal of BS certification requirements for PVC by India may reduce export volatility [4]. Key Points on Soda Ash Market - **Production and Supply**: The soda ash industry plans to add 1.5 million tons of new capacity in 2025, with a year-on-year growth of 2.9%. Current production is stable, with weekly output maintaining around 80,000 tons [6][8]. - **Export Performance**: From January to September 2025, soda ash exports reached approximately 3.098 million tons, a year-on-year increase of 46%, primarily to the overseas alumina industry [10]. - **Domestic Demand**: The domestic alumina industry maintains a high operating rate, supporting strong demand for soda ash. The textile and dyeing industry has also seen a recovery, contributing to stable soda ash demand [11][12]. LPG Market Insights - **Supply and Demand Dynamics**: In November, delays in port operations reduced LPG imports, but increased pressure is expected in late November. The PDH units' maintenance has led to a temporary decline in demand, but a recovery is anticipated in December [14][15]. - **Import Trends**: Domestic LPG production is expected to be around 40 million tons, with net imports of 19.4 million tons, accounting for 48% of total supply. The impact of U.S. tariffs has significantly reduced the share of U.S. LPG imports [15]. Natural Rubber Market Overview - **Price Stability**: Natural rubber prices have stabilized between 15,000 and 15,500 yuan. Despite concerns about inventory accumulation, current absolute inventory levels are not high, and no significant accumulation has been observed [24][25]. - **Demand Growth**: From January to September, natural rubber imports increased by 20%, indicating strong consumption. The total inventory levels are similar to last year, suggesting that the increased imports have been absorbed by the market [29]. - **Market Sentiment**: The market is currently dominated by short positions, with significant short interest remaining. However, the absence of strong long positions indicates a potential for price volatility [34][36]. Conclusion - The chlor-alkali and natural rubber markets are facing various challenges, including high inventory levels and weak demand. The soda ash market shows some resilience due to strong domestic demand, while the LPG market is adjusting to supply chain pressures. Overall, careful monitoring of export policies and domestic demand trends will be crucial for future market performance.