1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - The industrial silicon price is expected to maintain a range - bound oscillation, with a supply - demand dual - weak pattern. The upside potential depends on downstream demand recovery and inventory reduction, while the downside is limited by cost support and production cut expectations. [3] - The polysilicon price is expected to continue a weak oscillation. The weak industrial silicon price makes the cost support for polysilicon weak, and the demand expectation from the "rush to export" before April has not been realized, with high inventory and difficult demand transmission in the industry chain. [6] 3. Summary by Related Catalogs Industrial Silicon Market Analysis - On March 31, 2026, the industrial silicon futures price oscillated and declined. The main contract 2605 opened at 8480 yuan/ton and closed at 8355 yuan/ton, a change of (- 145) yuan/ton or (- 1.71)%. The position of the main contract 2605 was 201,800 lots, and the number of warehouse receipts on March 30, 2026 was 22,313 lots, a change of 24 lots from the previous day. [1] - The spot price of industrial silicon declined. The price of East China oxygen - permeable 553 silicon was 9,100 - 9,200 (- 50) yuan/ton; 421 silicon was 9,500 - 9,700 (0) yuan/ton, Xinjiang oxygen - permeable 553 price was 8,500 - 8,600 (0) yuan/ton, and 99 silicon price was 8,500 - 8,600 (0) yuan/ton. The silicon prices in Kunming, Huangpu Port, Northwest, Tianjin, Xinjiang, Sichuan, and Shanghai remained flat, and the price of 97 silicon was stable. [1] - As of March 26, the total social inventory of industrial silicon in major regions was 560,000 tons, an increase of 1.26% from the previous week. [1] - The organic silicon DMC was quoted at 13,800 - 14,300 (0) yuan/ton. After the festival, the demand for downstream polysilicon, organic silicon, and aluminum alloy all decreased to varying degrees, and most of the post - festival inquiries were exploratory. [1] Supply - demand and Cost - The supply side remained in a loose state, and the pattern of oversupply continued. The demand side was continuously sluggish, and the war between the US and Iran restricted the export logistics of industrial silicon. Recently, the prices of petroleum coke and Xinjiang electricity have increased, and the cost support for industrial silicon is stable. [1][2] Strategy - The industrial silicon price is expected to maintain a range - bound oscillation. In the short - term, conduct range operations. There are no strategies for inter - period, cross - variety, spot - futures, or options. [3] Polysilicon Market Analysis - On March 31, 2026, the main contract 2605 of polysilicon futures oscillated and declined, opening at 36,760 yuan/ton and closing at 35,200 yuan/ton, a change of - 3.1% from the previous trading day. The position of the main contract was 34,456 (34,584 in the previous trading day) lots, and the trading volume was 165,316 lots. [3] - The spot price of polysilicon declined. The N - type material was 35.50 - 41.50 (- 0.75) yuan/kg, and the n - type granular silicon was 40.00 - 43.00 (0.00) yuan/kg. The polysilicon manufacturer's inventory decreased, while the silicon wafer inventory increased. The latest polysilicon inventory was 33.20, a change of - 3.49% month - on - month, the silicon wafer inventory was 26.98GW, a change of - 2.42% month - on - month, the weekly polysilicon output was 19,400.00 tons, a change of 1.00% week - on - week, and the silicon wafer output was 11.38GW, a change of - 3.40% week - on - week. [4] - In terms of silicon wafers, the domestic N - type 18Xmm silicon wafer was 0.99 (0.00) yuan/piece, the N - type 210mm was 1.28 (- 0.02) yuan/piece, and the N - type 210R silicon wafer was 1.04 (- 0.05) yuan/piece. [4] - In terms of battery cells, the high - efficiency PERC182 battery cell was 0.27 (0.00) yuan/W; the PERC210 battery cell was about 0.28 (0.00) yuan/W; the TopconM10 battery cell was about 0.38 (- 0.01) yuan/W; the Topcon G12 battery cell was 0.38 (- 0.01) yuan/W; the Topcon210RN battery cell was 0.39 (- 0.01) yuan/W. The HJT210 half - cell battery was 0.37 (0.00) yuan/W. [5] - For components, the mainstream transaction price of PERC182mm was 0.67 - 0.74 (0.00) yuan/W, the mainstream transaction price of PERC210mm was 0.69 - 0.73 (0.00) yuan/W, the mainstream transaction price of N - type 182mm was 0.74 - 0.76 (0.00) yuan/W, and the mainstream transaction price of N - type 210mm was 0.75 - 0.78 (0.00) yuan/W. [5] - Since the polysilicon price fell below the cost level of 40,000 yuan/ton, the market sentiment was pessimistic. The fundamental weakness and the impact of the US - Iran conflict on bulk commodities still existed. The spot market trading almost stagnated, the inventory reached a high level, the supply - demand game continued, the supply - side production cut pressure increased, and the downstream battery factories only maintained rigid - demand purchases and had a low acceptance of high - price goods. [5] Strategy - The polysilicon price is expected to continue a weak oscillation. In the short - term, conduct range operations, and the main contract is expected to maintain an oscillation in the short - term. There are no strategies for inter - period, cross - variety, spot - futures, or options. [6]

