Core Viewpoint - The completion of the urea granulation tower at the PetroChina Tashi Chemical Green Low-Carbon Project marks a significant milestone in the project's construction, entering the peak installation phase and nearing the completion of civil works [1] Group 1: Project Overview - The project is located in the Xinjiang Korla Shakush Chemical Industry Park and aims for near-zero carbon dioxide emissions through the use of advanced ammonia synthesis technology based on ethylene-rich tail gas [1] - The urea granulation tower, a core structure of the urea production facility, has a design height of 122.5 meters and a diameter of 24 meters, featuring a reinforced concrete cylindrical structure [1] Group 2: Construction Details - The construction of the granulation tower involves an estimated total concrete pouring volume exceeding 7,000 cubic meters and the use of over 1,600 tons of rebar [1] - The project team has successfully tackled the challenge of using C45 high-strength concrete in the construction of the granulation tower, a first in the country, along with the associated mix ratio testing [1]

Core Viewpoint - The achievement of 323 days of continuous operation by the fertilizer production unit of Fudao Company marks a significant milestone in the chemical production industry, showcasing the company's ability to overcome challenges associated with aging equipment and extreme weather conditions [1][2]. Group 1: Operational Achievement - Fudao Company's fertilizer unit has set a new record of 323 days of continuous operation, surpassing its previous record since its commissioning in 1996 [1]. - Achieving long-term operation is particularly challenging for older units, especially in regions with extreme weather conditions such as high temperatures and humidity [1]. Group 2: Technical Challenges and Solutions - Initial challenges included fluctuations in the efficiency of the gas turbine due to significant temperature variations, which were addressed through monitoring and optimization of the air intake system [1]. - The company implemented additional cooling measures during extreme weather, such as installing a spray water system and optimizing the condensate return path to maintain operational efficiency [2]. Group 3: Management Innovations - Fudao Company has restructured its management model to focus on detailed management of key equipment, utilizing intelligent monitoring systems and preventive maintenance platforms to shift from passive repairs to proactive interventions [2]. - Each potential hazard is assigned a dedicated file, responsible person, and rectification timeline, enhancing the efficiency of issue resolution [2]. Group 4: Importance to Agriculture - The stability of fertilizer production is crucial for ensuring agricultural input supply, which directly impacts food security [2]. - Fudao Company aims to continue advancing technological innovation and management optimization to further enhance operational performance and contribute to national agricultural production [2].

Investment Rating - The report maintains a positive outlook on the basic chemical industry, suggesting that leading companies with significant scale and cost advantages will benefit from economic recovery and demand resurgence [4][8]. Core Insights - The report highlights the recovery of the TDI production facility by Mitsui and the successful commissioning of a new ethylene plant by Jilin Petrochemical, indicating positive developments in the industry [3][4]. - It emphasizes the strong competitive position of domestic tire manufacturers and suggests that rare growth stocks in this sector are worth attention [4]. - The report notes a potential recovery in consumer electronics, recommending upstream material companies as beneficiaries of this trend [4]. - It identifies several resilient cyclical industries, such as phosphate and fluorine chemicals, which are expected to see improved market conditions due to supply constraints and rising demand [5][8]. Summary by Sections Market Performance - The Shanghai Composite Index fell by 1.18%, while the ChiNext Index rose by 2.35%. The CITIC Basic Chemical Index increased by 0.15%, and the Shenwan Chemical Index decreased by 1.36% [14][17]. - The top-performing sub-industries included organic silicon (3.59%), modified plastics (2.46%), and tires (2.22%), while the worst performers were other plastic products (-4.72%) and compound fertilizers (-3.04%) [17][18]. Industry Dynamics - Mitsui's TDI plant is set to resume production after a chlorine leak incident, with expectations of stable product supply [3]. - Jilin Petrochemical's new ethylene plant has successfully started operations, increasing its total ethylene capacity to 1.9 million tons per year [3]. Investment Themes - **Tire Sector**: Domestic tire companies are noted for their strong competitive edge, with recommendations to focus on companies like Sailun Tire and Linglong Tire [4]. - **Consumer Electronics**: A gradual recovery is anticipated, with upstream material companies expected to benefit from increased demand in the panel supply chain [4]. - **Cyclical Industries**: Phosphate and fluorine chemical sectors are highlighted for their resilience, with recommendations for companies like Yuntianhua and Juhua [5][8]. - **Leading Companies**: The report suggests that leading companies in the chemical sector, such as Wanhua Chemical and Hualu Hengsheng, will benefit from economic recovery and demand resurgence [8].

