Group 1: Report Information - Report Title: Polyethylene Risk Management Daily Report [1] - Date: August 14, 2025 [1] Group 2: Analyst Information - Analysts: Dai Yifan (Investment Consulting License No.: Z0015428), Gu Hengye (Futures Practice License No.: F03143348) [2] - Investment Consulting Business Qualification: CSRC License [2011] No. 1290 [2] Group 3: Price Forecast and Hedging Strategies - Polyethylene Price Range Forecast (Monthly): 7200 - 7400 [3] - Current Volatility (20 - day rolling): 9.94% [3] - Current Volatility Historical Percentile (3 - year): 11.1% [3] - Inventory Management Strategy: For high - level finished product inventory, sell L2509 futures at 25% ratio in the range of 7350 - 7400 and sell L2510C7400 call options at 50% ratio in the range of 50 - 100 [3] - Procurement Management Strategy: For low - level procurement inventory, buy L2509 futures at 50% ratio in the range of 7200 - 7250 and sell L2510P7200 put options at 75% ratio in the range of 30 - 70 [3] Group 4: Core Contradictions - Polyolefin market follows macro - sentiment and coking coal price fluctuations. PE is moving towards a supply - demand growth pattern. Supply is increasing as the maintenance season ends, and demand is transitioning from off - season to peak season but with a slow recovery speed. Near - term PE supply - demand pressure is not large, but there is a risk of inventory accumulation if demand recovery is less than expected [4] Group 5: Bullish and Bearish Factors - Bullish Factor: Demand is expected to improve after August [5] - Bearish Factors: Jilin Petrochemical has recently started production, and ExxonMobil's 500,000 - ton LDPE plant is expected to start production in August - September. LLDPE inventory is at a high level [6] Group 6: Market Data Futures Prices and Spreads - Plastic Main Contract Basis: 8 yuan/ton on August 14, with a daily change of 26 yuan/ton and a weekly change of 30 yuan/ton [7] - L01 Contract Price: 7343 yuan/ton on August 14, a daily decrease of 38 yuan/ton and a weekly decrease of 21 yuan/ton [7] Spot Prices and Regional Spreads - North China Spot Price: 7290 yuan/ton on August 14, unchanged daily and an increase of 80 yuan/ton weekly [9] - East China Spot Price: 7360 yuan/ton on August 14, unchanged daily and an increase of 40 yuan/ton weekly [9] Upstream Prices and Processing Profits - Brent Crude Oil Price: 66 dollars/barrel on August 14, unchanged daily and a decrease of 0.8 dollars/barrel weekly [9] - US Ethane Price: 0.2026 dollars/gallon on August 14, a daily decrease of 0.0024 dollars/gallon and a weekly decrease of 0.0137 dollars/gallon [9]

Report Industry Investment Rating - Not mentioned in the provided content Core Viewpoints - The suspension of the 24% tariff between China and the US for 90 days is a macro - level positive, but the market has returned to fundamental trading after a slight boost. PE supply is recovering with the restart of previously shut - down plants and new capacity from Jilin Petrochemical, while PP has low current overall开工率 but future supply pressure is high with the upcoming commissioning of Ningbo Daxie Petrochemical's new PP plant. Upstream and mid - stream inventories of polyolefins are accumulating, cost support is weak, and downstream demand is gradually transitioning to the peak season [2] Summary by Directory 1. Polyolefin Basis Structure - The L main contract closed at 7313 yuan/ton (-16), and the PP main contract closed at 7107 yuan/ton (+16). LL North China spot was 7270 yuan/ton (+20), LL East China spot was 7300 yuan/ton (+20), and PP East China spot was 7040 yuan/ton (+0). LL North China basis was - 43 yuan/ton (+36), LL East China basis was - 13 yuan/ton (+36), and PP East China basis was - 67 yuan/ton (-16) [1] 2. Production Profit and Operating Rate - PE operating rate was 84.1% (+3.0%), and PP operating rate was 77.3% (+0.4%). PE oil - based production profit was 404.4 yuan/ton (+35.8), PP oil - based production profit was - 75.6 yuan/ton (+35.8), and PDH - based PP production profit was 174.2 yuan/ton (-50.9) [1] 3. Polyolefin Non - Standard Price Difference - Not elaborated on in the provided content 4. Polyolefin Import and Export Profit - LL import profit was - 78.8 yuan/ton (-4.7), PP import profit was - 513.4 yuan/ton (-4.8), and PP export profit was 31.2 US dollars/ton (+0.6) [1] 5. Polyolefin Downstream Operating Rate and Downstream Profit - PE downstream agricultural film operating rate was 13.1% (+0.4%), PE downstream packaging film operating rate was 49.3% (+0.6%), PP downstream plastic weaving operating rate was 41.1% (+0.0%), and PP downstream BOPP film operating rate was 60.8% (+0.0%) [1] 6. Polyolefin Inventory - Not elaborated on in the provided content Strategy - Unilateral: Neutral; - Inter - delivery spread: 09 - 01 reverse spread; - Inter - variety: None [3]