Report Industry Investment Rating No relevant information provided. Core Viewpoints - Industrial silicon prices are expected to maintain a range-bound oscillation, with a supply-demand imbalance in the short term and significant price support in the long term [3]. - Polysilicon prices are expected to continue a weak oscillation, facing cost support challenges and difficulties in demand transmission in the industrial chain [7]. Summary by Related Catalogs Industrial Silicon Market Analysis - On March 30, 2026, the industrial silicon futures price oscillated downward. The main contract 2605 opened at 8,615 yuan/ton and closed at 8,480 yuan/ton, a change of -185 yuan/ton (-2.14%) from the previous day's settlement. The position of the main contract 2605 at the close was 230,888 lots, and the total number of warehouse receipts on March 29, 2026, was 22,289 lots, a change of 12 lots from the previous day [1]. - The spot price of industrial silicon remained stable. According to SMM data, the price of East China oxygenated 553 silicon was 9,100 - 9,300 yuan/ton; 421 silicon was 9,500 - 9,700 yuan/ton. The price of Xinjiang oxygenated 553 silicon was 8,500 - 8,600 yuan/ton, and the price of 99 silicon was 8,500 - 8,600 yuan/ton. The silicon prices in Kunming, Huangpu Port, Northwest, Tianjin, Xinjiang, Sichuan, and Shanghai remained flat, and the price of 97 silicon was stable [1]. - SMM statistics show that the total social inventory of industrial silicon in major regions on March 19 was 560,000 tons, an increase of 1.26% from the previous week [1]. - The downstream demand for polysilicon, organic silicon, and aluminum alloy decreased to varying degrees after the holiday, and most of the post - holiday inquiries were exploratory [1]. - The operating rate in Xinjiang exceeded 50%, and the supply side gradually recovered after the holiday. However, due to the dry season in the southwest region, the operating rate remained low [1]. Cost - Recently, the prices of petroleum coke and Xinjiang electricity have increased, providing strong cost support for industrial silicon [2]. Strategy - The price of industrial silicon is expected to maintain a range - bound oscillation. The supply side is expected to gradually release after a significant contraction since the Spring Festival. The demand for polysilicon remains weak. In the long term, there is obvious price support. The overall pattern is a weak supply - demand balance. Attention should be paid to the restart plans of large manufacturers and changes in capital sentiment. The upside potential depends on the recovery of downstream demand and inventory reduction progress, while the downside is limited by cost support and production cut expectations [3]. - Short - term range operation for single - side trading; no strategies for inter - period, cross - variety, spot - futures, or options trading [3]. Polysilicon Market Analysis - On March 30, 2026, the main contract 2605 of polysilicon futures oscillated upward, opening at 35,160 yuan/ton and closing at 36,550 yuan/ton, a change of 3.45% from the previous trading day. The position of the main contract was 34,180 lots (34,584 lots the previous day), and the trading volume on that day was 165,316 lots [3]. - The spot price of polysilicon decreased. According to SMM statistics, the price of N - type material was 35.50 - 43.00 yuan/kg (-0.50 yuan/kg), and the price of n - type granular silicon was 40.00 - 43.00 yuan/kg (unchanged) [4]. - The inventory of polysilicon manufacturers decreased, while the inventory of silicon wafers increased. The latest statistics show that the polysilicon inventory was 33.20 (a month - on - month change of - 3.49%), the silicon wafer inventory was 26.98GW (a month - on - month change of - 2.42%), the weekly polysilicon output was 19,400.00 tons (a month - on - month change of 1.00%), and the silicon wafer output was 11.38GW (a month - on - month change of - 3.40%) [4]. - The prices of domestic N - type 18Xmm silicon wafers were 0.99 yuan/piece, N - type 210mm were 1.29 yuan/piece, and N - type 210R silicon wafers were 1.09 yuan/piece, all unchanged [4]. - The prices of battery cells and components remained stable. For example, the price of high - efficiency PERC182 battery cells was 0.27 yuan/W; PERC210 battery cells were about 0.28 yuan/W; TopconM10 battery cells were about 0.39 yuan/W; Topcon G12 battery cells were 0.39 yuan/W; Topcon210RN battery cells were 0.40 yuan/W; HJT210 half - piece battery cells were 0.37 yuan/W. The mainstream transaction prices of components also remained unchanged [6]. - After the polysilicon price fell below the cost level of 40,000 yuan/ton, the market sentiment was pessimistic. The current price rebound is a super - oversold repair. The supply - demand game continues, the supply side faces increasing production cut pressure, and the downstream battery factories only maintain just - in - time purchases and have a low acceptance of high - price goods [6]. Strategy - Polysilicon prices are expected to continue a weak oscillation. The continuous weakness of industrial silicon prices weakens the cost support for polysilicon. The expected demand from the "rush to export" phenomenon before April has not materialized. Coupled with high inventory, the demand transmission in the industrial chain is difficult. After the holiday, silicon wafer enterprises resumed production but still faced inventory pressure. The recent conflict in the Middle East has cooled the global risk - preference sentiment, which may increase the selling pressure on the market. In the short term, attention should be paid to the post - holiday supply - demand recovery; in the long term, attention should be paid to the silver price trend and inventory reduction progress [7]. - Short - term range operation for single - side trading; the main contract is expected to maintain an oscillation in the short term; no strategies for inter - period, cross - variety, spot - futures, or options trading [7].

