Group 1 - The board of directors of Liaoning Dingjide Petrochemical Co., Ltd. held its tenth meeting of the third session on August 26, 2025, with all seven directors present [1][2] - The board approved the 2025 semi-annual report and its summary, with a unanimous vote of 7 in favor and no opposition or abstentions [2] - The board also approved the special report on the storage and actual use of raised funds for the first half of 2025, again with a unanimous vote of 7 in favor [2]

Core Viewpoint - The refining and chemical industries are facing significant challenges due to slowing demand growth, the rise of electric vehicles, and ongoing capacity expansion, leading to a projected decline in refining margins by about 5% to 30% by 2030 [3][4]. Recent Trends and Market Outlook - The refining market is expected to see a notable decline in profit margins, primarily driven by demand slowdown and capacity expansion disrupting supply-demand balance [3]. - The chemical market is also under pressure, with rapid capacity expansion, especially in China, outpacing demand growth, leading to overcapacity and compressed profit margins [3]. Challenges for Asian Refining and Chemical Industries - The evolving market dynamics are reshaping the competitive landscape, necessitating adaptation from companies [4]. - Uncertainties in carbon neutrality policies complicate long-term planning for refining and chemical companies, potentially leading to the exit of outdated capacities and cancellation of planned projects [4]. - Geopolitical tensions and fluctuating trade policies are adding further challenges, with tariffs on key raw materials increasing production costs by approximately 7% [4]. Strategic Pathways for Survival - Companies are focusing on cost reduction, capacity optimization, and digital transformation to navigate the challenges in the refining and petrochemical sectors [5]. - Operational transformation is essential for survival, with companies leveraging various strategies to enhance operations and profitability [5][6]. Production and Optimization - Linear programming (LP) models can provide insights to capture high-value opportunities with minimal investment, potentially increasing capacity by up to 5% [7]. - Advanced process control (APC) is being deployed to optimize operations and improve product yields, with potential cost reductions of $0.3 per barrel [8]. Efficient Maintenance - Effective maintenance strategies can significantly reduce costs and downtime, with potential savings of 5-15% on turnaround costs [10]. - Predictive maintenance is being utilized to monitor equipment health and reduce unplanned downtime [10]. Capital Expenditure (CAPEX) Optimization - Optimizing CAPEX is crucial for addressing tightening capital constraints and ensuring maximum returns while minimizing costs and risks [11]. - Structured methodologies like risk threat prioritization (RTP) are being employed to ensure rigorous evaluation of capital projects, leading to CAPEX reductions of 10-20% [11][13]. Sales Optimization - Optimizing commercial performance is vital for maintaining profitability, with effective sales strategies leveraging data-driven analysis to accelerate revenue growth [14]. - Dynamic pricing models based on customer willingness to pay are being adopted to maximize revenue and profit [15]. Conclusion - The Asian refining and petrochemical industries are entering a period of structural upheaval, with traditional advantages becoming less reliable [16]. - Future winners will be those companies that can adapt quickly to market changes, deeply integrate digital technologies, and optimize costs and product portfolios [16].

Group 1: Core Developments in Gulei Peninsula - The Gulei Peninsula is witnessing a vibrant industrial renewal, highlighted by the signing of a green methanol project with a total investment of 15 billion yuan, leveraging offshore wind power and biomass resources [1] - The successful relocation of the CCR control room and the establishment of a digital management system mark significant steps towards smart upgrades in the Gulei petrochemical sector [1] - The Gulei Petrochemical Company has successfully implemented an MPS system for dynamic monitoring of key operational indicators, aiding in resource optimization and cost reduction [1] - The selective hydrogenation project for butadiene at Gulei Petrochemical, recognized as a key national project, is set to transform by-products into high-value raw materials [1] Group 2: Policy and Support for Industrial Growth - The Gulei development zone is receiving strong support from national and local governments, with a series of policies aimed at fostering a world-class high-end smart green petrochemical base [3] - The provincial government has introduced "twenty measures" to support Gulei's development, facilitating project approvals and funding [3] - The Gulei area has seen significant project activity, with over 640 billion yuan in total investments from new and ongoing projects, including major projects exceeding 100 billion yuan [3][4] Group 3: Transition to High-End, Intelligent, and Green Industry - The Gulei development zone is focused on transforming the traditional petrochemical industry towards high-end, intelligent, and green development, emphasizing innovation and resource integration [5] - Investments of 1.356 billion yuan have been made to establish pilot bases for chemical and biopharmaceutical innovations, promoting deep integration of technology and industry [5] - The Gulei area is advancing its circular economy initiatives and aims to achieve a 90% direct supply of green electricity through integrated energy solutions [6] Group 4: Regional Collaboration and Infrastructure Development - Gulei is enhancing regional collaboration by constructing key transportation infrastructure and fostering industrial connections with surrounding areas [7] - Strategic partnerships have been formed to promote green low-carbon transitions and integrate oil trading and refining processes [7] - The Gulei development zone is actively engaging in international cooperation, aiming to create a new economic model that leverages its petrochemical base [8]

