Report Industry Investment Rating - Unilateral: Neutral [3] - Inter - period: Before the export window period, conduct positive spreads trading for UR01 - 05 to capture fluctuations; after the export window period, conduct reverse spreads trading for UR01 - 05 at high prices [3] - Inter - variety: None [3] Core Viewpoints - The domestic urea spot market has weak domestic demand with manufacturers reducing prices to attract orders and light trading volume. Although the autumn agricultural fertilizer season has started in some areas and there is rigid demand from the compound fertilizer and melamine industries, industrial demand was previously affected by the military parade and is gradually recovering [2] - Urea production remains at a high level. With the release of new production capacity, the medium - to - long - term supply - demand situation is still relatively loose. Coal - based urea has decent profits, but the cost support is average [2] - The export side has a significant impact on urea price sentiment. Attention should be paid to the Indian NFL urea import tender, as the bid volume is at a historical high. September is still an export window period, with accelerating export rhythm and declining port inventories. The export volume in August and September is expected to be high, which will lead to a decrease in urea inventories. Focus on the resonance period of increased export speed and improved domestic demand [2] Summary by Relevant Catalogs 1. Urea Basis Structure - Relevant figures include the market price of small - particle urea in Shandong and Henan, the basis of Shandong and Henan main - continuous contracts, the price of the urea main - continuous contract, and the 1 - 5, 5 - 9, and 9 - 1 spreads [1][6][7][8][15][17] 2. Urea Production - Relevant figures are the weekly urea production and the loss of urea plant maintenance [18][23] 3. Urea Production Profit and Operating Rate - Relevant figures involve production cost, spot production profit, disk production profit, national capacity utilization rate, coal - based capacity utilization rate, and gas - based capacity utilization rate [26][27][29][32] 4. Urea Foreign Market Price and Export Profit - Relevant figures include the FOB price of small - particle urea in the Baltic Sea, the CFR price of large - particle urea in Southeast Asia, the FOB price of small - particle and large - particle urea in China, the price differences, and the export profit and disk export profit [33][35][38][40][43] 5. Urea Downstream Operating Rate and Orders - Relevant figures are the operating rates of compound fertilizer and melamine, and the number of days of pending orders [49][50][51] 6. Urea Inventory and Warehouse Receipts - Relevant figures include upstream in - plant inventory, port inventory, the number of days of raw material inventory of downstream urea manufacturers in Hebei, futures warehouse receipts, the position volume of the main contract, and the trading volume of the main contract [54][57][61]

Core Insights - The article highlights the successful implementation of regenerative rice farming in Anqing, Anhui, driven by government policies and corporate support, leading to increased yields and farmer benefits [3][4][10] Group 1: Government Policies and Support - The Chinese government has introduced multiple policies to encourage the development of regenerative rice planting in areas with insufficient seasonal planting, emphasizing the integration of quality seeds and farming techniques [3] - Local governments provide targeted subsidies, while enterprises contribute technological support, creating a collaborative environment for farmers to expand their planting scale [3][4] Group 2: Corporate Contributions - New Yangfeng, a leading compound fertilizer company, has developed a model combining fertilizer supply and management services to address the challenges of large-scale farming [4][10] - The company offers tailored fertilization plans based on soil health assessments and crop nutrient needs, ensuring comprehensive support throughout the growth cycle [4][6] Group 3: Agricultural Practices and Results - The introduction of the "Zinc-Phosphorus Beauty" fertilizer package has significantly improved the nutrient supply for regenerative rice, enhancing growth and yield resilience against adverse weather conditions [6][8] - Farmers using this fertilizer reported substantial yield increases, with one farmer achieving a total yield of 2,286 pounds per acre across two harvests, surpassing control fields by 262 pounds [8][10] Group 4: Economic Impact on Farmers - The cost-benefit analysis shows that the investment in quality fertilizers leads to higher yields, with farmers netting an additional 120 yuan per acre after accounting for fertilizer costs [10] - The success of regenerative rice farming has encouraged more farmers to adopt these practices, leading to increased local employment opportunities and economic stability [10][12]

Production Capacity and Market Layout - The company has a total compound fertilizer production capacity of approximately 7.55 million tons, with an additional 1.3 million tons under construction [2][3] - Production bases are strategically located across various regions in China, including Hubei, Sichuan, Henan, Shandong, Liaoning, Heilongjiang, and Xinjiang, as well as a production base in Malaysia for Southeast Asia market supply [2][3] Sales Performance and Growth - In the first half of 2025, the company's phosphate fertilizer products generated revenue of 7.222 billion yuan, reflecting a year-on-year growth of 21.55% [3] - The growth in phosphate fertilizer sales is attributed to channel refinement, marketing efforts, and product structure optimization towards high-margin products [3][4] New Fertilizer Development - New fertilizers offer advantages over traditional fertilizers in nutrient release, application precision, and functionality, leading to improved fertilizer efficiency and reduced nutrient loss [4] - The market share of new fertilizers has steadily increased, driven by the company's focus on high-efficiency, precision, and functional products [4] Market Outlook - The company remains optimistic about the compound fertilizer market, citing strong demand driven by national policies supporting farmland protection and food security [5] - The role of compound fertilizers in enhancing soil fertility and ensuring stable food production is increasingly recognized [5] Phosphate Acid and Mining Operations - The company has developed leading technology for graded utilization of phosphoric acid, establishing an integrated industry chain from phosphate rock to various phosphate products [7] - The company owns three phosphate mines in Sichuan with a total resource reserve of approximately 549 million tons and is advancing mining capacity of 6.9 million tons per year [8] Synthetic Ammonia Project - The company is constructing a 700,000-ton synthetic ammonia project in Hubei, which will support the production of various fertilizers and is on track for completion [9] - Once operational, the project will enhance self-sufficiency in nitrogen fertilizer raw materials, reduce production costs, and improve market competitiveness [9]

