Core Viewpoint - The project in Dunhua City, Jilin Province, focuses on the production of green methanol and ethanol using non-food biomass as raw materials, highlighting a significant investment in sustainable chemical production [1] Group 1: Project Overview - The green hydrogen and methanol co-production project is backed by Jilin Jiayi Rongyuan Green Chemical Co., Ltd., with an investment of 2 billion yuan [1] - The project aims to produce 40,000 tons per year of ethanol through fermentation of non-food biomass straw [1] - The ethanol fermentation byproduct will be processed to produce 150,000 tons per year of green methanol through a series of chemical processes including gasification and methanol synthesis [1] Group 2: Company Background - Jilin Jiayi Rongyuan Green Chemical Co., Ltd. is fully owned by Shanghai Jiayi Rongyuan Energy Chemical Co., Ltd., which is a subsidiary of the publicly listed company Jiaze New Energy (601619) [1] - Jiaze New Energy has previously initiated a similar project in Jixi City, Heilongjiang Province, with a capacity of 300,000 tons of green hydrogen and methanol aviation fuel, also utilizing non-food biomass straw [1]

Group 1 - The company, Runhe Materials, announced on August 11 that it will use its own funds to purchase financial products and reverse repos, with a total limit not exceeding 200 million yuan [1] - The investment will be in short-term, low-risk, highly liquid, and safe financial products and reverse repos, with a duration of one year from the board's approval date [1] - As of the announcement, Runhe Materials' market capitalization is 5.9 billion yuan [1] Group 2 - In the fiscal year 2024, the revenue composition of Runhe Materials is 99.98% from chemical manufacturing and 0.02% from other sources [1]

Group 1 - The company, Runhe Materials, announced the convening of its fourth board meeting on August 11, 2025, to review the semi-annual report and its summary [2] - For the year 2024, the revenue composition of Runhe Materials was 99.98% from chemical manufacturing and 0.02% from other sources [2]

Group 1 - BASF has signed a framework agreement with CATL to support the development of innovative cathode materials for solid-state batteries, enhancing its local production capabilities in China [3][4] - CATL's annual shipments of energy storage batteries reached nearly 110 GWh and nearly 360 GWh for power batteries, making it the global leader in both segments with market shares of 29.5% and 37.9% respectively [3] - The collaboration with BASF is crucial for CATL to meet stringent EU battery regulations, which require comprehensive carbon footprint disclosure and a minimum recycling material ratio [4][5] Group 2 - BASF has also signed a strategic cooperation agreement with Bader, focusing on low-carbon sustainable coatings, supplying butyl acrylate and 2-ethylhexyl acrylate from its Zhanjiang integrated base [8] - Bader is the largest producer of water-based emulsions and functional additives in Asia, with an annual production capacity of 1.5 million tons [8] - BASF's acrylic acid production capacity is the largest globally at 1.5 million tons per year, with the Zhanjiang facility expected to start production in 2025 [8][9]

Group 1 - The company is fostering an innovative atmosphere by integrating the "Five Small Innovations" concept into production management, encouraging employees to identify innovation points from their daily work [1] - A recovery system for water resources has been implemented, saving 20 cubic meters of water daily, which effectively reduces production costs [1] - The company has introduced a smart parking mode to enhance safety by implementing a three-to-two safety interlock system for equipment, improving the response time to potential risks [1] Group 2 - The introduction of a tail gas separation tank has effectively recovered working liquid from tail gas, reducing resource waste and improving emission quality [2] - This initiative has saved over 20,000 yuan in working liquid costs, enhancing resource utilization and setting a benchmark for efficient and green production [2]