1. Report Industry Investment Rating - Unilateral: Neutral; PDH propylene supply is expected to tighten, but downstream profits are under pressure and follow - up may be limited. Pay attention to device dynamics. - Inter - period: None. - Inter - variety: None. [2] 2. Core Viewpoints - The expected de - capacity of the South Korean petrochemical industry's naphtha cracking boosts propylene prices. South Korea's propylene capacity accounts for 6% of the global total. From January to July this year, China imported 863,000 tons of propylene from South Korea, accounting for 67.6% of total imports, and 73.7% in 2024. South Korea's petrochemical de - capacity may support overseas propylene prices. - On the supply side, the maintenance of Shandong Zhenhua PDH continues, and Qingdao Jinneng and Wanhua Penglai PDH are shut down for maintenance. The PDH start - up rate has declined month - on - month, and the external release of propylene has tightened, which supports the price in the short term. However, downstream profits are under pressure at high prices, and procurement is cautious, so the upward space for propylene prices may be limited. - On the demand side, the overall downstream start - up rate has rebounded. The start - up rate of octanol has increased significantly, and the PP start - up rate has increased slightly. The start - up rate of acrylic acid has declined significantly. In the short term, demand is supported, but its sustainability is questionable. - On the cost side, the crude oil price has stopped falling and then fluctuated upward, and the landed price of the propane outer market has rebounded, so the cost - side support has shifted upward. [2] 3. Summary by Directory 3.1 Propylene Basis Structure - The closing price of the propylene main contract is 6491 yuan/ton (+21), the spot price of propylene in East China is 6450 yuan/ton (+25), the spot price of propylene in North China is 6455 yuan/ton (-45), the basis of propylene in East China is - 41 yuan/ton (+4), and the basis of propylene in North China is - 36 yuan/ton (-66). [1] 3.2 Propylene Production Profit and Start - up Rate - The propylene start - up rate is 75% (+1%), China's propylene CFR - Japanese naphtha CFR is 193 US dollars/ton (-3), and propylene CFR - 1.2 propane CFR is 97 US dollars/ton (+1). [1] 3.3 Propylene Import and Export Profits - The propylene import profit is - 263 yuan/ton (+3). [1] 3.4 Propylene Downstream Profits and Start - up Rates - PP powder start - up rate is 40% (+1.29%), production profit is - 55 yuan/ton (+75); epoxy propane start - up rate is 74% (+2%), production profit is - 383 yuan/ton (-86); n - butanol start - up rate is 89% (+0%), production profit is 336 yuan/ton (+589); octanol start - up rate is 92% (+6%), production profit is 430 yuan/ton (-18); acrylic acid start - up rate is 70% (-5%), production profit is 446 yuan/ton (-18); acrylonitrile start - up rate is 73% (+1%), production profit is - 572 yuan/ton (+56); phenol - acetone start - up rate is 78% (+1%), production profit is - 727 yuan/ton (+0). [1] 3.5 Propylene Inventory - The in - plant inventory is 40,320 tons (+3470). [1]