从内需来看，国内瓶片消费量保持稳健增长，近五年复合年增长率(CAGR)达10.63%。其中，软饮料包 装作为核心应用领域，是内需的主要驱动力;外卖经济的蓬勃发展也带动瓶片片材需求增长。外需方 面，2024年出口量达到585万吨，占总产量的比例高达36%，近五年出口CAGR达到15.04%，高于内需 增速。出口市场相对分散，前十大出口目的地合计占比约40%，有助于分散贸易摩擦风险，增强出口韧 性。 减产规模可观，叠加需求旺季，行业利润修复前景可期 自2025年6月起，行业计划减产规模达到336万吨，约占行业总产能的15.7%，7月行业整体开工率下降 至约79%。参考2024年第二季度大幅减产后，瓶片价差最高修复至500元/吨左右的水平。本次减产位于 供给端扩张尾声、需求端迎来季节性高峰的双重作用下，市场供需格局有望改善，推动产品利润改善。 华安证券发布研报称，当前瓶片行业供需格局迎来边际改善，减产执行叠加需求旺季有望推动行业利润 修复。2025年6月起行业计划减产336万吨(占总产能15.7%)，7月开工率已降至79%，参考2024年Q2减产 后价差修复至500元/吨的历史表现，本轮减产或催化价格回升。同时，行 ...

Report Summary 1. Report Industry Investment Rating - Unilateral: Neutral; Inter - period: 09 - 01 reverse spread; Inter - variety: None [3] 2. Core View - PE's supply is recovering with the restart of previously shut - down plants and new capacity output, while PP's current low overall operating rate will face greater supply - side pressure in the future. Upstream and mid - stream inventories of polyolefins are accumulating, cost - side support is weak, and downstream demand is gradually transitioning to the peak season with a positive long - term outlook [2] 3. Summary by Directory I. Polyolefin Basis Structure - Figures include the trend of the plastic futures main contract, LL East China - main contract basis, the trend of the polypropylene futures main contract, and PP East China - main contract basis [8][11] II. Production Profit and Operating Rate - Figures cover LL production profit (crude oil - based), PE operating rate, PE weekly output, PE maintenance loss, PP production profit (crude oil - based), PP production profit (PDH - based), PP operating rate, PP weekly output, PP maintenance loss, and PDH - based PP capacity utilization [19][14][18] III. Polyolefin Non - Standard Price Difference - Figures involve HD injection molding - LL East China, HD blow molding - LL East China, HD film - LL East China, LD East China - LL, PP low - melt co - polymer - drawn wire East China, and PP homopolymer injection molding - drawn wire East China [25][33][34] IV. Polyolefin Import and Export Profit - Figures include LL import profit, LL US Gulf FOB - China CFR, LL Southeast Asia CFR - China CFR, LL Europe FD - China CFR, PP import profit, PP export profit (to Southeast Asia), PP homopolymer injection molding US Gulf FOB - China CFR, PP homopolymer injection molding Southeast Asia CFR - China CFR, PP homopolymer injection molding Northwest Europe FOB - China CFR, and LL export profit [38][43][50] V. Polyolefin Downstream Operating Rate and Downstream Profit - Figures are about PE downstream agricultural film operating rate, PE downstream packaging film operating rate, PE downstream stretch film - LL - 2300, PP downstream woven fabric operating rate, PP downstream BOPP film operating rate, PP downstream injection molding operating rate, PP downstream woven fabric production profit margin, and PP downstream BOPP production profit margin [60][59][68] VI. Polyolefin Inventory - Figures contain PE oil - based enterprise inventory, PE coal - chemical enterprise inventory, PE trader inventory, PE port inventory, PP oil - based enterprise inventory, PP coal - chemical enterprise inventory, PP trader inventory, and PP port inventory [70][73][79] 4. Market Data - **Price and Basis**: L main contract closed at 7314 yuan/ton (+24), PP main contract at 7095 yuan/ton (+33), LL North China spot at 7220 yuan/ton (+0), LL East China spot at 7280 yuan/ton (+0), PP East China spot at 7040 yuan/ton (+0), LL North China basis at - 94 yuan/ton (-24), LL East China basis at - 34 yuan/ton (-24), PP East China basis at - 55 yuan/ton (-33) [1] - **Upstream Supply**: PE operating rate was 84.1% (+3.0%), PP operating rate was 77.3% (+0.4%) [1] - **Production Profit**: PE oil - based production profit was 373.7 yuan/ton (-12.5), PP oil - based production profit was - 106.3 yuan/ton (-12.5), PDH - based PP production profit was 208.1 yuan/ton (-47.6) [1] - **Import and Export**: LL import profit was - 71.4 yuan/ton (-0.2), PP import profit was - 505.8 yuan/ton (-0.2), PP export profit was 30.2 US dollars/ton (+0.0) [1] - **Downstream Demand**: PE downstream agricultural film operating rate was 13.1% (+0.4%), PE downstream packaging film operating rate was 49.3% (+0.6%), PP downstream woven fabric operating rate was 41.1% (+0.0%), PP downstream BOPP film operating rate was 60.8% (+0.0%) [1]

