Core Viewpoint - The company, Shanxi Yongdong Chemistry Industry Co., Ltd., is responding to an inquiry from the Shenzhen Stock Exchange regarding its application for a specific stock issuance, detailing its financial performance, inventory management, and market conditions affecting its operations [1]. Financial Performance - The company's operating revenue for the reporting periods was 375.90 million yuan, 450.40 million yuan, and showed fluctuations in profit margins with rates of 12.50%, 4.15%, 5.33%, and 4.99% [2]. - The company's inventory values at the end of each reporting period were 34.71 million yuan, 64.45 million yuan, with a significant portion of inventory being over one year old due to production halts [2]. - Fixed assets totaled 118.94 million yuan, with 35.85 million yuan being idle due to the suspension of a production project [2]. Market Conditions - The global carbon black market is projected to grow from 28.76 billion USD in 2024 to 41.28 billion USD by 2032, with a CAGR of 4.6% [10]. - China holds a significant position in the global carbon black industry, with a production capacity of 46.2% of the world's total as of 2023 [11]. - The carbon black industry in China is experiencing a gradual increase in production capacity and output, with a focus on improving product quality and technological advancements [12][13]. Product Pricing and Cost Analysis - The average procurement cost of coal tar, a primary raw material, has decreased significantly, aligning with market trends [6][19]. - The pricing model for carbon black products is based on raw material costs and market conditions, with quarterly or monthly adjustments made based on customer negotiations [7][8]. - The company’s carbon black product gross margin has shown stability, with fluctuations primarily driven by changes in raw material prices and market conditions [19][23]. Regulatory and Safety Issues - The company faced a fine of 500,000 yuan due to a suffocation incident, which raised concerns about compliance with safety regulations [3]. - The inquiry from the Shenzhen Stock Exchange also requested clarifications on the company's internal control measures regarding safety production [4]. Investment and Future Outlook - The company is expected to enhance its competitive edge through innovation and by expanding into high-performance carbon black markets, responding to increasing environmental regulations and market demands [15][16]. - The coal tar processing industry is shifting towards higher value-added products and improved resource utilization, indicating a potential growth area for the company [16].

Group 1 - The company, Longxing Technology Group Co., Ltd., has issued convertible bonds totaling RMB 754.75 million, with a net amount of RMB 745.32 million after deducting issuance costs [2][4][21] - The bonds will be traded on the Shenzhen Stock Exchange starting from March 6, 2024, under the name "Longxing Convertible Bonds" and code "127105" [2][4] - The funds raised will be primarily allocated to the Shanxi Longxing Carbon-Based New Materials Circular Economy Industry Project (Phase I), which has a total planned investment of RMB 1.60 billion [2][4][21] Group 2 - The convertible bonds have a face value of RMB 100 each and will be issued at par [2][4] - The interest rates for the bonds are structured to increase over the six-year term, starting at 0.20% in the first year and reaching 2.50% in the sixth year [6][21] - The company has a total A-share capital of 490.82 million shares, with original shareholders entitled to a priority subscription for the bonds [4][5] Group 3 - Longxing Technology is a leading enterprise in the carbon black industry, with a production capacity of 620,000 tons per year as of the end of 2024 [21] - The company has established strong partnerships with major tire manufacturers, including Windforce, Zhongce Rubber, Michelin, and Continental [21] - The company has received 110 national patent authorizations, focusing on core technologies in carbon black production [21] Group 4 - The company reported a net profit attributable to shareholders of RMB 142.09 million for 2024, representing a year-on-year increase of 28.70% [21] - Total assets increased by 15.97% to RMB 441.13 million, while net assets attributable to shareholders rose by 6.93% to RMB 184.10 million [21] - The company aims to enhance production automation and efficiency through significant investments in smart factory construction and advanced equipment manufacturing [21]

Core Viewpoint - China holds a leading position in the global white carbon black industry, which is a high-value chemical raw material widely used in various sectors such as rubber, plastics, coatings, and inks [2][3]. Group 1: Industry Overview - White carbon black is essential for improving product texture, enhancing strength, and increasing durability [2]. - Chinese manufacturers can be categorized into large state-owned enterprises with advanced production equipment and small to medium-sized private companies that focus on high-quality customized products and innovation [2]. - Major production regions in China include Shandong, Jiangsu, Guangdong, and Henan, benefiting from rich resources and strong market demand [2]. Group 2: Technological Advancements - The industry is experiencing continuous technological improvements, with manufacturers investing in research and development to meet consumer demands for quality and environmental friendliness [3]. - Significant advancements have been made in controlling carbon black particle size, surface modification technologies, and waste gas treatment [3]. Group 3: Environmental Focus - Environmental sustainability has become a focal point for manufacturers, leading to reduced environmental impact and enhanced product competitiveness through efficient resource utilization and green manufacturing [3]. - The Chinese government has implemented strict environmental policies and standards for carbon black enterprises, emphasizing regulatory compliance [3]. Group 4: Market Dynamics - The domestic demand for white carbon black is growing, contributing to a positive development trend in the industry [3]. - Chinese manufacturers are actively expanding into overseas markets, increasing export sales to regions such as Asia, Europe, and North America, thereby establishing a strong international reputation [3][4].