Core Insights - The report by Zhiyan Consulting highlights the market trends and strategic outlook for the urea industry in China from 2025 to 2031 [1] Price Trends - As of mid-August 2025, the market price for urea (medium and small granules) is reported at 1766.2 yuan per ton, reflecting a year-on-year decline of 17.47% and a month-on-month decrease of 1.27% [1] - The highest recorded price in the past five years occurred in mid-August 2021, reaching 2727.9 yuan per ton [1]

Core Insights - The report by Zhiyan Consulting highlights the market trends and investment potential in the Chinese compound fertilizer industry from 2025 to 2031 [1] Price Trends - As of mid-August 2025, the market price for compound fertilizers (potassium sulfate compound fertilizer with a nitrogen, phosphorus, and potassium content of 45%) is 3180 yuan per ton, reflecting a year-on-year increase of 3.51% and remaining stable compared to the previous month [1] - The highest recorded price in the last five years for the same period was in mid-August 2022, reaching 3910 yuan per ton [1] Historical Data - A statistical chart detailing the price fluctuations of compound fertilizers from 2019 to mid-August 2025 is referenced, indicating significant price movements over the years [1]

Group 1: Company Performance and Market Conditions - The company experienced a significant decline in performance in the first half of 2025 compared to the same period last year, attributed to cyclical and structural adjustments in the industry [2][3] - The company reported that the sales revenue and profit from automotive urea decreased due to multiple factors, including logistics industry conditions and raw material price fluctuations [4][5] - The company is currently in a low point in the fertilizer market and is considering measures to optimize product structure and enhance market competitiveness [3][4] Group 2: Risk Management and Strategic Initiatives - The company is actively managing risks associated with urea price fluctuations by controlling production costs and optimizing operational efficiency [2][3] - The management is exploring effective market value management measures, including mergers and acquisitions, to enhance company value [3][4] - The company is committed to maintaining a prudent approach to capital management, ensuring funds are utilized effectively while safeguarding operational needs [5][6] Group 3: Research and Development Efforts - The company has significantly increased its R&D investment, with funding growing by 10%, 59%, and 93% from 2022 to 2024 [7][8] - New product developments include green and efficient fertilizers, advanced polymer materials, and technologies aimed at energy conservation and emission reduction [7][8] - The company aims to strengthen its core competitiveness through continuous innovation and development of new products [8] Group 4: Investor Relations and Communication - The company emphasizes the importance of investor relations and plans to enhance communication with institutional and individual investors [5][6] - Suggestions from investors regarding capital market strategies and expectations management are being taken seriously for future implementation [8][9] - The company is committed to transparent information disclosure and maintaining open channels for investor communication [9]