Core Viewpoint - The XPS foam industry is actively working towards eliminating HCFCs in compliance with national regulations, achieving significant results and contributing to environmental protection goals [1][2]. Group 1: Industry Compliance and Achievements - The industry has eliminated nearly 18,000 tons of HCFCs in accordance with policies and regulations [1]. - Since 2011, 46 companies have participated in the multilateral fund elimination project, achieving a total HCFCs consumption elimination of 17,922.264 tons [2]. - The industry is expected to comply with the national plan to ban the production and consumption of HCFCs starting January 1, 2026, with a complete phase-out of HCFCs as a foaming agent by July 1, 2026 [2]. Group 2: Regulatory Framework and Future Directions - The Ministry of Ecology and Environment emphasizes the importance of ozone layer protection and is enhancing regulatory frameworks and responsibilities at local levels [1]. - Companies are encouraged to operate legally and comply with national policies while understanding their responsibilities [1]. - The XPS industry is seeking expert discussions to address the impact of alternative foaming agents on thermal conductivity and to develop feasible solutions [2]. Group 3: Standardization Efforts - A seminar on the group standards for XPS backing boards was held, focusing on the organization, member roles, and responsibilities for drafting the standards [3]. - The standards will prioritize scientific validity, advanced applicability, and practical implementation to address real industry challenges [3].

Report Industry Investment Rating No relevant information provided. Core Views - Plastic: There is an expectation of a rebound in downstream开工, and it is expected to fluctuate in the short term. Polyethylene downstream is still in the traditional off - season, with no obvious boost in terminal demand. Although the overall downstream开工 rate has increased, the continuous restocking strength is insufficient. The market's expectation of anti - involution policies will still support the market. It is recommended to short on rallies, with the 2509 contract expected to fluctuate in the range of 7200 - 7500 [5][6]. - PP: The pressure on the disk trend is relatively large, and it will fluctuate in the short term. During the off - season of demand, the downstream开工 rate remains stable. The upcoming "Golden September and Silver October" and the recent takeaway market competition will support downstream demand to some extent. However, there are many new production capacities on the supply side, and the disk pressure is still expected to be large. It is recommended to short on rallies, with the 2509 contract expected to fluctuate in the range of 6900 - 7200 [7][8]. Summary by Directory Plastic Market Changes - On August 8, the closing price of the plastic main contract was 7290 yuan/ton, a decrease of 27 yuan/ton from last week. The average price of LDPE was 9533.33 yuan/ton, a month - on - month increase of 0.18%. The average price of HDPE was 7987.50 yuan/ton, a month - on - month decrease of 0.16%. The average price of LLDPE (7042) in South China was 7483.53 yuan/ton, a month - on - month decrease of 0.44%. The LLDPE South China basis was 185.29 yuan/ton, a month - on - month decrease of 3.11%. The 6 - 9 month spread was 70 yuan/ton (+25), with the basis narrowing and the month spread widening [6]. Fundamental Changes - **Cost and Profit**: WTI crude oil closed at 63.35 US dollars/barrel, a decrease of 3.91 US dollars/barrel from last week. Brent crude oil closed at 66.32 US dollars/barrel, a decrease of 3.20 US dollars/barrel from last week. The price of anthracite at the Yangtze River port was 1060 yuan/ton (+10). The profit of oil - based PE was - 352 yuan/ton, an increase of 138 yuan/ton from last week. The profit of coal - based PE was 989 yuan/ton, a decrease of 206 yuan/ton from last week [6]. - **Supply**: The operating rate of polyethylene production in China this week was 84.08%, an increase of 2.99 percentage points from last week. The weekly polyethylene output was 66.02 tons, a month - on - month increase of 0.99%. The maintenance loss this week was 7.87 tons, a decrease of 1.28 tons from last week [6]. - **Demand**: The overall operating rate of agricultural film was 13.07%, an increase of 0.44% from last week. The operating rate of PE packaging film was 49.30%, an increase of 0.60% from last week. The operating rate of PE pipes was 29.00%, an increase of 0.33% from last week [6]. - **Inventory**: The social inventory of plastic enterprises this week was 57.57 tons, an increase of 1.40 tons from last week, a month - on - month increase of 2.09% [6]. PP Market Changes - On August 8, the closing price of the polypropylene 2509 contract was 7062 yuan/ton, a decrease of 36 yuan/ton from last week. The spot price of polypropylene reported by Shengyi.com was 7246.67 yuan/ton (-8.33), a month - on - month decrease of 0.11%. The PP basis was 185 yuan/ton (-36), with the basis narrowing. The 5 - 9 month spread was 24 yuan/ton (-2), with the month spread narrowing [8]. Fundamental Changes - **Cost and Profit**: WTI crude oil closed at 63.35 US dollars/barrel, a decrease of 3.91 US dollars/barrel from last week. Brent crude oil closed at 66.32 US dollars/barrel, a decrease of 3.20 US dollars/barrel from last week. The price of anthracite at the Yangtze River port was 1060 yuan/ton (+10). The profit of oil - based PP was - 343.52 yuan/ton, an increase of 129.54 yuan/ton from last week. The profit of coal - based PP was 519.29 yuan/ton, a decrease of 165.41 yuan/ton from last week [8]. - **Supply**: The operating rate of PP petrochemical enterprises in China this week was 77.31%, a decrease of 0.37 percentage points from last week. The weekly output of PP pellets reached 77.71 tons, a month - on - month increase of 0.49%. The weekly output of PP powder reached 6.77 tons, a month - on - month increase of 0.91% [8]. - **Demand**: The average downstream operating rate this week was 48.90% (+0.50%). The operating rate of plastic weaving was 41.10% (-0%), the operating rate of BOPP was 60.80% (+0%), the operating rate of injection molding was 56.73% (+0%), and the operating rate of pipes was 36.23% (+0.06%) [8]. - **Inventory**: The domestic inventory of polypropylene this week was 58.71 tons (+3.95%); the inventory of the two major oil companies increased by 5.18% month - on - month; the inventory of traders increased by 8.08% month - on - month; the port inventory decreased by 2.08% month - on - month [8].

Report Industry Investment Rating - Not provided Core Viewpoints - From the PE fundamentals, the near - term pressure is still high as downstream orders haven't improved and restocking demand is limited. Although there was a short - term increase in speculative demand on Monday and Tuesday this week, today's trading volume dropped significantly. Also, PE has been accumulating inventory for four consecutive weeks, with LLDPE inventory reaching a historical high. So, there is still significant pressure above PE. However, from the expected level, the current stage may be the weakest for PE demand, and downstream orders are expected to gradually recover in August, driving demand to pick up. Therefore, PE doesn't have a strong downward drive either. In conclusion, PE is mainly affected by external factors recently and lacks its own directional drive [4] Content Summary by Related Catalogs Price Prediction and Hedging Strategies - The monthly price range prediction for polyethylene is 7200 - 7400, with the current 20 - day rolling volatility at 9.94% and its historical percentile (3 - year) at 11.1% [3] - For inventory management when the finished product inventory is high and worried about price drops: To prevent inventory depreciation losses, enterprises can short plastic futures (L2509, sell, 25%, entry range 7350 - 7400) to lock in profits and compensate for production costs; they can also sell call options (L2509C7400, sell, 50%, entry range 10 - 50) to collect premiums and reduce costs [3] - For procurement management when the regular inventory is low and purchasing according to orders: To prevent the increase in procurement costs due to rising polyethylene prices, enterprises can buy