创新停车模式保障安全。该工段根据装置运行现状，聚焦分离设备液位异常升高冒料的安全问题，精准 施策。对现场放空分离器、高位集料槽、芳烃中间槽等设备增设仪表远传液位监测装置，实现三取二安 全联锁停车模式，即当三个条件满足两个时，系统立即启动自动停车程序。这一优化将人工巡检的反应 滞后性转化为智能系统的即时响应，避免了分离设备液位异常升高冒料的风险，装置本质安全水平再上 新台阶。 尾气分离减少资源损耗。该工段生产过程中，2号双氧水尾气夹带工作液问题突出，既造成工作液浪 费，又影响尾气排放质量。为此，工段引入尾气分离罐对尾气进行气液分离处理。通过该装置，尾气中 的工作液得以有效回收并重新投入生产，避免了资源损耗。同时，分离净化后的尾气各项指标均达排放 标准，实现了环保生产。该举措实施以来，已成功节约工作液费用2万余元，在降低生产成本的同时， 提升了资源利用率，为工段高效、绿色生产树立了典范，也为后续类似问题解决提供了宝贵经验。 近期，潞安恒通化工公司双氧水厂双氧水工段全力营造创新氛围，把"小发明、小创造、小革新、小设 计、小建议"的"五小创新"理念深度融入生产管理各环节，鼓励职工立足岗位，从细微处挖掘创新点， 以点滴 ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $42 million for Q2 2025, which was below guidance due to unfavorable raw material timing and lower seasonal demand [12][15] - First half 2025 volumes were 13% below the prior year, with significant declines in latex binders, paper and board applications, and automotive applications in North America and Europe [12][13] - The company expects full year 2025 adjusted EBITDA of roughly $200 million, indicating a challenging demand environment [15] Business Line Data and Key Metrics Changes - Engineered Materials adjusted EBITDA was $1 million below the prior year, despite lower volumes being offset by fixed cost reductions and mix improvements [13] - Latex Binders adjusted EBITDA decreased by $9 million year-over-year, primarily due to lower volumes in Europe and Asia and significant pricing pressure [13] - Polymer Solutions adjusted EBITDA was $11 million below the prior year, driven by lower volumes in building and construction and automotive applications [13] Market Data and Key Metrics Changes - The company experienced high order cancellations early in Q2, linked to geopolitical and trade uncertainties, but noted a significant drop in cancellations as the quarter progressed [6][12] - The demand for recycled plastic products grew by 7% in the first half of 2025, indicating a positive trend in higher value applications [8] Company Strategy and Development Direction - The company is focused on controlling fixed costs and working capital while cultivating growth and sustainability platforms, expecting to realize $105 million in EBITDA benefits from self-help actions in 2025 [7][8] - The launch of the fourth generation Voltabond Anode Binder is a key strategic growth platform, with expectations of double-digit growth over the next five years [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted five potential triggers for demand improvement, including trade certainty, interest rate cuts, resolution of military conflicts, regulatory reforms in China, and support for the EU chemical industry [15] - The company remains optimistic about the potential for recovery in demand, particularly in the building and construction and automotive sectors, which have significant pent-up demand [22][24] Other Important Information - The company has made significant progress in reducing working capital by $560 million over the past three years, with a 17-day reduction in the cash conversion cycle [7] - The company released its fifteenth annual sustainability and corporate social responsibility report, reaffirming its commitment to sustainability goals [9] Q&A Session Summary Question: Discussion on MMA production in Europe - Management stated they continually evaluate assets and prioritize actions based on execution speed, magnitude of benefit, and cost [18][20] Question: Guidance for 2026 EBITDA - Management indicated that resolution of trade uncertainty and lower interest rates could unlock demand, potentially leading to a significant EBITDA improvement [21][24] Question: Impact of polystyrene outages on Amsty business - A mechanical outage in one of the styrene assets had a $5 million impact in Q2, with similar impacts expected in Q3 [26][28] Question: Pricing pressure in latex binders - Management explained that significant pricing pressure in latex was driven by reduced demand in paper and board applications, particularly in China [40][41] Question: Anti-dumping measures in the EU - Management expressed optimism regarding the EU's chemical industry action plan and potential impacts on competition and pricing [49][50]

Core Viewpoint - DSM-Firmenich, a major player in the chemical industry, has shown significant financial growth in the first half of 2025, with total sales reaching €6.51 billion (approximately ¥53.64 billion), a year-on-year increase of 3% [2]. Group 1: Financial Performance - The adjusted EBITDA for DSM-Firmenich was €1.26 billion, reflecting a 29% increase year-on-year, with the EBITDA margin rising from 15.5% to 19.4% [2]. - The net profit surged from €50 million in the same period last year to €541 million, marking an almost tenfold increase [2]. Group 2: Business Segments - The Animal Nutrition and Health segment reported sales of €1.751 billion, a 14% increase year-on-year, with adjusted EBITDA soaring by 293% due to improved core business and temporary vitamin price effects [3]. - The Fragrance and Beauty segment saw sales of €1.989 billion, a slight decline of 1%, impacted by weak demand for sun care products and customer inventory destocking [3]. - The Taste, Texture, and Health (TTH) segment achieved sales of €1.686 billion, a 3% increase year-on-year [3]. - The Health, Nutrition, and Care (HNC) segment reported sales of €1.072 billion, down 2%, but organic sales grew by 6% [3]. Group 3: Strategic Developments - DSM has undergone significant transformations since its founding in 1902, evolving from a coal mining company to a leader in specialty chemicals and nutrition [4][5]. - The merger with Firmenich in May 2023 has positioned DSM-Firmenich as a global leader in flavor and fragrance manufacturing and the largest vitamin producer [5]. - The company has strategically divested from capital-intensive sectors to focus on high-margin specialty chemicals and nutrition, aligning with market trends [5]. Group 4: Competitor Landscape - Competitors like Wanhua Chemical and New Hope Liuhe are also expanding their nutrition and flavor businesses, indicating a competitive landscape in the sector [6][7]. - New Hope Liuhe reported a record revenue of ¥21.609 billion in 2024, with a 42.95% year-on-year growth, highlighting the robust performance of its nutrition segment [6].