Investment Rating - The report maintains a "Buy" rating for the chemical industry, indicating a positive outlook for investment opportunities in this sector [1]. Core Insights - The report addresses key issues such as the decline in competitiveness of the European chemical industry and identifies specific segments that are under pressure, while highlighting domestic companies that stand to benefit from these trends [6]. - The domestic chemical industry is experiencing a significant slowdown in capital expenditure, with a shift from being a "money pit" to a "cash cow" due to the implementation of "dual carbon" policies and a reduction in new capacity approvals [6]. - The report suggests that the Chinese chemical industry is poised to lead globally, benefiting from the exit of European production capacity and the strong cost control capabilities of Chinese firms [6]. Summary by Sections Investment Rating - The chemical industry is rated as "Recommended" [1]. Industry Dynamics - The report notes that the European chemical sector is facing high energy and labor costs, leading to a sustained low capacity utilization rate from 2022 to 2025 [6]. - It highlights that the geopolitical tensions in the Middle East have exacerbated energy shortages in Europe, impacting major companies like BASF and Covestro [6]. Domestic Market Trends - The report indicates that the domestic chemical industry is expected to see a continuous increase in free cash flow, enhancing its potential for dividends in the long term [6]. - It emphasizes that the supply-side changes will lead to a recovery in industry sentiment and an upward shift in long-term fundamentals [6]. Key Companies and Segments - The report identifies several key companies across various segments that are expected to perform well, including: - Coal Chemical: Baofeng Energy, Hualu Hengsheng, Luxi Chemical, and Huayi Group [7]. - Oil Refining: Satellite Chemical, Hengli Petrochemical, and Sinopec [7]. - Polyurethane: Wanhua Chemical and Huafon Chemical [7]. - Fertilizers: Yuntianhua, Yuntui Holdings, and Xinxiang Chemical [7]. - It also lists companies in the tire, dye, and food additive sectors that are expected to benefit from the current market dynamics [8][9]. Export Opportunities - The report suggests that products with high European production capacity are likely to see increased export volumes and price elasticity, benefiting Chinese manufacturers [6]. Financial Projections - The report provides financial forecasts for key companies, indicating significant growth in net profits for several firms over the next few years, with some companies projected to see profit increases of over 100% [11][12][13]. Conclusion - Overall, the report presents a favorable outlook for the Chinese chemical industry, driven by both domestic policy changes and international market dynamics, positioning it as a leader in the global chemical sector [6].

Investment Rating - The report maintains a "Buy" rating for the chemical industry, highlighting its resilience and potential for recovery in demand and pricing [4][8]. Core Insights - BASF's Zhanjiang integrated base has commenced full production, marking a significant milestone as China's first wholly foreign-owned project in the heavy chemical sector, with a focus on high-end materials and special chemicals [3]. - Titanium dioxide prices have seen three consecutive increases within a month, indicating strong market dynamics and potential profitability for producers [3]. - The domestic tire industry is showing strong competitive advantages, with recommended stocks including Sailun Tire, Senqcia, General Motors, and Linglong Tire [4]. - The consumer electronics sector is expected to gradually recover, benefiting upstream material companies, with key players identified in the display materials supply chain [4]. - The phosphate chemical sector is tightening due to environmental regulations and increasing demand from the new energy sector, with recommended stocks including Yuntianhua, Chuanheng, Xingfa Group, and Batian [5]. - The fluorochemical sector is poised for recovery, with high-end fluoropolymers and fine chemicals experiencing rapid growth, suggesting investment opportunities in leading companies [5]. Summary by Sections Chemical Sector Market Review - The overall performance of the chemical sector saw the CSI 300 index decline by 1.41%, while the CITIC Basic Chemical Index rose by 3.31% [14]. - The top-performing sub-industries included potassium fertilizer (up 11.58%) and other chemical raw materials (up 6.4%) [17]. Key Industry Dynamics - BASF's Zhanjiang base is designed to meet the growing market demand in China and the Asia-Pacific region, utilizing a fully renewable energy supply and advanced digital control systems [3]. - The price adjustments in titanium dioxide reflect a collective price increase trend among major producers, indicating strong market demand [3]. Investment Themes - The tire sector is highlighted for its growth potential, with domestic companies showing strong competitive positions [4]. - The consumer electronics recovery is expected to benefit upstream material suppliers, with specific companies recommended for investment [4]. - The phosphate and fluorochemical sectors are identified as having strong fundamentals, with specific companies recommended for investment based on their market positions and growth potential [5].