Key Recommendations - The report highlights the revision of the classification and evaluation regulations for securities firms, emphasizing the importance of the mid-year report allocation window in the non-bank financial sector [6][7] - The non-bank financial index rose by 2.7% last week, outperforming the CSI 300 index by 1.5 percentage points, with both the brokerage and insurance indices showing synchronized increases of 3.1% and 1.4% respectively [6][7] - The average daily trading volume in the stock market increased by 20.9% week-on-week to 30,123 billion yuan, while the margin financing balance rose by 4.5% to 2.16 trillion yuan [6][7] Company Analysis: Kaili Medical (300633) - In H1 2025, Kaili Medical reported revenue of 964 million yuan, a year-on-year decrease of 4.78%, and a net profit of 47 million yuan, down 72.43% [11] - The company experienced a slight revenue increase of 0.17% year-on-year in Q2 2025, with a significant sequential increase of 24.24% [11] - The company is focusing on high-end products and anticipates a recovery in bidding processes, which could drive future growth [11][12] Company Analysis: Hengli Petrochemical (600346) - Hengli Petrochemical's revenue for H1 2025 was 103.89 billion yuan, a decrease of 7.69% year-on-year, with a net profit of 3.05 billion yuan, down 24.08% [16][17] - The company faced significant pressure in Q2 2025, with revenue declining by 13.5% year-on-year and net profit down 46.8% [17] - Despite the profit decline, operating cash flow increased by 55.42% to 19.48 billion yuan, indicating strong cash management [18] Company Analysis: Tebao Biopharmaceutical (688278) - Tebao Biopharmaceutical achieved revenue of 1.511 billion yuan in H1 2025, representing a year-on-year growth of 26.96%, with a net profit of 428 million yuan, up 40.60% [21][22] - The company is expanding its core product, Pegbivac, which is gaining traction in the chronic hepatitis B treatment market [22] - Tebao's R&D investment increased by 48.77% to 202 million yuan, with new product approvals expected to contribute to future growth [23][24] Industry Analysis: Semiconductor and AI Chip Market - The domestic AI chip market is expected to grow significantly, with sales projected to reach 92 billion USD in 2025, a year-on-year increase of 29.58% [27] - The market share of domestic AI chip suppliers is anticipated to rise to 40% by 2025, driven by increasing demand and government support for local manufacturers [27] - Xiaomi's Q2 2025 performance was strong, with total revenue reaching 116 billion yuan, a 30.5% year-on-year increase, driven by its mobile and AIoT businesses [28] Market Overview - The electronic sector outperformed the broader market, with the electronic index rising by 8.95% compared to the 4.18% increase in the CSI 300 index [29] - The semiconductor sub-sector saw a notable increase of 12.26%, indicating strong investor interest and demand in this area [29] - The report suggests a gradual recovery in industry demand, with price stabilization and opportunities for investment in AI and automotive electronics [30]

Group 1 - The chemical sector experienced a significant rally on August 26, with the Chemical ETF (516020) rising over 2% at one point and closing up 1.67% [1] - Key stocks in the sector included Zhonghua International, which hit the daily limit, and Zhongke Titanium, which surged over 9% [1] - Other notable gainers included Xin Fengming and Luxi Chemical, both rising over 5%, while several other stocks increased by more than 4% [1] Group 2 - Recent trends indicate that various sub-sectors within the chemical industry are pushing for a "de-involution" strategy, suggesting a need for both administrative and self-regulatory measures [1] - Successful cases in the refrigerant industry highlight the importance of policy in driving industry changes, with potential for similar outcomes in polyester and viscose sectors [1] - Huatai Securities noted that the industry is at a profit bottom, with supply-side adjustments expected to improve profitability for bulk chemical products [3] Group 3 - The chemical industry is anticipated to benefit from a slowdown in global capacity expansion, with strong cash flow potentially leading to higher dividend yields [5] - The Chemical ETF (516020) tracks a comprehensive index covering various chemical sub-sectors, with nearly 50% of its holdings in large-cap stocks [6] - The ETF provides an efficient way for investors to gain exposure to the chemical sector, which includes leading companies in phosphate, fluorine, and nitrogen fertilizers [6]

Core Viewpoint - The Siam Cement Group's subsidiary, Long Son Petrochemicals (LSP), has restarted its petrochemical complex in Ho Chi Minh City after a year of shutdown, coinciding with a decline in crude oil prices that has reduced operational costs [1] Group 1: Company Developments - Long Son Petrochemicals is undertaking a $500 million renovation project expected to be completed by 2027 [1] - The total investment for the complex amounts to $5 billion, which began construction in 2018 and was scheduled to commence commercial operations in September 2024 [1] - The complex has an annual production capacity of 1.4 million tons of olefin resins, supplying raw materials for various industries including packaging, agriculture, electronics, and automotive [1] Group 2: Market Context - The restart of the complex is seen as an opportunity due to the drop in crude oil prices, which has allowed for a more favorable operational environment [1] - The initial production was halted just one month after launch due to rising costs and unprofitability [1]