Report Summary on Investment Strategies 1. Industry Investment Ratings - **Equity Index Futures**: Bullish [1] - **Treasury Bonds**: Sideways pattern [1] - **Gold**: Bullish pattern; recommended to hold short - put option positions for the 10 - contract [1][4] - **Silver**: Bullish pattern; recommended to hold long positions and short - put option positions for the 10 - contract [4] - **Copper**: Cautiously bearish [4] - **Aluminum - related Metals**: Aluminum is cautiously bullish; Alumina and Aluminum Alloy are in a sideways pattern [4] - **Nickel**: Sideways; recommended to hold short - call option positions [4] - **Lithium Carbonate**: Sideways [6] - **Silicon Energy**: Sideways pattern [6] - **Steel and Iron Ore**: Sideways pattern; for rebar, hold short - put option positions; for hot - rolled coil, recommend to go long on the January contract on dips; for iron ore, consider short - put option positions for the 09 - contract or go long on the 01 - contract after the environmental protection limit expectation is fulfilled [5] - **Coking Coal and Coke**: Sideways [7] - **Soda Ash**: Bearish pattern; recommend to take profit on short positions for the 09 - contract [7] - **Float Glass**: Bearish pattern for the 9 - contract; recommend to take profit on short positions and go long on the 01 - contract [7] - **Crude Oil**: Bearish pattern [7] - **Methanol**: Sideways; recommend to sell an option straddle [9] - **Polyolefins**: Sideways, trending slightly bullish [9] - **Cotton**: Bearish pattern [9] - **Rubber**: Cautiously bullish [9] 2. Core Views - **Equity Index Futures**: With policy support, bottom - up recovery of corporate earnings, and abundant liquidity, the upward trend of the equity index is clear, and the bullish sentiment is strengthened [1] - **Treasury Bonds**: The macro - economic outlook is volatile, and although the bond market is supported by loose liquidity, there is a lack of new positive factors, so it may continue to trade at a high level [1] - **Precious Metals**: The weakening US dollar and rising Fed rate - cut expectations boost the prices of gold and silver. The gold - silver ratio has room for repair, and silver shows a clear bullish pattern [4] - **Non - ferrous Metals**: Supply disruptions support prices, but demand concerns limit the upside potential. Different metals have different supply - demand situations [4] - **Lithium Carbonate**: Supply - side disturbances are easing, and demand expectations are turning positive, with the supply - demand structure showing signs of improvement [6] - **Silicon Energy**: Industrial silicon supply is shrinking, and polysilicon has strong cost and policy support, but the actual production volume in August needs attention [6] - **Steel and Iron Ore**: Coal production control supports steel prices. Different steel products and iron ore contracts have different supply - demand and price trends [5] - **Coking Coal and Coke**: The supply of coking coal is expected to tighten, and the supply - demand of coke is expected to increase, with both in a sideways pattern [7] - **Soda Ash and Float Glass**: Soda ash has a bearish fundamental outlook, while float glass may turn around in the long - term if supply contraction expectations are fulfilled [7] - **Crude Oil**: The increasing probability of a cease - fire in the Russia - Ukraine conflict reduces the risk premium, leading to a short - term weakening of oil prices [7] - **Methanol**: The contradiction between loose coastal supply and tight inland supply makes it difficult for methanol prices to rise or fall, and an option straddle strategy is recommended [9] - **Polyolefins**: Supply and demand will increase simultaneously in August, and the trend will turn sideways and slightly bullish [9] - **Cotton**: The supply is expected to increase, and the demand is in the off - season, resulting in a weakening trend [9] - **Rubber**: The demand outlook is improving, and the raw material price is stabilizing, so the rubber price is expected to rebound [9] 3. Summary by Categories **Equity Index Futures** - Wednesday, the equity index rose steadily, with small and micro - cap stocks leading the gains. The trading volume of the Shanghai and Shenzhen stock markets increased slightly to 1.76 trillion yuan. The mechanical, defense, and coal industries led the gains, while the pharmaceutical and construction sectors declined. The equity index futures strengthened with the spot market, and the basis of each contract narrowed slightly. The margin balance returned to the 2 - trillion - yuan mark, and leveraged funds accelerated their entry. With positive factors such as policy support and corporate earnings recovery, the upward trend of the equity index is clear, and long positions should be held [1] **Treasury Bonds** - The bond market continued to fluctuate at a high level. There is uncertainty about trade tariffs between some countries and the US, the Fed rate - cut expectation has risen, but inflation pressure still exists. The US dollar index continued to weaken. The central bank had a net withdrawal in the open market, but the