1. Report Industry Investment Rating There is no information provided in the report regarding the industry investment rating. 2. Core Viewpoints of the Report - Industrial silicon prices are expected to maintain a volatile trend. The supply - side production rhythm is stable, while the demand side is weak, with insufficient price - driving power from demand improvement, and the price weakness restrains the enthusiasm for enterprise复产. The cost support has not collapsed significantly, and the industrial self - discipline expectations have been limitedly fulfilled, so the price range is not fully opened [16]. - Polysilicon continues to be in a negative feedback adjustment state. Factory inventories remain high, downstream restocking willingness is low, and actual transaction prices are falling, intensifying the weak atmosphere. The negative feedback from downstream silicon wafers and battery cells is transmitted upstream. The futures price is in a smooth downward trend and is expected to continue to oscillate and seek a bottom. It is recommended to wait and see, and be cautious about left - side layout [18]. 3. Summary According to the Directory 3.1. Weekly Assessment and Strategy Recommendation 3.1.1. Demand - Polysilicon weekly output is 19,400 tons, showing a slight decline [14]. - DMC output is 42,900 tons, with a week - on - week increase of 1,400 tons. In February, DMC output was 163,700 tons, a month - on - month decrease of 25,600 tons [14]. - From January to February 2025, the cumulative output of aluminum alloy was 2.765 million tons, a cumulative year - on - year increase of 274,000 tons or 11.0% [14]. - From January to February 2025, China's cumulative net export of industrial silicon was 113,000 tons, a cumulative year - on - year increase of 19,400 tons or 20.77% [14]. 3.1.2. Inventory As of March 27, 2026, the industrial silicon inventory was 544,400 tons. Among them, the factory inventory was 249,600 tons, a week - on - week decrease of 1,500 tons; the market inventory was 183,500 tons, a week - on - week decrease of 1,000 tons; the registered warehouse receipt inventory was 111,400 tons, a week - on - week increase of 3,000 tons [14]. 3.1.3. Price and Cost - As of March 27, 2026, the spot price of 553 (non - oxygen - passing) industrial silicon in the East China region was 9,150 yuan/ton, a week - on - week increase of 50 yuan/ton; the spot price of 421 industrial silicon was 9,600 yuan/ton, with a converted futures price of 8,800 yuan/ton, remaining unchanged week - on - week. The futures main contract (SI2605) closed at 8,625 yuan/ton, a week - on - week increase of 170 yuan/ton. The 553 (non - oxygen - passing) had a premium of 525 yuan/ton over the futures main contract, with a basis rate of 5.74%; the 421 had a premium of 175 yuan/ton over the main contract, with a basis rate of 1.99% [15]. - According to Baichuan Yingfu data, the average cost of industrial silicon in Xinjiang was 8,545 yuan/ton, 9,712 yuan/ton in Yunnan, 8,800 yuan/ton in Sichuan, and 8,994 yuan/ton in Inner Mongolia [15]. 3.1.4. Supply The weekly output of industrial silicon was 67,400 tons, a week - on - week increase of 100 tons. In February, the output of industrial silicon was 237,900 tons, a month - on - month decrease of 82,200 tons. The cumulative output from January to February was 558,000 tons, a year - on - year decrease of 27,800 tons or 4.74% [15]. 3.2. Spot and Futures Market 3.2.1. Industrial Silicon As of March 27, 2026, the spot price of 553 (non - oxygen - passing) industrial silicon in the East China region was 9,150 yuan/ton, a week - on - week increase of 50 yuan/ton; the spot price of 421 industrial silicon was 9,600 yuan/ton, with a converted futures price of 8,800 yuan/ton, remaining unchanged week - on - week. The futures main contract (SI2605) closed at 8,625 yuan/ton, a week - on - week increase of 170 yuan/ton. The 553 (non - oxygen - passing) had a premium of 525 yuan/ton over the futures main contract, with a basis rate of 5.74%; the 421 had a premium of 175 yuan/ton over the main contract, with a basis rate of 1.99% [23]. 3.2.2. Polysilicon As of March 27, 2026, the average price of N - type re -投料 of polysilicon was 39.75 yuan/kg, a week - on - week decrease of 3.75 yuan/kg; the average price of N - type dense material was 39 yuan/kg, a week - on - week decrease of 3 yuan/kg. The futures main contract (PS2605) closed at 35,680 yuan/ton, a week - on - week decrease of 2,085 yuan/ton. The basis of the main contract was 4,070 yuan/ton, with a basis rate of 10.24% [26]. 3.3. Industrial Silicon 3.3.1. Total Output As of March 27, 2026, the weekly output of industrial silicon was 67,400 tons, a week - on - week increase of 100 tons. In February, the output of industrial silicon was 237,900 tons, a month - on - month decrease of 82,200 tons. The cumulative output from January to February was 558,000 tons, a year - on - year decrease of 27,800 tons or 4.74% [31]. 