Core Viewpoint - The interview with the Secretary of the Board of Directors of Fangda Carbon emphasizes the company's commitment to technological innovation, green low-carbon practices, and intelligent transformation to drive the carbon industry towards high efficiency, high added value, and sustainability [4][8]. Company Overview - Fangda Carbon has been a leader in the carbon industry for 60 years, with an annual production capacity of 260,000 tons of carbon products and 354,000 tons of raw materials, positioning itself as a top-quality carbon product production and supply base globally [6]. - The company produces a variety of products including graphite electrodes, carbon bricks, isostatic graphite, nuclear graphite materials, graphene materials, and various raw materials [6]. Financial Performance - In the first half of 2025, the company experienced a decline in revenue and net profit due to macroeconomic conditions, reduced downstream market demand, and intensified market competition [6]. - Despite the challenges, the company maintains a competitive advantage through a well-structured industrial layout, resource sharing, centralized R&D, and a complete product system [6]. Strategic Initiatives - The company focuses on "stabilizing traditional business, expanding emerging business, and strengthening collaboration" to ensure a balanced and synergistic development between traditional and new businesses [10]. - Fangda Carbon aims to leverage cash flow from traditional businesses to support the incubation of new businesses while using technological innovation to upgrade traditional industries [10]. Innovation and R&D - Fangda Carbon invests significantly in R&D, with ongoing projects including three national-level major science and technology projects and six provincial-level projects, holding 77 patents [12]. - The company has achieved 40 technological achievements and new products, including advanced graphite electrodes and graphene products, which are being promoted in various markets [13][14]. Environmental Commitment - The company has invested over 200 million yuan in environmental upgrades, earning recognition as a "green factory" and a "waste-free enterprise" [14]. - Fangda Carbon is advancing its digital transformation with a nearly 100 million yuan investment to establish the industry's first "5G + Carbon Intelligent Manufacturing Fully Connected Factory" [14].

Group 1: Industry Overview - The oil and chemical indices experienced mixed performance during the trading days from April 28 to April 30, with the chemical raw materials index down by 0.55% and the chemical machinery index up by 0.75% [1] - International crude oil prices showed a downward trend, with WTI settling at $58.29 per barrel, down 7.51% from April 25, and Brent at $61.29 per barrel, down 8.34% [1] - The top five rising petrochemical products included liquid chlorine up by 54.19% and PTA up by 5.68%, while the top five declining products included coal tar pitch down by 8.95% and WTI down by 7.51% [1] Group 2: Capital Market Performance - The top five performing listed chemical companies in the Shanghai and Shenzhen markets included United Chemical up by 36.56% and Yuzhong Three Gorges A up by 33.16% [2] - The worst-performing listed chemical companies included Xinjin Road down by 26.55% and ST Youfu down by 23.32% [2]

Group 1 - The chemical index outperformed the oil index during the week of April 21-25, with the chemical raw materials index rising by 2.26%, chemical machinery index by 3.18%, pharmaceutical index by 3.29%, and pesticide and fertilizer index by 2.78% [1] - In contrast, the oil processing index fell by 0.48%, while the oil extraction index saw a slight increase of 0.01%, and the oil trading index dropped by 2.87% [1] - International crude oil prices experienced narrow fluctuations, with WTI settling at $63.02 per barrel, down 2.57% from April 17, and Brent at $66.87 per barrel, down 1.60% [1] Group 2 - The top five performing listed chemical companies in the Shanghai and Shenzhen markets included XianDa Co. with a rise of 49.54%, Zhongxin Fluorine Materials up by 40.89%, Weike Technology up by 33.65%, Zhenhua Co. up by 33.55%, and Xinhang New Materials up by 31.20% [2] - Conversely, the five companies with the largest declines were Jinlitai down by 43.85%, Guoli Technology down by 30.11%, ST Haiyue down by 21.88%, Fanli Technology down by 21.81%, and Yida Co. down by 21.64% [2]

Core Viewpoint - The domestic coal tar market has experienced a significant decline after reaching a peak in early March, with prices dropping by approximately 24% by April 22, leading to a cautious atmosphere in the industry [1] Demand Weakening - The demand for coal tar has shifted from strong to weak as the peak consumption season comes to an end, resulting in lower purchasing enthusiasm from downstream companies [2] - Inventory digestion in the tire industry has been slow, contributing to a bearish outlook on future coal tar prices, with companies adopting a just-in-time purchasing strategy [2] - The decline in demand has also affected the prices of downstream products like carbon black and anthracene oil, leading to increased losses for carbon black manufacturers [2] Supply Expectations Increasing - As of April 17, the capacity utilization rate of independent coking enterprises in China was 73.51%, reflecting a 5% increase, with stable growth in coal tar production expected [3] - The profitability of coking plants has improved due to the first round of coking coal price increases, maintaining strong procurement demand from steel mills [3] - Companies are adopting a just-in-time sales strategy, with low-priced inventory clearance policies accelerating market adjustments [3] Downstream Inventory Accumulation - In the context of weak terminal demand, deep processing products like anthracene oil and washing oil are facing sales difficulties, leading to increased inventories [4] - The operating rate of coal tar deep processing increased to 46% as of April 17, but losses in the carbon black industry have led to a decrease in its operating rate to 61.79% [4] - The significant decline in the coal tar market has caused traders to adopt a wait-and-see approach, further negatively impacting the market as it enters the consumption off-season [4]

Group 1 - The company held its 10th temporary board meeting of the 9th session on April 17, 2025, with all 11 directors present, complying with legal regulations and company bylaws [2][3][4] - The board approved the proposal for expected daily related transactions for 2025, which will not create dependency on related parties [3][9] - The board also approved the establishment of a market value management system to enhance investor returns and maintain investor interests [5][6] Group 2 - The expected daily related transactions for 2025 include sales and purchases with related parties, with a total estimated amount of approximately 66 million yuan for sales and 38 million yuan for purchases [29][30] - The company will engage in transactions with several related parties, including 方大特钢科技股份有限公司, 江西萍钢实业股份有限公司, and 北京方大炭素科技有限公司, among others [10][29] - The pricing policy for these transactions will be based on fair market prices, ensuring that the interests of the company and its shareholders are not harmed [31][32]