liquidity remained loose. The bond market is difficult to reverse, but there is a lack of new positive factors, so it may continue to trade at a high level [1] **Precious Metals** - Trump's announcements on tariffs and sanctions, along with rising Fed rate - cut expectations, increased the short - term upward momentum of gold prices. The gold - silver ratio has room for repair, and silver shows a clear bullish pattern. It is recommended to hold short - put option positions for gold and silver 10 - contracts and long positions for silver [4] **Non - ferrous Metals** - **Copper**: Supply disruptions due to the Chilean copper mine incident and a weakening US dollar support copper prices, but weak demand expectations limit the upside [4] - **Aluminum - related Metals**: Alumina has an expected oversupply, but low warehouse receipts and market sentiment provide short - term support. The support for Shanghai Aluminum is strengthening, and its medium - term bullish pattern remains unchanged. Aluminum alloy follows the cost - based pricing logic and is in a sideways pattern [4] - **Nickel**: The supply is loose, and the demand is weak. Although the nickel price has rebounded due to macro - factors, the high inventory pressure limits the upside, and short - call option positions should be held [4] **Lithium Carbonate** - Due to policy impacts on the lithium resource end, the weekly production of lithium carbonate decreased, and the inventory pressure eased. The demand expectation has turned positive, but supply - side disturbances still exist [6] **Silicon Energy** - Industrial silicon supply is contracting passively, and polysilicon has strong cost and policy support. However, the actual production volume in August needs attention [6] **Steel and Iron Ore** - **Rebar**: The supply is restricted by environmental protection and industry policies, and the cost is supported by coal production control. The market sentiment is optimistic, and short - put option positions should be held [5] - **Hot - rolled Coil**: The fundamentals are resilient, with supply constraints and cost support. It is recommended to go long on the January contract on dips [5] - **Iron Ore**: The 9 - contract is dragged down by environmental protection limits and a weak basis, while the 01 - contract has positive expectations. However, the price upside is limited, and different strategies can be adopted for different contracts [5] **Coking Coal and Coke** - **Coking Coal**: The market expects supply to tighten, but the impact of expectations on prices is greater than the fundamentals, and the risk of over - rising prices should be guarded against [7] - **Coke**: Both supply and demand are expected to increase, and the spot market is actively traded, with the futures price stabilizing and trending slightly bullish [7] **Soda Ash and Float Glass** - **Soda Ash**: The supply is sufficient, the demand is weak, and the inventory is increasing. It is recommended to take profit on short positions for the 09 - contract [7] - **Float Glass**: The downstream demand is weak, and the inventory is expected to increase. In the long - term, if supply contraction expectations are fulfilled, the price may turn around. It is recommended to take profit on short positions for the 9 - contract and go long on the 01 - contract [7] **Crude Oil** - The increasing probability of a cease - fire in the Russia - Ukraine conflict reduces the risk premium, and the short - term oil price may weaken [7] **Methanol** - The port inventory is increasing, and the production enterprise inventory is decreasing. The contradiction between loose coastal supply and tight inland supply makes it difficult for prices to rise or fall, and an option straddle strategy is recommended [9] **Polyolefins** - The supply is increasing due to the restart of maintenance devices, and the demand is also rising. The trend will turn sideways and slightly bullish [9] **Cotton** - The domestic cotton production is expected to increase, and the overseas demand is affected by trade frictions. The downstream is in the off - season, and the cotton price is weakening [9] **Rubber** - The demand outlook is improving, and the raw material price is stabilizing. The rubber price is expected to rebound as it is at a relatively low level [9]

Core Viewpoint - The company, Lee Kum Kee (00746), experienced a significant stock price increase of over 12% following the release of its mid-term results for 2025, indicating positive market sentiment towards its financial performance [1]. Financial Performance - The group's revenue remained stable at HKD 1.932 billion [1]. - Profit increased by 36.0% to HKD 327 million, attributed to a significant decrease in energy costs and a decline in raw material prices [1]. - The gross profit margin improved by 7.4 percentage points to 36.3% [1]. Dividend and Financial Health - The company proposed an interim dividend of HKD 0.195 per share [1]. - Following an increase in the dividend payout ratio to 49.6% last year, the company's financial condition remains robust, with a mid-term net debt ratio of 3.2% [1].