plastic futures (L2509, buy, 50%, entry range 7150 - 7200) at present to lock in procurement costs in advance; they can also sell put options (L2509P7200, sell, 75%, entry range 10 - 50) to collect premiums and reduce procurement costs, and lock in the spot purchase price if the polyethylene price drops [3] Core Contradictions - Near - term pressure on PE fundamentals is high due to poor downstream orders and limited restocking demand. Although there was short - term speculative demand, today's trading volume decreased. PE has been accumulating inventory for four consecutive weeks, especially LLDPE. However, the current stage may be the weakest for PE demand, and downstream orders are expected to recover in August [4] 利多解读 - The "anti - involution" policy drives up the price of coking coal, providing cost support for polyolefins. The demand is expected to improve after August [5] 利空解读 - Jilin Petrochemical's recent production launch. The current restocking willingness of downstream is limited, and the spot price lacks support. PE inventory has been accumulating for four consecutive weeks, with a large increase in LLDPE inventory [6] Daily Data - **Futures prices and spreads**: On August 7, 2025, the plastic main basis was - 22 yuan/ton, with a daily change of 24 yuan/ton and a weekly change of 3 yuan/ton. L01 contract was 7364 yuan/ton, down 18 yuan/ton daily and 35 yuan/ton weekly. L05 contract was 7363 yuan/ton, down 12 yuan/ton daily and 27 yuan/ton weekly. L09 contract was 7297 yuan/ton, down 24 yuan/ton daily and 53 yuan/ton weekly. The L1 - 5 month spread was 1 yuan/ton, down 6 yuan/ton daily and 8 yuan/ton weekly. The L5 - 9 month spread was 66 yuan/ton, up 12 yuan/ton daily and 26 yuan/ton weekly. The L9 - 1 month spread was - 67 yuan/ton, down 6 yuan/ton daily and 18 yuan/ton weekly. The L - P spread was 222 yuan/ton, down 21 yuan/ton daily and 10 yuan/ton weekly [7] - **Spot prices and regional spreads**: On August 7, 2025, the spot price in North China was 7210 yuan/ton, up 10 yuan/ton daily and down 50 yuan/ton weekly. In East China, it was 7320 yuan/ton, unchanged daily and down 70 yuan/ton weekly. In South China, it was 7290 yuan/ton, unchanged daily and down 30 yuan/ton weekly. The East China - North China spread was 110 yuan/ton, down 10 yuan/ton daily and 20 yuan/ton weekly. The East China - South China spread was 30 yuan/ton, unchanged daily and down 40 yuan/ton weekly [9] - **Non - standard and standard product spreads**: On August 7, 2025, the spread between HDPE film and LLDPE film was 475 yuan/ton, unchanged daily and up 75 yuan/ton weekly. The spread between HDPE hollow and LLDPE film was 250 yuan/ton, unchanged daily and weekly. The spread between HDPE injection and LLDPE film was 150 yuan/ton, unchanged daily and up 25 yuan/ton weekly. The spread between HDPE drawing and LLDPE film was 500 yuan/ton, unchanged daily and up 75 yuan/ton weekly. The spread between HDPE pipe and LLDPE film was 1425 yuan/ton, unchanged daily and up 50 yuan/ton weekly. The spread between LDPE film and LLDPE film was 2275 yuan/ton, unchanged daily and up 150 yuan/ton weekly [9] - **Upstream prices and processing profits**: On August 7, 2025, the Brent crude oil price was 67 dollars/barrel, unchanged daily and down 4.81 dollars/barrel weekly. The US ethane price was 0.215 dollars/gallon, unchanged daily and up 0.0017 dollars/gallon weekly. The northwest coal price was 545 yuan/ton, unchanged daily and weekly. The East China methanol price was 2395 yuan/ton, unchanged daily and down 25 yuan/ton weekly. The oil - based PE profit was 550.1823 yuan/ton daily and 900.9701 yuan/ton weekly. The coal - based PE profit was 363 yuan/ton, unchanged daily and down 211.25 yuan/ton weekly. The profit from purchasing methanol externally to produce PE was - 355 yuan/ton, unchanged daily and down 200 yuan/ton weekly. The profit from purchasing ethane externally to produce PE was 1849 yuan/ton, up 3.2524 yuan/ton daily and down 61.9009 yuan/ton weekly. The profit from purchasing ethylene externally to produce PE was 406.7415 yuan/ton daily and 371.4526 yuan/ton weekly [9]

