Core Viewpoint - Su Yan Jingshen is leveraging its advantages to develop two major industrial chains: a production capacity of tens of millions of tons of salt chemical products and a gas storage capacity of hundreds of billions of cubic meters, aiming to become a new type of manufacturing and new energy-driven enterprise within 3 to 5 years, with a projected net profit exceeding 3 billion yuan [1] Group 1: Industry Overview - The main business of Su Yan Jingshen includes salt and salt chemical industries, as well as comprehensive utilization of salt caverns [2] - The salt and salt chemical sector involves mining, production, and sales of various salt products, including table salt and industrial salts [2] - The salt chemical industry is facing increasing competition, prompting companies to upgrade and improve product quality and service levels [2] Group 2: Strategic Development - Su Yan Jingshen is focusing on the development of salt cavern comprehensive utilization, capitalizing on the growing demand for underground gas storage, which is projected to reach 503 billion cubic meters by 2030 [3] - The company owns several large and medium-sized salt mines in Huai'an, with significant reserves and favorable geological conditions for constructing large salt cavern storage facilities [3] - The Yanghuai salt mine has a reserve of over 3 billion tons and a thickness of 300 to 500 meters, making it ideal for large-scale gas storage [3] Group 3: Regional Advantages - The Yangtze River Delta is one of the most economically active regions in China, with natural gas demand expected to reach 600 billion cubic meters by 2035 [4] - Huai'an, located in the center of the Yangtze River Delta, is strategically positioned to serve the gas storage needs of the surrounding provinces [4] Group 4: Technological Innovation - Su Yan Jingshen has established multiple research and development platforms, including a national enterprise technology center and an academic workstation for salt cavern energy storage [5] - The company has developed key patented technologies for constructing large gas storage facilities in low-grade salt mines, significantly improving construction speed and reducing costs [5] - The company aims to become the largest salt production enterprise in China, utilizing green processes to enhance its energy efficiency and sustainability [5] Group 5: Future Projects - The comprehensive utilization project for salt cavern gas storage is set to begin construction in December 2024, with completion expected in the second half of 2026, adding approximately 375 million cubic meters of storage capacity annually [6] - Su Yan Jingshen is also expanding its gas storage capacity with new projects, including the Zhangxing and Yanghuai gas storage facilities, each with a planned capacity of 5 billion cubic meters [6] - The company is pursuing multiple projects to enhance its gas storage capabilities and diversify the utilization of salt caverns [6]

Price Index Summary - In May 2025, the Xinhua Zhongyan industrial salt price index reported 947.78 points, a decrease of 15.96 points (1.66%) from April 2025, and a decline of 52.22 points (5.22%) from the base period of January 2018 [1] - The index is down 788.88 points (4.43%) from the highest point of 1736.66 points in April 2022, but up 131.58 points (16.12%) from the lowest point of 816.2 points in August 2020 [1] Regional Price Trends - In May 2025, industrial salt prices increased in Anhui, Jiangsu, Chongqing, and Yunnan compared to April 2025, while prices remained stable in Hubei, Hunan, Sichuan, and Liaoning [1] - Prices decreased in Shaanxi, Jiangxi, Henan, Xinjiang, Hebei, Shandong, Tianjin compared to April 2025 [1] - Three regions reported industrial salt prices above 300 RMB/ton: Henan, Yunnan, and Liaoning, while 14 regions reported prices below 300 RMB/ton [1] Supply and Demand Dynamics - In May, the raw salt market in China experienced increased supply with stable demand, particularly due to intensified salt production efforts post-May Day holiday [2] - The sea salt market saw a significant rise in supply, especially in Hebei, Shandong, and Jiangsu, but downstream demand from alkali enterprises remained limited, leading to increased inventory pressure [2] - Some salt companies began to implement slight price reductions to alleviate inventory pressure and promote sales [2] Market Segmentation - The mineral salt market showed significant regional price differentiation, with supply tightening in North and Central China due to maintenance shutdowns, leading to price increases [3] - In contrast, the Southwest region saw stable supply due to increased production capacity, while the Northwest maintained high production levels, resulting in stable pricing [3] - The lake salt market remained balanced with stable supply and demand, although increased temperatures in the Northwest led to higher lake salt production [3] Soda Ash Market Conditions - As of the end of May, the soda ash market continued to face pressure due to overcapacity, with weak demand from the real estate and photovoltaic industries [4] - The overall effective production capacity in the soda ash industry remained stable, with limited major maintenance affecting supply [4] - Inventory levels for soda ash producers increased, while social inventory slightly decreased, indicating ongoing overcapacity in the market [4] Liquid Alkali Market Overview - The liquid alkali market in May exhibited a relatively loose supply-demand balance, with local adjustments in supply and demand [5][6] - Supply remained sufficient due to the recovery of previously shut down production facilities, although regional demand showed variability [6] - The textile and dyeing industries provided some demand support, while the aluminum oxide sector's demand fluctuated due to maintenance and production adjustments [6]