Summary of Key Points Core Viewpoint The report outlines the fundraising and usage status of Hubei Xingfu Electronic Materials Co., Ltd. for the first half of 2025, detailing the amount raised, its allocation, and management practices to ensure compliance with regulatory requirements. Group 1: Fundraising Overview - The total net amount raised from the initial public offering (IPO) was RMB 1,071.0444 million, confirmed by an audit report issued on January 17, 2025 [1]. - As of June 30, 2025, the company directly invested RMB 362.9329 million into fundraising projects, with RMB 700 million remaining in cash management [1][2]. - The balance in the fundraising special account was RMB 13.9987 million, which includes unspent issuance costs of RMB 3.7547 million [1][2]. Group 2: Fund Management Practices - The company has established a special account storage system for fundraising, ensuring compliance with relevant laws and regulations [1]. - A tripartite supervision agreement was signed with the underwriter and banks to clarify rights and obligations regarding the management of the raised funds [1][2]. Group 3: Actual Usage of Funds - The company approved the use of RMB 198.9372 million to replace self-funded investments in fundraising projects and RMB 120.651 million for issuance costs [2][4]. - No idle funds were used to temporarily supplement working capital during the reporting period [2][5]. - The company has not used any excess funds for permanent working capital or loan repayment [5][6]. Group 4: Project Adjustments - The company decided to terminate the "Electronic Chemical Research Center Construction Project" and reallocate the funds to the "40,000 tons/year Ultra-Pure Electronic Chemicals Project (Shanghai)" [4][6]. - The total investment for the "40,000 tons/year Ultra-Pure Electronic Chemicals Project (Shanghai)" was adjusted from RMB 570.9905 million to RMB 793.3827 million [6][7]. Group 5: Compliance and Reporting - The company has adhered to regulations regarding the use and disclosure of fundraising, with no violations reported [4][5]. - The report includes a detailed comparison of the actual usage of funds against planned allocations, confirming that all disclosures were timely and accurate [4][5].

Core Viewpoint - The company has announced the termination of using raised funds for certain projects and the adjustment of investment amounts for some fundraising projects to enhance the efficiency of fund usage and accelerate strategic business layout [2] Summary by Relevant Sections Fund Usage Adjustment - The company plans to change the use of raised funds, specifically terminating the "Electronic Chemical Research Center Construction Project" and reallocating the funds to the "40,000 tons/year Ultra-Pure Electronic Chemicals Project (Shanghai)" [2] - The total investment for the "40,000 tons/year Ultra-Pure Electronic Chemicals Project (Shanghai)" has been adjusted from 570.99 million to 793.38 million [2] Project Investment Details - The revised investment allocation for the projects is as follows: - 30,000 tons/year Electronic Grade Phosphoric Acid Project (New Construction): Total Investment 419.47 million, Raised Funds 106.36 million - 40,000 tons/year Ultra-Pure Electronic Chemicals Project (Shanghai): Total Investment 793.38 million, Raised Funds 738.31 million - 20,000 tons/year Electronic Grade Ammonia and 10,000 tons/year Electronic Grade Ammonia Gas Project: Total Investment 255.73 million, Raised Funds 226.38 million - Total Investment across all projects: 1,468.58 million, Total Raised Funds: 1,071.04 million [2] Strategic Implications - The adjustments are aimed at maximizing the effectiveness of raised fund usage, improving the quality of project implementation, and aligning with the company's long-term development strategy [2]

Investment Rating - The report suggests a focus on companies in the refrigerant sector such as Juhua Co., Ltd. and Sanmei Co., Ltd. due to the sustained high prices of refrigerants, enhancing profitability [5]. Core Insights - Refrigerant prices remain high, with significant year-on-year increases, indicating strong demand and profitability potential in this sector [3][5]. - The low-altitude economy and robotics industry are moving towards commercialization, leading to increased demand for new materials and lightweight materials such as carbon fiber and ultra-high molecular weight polyethylene (UHMWPE) [5][30]. Summary by Sections 1. Key Sub-industry and Product Tracking - Refrigerants: Prices for R22, R32, R125, and R134a have increased by 2.04%, 1.05%, and 1.11% respectively compared to the previous week, with R22 at 36,000 CNY/ton and R32 at 50,000 CNY/ton [3][12]. - Electronic Chemicals: Prices for electronic-grade ammonia, developing solutions, and etching solutions have decreased significantly, with electronic-grade ammonia down 50% year-on-year [4][12]. - High-performance fibers and lightweight materials are gaining attention due to advancements in robotics and the low-altitude economy [4][5]. 2. Market Performance - The basic chemical index increased by 1.38% during the week, with the overall chemical industry showing a mixed performance [68][74]. - The report highlights the significant price fluctuations in various chemical products, with some sectors like polyester showing strong gains [74]. 3. Key Company Announcements and Industry News - The report emphasizes the importance of monitoring technological breakthroughs and material import substitutions in the electronic chemicals sector [14][24]. - Companies such as Yake Technology, Lianrui New Materials, and Dinglong Co. are highlighted as key players in the semiconductor materials market, which is expected to grow significantly [21][24]. 4. Focused Targets - The report recommends attention to the carbon fiber industry and companies involved in the production of lightweight materials due to the anticipated growth in demand from the low-altitude economy and robotics sectors [5][30].

Investment Rating - The report suggests a positive outlook for refrigerants and materials related to the low-altitude economy and robotics industry, recommending attention to companies like Juhua Co., Ltd. and Sanmei Co., Ltd. [5] Core Insights - Refrigerant prices remain high, enhancing profitability for related companies [5] - The low-altitude economy and robotics industry in China are moving towards commercialization, potentially increasing demand for new materials and lightweight materials such as carbon fiber and ultra-high molecular weight polyethylene [5] Summary by Sections 1. Sub-industry Tracking - Refrigerants: Prices are stable and high, with R22 averaging 36,000 CNY/ton, R32 at 50,000 CNY/ton, R125 at 45,500 CNY/ton, and R134a at 48,000 CNY/ton, showing increases of 2.04%, 1.11%, 1.05%, and 0% respectively compared to last week [3][12] - Electronic Chemicals: Prices for electronic-grade ammonia water have dropped by 12.5% to 3,500 CNY/ton, while developing liquid and etching liquid prices have decreased by 3.57% and 3.13% respectively [4][12] 2. Market Performance - The basic chemical index increased by 1.38% during the week, ranking 9th among 30 major industries [68] - The basic chemical industry rose by 3.79% this month, ranking 11th among 30 major industries [71] 3. Key Company Announcements and Industry News - The report highlights the importance of technological breakthroughs and material import substitution in the electronic chemicals sector [14][17] - Companies such as Yake Technology, Lianrui New Materials, and Dinglong Co. are noted for their potential in the semiconductor materials market [24]