Group 1 - The central government of China has elevated the construction of a green, low-carbon, and circular development economic system to a national strategy, emphasizing the need to improve the green development standard system [1] - The National Development and Reform Commission, along with other ministries, has initiated a plan to support the establishment of zero-carbon parks, aiming for a step-by-step transition towards low-carbon and zero-carbon modifications in various parks and enterprises [1] - The China Light Industry Federation plans to enhance the green product standards, certification, and labeling system during the 14th Five-Year Plan period, aiming to select 100 benchmark enterprises in green manufacturing [1] Group 2 - Various light industry organizations and enterprises are actively responding to national calls by developing relevant standards and conducting training courses to establish a unified carbon footprint management system [2] - The China Lighting Electrical Association has released three group standards for carbon footprint accounting related to lighting products, while other associations have also published standards for household appliances, bicycles, and paper products [2] - The China Plastics Processing Industry Association has organized training sessions for professionals in carbon footprint evaluation and carbon asset management [2] Group 3 - The China Light Industry Information Center is exploring the use of information technology to implement carbon footprint accounting in the light industry [3] - Carbon labeling is identified as a core tool for quantifying the carbon emissions of products throughout their lifecycle, facilitating the identification of emission reduction points in the industrial chain [3] - The China Light Industry Information Center has issued a call for light industry enterprises to establish a carbon labeling system, promoting the construction of standard systems and service platforms to support the green and digital transformation of the industry [3]

会上，中国塑料加工工业协会PVC发泡制品专委会秘书长周家华宣读了《关于继续做好中国塑料行业企 业信用等级评价工作的通知》《关于举办"2025中俄塑料行业技术及市场对接交流大会"的通知》等文 件，并介绍专委会围绕中国塑协2025年重点工作计划安排的相关工作。 中国塑料加工工业协会理事长王占杰表示，面向未来，行业一是要坚定信心，通过共同努力，应对变 局，适应需求，要积极应对国际贸易壁垒及行业"内卷"带来的不利因素。二是要保证质量，只有在保证 产品质量的前提下，企业才可能做大做强，长久发展。三是要做好产品推广，努力宣传产品功能化优 点，积极参加协会主办的各类会议活动，展示自身实力。 中化新网讯 7月26日，中国塑料加工工业协会硬质PVC发泡制品专业委员会第七届三次理事会议在杭州 召开。多位参会代表提出，美国关税及国内房地产行业萎缩对企业影响较大，企业要积极响应国家 反"内卷"的号召，从提高产品品质、研发新产品、开拓新市场等方面提高竞争力。 ...

Core Viewpoint - The development of biodegradable polyurethane through enzyme methods presents a promising solution to the growing issue of polyurethane waste management, addressing the limitations of traditional recycling methods [1][4]. Group 1: Challenges in Biodegradation - Polyurethane's biodegradation is more complex than that of PET due to its multiple chemical bonds, including ester, carbamate, and ether linkages, which hinder the efficiency of biological degradation [2]. - The foamed nature of polyurethane and the presence of various additives complicate the depolymerization process, requiring higher temperatures (around 200°C) compared to the mild conditions typically used in enzyme methods [2]. Group 2: Research and Development - The research team has tested over a hundred enzyme types to identify wild polyurethane-degrading enzymes, revealing the molecular mechanisms behind their efficiency in degrading polyurethane plastics [3]. - Modified enzymes, or "artificial enzymes," have been developed that enhance the degradation efficiency of polyester-based polyurethanes by nearly 11 times compared to wild-type enzymes, significantly improving recycling rates [3]. Group 3: Advantages of Enzyme Method - The enzyme method allows for the "closed-loop regeneration" of materials, breaking down waste polyurethane into original monomers, which can produce high-quality recycled materials comparable to virgin materials [4]. - Unlike traditional mechanical and chemical recycling, which often results in lower-quality products, the enzyme method can yield materials suitable for high-end applications, such as transparent PET bottles [4]. Group 4: Future Directions - Despite the advantages, the application of enzyme methods for polyurethane degradation faces challenges, including a limited variety and quantity of degrading enzymes and some enzymes' suboptimal performance [4]. - The company aims to continue advancing the industrial application of enzyme preparations, focusing on reducing production costs and enhancing enzyme activity and stability to position enzyme methods as a key strategy in plastic pollution management [4].