Group 1: Legal and Compliance Issues - The case involving Huang has been escalated for handling as of April 2025, and the company believes there has been positive progress in the case [3] - The company does not foresee a risk of delisting due to continuous false records over the past three years based on their cooperation with investigations [3][4] - The main personnel involved in the case have been subjected to compulsory measures by law enforcement [3] Group 2: Financial Performance and Stock Management - The company reported a significant increase in inventory, with a total amount of CNY 1.094 billion, reflecting a year-on-year increase of 30.69% [10] - The increase in inventory is primarily due to production and stockpiling of phosphate ammonium for export [10] - The company does not currently plan to repurchase shares due to substantial funding needs for future projects [9][10] Group 3: Operational Developments - The company is accelerating the approval process for the Yongwen phosphate mine, which has faced delays due to previous legal issues [6][10] - The company is focusing on traditional compound fertilizer business and mineral integration as key profit growth areas for the next few years [10] - The company has a partnership with Guizhou Phosphate for phosphate ore procurement [7] Group 4: Investor Relations and Shareholder Concerns - The company has received suggestions from shareholders regarding stock buybacks and management share purchases to stabilize market value [9] - The total number of shareholders as of June 30, 2025, is 44,794 [12] - The independent director has expressed concerns about the accuracy of financial reports due to previous management's misconduct, but has recognized the current management's efforts [8]

Core Points - The company held its first extraordinary general meeting of shareholders in 2025, which was conducted in compliance with relevant laws and regulations [1][7][19] Meeting Details - The meeting was announced on August 26, 2025, through various financial news outlets [5] - The meeting took place on September 11, 2025, with both on-site and online voting options available [6][8] - A total of 630 shareholders participated, representing 1,117,004,380 shares, which is 33.9925% of the total shares [8] Voting Results - The following proposals were approved during the meeting: 1. Election of Li Shanwei as a non-independent director, with 94.1628% approval [10] 2. Approval of a guarantee for loans to subsidiaries, with 94.0331% approval [11] 3. Amendments to the company’s articles of association, with 94.2132% approval [12] 4. Revisions to governance rules, including: - Shareholder meeting rules with 94.1875% approval [14] - Board meeting rules with 94.1625% approval [16] - Independent director work system with 94.1721% approval [17] - Related party transaction management system with 94.1756% approval [18] Legal Opinion - The legal opinion provided by Beijing Tongshang Law Firm confirmed that the meeting was conducted in accordance with legal requirements and the company’s articles of association, validating the voting results [19]

Core Viewpoint - Stanley announced the decision to waive its right of first refusal on the 51% equity stake in its associate company, Songzi Fertilizer, held by Hubei Yihua Fertilizer [2] Group 1 - The third temporary meeting of the seventh board of directors will be held on September 11, 2025, to review the proposal [2] - Hubei Yihua Fertilizer plans to transfer its 51% stake in Songzi Fertilizer to its sole shareholder, Hubei Yihua Chemical Co., Ltd., to optimize management structure and improve operational efficiency [2] - Stanley currently holds a 49% stake in Songzi Fertilizer, and its ownership percentage will remain unchanged after the transaction [2]

Core Viewpoint - Stanley (002588.SZ) announced that it holds a 49% stake in Songzi Fertilizer Co., Ltd., a subsidiary of Stanley Agricultural Group. Recently, the company received a notice from another shareholder, Hubei Yihua Fertilizer Co., Ltd., regarding the transfer of its 51% stake in Songzi Fertilizer to its sole shareholder, Hubei Yihua Chemical Co., Ltd. Stanley has decided to waive its right of first refusal for this stake transfer, and its ownership percentage in Songzi Fertilizer will remain unchanged after the transaction [1]. Group 1 - Stanley holds a 49% stake in Songzi Fertilizer Co., Ltd. [1] - Hubei Yihua Fertilizer Co., Ltd. plans to transfer its 51% stake in Songzi Fertilizer to Hubei Yihua Chemical Co., Ltd. [1] - Stanley has chosen to waive its right of first refusal regarding the stake transfer [1]

