Summary of Conference Call Notes Industry Overview - **Industry**: New Materials in China - **Key Focus Areas**: Lithium, Uranium, Rare Earths, Solar Glass Key Points and Arguments Lithium Market - **Demand**: Year-to-date lithium demand has exceeded market expectations, driven by strong demand from Energy Storage Systems (ESS) and ongoing electric vehicle (EV) trade-in programs [2] - **Supply Risks**: Yichun lepidolite mines are undergoing resource reclassification, which may lead to temporary shutdowns. These mines collectively produce approximately 150,000 tons of Lithium Carbonate Equivalent (LCE) annually [2] - **Cost Dynamics**: The cost curve for lepidolite mines is expected to rise due to increased royalties and fees, with cost support estimated at around RMB 70,000 per ton [2] Uranium Market - **Price Momentum**: Strong momentum in uranium prices is anticipated, supported by major investment vehicles like SPUT and Yellow Cake purchasing in the spot market. Long-term prices are expected to rise post-World Nuclear Symposium, with current spot prices around US$83 per pound [3] - **Supply Adjustments**: Production cuts from Kazatomprom and Cameco highlight ongoing supply risks, benefiting CGN Mining, which has increased its spot price exposure to 70% from 60% due to a renewed three-year contract [3] Rare Earths and Magnets - **Price Strength**: Rare earth prices are robust due to strong downstream demand and China's supply-side controls. Magnet producers are expected to pass price increases to customers, improving gross profit margins [4] - **Export Recovery**: Export volumes for magnet producers are normalizing, with anticipated improvements in shipment volumes and earnings in the second half of the year [4] Solar Glass Market - **Demand Decline**: Demand for solar glass has softened in October and is expected to weaken further into winter, leading to inventory build-up and downward pressure on prices [5] - **Earnings Impact**: The anticipated decline in solar glass prices could negatively affect company earnings if no supply-side controls are implemented [5] Additional Insights - **Equity Ratings**: Various companies within the new materials sector have been rated with "Overweight" or "Equal-weight" based on their market positions and expected performance [10][11] - **Price Target Adjustments**: Price targets for several companies have been adjusted based on updated earnings forecasts and market conditions, reflecting changes in commodity prices and company performance [19][20] - **Market Sentiment**: The overall sentiment in the new materials sector remains attractive, with potential upside from uranium recovery and stable demand in rare earths, despite challenges in lithium and solar glass markets [1][7] Conclusion The new materials sector in China is experiencing mixed dynamics, with strong demand in lithium and uranium markets, while facing challenges in solar glass. Companies are adjusting their strategies and forecasts in response to evolving market conditions, highlighting the importance of monitoring supply risks and price movements in this sector.

Core Viewpoint - The carbon fiber market in China is experiencing price stability, with expectations for future breakthroughs in production technology to enhance competitiveness [2][4]. Price Summary - As of July 11, 2025, the average price of carbon fiber in China is 83.75 yuan per kilogram, with specific prices for different grades: - Domestic T300 grade: 12K specifications priced between 80 to 90 yuan/kg, while 24/25K bundles range from 70 to 80 yuan/kg [1]. - Domestic T700 grade: 12K products priced between 90 to 120 yuan/kg, and 24K products range from 85 to 120 yuan/kg [1]. - Domestic T800 grade: 12K specifications priced between 180 to 240 yuan/kg [1]. Market Dynamics - T800 grade products command significantly higher prices due to their advanced technology and high-end applications, while smaller bundles (e.g., 12K) are priced higher than larger bundles (e.g., 48/50K) within the same grade due to complexity and performance advantages [2]. - The carbon fiber market is currently in a stagnant phase without major positive stimuli, but advancements in raw silk technology and production processes may lead to cost reductions and improved competitiveness in the future [2]. Technological Developments - A collaborative research project involving Jilin Chemical Fiber Group and several leading enterprises has successfully developed key technologies for the large-scale manufacturing of large bundle carbon fibers and composite materials, achieving stable production of high-performance 35K and above large bundle carbon fibers [3]. - The project has established a simulation model for the pultrusion process of large bundle carbon fibers and developed specialized high-efficiency pultrusion processes and equipment, enabling the stable mass production of high-performance pultruded plates [3]. Future Market Potential - The carbon fiber market is expected to benefit from applications in hydrogen storage and transportation, global wind turbine blade recovery, photovoltaic thermal carbon-carbon composites, low-altitude economy, and the domestic large aircraft supply chain [4].