3.3.2. Output in Main Producing Areas The report provides historical output data of industrial silicon in Sichuan, Yunnan, Xinjiang, Inner Mongolia, and Gansu, but does not mention the latest output data of these regions other than the overall output [33][35][38]. 3.3.3. Production Cost - As of March 27, 2026, the electricity price in the main producing areas remained unchanged week - on - week, and the silicon stone price remained stable week - on - week [44]. - The price of silicon coal remained stable compared with before the holiday. The average cost of industrial silicon in Xinjiang was 8,545 yuan/ton, 9,712 yuan/ton in Yunnan, 8,800 yuan/ton in Sichuan, and 8,994 yuan/ton in Inner Mongolia [47]. 3.3.4. Visible Inventory As of March 27, 2026, the industrial silicon inventory was 544,400 tons. Among them, the factory inventory was 249,600 tons, a week - on - week decrease of 1,500 tons; the market inventory was 183,500 tons, a week - on - week decrease of 1,000 tons; the registered warehouse receipt inventory was 111,400 tons, a week - on - week increase of 3,000 tons [50]. 3.4. Polysilicon 3.4.1. Output As of March 27, 2026, the weekly output of polysilicon was 19,400 tons, showing a slight decline. In February, the output of polysilicon was 77,000 tons, a month - on - month decrease of 23,800 tons; the cumulative output from January to February was 177,800 tons, a year - on - year decrease of 3.63% [55]. 3.4.2. Operating Rate and Scheduled Production In February, the operating rate of polysilicon was 29.11%, a month - on - month decrease of 4.95 percentage points. It is expected that the output in March will be 84,900 tons, a slight month - on - month increase [58]. 3.4.3. Inventory As of March 27, 2026, the factory inventory of polysilicon was 381,600 tons according to Baichuan Yingfu's statistics, and 332,000 tons according to SMM's statistics [61]. 3.4.4. Cost and Profit As of March 27, 2026, the production cost of polysilicon was 44,189.79 yuan/ton, and the gross profit was - 5,663.47 yuan/ton [64]. 3.4.5. Downstream Industries - **Silicon Wafers**: As of March 27, 2026, the weekly output of silicon wafers was 11.38 GW, showing a slight decline. In February, the output of silicon wafers was 44.27 GW, a month - on - month decrease of 1.66 GW; the cumulative output from January to February was 90.20 GW, a year - on - year decrease of 4.37%. The inventory was 26.98 GW, showing a week - on - week decrease. It is predicted that the output in March will be 49.01 GW, a month - on - month increase [67][70]. - **Battery Cells**: In February, the output of battery cells was 37.09 GW, a month - on - month decrease of 4.35 GW; the cumulative output from January to February was 78.53 GW, a year - on - year decrease of 11.98%. The operating rate in February was 38.06%, a month - on - month decrease of 4.46 percentage points. As of March 27, 2026, the inventory of photovoltaic battery export factories was 6.79 GW, showing a week - on - week increase. It is expected that the output in March will be 46.36 GW, a significant month - on - month increase [76][79]. - **Components**: In February, the output of components was 29.3 GW, a month - on - month decrease of 5.9 GW; the cumulative output from January to February was 64.5 GW, a year - on - year decrease of 13.77%. The operating rate in February was 28.44%, a month - on - month decrease of 5.73 percentage points. As of March 27, 2026, the finished product inventory of photovoltaic components was 28.9 GW, showing a slight week - on - week increase. It is expected that the output in March will be 41.39 GW, a significant month - on - month increase [84][87]. 3.5. Organic Silicon 3.5.1. Output As of March 27, 2026, the output of DMC was 42,900 tons, a week - on - week increase of 1,400 tons. In February, the output of DMC was 163,700 tons, a month - on - month decrease of 25,600 tons [94]. 3.5.2. Price and Profit As of March 27, 2026, the average price of organic silicon was 14,050 yuan/ton, remaining unchanged week - on - week. The gross profit of DMC was 428.75 yuan/ton [97]. 3.5.3. Inventory As of March 27, 2026, the DMC inventory was 47,800 tons, a week - on - week decrease of 1,300 tons [100]. 3.6. Silicon - Aluminum Alloy and Exports 3.6.1. Aluminum Alloy - As of March 27, 2026, the price of primary aluminum alloy A356 was 24,020 yuan/ton, a week - on - week decrease of 360 yuan/ton; the price of recycled aluminum alloy ADC12 was 24,420 yuan/ton, a week - on - week decrease of 240 yuan/ton. From January to February 2025, the cumulative output of aluminum alloy was 2.765 million tons, a cumulative year - on - year increase of 274,000 tons or 11.0% [105]. - As of March 27, 2026, the operating rate of primary aluminum alloy was 55%, and the operating rate of recycled aluminum alloy was 59.5% [108]. 3.6.2. Exports From January to February 2025, China's cumulative net export of industrial silicon was 113,000 tons, a cumulative year - on - year increase of 19,400 tons or 20.77% [111].

