Investment Rating - The report maintains a rating of "B" for the new materials sector, indicating a positive outlook for the industry [2]. Core Insights - The new materials sector has shown an upward trend, with the new materials index increasing by 1.37%, although it underperformed compared to the ChiNext index, which rose by 1.81% [2]. - The report highlights the implementation of "anti-involution" policies in the new energy vehicle industry, which are expected to enhance the profitability of companies within the supply chain [4]. - The forecast for new energy vehicle sales in 2025 is projected to reach 16 million units, representing a year-on-year growth of 24.26%, indicating sustained growth in the industry [4]. Market Performance - The new materials sector experienced a weekly increase, with notable performances in various sub-sectors: synthetic biology index up by 4.18%, semiconductor materials up by 0.81%, electronic chemicals up by 1.10%, biodegradable plastics up by 1.74%, industrial gases up by 3.16%, and battery chemicals up by 1.45% [2][16]. - The overall market performance for the week (July 14-18, 2025) showed the CSI 300 index rising by 1.09%, the Shanghai Composite Index by 0.69%, and the ChiNext index by 3.17% [12]. Price Tracking - The report provides a weekly price tracking of various chemical products, including amino acids, biodegradable plastics, industrial gases, and vitamins, indicating stable prices for many products with slight fluctuations [3][11]. - For instance, the price of valine is reported at 14,400 RMB/ton with a weekly increase of 0.35%, while arginine is at 24,500 RMB/ton with a decrease of 2.00% [3]. Investment Recommendations - The report suggests focusing on companies such as Jun Ding Da, Times New Materials, Prit, and Nanjing Julong, which are expected to benefit from the favorable policies and market conditions [5].

Core Viewpoint - The recent adjustments to the "China's Prohibited and Restricted Export Technology Directory" reflect the evolving landscape of technology development in China, aiming to enhance national economic security and promote international economic and technological cooperation [2][4]. Summary by Sections Prohibited Export Section - The adjustment has removed one entry related to traditional Chinese architectural technology from the prohibited export list [6]. Restricted Export Section - **Construction and Decoration Industry**: - Two entries have been deleted: traditional Chinese architectural technology and building environment control technology [6]. - **Chemical Raw Materials and Chemical Products Manufacturing**: - A new restricted entry has been added for battery cathode material preparation technology, which includes: - Lithium iron phosphate preparation technology with specific chemical formula and performance criteria [6][7]. - Lithium manganese iron phosphate preparation technology with defined performance metrics [7]. - Phosphate-based cathode raw material preparation technology with strict specifications [7]. - **Non-ferrous Metal Smelting and Rolling Industry**: - The control points for non-ferrous metal metallurgy technology have been modified to include new lithium extraction technologies from spodumene, such as: - Lithium carbonate production technology and lithium hydroxide production technology [6][7]. - Additional control points for lithium purification and production processes have been introduced [7]. Purpose of Adjustments - The adjustments are intended to align with the changes in China's technological development and to improve the management of technology trade, thereby safeguarding national economic interests [4][5].

Core Viewpoint - The article discusses the recent adjustments made by the Ministry of Commerce and the Ministry of Science and Technology to the "Catalog of Technologies Prohibited or Restricted from Exporting in China," particularly focusing on dual-use technologies and their implications for the new materials and emerging technologies sector [1][2]. Summary by Relevant Sections Adjustments to Export Control Catalog - On July 15, the Ministry of Commerce and the Ministry of Science and Technology announced adjustments to the export control catalog, specifically including dual-use technologies [1]. - The adjustments follow a public consultation that began on January 2, where significant deletions and refinements were made to the catalog, particularly in the chemical raw materials and chemical products manufacturing sector [2]. Key Changes in Battery Materials - The revised catalog now includes specific control points for battery cathode material preparation technologies, particularly lithium iron phosphate and lithium manganese iron phosphate, due to their increasing application in sensitive fields [2]. - The control points for lithium iron phosphate preparation technology now require: - A powder compact density of ≥2.38g/cc at 220MPa (down from 300MPa in the earlier version) - A first-cycle coulombic efficiency of ≥95% - A discharge capacity of ≥155mAh/g at 0.1C [2][7]. - For lithium manganese iron phosphate, the requirements include: - A powder compact density of ≥2.38g/cc at 220MPa - A first-cycle coulombic efficiency of ≥95% - A discharge capacity of ≥155mAh/g at 0.1C and an average voltage of ≥3.85V [2][7]. New and Modified Technologies - The article lists newly added or modified technologies in the new materials and emerging technologies sector, including: - Non-metallic mineral products manufacturing technologies - High-temperature alloy production technologies - Rare earth extraction and processing technologies [4][5][6]. - Specific technologies related to battery materials and their preparation processes have been highlighted, indicating a focus on enhancing the control over sensitive technologies [4][5][6]. Implications for Industry - The adjustments in the export control catalog are expected to impact the new materials and emerging technologies sector significantly, particularly in the areas of battery technology and rare earth materials [2][4]. - Companies involved in the production of these materials may need to adapt their processes to comply with the new regulations, which could affect their operational strategies and market positioning [2][4].