Core Points - Chengdu's Wenjiang District and Qingbaijiang District have signed a bulk exchange agreement for major air pollutant emission quotas, marking the first cross-regional quota exchange case in the province [1] - The innovative exchange breaks down resource allocation barriers between districts, allowing for the effective use of limited emission quotas to support various construction projects with a total investment exceeding 30 billion yuan in Wenjiang and approximately 150 billion yuan in Qingbaijiang [1] - The exchange is facilitated by the recent implementation of the "Regulations on the Review and Management of Major Air Pollutant Emission Quotas for Construction Projects" by Chengdu's Ecological Environment Bureau, which aims to balance project implementation and air quality improvement [1] Emission Reduction Goals - Chengdu has exceeded its "14th Five-Year Plan" emission reduction targets by the end of 2024, addressing the shortage of nitrogen oxide quotas through policy support and the development of a technical guide for emission reduction accounting [2] - The city plans to expand the scope of emission reduction projects to include reductions from industrial and automotive repair sectors, potentially adding 238 tons of nitrogen oxides and 254 tons of volatile organic compounds to the total quota [2] - The approval process for construction project environmental assessments will emphasize accurate and objective accounting of quota replacements to minimize unnecessary "quota waste" [2]

Core Viewpoint - The article highlights the development and investment in high-performance carbon fiber projects by Jilin Petrochemical, emphasizing its significance in the materials industry and potential applications in various sectors, including aerospace and oil extraction [1][3]. Investment and Project Development - Jilin Petrochemical announced an investment of 1.299 billion yuan to establish a 1,400 tons/year high-performance carbon fiber facility, with key raw materials being acrylonitrile [1]. - The project includes several engineering components such as polymerization, spinning, carbonization, and solvent recovery units, along with supporting infrastructure [1]. Product Development and Applications - By the end of 2023, Jilin Petrochemical successfully developed high-strength medium-modulus large tow carbon fiber products, achieving a product yield rate of over 90% [3]. - The company has developed T300 grade 3K and 6K small tow carbon fibers for applications in aerospace, and T700 and T800 series products for oilfield use, particularly in continuous oil extraction rod stabilizers [3].

Investment Rating - The industry view for Greater China Materials is rated as Attractive [6] Core Insights - Lithium demand may be pressured by trade tensions, with a market surplus expected to increase to approximately 10,000 tons of lithium carbonate equivalent (LCE) in April, leading to downward pressure on prices [2][3] - Uranium fundamentals remain solid despite a spot price correction, with term pricing stable at around US$80 per pound, indicating a constructive medium-to-long-term supply-demand outlook [3] - Solar glass prices are likely to stabilize due to supply responses, although pressures are expected to persist in the second half of 2025 as demand decreases [4][10] Summary by Sections Lithium - Demand in 1Q25 was stronger than expected due to EV trade-in programs and energy storage system (ESS) demand, but the peak season in 2Q25 is anticipated to be muted due to earlier demand pull-forward [2] - Tariff uncertainties have caused large EV makers to pause April order books, leading to a potential price bottom for lithium carbonate at approximately Rmb65,000 per ton [2] Uranium - The spot price has declined to around US$60 per pound, influenced by uncertainties regarding Russian enriched uranium and US tariffs, but the gap between spot and term prices has widened, limiting further downside [3] - Supply imbalances are expected to gradually reflect in the market, potentially pushing uranium prices higher and benefiting companies like CGN Mining [3] Solar Glass - A reasonable recovery was noted in 1Q25, with prices rebounding due to increased demand from module producers, but a decrease in demand is expected in June as rush installations conclude [4][10] - The near-term supply and demand for solar glass could remain solid, supporting earnings recovery for producers, but increased industry supply may pressure prices again in 2H25 [10] Rare Earth Magnets - An upward trend in rare earth prices is anticipated due to new smelting regulations and tariffs, which could tighten supply from imports, benefiting producers [11] Stock Ratings - Overweight-rated stocks include Xinyi Solar, CGN Mining, and various rare earth magnet producers, with significant upside potential noted for several companies [12][13]