龙星科技集团股份有限公司 公开发行可转换公司债券 www.lhratings.com 联合〔2025〕3205 号 联合资信评估股份有限公司通过对龙星科技集团股份有限公司 主体及其相关债券的信用状况进行跟踪分析和评估，确定维持龙星 科技集团股份有限公司主体长期信用等级为 AA-，维持"龙星转债" 信用等级为 AA-，评级展望为稳定。 特此公告 联合资信评估股份有限公司 评级总监： 二〇二五年五月二十九日 声 明 一、本报告是联合资信基于评级方法和评级程序得出的截至发表之日的 独立意见陈述，未受任何机构或个人影响。评级结论及相关分析为联合资信 基于相关信息和资料对评级对象所发表的前瞻性观点，而非对评级对象的事 实陈述或鉴证意见。联合资信有充分理由保证所出具的评级报告遵循了真 实、客观、公正的原则。鉴于信用评级工作特性及受客观条件影响，本报告 在资料信息获取、评级方法与模型、未来事项预测评估等方面存在局限性。 二、本报告系联合资信接受龙星科技集团股份有限公司（以下简称"该 公司"）委托所出具，除因本次评级事项联合资信与该公司构成评级委托关 系外，联合资信、评级人员与该公司不存在任何影响评级行为独立、客观、 公正的 ...

Core Viewpoint - The company, Shandong Link Science and Technology Co., Ltd., plans to issue shares through a simplified procedure to raise up to RMB 300 million, which will be primarily used for the second phase of its project to produce 100,000 tons of nano carbon materials for high-voltage cable shielding [2][24]. Group 1: Issuance Details - The total amount to be raised from the stock issuance is RMB 30 million, which complies with regulations limiting such fundraising to no more than 20% of the company's net assets as of the end of the previous year [2][24]. - The issuance price is set at RMB 21.17 per share, which is at least 80% of the average trading price over the 20 trading days prior to the pricing date [4][21]. - The number of shares to be issued is 14,170,996, not exceeding 30% of the total shares before the issuance [4][22]. Group 2: Project Purpose and Background - The project aims to produce high-voltage cable shielding materials, which are crucial for both land and submarine cable applications, addressing the current reliance on imported materials [9][12]. - The company has achieved significant technological advancements, breaking foreign monopolies in the production of conductive carbon black for high-voltage cables [9][10]. - The project aligns with national strategies to enhance manufacturing capabilities and promote the development of strategic emerging industries [10][12]. Group 3: Market Context - The global market for submarine cables is expected to grow significantly, driven by the expansion of offshore wind power and marine engineering projects [12][15]. - The demand for high-voltage submarine cables is increasing due to the ongoing energy transition and the need for efficient energy transmission [12][15]. - The company is positioned to capitalize on this growth by enhancing its product offerings and expanding its market share in the cable industry [17][18].

Group 1 - Carbon black is a black particulate material produced from the combustion of hydrocarbons, widely used in chemical, rubber, and plastic industries [2] - The article explores the global carbon black industry leaders and the position and impact of white carbon black worldwide [2] Group 2 - Evonik Industries AG is a leading global chemical company with a significant presence in the carbon black market, known for its high-quality white carbon black products like "Aerosil" [3] - Cabot Corporation is the largest carbon black manufacturer globally and holds a dominant position in the white carbon black sector, with products recognized for their special properties [3] Group 3 - China Carbon, a subsidiary of Japan Carbon, is the largest carbon black producer in Asia, boasting world-class production technology and a strong market share in white carbon black [4] - Birla Carbon is a major player in the carbon black industry in emerging markets, known for reliable white carbon black products at competitive prices [4] Group 4 - Delta Technology GmbH is an important player in the Russian carbon black production sector, achieving notable success in the white carbon black field through innovation and product development [5]