中化新网讯 8月21日，中国可持续发展工商理事会第二十一届可持续发展新趋势报告会在京举行。与 会专家指出，能源、石化、化工、钢铁等重工业企业正在加速拥抱新能源变革，绿色低碳技术产品和服 务将是塑造企业新核心竞争力的重要领域。 世界可持续发展工商理事会会长兼CEO贝德凯在视频致辞中表示，中国在能源转型方面的领导地位已得 到全球认可，凭借世界领先的清洁能源投资和不断增长的可再生能源产能，中国正在推动重工业的低碳 化，并重塑全球供应链标准。 国家发展和改革委员会原副秘书长苏伟指出，企业推进低碳产业发展是实现能源转型和节能降碳的重要 支撑。截至2022年，全球上市公司利润前2000名的企业中，有824家已经承诺净零排放目标，将绿色低 碳与企业品牌、发展战略深度融合，这其中涵盖了钢铁、锂、石化、化工、电解铝等重工业领域。 中国宏观经济研究院能源研究所副所长孙颖提出，我国能源转型变革的目标就是加快建设新型能源体 系，并从能源消费电气化、能源供应低碳化、能源供需互动化、产业科技装备化、能源治理现代化等方 面分析了新型能源体系的特征。 "在全球能源转型的大浪潮中，中国坚定不移推动能源消费革命、能源供给革命、能源技术革命、能源 ...

Supply and Demand - As of August 22, overseas PX operating rates have significantly rebounded, with domestic PX operating rates at 84.6% (+0.3%) and Asian PX operating rates at 76.3% (+2.2%) [2] - Demand has seen fluctuations, with Jia Tong's 3 million tons reducing load and then recovering, Jiaxing Petrochemical's 2.2 million tons restarting after a shutdown, and Yisheng Hainan's 2 million tons undergoing maintenance, while Hengli Huizhou's 2.5 million tons faced unplanned shutdowns, leading to PTA operating rates at 72.9% (-3.1%) [2] Price Trends - On August 25, Asian PX prices increased by $2/ton to $859/ton, equivalent to a domestic price of 7046 RMB/ton, with PXN around $267/ton [1] - PX prices showed slight upward movement supported by cost, with October negotiations expanding to +8.5/+10 and November remaining in the +6/+8 range [1] Market Outlook - Domestic and international PX maintenance units are gradually restarting, leading to an expected increase in PX supply; however, the downstream PTA sector is experiencing many unplanned shutdowns due to low processing fees, resulting in a marginal weakening of PX supply-demand expectations [3] - Despite ongoing inventory reduction since Q2, PX absolute inventory pressure remains low, and the traditional demand peak season in September and October is expected to stabilize downstream polyester loads, providing strong support for demand [3] - Short-term PX price support is expected to remain strong due to rising oil prices, although rebound potential is constrained by weak oil prices and terminal demand expectations; a cautious bullish approach is recommended for short-term PX [3]

Market Overview - The Shanghai Composite Index closed at 3883.56, up 1.51%, while the Shenzhen Component Index rose 2.26% to 12441.07. The ChiNext Index increased by 3.00% to 2762.99, and the STAR Market 50 Index gained 3.20% to 1287.73. Overall, the market showed strong performance with a total trading volume exceeding 3 trillion yuan [6][7]. Company Tracking - Rongsheng Petrochemical (002493.SZ) reported a revenue of 148.63 billion yuan for H1 2025, a decrease of 7.83% year-on-year, with a net profit of 602 million yuan, down 29.82%. The company is focusing on new materials to offset the impact of falling oil prices [33][34]. - Mango Excellent Media (300413.SZ) experienced a 14.31% decline in revenue to 5.964 billion yuan in H1 2025, with a net profit drop of 28.31% to 763 million yuan, primarily due to decreased revenue from its traditional e-commerce segment [36][37]. - Jiangsu Bank (600919.SH) reported a revenue of 44.864 billion yuan, up 7.78% year-on-year, with a net profit of 20.238 billion yuan, reflecting an 8.05% increase [39]. - Chongqing Bank (601963.SH) achieved a net profit of 3.394 billion yuan in H1 2025, a 5.73% increase year-on-year, with total assets reaching 983.365 billion yuan, up 22.01% [42][43]. - GoerTek (002241.SZ) announced plans to acquire 100% of Shanghai Aolai, enhancing its core competitiveness in optical components [44][46]. Industry Dynamics - The smart robotics sector is accelerating the commercialization of embodied intelligence, with significant advancements expected by 2025 [24][25]. - The 2025 China Computing Power Conference highlighted the rapid development of the computing power industry, showcasing a comprehensive results system that includes key reports and innovative achievements [27][29]. - The new policies in Shanghai aim to optimize housing fund withdrawal and loan policies, which may impact the real estate market positively [20][23]. Economic Dynamics in Hunan - Times New Materials (600458.SH) reported a revenue of 9.256 billion yuan in H1 2025, a 6.87% increase, with a net profit of 303 million yuan, up 36.66% [47]. - The large aircraft supply chain intelligent manufacturing base project has commenced in Hunan, with an investment of 5.1 billion yuan, focusing on the aircraft landing gear and related industries [49].