Report Industry Investment Rating No relevant content provided. Core Viewpoint - In August, the futures price of urea maintained a narrow - range oscillation. The domestic supply declined, and demand entered the off - season. The overall contradiction was not prominent, and demand was mainly supported by exports. The short - term fundamentals did not change significantly, and additional bullish factors were needed for the price to break out of the range. Currently, the market is characterized by low valuation and weak drivers, and the price is expected to remain range - bound. It is recommended to pay attention to long positions on dips [12]. Summary by Directory 1. Monthly Assessment and Strategy Recommendation - **Market Review**: In August, the futures price of urea maintained a narrow - range oscillation. Domestic supply decreased with the monthly output of 5.93 million tons, a slight month - on - month decline but a year - on - year increase of over 11%. The daily output dropped to around 182,000 tons, reducing supply pressure. Exports continued to advance, and port inventories increased significantly, becoming the main demand support. The compound fertilizer market was weak, with the start - up rate peaking and then declining. Domestic agricultural demand entered the off - season [12]. - **Fundamentals**: Coal - based production profits were at a low level, and cost support would gradually strengthen. The basis and the 1 - 5 spread showed slight signs of stabilization. Export profits were high, and domestic prices were relatively undervalued. The price ratio with related varieties was at a medium - low level, indicating that the valuation of urea was not high. In August, port inventories increased by over 50,000 tons, and enterprise inventories increased by over 200,000 tons, with the current inventory at 1.095 million tons, which was at a high level compared to the same period [12]. - **Market Logic**: The market was characterized by low valuation and weak drivers, lacking more positive factors. The price was expected to remain range - bound, with limited upside and downside space [12]. - **Strategy**: It is recommended to pay attention to long - position opportunities on dips [12]. 2. Futures and Spot Market - **Price Data**: For the 09 contract, the price at the end of the month was 1,679, a decrease of 35 from the beginning of the month; for the 01 contract, it was 1,746, an increase of 10; for the 05 contract, it was 1,791, an increase of 16. The basis in Shandong and Henan decreased, and the 9 - 1, 1 - 5, and 5 - 9 spreads also changed [13]. - **Charts**: There are charts showing the 01 basis seasonality, Shandong urea spot market price, urea 1 - 5 spread, and urea term structure [22][24]. 3. Profit and Inventory - **Production Profit**: Enterprise profits were at a low level compared to the same period. The fixed - bed, water - coal - slurry, and gas - based production profits are presented in relevant charts [30]. - **Inventory**: In August, enterprise inventories increased by over 200,000 tons to 1.095 million tons, and port inventories increased by over 50,000 tons. There are charts showing urea enterprise inventories, port inventories, and warehouse receipts [12][31]. 4. Supply Side - **Urea Capacity**: There are plans for new urea production capacity from multiple enterprises in 2024 - 2025, such as Anhui Quansheng Chemical, Henan Jinkai Yanhua, etc. [38]. - **Urea Start - up**: The start - up rate declined, reducing supply pressure. There were many device overhauls in August and September, including both planned and unplanned overhauls due to various reasons such as faults, routine maintenance, and policies [40][44]. 5. Demand Side - **Consumption**: The report presents charts on monthly consumption and downstream demand proportion [50]. - **Compound Fertilizer**: The start - up rate of compound fertilizer was weak and began to decline after peaking. The production profit and the price ratio between urea and compound fertilizer are shown in relevant charts [52][53]. - **Nitrogen Source Price Ratio**: The price ratios between urea and synthetic ammonia, ammonium sulfate, ammonium chloride, and monoammonium phosphate are presented in charts [56]. - **Melamine**: The start - up rate, profit, and export volume of melamine are shown in relevant charts [58][61]. - **Terminal Demand**: The export volume of plywood, housing construction data (such as new construction area, completion area, and sales area), and external market prices are presented in charts. Urea exports had high profits, and there are charts on export volume, export regions, and export profit [66][77]. 6. Option - Related - **Urea Options**: There are charts showing the open interest, trading volume, open interest PCR, trading volume PCR, volatility, and the relationship with the futures price of urea options [90][98]. 7. Industry Structure Diagram - **Urea Industry Chain**: There are charts showing the urea industry chain, research framework analysis mind - map, and industry chain characteristics. The report also provides an overview of the seasonal fertilizer demand of domestic and international crops [101][106][109].

Group 1 - The company Yuntianhua (SH 600096) held a temporary board meeting on September 5, 2025, to discuss the adjustment of senior management's salary plan for 2025 [1] - For the first half of 2025, Yuntianhua's revenue composition was as follows: fertilizers accounted for 50.88%, trade for 32.25%, phosphate chemicals for 5.73%, others for 3.41%, and engineering materials for 2.81% [1] - As of the report date, Yuntianhua's market capitalization was 47.9 billion yuan [1]