Summary of Dongyue Group Conference Call Industry and Company Overview - **Company**: Dongyue Group - **Industry**: Refrigerants and Fluoropolymers Key Points and Arguments Refrigerants Market - R32 prices remain high and are better than in 2025, while R22 is recovering with the peak season. The conversion of quotas will depend on market conditions in July-August [2][3] - The overall market environment for refrigerants is good, currently in a price increase cycle, with R22 prices expected to rise due to seasonal demand [3][6] - Export business has faced minor impacts due to war-related disruptions, but order volumes remain substantial [3][6] Fluoropolymers and High-end Materials - Prices for fluoropolymers (e.g., PTFE) are in an upward trend, with stable demand and full order books, leading to expected profit improvements in 2026 compared to 2025 [2][4] - High-end fluoropolymer sales are limited due to long verification cycles for downstream imports and small demand, but breakthroughs have been made in PCB materials [2][5] Financial Performance and Projections - A loss of 380 million in 2025 was primarily due to impairment of old power plants and goodwill. Some impairment will continue in the first half of 2026, but new plants will achieve 100% self-supply of steam and partial external sales [2][5] - Capital expenditures in 2026 will remain high, focusing on power plant project settlements, R32 expansion, and smaller projects, with 5 billion in cash reserves to navigate international uncertainties [2][7][8] Cost Management and Profitability - The price increase of upstream raw materials like methanol and sulfuric acid has limited impact on profitability due to order reserves and the ability to pass on costs to product prices [3][6] - The company maintains a 15% preferential tax rate as a high-tech enterprise, which is expected to remain stable as long as the qualification is upheld [14] Future Outlook - The company is optimistic about 2026, with expectations of improved performance across all major business segments, including refrigerants and fluoropolymers [17] - The new power plant is expected to lower costs in the long term and may allow for external sales of steam, contributing to new revenue streams [5][6] Other Considerations - The company has made preparations for fourth-generation refrigerants, with production capacity expected to expand once market demand increases [10] - The overall loss in other business segments is attributed to multiple factors, including goodwill impairment and increased administrative expenses [6][16] Additional Important Information - The company plans to maintain a stable dividend policy, aiming to provide better returns to investors [9] - The 2025 financial results showed a significant decrease in operating costs due to enhanced internal controls, despite a decline in organic silicon business revenue caused by a fire incident [15]

Report Summary 1. Industry Investment Ratings - Industrial silicon: Weak pattern [1] - Polysilicon: Mainly in a downward trend [2] 2. Core Views - The industrial silicon market shows a weak situation, and the polysilicon market is mainly experiencing a downward trend [1][2] - Turkey's photovoltaic industry has significant growth momentum, with its cumulative photovoltaic installed capacity reaching 25827MW by the end of January 2026, and the proportion of photovoltaic installed capacity in the total installed capacity rising to 20.9% [3][4] 3. Summary by Relevant Catalogs 3.1 Fundamental Tracking - **Futures Market**: Si2605 closing price is 8,605 yuan/ton, with changes of -30 (T - 1), -45 (T - 5), and -270 (T - 22); PS2605 closing price is 35,730 yuan/ton, with a T - 1 change of 295 and a T - 5 change of -5,940. There are also corresponding changes in trading volumes and open interests [2] - **Basis and Price**: Industrial silicon has different spot premiums and discounts for different standards, and polysilicon - N - type re - feedstock price is 42,500 yuan/ton, with a T - 1 change of -750, a T - 5 change of -3000, and a T - 22 change of -10750 [2] - **Profit**: Silicon factory profits for different standards in Xinjiang and Yunnan are negative, and polysilicon enterprise profits are -1.8 yuan/kg, with a T - 1 change of -0.4, a T - 5 change of -2.6, and a T - 22 change of -10.3 [2] - **Inventory**: Industrial silicon social inventory is 55.3 million tons, enterprise inventory is 19.8 million tons, and industry inventory is 75.1 million tons; polysilicon factory inventory is 34.4 million tons [2] - **Raw Material Costs**: Prices of raw materials such as silicon ore, washed coking coal, petroleum coke, and electrodes in different regions have little change [2] - **Prices and Profits in Related Industries**: In the polysilicon (photovoltaic), organic silicon, and aluminum alloy industries, there are corresponding changes in prices and profits [2] 3.2 Macro and Industry News - Turkey's photovoltaic cumulative installed capacity reached 25827MW by the end of January 2026, and multiple photovoltaic projects were connected to the grid in January, including the first large - scale photovoltaic energy storage integration project [3][4] 3.3 Trend Intensity - Industrial silicon trend intensity: 0; polysilicon trend intensity: -1 [4]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The chemical