Core Insights - N219 carbon black is a critical raw material widely used in industries such as rubber, plastics, inks, and coatings, making pricing strategy essential for production companies [2] - The increasing global demand for N219 carbon black has led to rising prices, while environmental concerns regarding pollution from production processes pose challenges for the industry [2] - A sustainable pricing strategy that balances market demand and environmental responsibility is necessary for N219 carbon black producers [2][4] Pricing Strategy Considerations - Production costs are a primary factor in pricing strategy, as the production of carbon black requires significant energy and raw material investments, which directly affect final product pricing [3] - Market demand and competitive landscape must be analyzed to understand consumer preferences and price sensitivity for different qualities and specifications of carbon black [3] - Regulatory environment and social responsibility are increasingly important, as companies face stricter environmental protection requirements and must invest in sustainable practices [3] Proposed Sustainable Pricing Strategy - Companies should focus on technological innovation and process optimization to enhance production efficiency and reduce costs [4] - Investment in environmental protection technologies is crucial to minimize pollution and improve product sustainability, which can enhance corporate image and competitive advantage [4] - A flexible pricing policy is recommended to cater to different market segments, offering high-value products for premium markets and affordable options for mass markets [4] - Active participation in industry organizations and social responsibility initiatives is encouraged to promote sustainable development within the carbon black industry [4]

Investment Rating - The report initiates coverage with a "Buy" rating for the company, indicating a potential stock price increase of 5% to 15% over the next six months [12]. Core Insights - The company is advancing in the production of superconductive carbon black, with products currently being tested across various downstream industries, suggesting a broadening of application directions [1][2]. - Amidst the backdrop of US-China trade tensions, the domestic substitution process for superconductive carbon black is expected to accelerate, as the country remains heavily reliant on imports for specialty carbon blacks [2]. - The competitive landscape is improving, with a forecasted recovery in the carbon black industry due to stable downstream demand and the potential exit of low-end producers, enhancing market concentration [3]. Summary by Sections Company Overview - The company has a production capacity of 30,000 tons per year for superconductive carbon black and has launched 4-6 product variants, with several more in development [2]. Market Dynamics - China is the largest carbon black producer, with an estimated production of 5.608 million tons in 2024, but still faces a high import dependency for specialty carbon blacks [2]. - The carbon black industry in China has a low concentration level, with the top five companies holding only 41% of the market share, indicating significant room for consolidation [3]. Financial Projections - The company is projected to achieve net profits of 205 million, 260 million, and 303 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 43.71X, 34.38X, and 29.54X [3][4]. - Revenue is expected to grow from 10.132 billion yuan in 2024 to 10.955 billion yuan in 2027, reflecting a compound annual growth rate [4]. Stock Performance - The company's stock closed at 12.16 yuan, with a 12-month price range between 5.25 and 12.89 yuan, and a total market capitalization of approximately 8.942 billion yuan [5].

Core Viewpoint - The company has developed various models of superconductive carbon black products that can be used in fast-charging and solid-state battery applications [1] Group 1 - The superconductive carbon black products are currently in the testing phase, with the 6010 product still undergoing sample testing [1]

Core Viewpoint - The introduction of the IRB8 standard reference carbon black is a significant innovation for China's carbon black industry, aimed at enhancing product quality and meeting the growing market demand [3][4]. Group 1: Industry Development - The carbon black industry plays a crucial role in various sectors such as rubber, plastics, and inks, necessitating continuous improvement in product quality and standards to meet diverse application needs [3]. - The IRB8 standard reference carbon black is produced using international testing methods and advanced techniques, ensuring consistency in physical and chemical properties with actual production [3]. - The launch of the IRB8 standard represents a major breakthrough in quality control for the carbon black industry, enabling companies to accurately assess and compare their products [3]. Group 2: Market Competition - The introduction of the IRB8 standard reference carbon black promotes high-quality development in China's carbon black industry, helping companies identify shortcomings and innovate to enhance product quality and brand competitiveness [4]. - As the demand for carbon black continues to grow, the competition among companies intensifies, making the adoption of the IRB8 standard essential for maintaining market relevance [4]. Group 3: Environmental Impact - The promotion of the IRB8 standard reference carbon black supports the green development of the carbon black industry by reducing carbon emissions and chemical waste during production [4]. - The implementation of the IRB8 standard can lead to technological advancements that minimize environmental pollution and facilitate the industry's transition to greener practices [4]. Group 4: Collaborative Efforts - To achieve widespread application of the IRB8 standard in China's carbon black industry, collaboration among government, enterprises, and research institutions is essential [4]. - The government should enhance regulatory oversight and provide support for quality control, while companies need to improve internal management and employee skills [4]. - Research institutions should work closely with enterprises to drive research and innovation, ensuring the continuous optimization of the IRB8 standard reference carbon black [4].