Report Investment Rating - Unilateral: Neutral [3] - Inter - period: Short - term UR01 - 05 positive spread can trade on fluctuations; after the export window period, UR01 - 05 can conduct reverse spread at high levels [3] - Inter - variety: None [3] Core Viewpoints - India's NFL urea import tender received a large amount of supplies at a lower price, and the follow - up award quantity is worthy of attention [2] - The domestic urea spot market has seen improved transactions after price cuts, but the sustainability is weak; agricultural and industrial demands co - exist, and the medium - and long - term supply - demand is still loose [2] - Urea production is high, with a decline this week due to more maintenance; coal - based urea profit is acceptable with general cost support [2] - September is the export window period, with continuous exports and increasing port inventories; follow - up attention should be paid to port operations and export dynamics [2] Summary by Catalog 1. Urea Basis Structure - On September 4, 2025, the urea main contract closed at 1714 yuan/ton (+0); Henan small - particle ex - factory price was 1710 yuan/ton (0); Shandong small - particle price was 1700 yuan/ton (-10); Jiangsu small - particle price was 1710 yuan/ton (-10); small - block anthracite was 750 yuan/ton (+0); Shandong basis was - 14 yuan/ton (-10); Henan basis was - 4 yuan/ton (-10); Jiangsu basis was - 4 yuan/ton (-10) [1] 2. Urea Production - As of September 4, 2025, the enterprise capacity utilization rate was 78.11% (+0.08%); this week, there were many maintenance enterprises, and the production decreased; with new capacity release, the medium - and long - term urea supply - demand is still loose [1][2] 3. Urea Production Profit and Operating Rate - Urea production profit was 170 yuan/ton (-10); coal - based urea profit is acceptable, and the cost - side support is general [1][2] 4. Urea FOB Price and Export Profit - India's NFL tender received a large amount of supplies, with the lowest price on the east coast at 462.45 US dollars/ton and on the west coast at 464.70 US dollars/ton, nearly 70 US dollars/ton lower than the previous price; urea export profit was 1186 yuan/ton (+4); September is the export window period, and exports are continuing [2][1] 5. Urea Downstream Operating Rate and Orders - As of September 4, 2025, the compound fertilizer capacity utilization rate was 33.08% (-6.14%); the melamine capacity utilization rate was 58.98% (+0.48%); urea enterprise advance order days were 6.41 days (+0.35) [1] 6. Urea Inventory and Warehouse Receipts - As of September 4, 2025, the total inventory of sample enterprises was 109.50 million tons (+0.92), and the port sample inventory was 62.09 million tons (+2.09); the export collection rhythm has accelerated, and port inventories are continuously accumulating [1][2]

1. Report Industry Investment Rating - No relevant content provided 2. Core View of the Report - The urea market is currently in a state of overall oversupply in China, with high daily production and inventory levels. Industrial demand for compound fertilizers and melamine is at a moderate level, while agricultural demand is limited. Although the export profit is strong, the export policy has not been liberalized beyond expectations. The international urea price is strong, and the urea futures market is expected to fluctuate today [4]. 3. Summary by Related Catalogs Urea Overview - **Fundamentals**: The urea futures price has recently declined after a previous increase due to rumors of export liberalization. Current daily production and operating rates are still high, and inventory is at a high level overall. The domestic urea market remains in a significant oversupply situation. The spot price of the delivery product is 1780 (-10), and the overall fundamentals are neutral [4]. - **Basis**: The basis of the UR2601 contract is 66, with a premium - discount ratio of 3.7%, indicating a bullish signal [4]. - **Inventory**: The UR comprehensive inventory is 140.2 million tons (-3.5), indicating a bearish signal [4]. - **Disk**: The 20 - day moving average of the UR main contract is flat, and the closing price is below the 20 - day line, indicating a bearish signal [4]. - **Main Position**: The net long position of the UR main contract is decreasing, indicating a bullish signal [4]. - **Expectation**: The main urea contract is expected to fluctuate today, with a strong international price, non - over - expected export policy liberalization, and a significant domestic oversupply situation [4]. Factors Affecting the Market - **Bullish Factors**: The international urea price is strong [5]. - **Bearish Factors**: High operating rates and daily production, and weak domestic demand [5]. - **Main Logic**: The marginal changes in international prices and domestic demand [5]. Market Data - **Spot Market**: The spot price of the delivery product is 1780 (-10), the Shandong spot price is 1780 (-10), the Henan spot price is 1790 (0), and the FOB China price is 3031 [6]. - **Futures Market**: The price of the UR01 contract is 1714 (0), the basis is 66 (-10), the price of the UR05 contract is 1753 (-4), and the price of the UR09 contract is 1664 (6) [6]. - **Inventory**: The warehouse receipt is 7928 (723), the UR comprehensive inventory is 140.2 million tons (-3.5), the UR manufacturer inventory is 85.9 million tons, and the UR port inventory is 54.3 million tons [6]. Supply - Demand Balance Sheet - From 2018 to 2024, the urea production capacity has been increasing year - by - year, with growth rates ranging from 8.4% to 15.5%. The apparent consumption and actual consumption have also generally shown an upward trend, with consumption growth rates ranging from 0.3% to 17.9%. The import dependence has fluctuated between 8.4% and 19.3%. In 2025E, the production capacity is expected to reach 4906, with an 11.0% growth rate [9].