Core Viewpoint - The company Sierte is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, which may lead to potential compensation claims from affected investors [1][2]. Group 1: Financing and Market Position - On September 10, Sierte received financing buy-ins amounting to 9.88 million yuan, accounting for 38.92% of the total buy-in amount for that day [1]. - The current financing balance for Sierte is 299 million yuan, representing 6.75% of its market capitalization, which is below the historical 50th percentile level [1]. Group 2: Legal and Compliance Issues - On September 1, Sierte announced that it received a notice of investigation from the CSRC due to suspected violations of information disclosure laws, as per the Securities Law and Administrative Penalty Law of the People's Republic of China [1]. - Affected investors who purchased Sierte shares between April 20, 2022, and April 25, 2025, and held them until the market close on April 25, 2025, may be eligible for compensation [1]. - On April 30, Sierte disclosed that some board members could not guarantee the authenticity and completeness of the 2024 annual report and the 2025 first-quarter report due to ongoing legal issues related to a case of embezzlement [2]. Group 3: Company Operations - Sierte has participated in 300 bidding projects and holds 96 trademark registrations, indicating its active engagement in business operations and intellectual property management [2].

Group 1 - The core viewpoint of the report indicates that Hubei Yihua is one of the leading fertilizer companies in China, with a projected revenue of 4.794 billion yuan in the fertilizer sector for the first half of 2025, reflecting a year-on-year growth of 0.99%, accounting for 39.93% of total revenue [1] - The gross margin for the fertilizer segment has decreased by 7.10 percentage points year-on-year due to structural oversupply in nitrogen and phosphate fertilizers, combined with macroeconomic impacts leading to low prices and weakened profitability [1] - The chemical industry revenue for the first half of 2025 is expected to be 4.331 billion yuan, showing a year-on-year decline of 12.54%, while the gross margin is projected to be 13.89%, an increase of 5.65 percentage points year-on-year [1] Group 2 - The demand for core product PVC in the construction sector has rebounded due to multiple large infrastructure projects, which has improved profitability in the chemical sector [1] - The company has integrated chlor-alkali production to reduce raw material costs, enhancing the profitability of PVC [1] - The revenue from coal products is projected to be 1.43 billion yuan, accounting for 11.92% of total revenue, marking it as a new growth driver for the company [1]

1. Report Industry Investment Rating - Unilateral: Neutral [3] - For cross - period trading, before the export window period, UR01 - 05 positive spread can be used to trade fluctuations; after the export window period, UR01 - 05 short the spread when it is high. Cross - variety: None [3] 2. Core View of the Report - The domestic urea spot market has weak domestic demand, with manufacturers reducing prices to attract orders and light trading. The agricultural autumn fertilizer season has started in some areas, and industrial demand from compound fertilizer and melamine is for essential purchases. The industrial demand was relatively weak due to the impact of the parade on factories, but the operating rate will recover. Urea production remains at a high level, and the medium - and long - term supply - demand is still loose with the release of new production capacity. Coal - based urea has decent profits, and the cost support is average. The export side has a significant impact on urea price sentiment. Attention should be paid to the Indian NFL urea import tender, and the export in August and September is expected to be good, which may lead to a decrease in urea inventory. We should focus on the resonance period of increased export speed and improved domestic demand [2] 3. Summary by Related Catalogs 3.1 Urea Basis Structure - On September 10, 2025, the urea main contract closed at 1669 yuan/ton (-14). The ex - factory price of small - sized urea in Henan was 1670 yuan/ton (0), in Shandong was 1670 yuan/ton (+0), and in Jiangsu was 1650 yuan/ton (-20). The small - sized anthracite was 750 yuan/ton (+0). The Shandong basis was 1 yuan/ton (+14), the Henan basis was 1 yuan/ton (+4), and the Jiangsu basis was - 19 yuan/ton (-6) [1] 3.2 Urea Production - As of September 10, 2025, the enterprise capacity utilization rate was 78.11% (0.08%). Urea production remains at a high level, and with the release of new production capacity, the medium - and long - term urea supply - demand is still loose [1][2] 3.3 Urea Production Profit and Operating Rate - The urea production profit was 140 yuan/ton (+0). The coal - based urea profit is decent, and the cost support is average [1][2] 3.4 Urea Foreign Market Price and Export Profit - The export profit was 1085 yuan/ton (+6). The export side has a significant impact on urea price sentiment. Attention should be paid to the Indian NFL urea import tender, and the export in August and September is expected to be good, which may lead to a decrease in urea inventory [1][2] 3.5 Urea Downstream Operating Rate and Orders - As of September 10, 2025, the compound fertilizer capacity utilization rate was 33.08% (-6.14%); the melamine capacity utilization rate was 58.98% (+0.48%); the urea enterprise advance order days were 6.88 days (+0.47). The industrial demand was relatively weak due to the parade, but the operating rate will recover [1][2] 3.6 Urea Inventory and Warehouse Receipts - As of September 10, 2025, the total inventory of sample enterprises was 113.27 million tons (+3.77), and the port sample inventory was 62.09 million tons (+2.09). The export is ongoing, the port inventory is accumulating, and the export in August and September may lead to a decrease in urea inventory [1][2]