sector has experienced significant volatility, with the CITIC Basic Chemical Index dropping by 9.49% and the Shenwan Chemical Index falling by 10.53% this week [2][13] - The report highlights the impact of geopolitical tensions, particularly the Iranian attack on Qatar, which has affected 17% of Qatar's liquefied natural gas export capacity, leading to an estimated annual revenue loss of approximately $20 billion [3] - The commencement of the first phase of Hengyi's coal-to-chemical fiber project, with an investment of 25.7 billion yuan, is noted as a significant development in the industry [3] Summary by Sections Market Performance - The Shanghai Composite Index decreased by 3.38%, while the ChiNext Index increased by 1.26% [2][13] - The top five sub-industries in terms of performance were polyester (-4.83%), paint and ink (-5.56%), rubber products (-5.88%), tires (-6.29%), and other plastic products (-6.52%) [2][16] - The bottom five sub-industries included phosphate and phosphorus chemicals (-16.22%), chlor-alkali (-12.89%), pesticides (-12.08%), soda ash (-11.43%), and potassium fertilizer (-11.39%) [2][16] Major Industry Developments - The Iranian attack on Qatar has led to a significant disruption in LNG production, with two out of 14 production lines damaged, resulting in a production interruption of 12.8 million tons annually for 3 to 5 years [3] - Hengyi Group's coal-to-chemical fiber project in Turpan, Xinjiang, is set to invest 150 billion yuan over 5 to 8 years, aiming to create a vertically integrated industrial cluster [3] Investment Themes - The tire sector is highlighted as having strong domestic competitiveness, with recommended companies including Sailun Tire, Senqcia, General Tire, and Linglong Tire [3] - The consumer electronics sector is expected to gradually recover, with a focus on upstream material companies benefiting from the recovery in the panel industry [4] - The report suggests attention to resilient cyclical industries and those that have completed inventory destocking, which may outperform the broader market in the coming year [4] Sub-Industry Insights - In the polyurethane sector, pure MDI prices remained stable at 22,300 yuan/ton, with operating rates at 73.5% [27] - The tire industry shows a slight increase in operating rates for both all-steel and semi-steel tires, indicating a stable demand environment [51] - The agricultural chemicals sector is experiencing price increases for glyphosate and other pesticides, driven by supply constraints and rising raw material costs [53][56]

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints - The price of industrial silicon is expected to maintain a range - bound oscillation, with a supply - demand dual - weak pattern. The upward potential depends on downstream demand recovery and inventory reduction, while the downward space is limited by cost support and production cut expectations [3]. - The price of polysilicon is expected to continue a weak oscillation. The weak industrial silicon price leads to weak cost support for polysilicon, and the demand expectation from the "rush to export" before April has not been fulfilled. The inventory is high, and the demand transmission in the industrial chain is difficult [7]. 3. Summary by Relevant Catalogs Industrial Silicon Market Analysis - On March 10, 2026, the futures price of industrial silicon oscillated and declined. The main contract 2605 opened at 8,550 yuan/ton and closed at 8,625 yuan/ton, a change of (-165) yuan/ton or (-1.88)% compared with the previous day's settlement. The position of the main contract 2605 was 243,954 lots at the close, and the number of warehouse receipts on March 9, 2026 was 21,340 lots, a change of 504 lots from the previous day [1]. - The spot price of industrial silicon decreased. The price of East China oxygen - passing 553 silicon was 9,100 - 9,300 (-50) yuan/ton; 421 silicon was 9,500 - 9,700 (0) yuan/ton. The price of Xinjiang oxygen - passing 553 silicon was 8,500 - 8,700 (0) yuan/ton, and 99 silicon was 8,500 - 8,700 (0) yuan/ton. The silicon prices in Kunming, Huangpu Port, Northwest, Tianjin, Xinjiang, Sichuan, and Shanghai remained flat, and the price of 97 silicon was stable [1]. - According to SMM statistics, the total social inventory of industrial silicon in major regions on February 26 was 553,000 tons, a decrease of 1.25% from the previous week [1]. - The demand for downstream polysilicon, organic silicon, and aluminum alloy decreased to varying degrees after the festival, and most of the post - festival inquiries were tentative [1]. - The operating rate in Xinjiang exceeded 50%. The supply side gradually recovered after the festival, but the operating rate in the southwest remained low during the dry season [1]. Cost - Recently, the prices of petroleum coke and Xinjiang electricity have increased, providing solid cost support [2]. Strategy - The price of industrial silicon is expected to maintain a range - bound oscillation. The supply side is expected to gradually release after a significant contraction since the Spring Festival. The demand for polysilicon remains sluggish. In the long - term, the price support is obvious. The overall pattern is supply - demand dual - weak. Attention should be paid to the resumption plans of large factories and changes in capital sentiment. Short - term range operation is recommended for the single - side strategy [3]. Polysilicon Market Analysis - On March 10, 2026, the main futures contract 2605 of polysilicon oscillated and declined, opening at 42,400 yuan/ton and closing at 42,450 yuan/ton, a change of -1.18% in the closing price compared with the previous trading day. The position of the main contract reached 35,013 (35,210 in the previous trading day) lots, and the trading volume on that day was 6,809 lots [3]. - The spot price of polysilicon decreased. The price of N - type material was 44.70 - 53.00 (-0.05) yuan/kg, and the price of n - type granular silicon was 43.00 - 45.00 (0.00) yuan/kg [4]. - The inventory of polysilicon manufacturers decreased, while the inventory of silicon wafers increased. The latest statistics showed that the polysilicon inventory was 34.80, with a month - on - month change of -0.10%, the silicon wafer inventory was 29.01GW, with a month - on - month change of -6.60%. The weekly output of polysilicon was 18,800.00 tons, with a month - on - month change of -5.05%, and the output of silicon wafers was 11.08GW, with a month - on - month change of -2.38% [4]. - In March, some large factories have plans to start production one after another. The supply contraction situation will end, and the output is expected to increase compared with February. However, the demand side has not improved significantly and is expected to remain sluggish. The pattern of oversupply will continue. The polysilicon price oscillated widely on that day, with low overall trading volume and pessimistic market sentiment [6]. Strategy - The price of polysilicon is expected to continue a weak oscillation. The weak industrial silicon price makes the cost support for polysilicon weak. The demand expectation from the "rush to export" before April has not been fulfilled, and the high inventory makes the demand transmission in the industrial chain difficult. After the festival, silicon wafer enterprises resumed production, but the inventory pressure still exists. The recent conflict in the Middle East has cooled the global preference sentiment, which may intensify the selling pressure on the disk. In the short - term, attention should be paid to the post - festival supply - demand recovery situation, and in the long - term, attention should be paid to the silver price trend and inventory reduction progress. Short - term range operation is recommended for the single - side strategy, and the main contract is expected to maintain an oscillation in the short - term [7].

Investment Rating - The industry investment rating is "Overweight" [2] Core Views - The report highlights that the petrochemical sector is experiencing a strong performance driven by escalating geopolitical tensions in the Middle East, which have led to significant increases in energy and chemical prices. The conflict between the U.S. and Iran has raised concerns about oil supply disruptions, pushing international oil prices higher and consequently increasing prices for basic chemicals like naphtha and ethylene, as well as downstream products such as plastics and synthetic fibers [5][34] - The chemical industry is expected to see a recovery in demand as the domestic chemical production expansion cycle comes to an end, with outdated capacities being phased out. This, combined with high energy costs leading to the shutdown of overseas chemical production, is improving the supply-demand dynamics in the industry [5][6] - The report suggests focusing on sectors that are likely to benefit from price increases, including oil, refining, agricultural chemicals, coal chemicals, dyes, and phosphate chemicals, which are expected to provide performance elasticity [5] Summary by Sections Industry Performance - The chemical sector ranked 8th in overall performance for the week of March 2-6, 2026, with a decline of 0.56%. The Shanghai Composite Index fell by 0.93%, while the ChiNext Index dropped by 2.45%, indicating that the chemical sector outperformed both indices [21][23] Key Industry Dynamics - The report notes that the organic silicon industry is entering a recovery phase, driven by high growth in emerging applications such as electric vehicles and photovoltaics. The supply side is stabilizing as no new capacities are expected to come online in 2025, while demand continues to grow [6][9] - The PTA and polyester filament sectors are also expected to benefit from a reduction in overcapacity and improved demand dynamics, with the industry moving towards a more orderly expansion concentrated among leading companies [7][8] - The refrigerant market is entering a high prosperity cycle due to quota policies and a reduction in supply, with prices expected to rise significantly by 2025 [8] - The report emphasizes the potential of synthetic biology and low-energy products, which may disrupt traditional chemical materials, creating new growth opportunities [9][10] Price Tracking - The report provides a weekly price tracking of key chemical products, highlighting significant price increases for products such as maleic anhydride (63.08%), WTI crude oil (39.40%), and ABS (31.79%) [13] - The report also notes the impact of geopolitical tensions on the prices of various chemicals, with a focus on the supply chain disruptions caused by the conflict in the Middle East [34]