Core Viewpoint - Recently, Wenkang New Energy (688779.SH) won a first-instance lawsuit, with the court ruling to terminate the lithium carbonate procurement framework agreement and ordering the defendants to return a prepayment of 122 million yuan and pay part of the penalty, totaling 181 million yuan involved in the case [1] Group 1: Legal Proceedings and Financial Implications - The court ruled that the defendants, including individuals Nan Jinxie, Nan Dongdong, and Nan Tian, are responsible for repaying the debts [1][5] - Wenkang New Energy's subsidiary Longyuan Lithium Technology and Jinch Energy had signed an agreement with Zhizun Lithium Industry to supply no less than 24,000 tons of battery-grade lithium carbonate in 2024, with a prepayment of 500 million yuan already made [2] - The lawsuit was initiated due to Zhizun Group's breach of contract, which began in the second half of 2024, leading to Wenkang New Energy's financial losses of 508 million yuan in 2024, a year-on-year increase in losses of 307.8% [3][4] Group 2: Creditworthiness and Market Conditions - The credit situation of Zhizun Lithium Industry has deteriorated significantly, with multiple instances of contract disputes, asset freezes, and being listed as a dishonest executor [7] - The decline in lithium prices and production issues have contributed to Zhizun Lithium's credit collapse, with the price dropping to around 70,000 yuan per ton by the end of 2024 [7] - Wenkang New Energy has secured a preferential right to recover funds from the equity disposal of two companies under Jiangxi Zhongke Lithium Industry, indicating a more favorable position compared to other creditors [7]

Group 1 - The Chinese government has added a new restricted technology item to the "Catalog of Technologies Prohibited from Export," specifically targeting battery cathode material preparation technology, which includes lithium iron phosphate preparation technology, lithium manganese iron phosphate preparation technology, and phosphate cathode raw material preparation technology [1] - The Ministry of Industry and Information Technology is soliciting opinions on the revision of the "Safety Technical Specifications for Mobile Power Supplies," aiming to establish stricter technical standards for mobile power supplies, including power banks [1] - Nvidia will resume the supply of H20 chips to China, primarily selling from existing inventory, which will not affect the supply of the new B series special chips [1] Group 2 - The State Administration for Market Regulation has held a meeting to enhance regulatory enforcement in the live e-commerce sector, aiming to address prominent issues within the industry [1] - The 11th batch of national drug procurement has commenced, adhering to the principle of "collective procurement for non-new drugs, and new drugs not included in collective procurement," with a scientific selection of procurement varieties [1] - China Galaxy expects a net profit of 6.4 billion to 6.8 billion yuan for the first half of the year, representing a year-on-year growth of 45% to 55% [1] - Geely Holding has officially signed a merger agreement between Geely Auto and Zeekr Technology [1] - Pop Mart anticipates a year-on-year profit increase of no less than 350% for the first half of the year [1] - Zhongji Xuchuang expects a year-on-year net profit increase of 53% to 87% for the half-year period [1]

Group 1 - The core idea emphasizes the establishment of a new development pattern that prioritizes domestic circulation while promoting international circulation, as a strategic decision based on China's changing development stage and comparative advantages [1] - The Ningbo-Zhoushan Port plays a crucial role in connecting domestic and international markets, facilitating the transportation of bulk commodities and enhancing logistics efficiency [2][7] - The port has seen significant growth, with cargo throughput and container throughput increasing by 17.5% and 36.8% respectively compared to 2020, maintaining its position as the world's first and third largest port [7] Group 2 - The Hainan Free Trade Port is a major strategic decision aimed at promoting innovation and high-level opening-up, serving as a model for domestic and international dual circulation [8][9] - The Yangpu Port has become an important international shipping hub, with new logistics models and expanded capacity enhancing its operational efficiency [11][12] - The port's expansion projects are set to significantly increase its container throughput capacity, supporting the overall development of the Hainan Free Trade Port [13][14] Group 3 - The Suzhou Industrial Park is focusing on building a modern industrial system, integrating advanced manufacturing with digital economy and modern services [15][18] - The park has become a hub for artificial intelligence and digital industries, with over 1800 related enterprises and a production value exceeding 110 billion yuan [18] - Collaborative innovation among enterprises, universities, and research institutions is being promoted to overcome technological challenges and enhance competitiveness [17][18] Group 4 - The China-ASEAN Information Port is a key initiative for enhancing connectivity and cooperation between China and ASEAN countries, with significant progress in digital infrastructure [19][20] - The platform has facilitated cross-border trade, with impressive growth in trade volume with ASEAN, reaching 755.6 billion yuan in 2024 [20][21] - The establishment of various cross-border cooperation platforms has improved efficiency and reduced costs for enterprises engaged in international trade [21][22] Group 5 - BASF Shanshan Battery Materials Co., Ltd. is focusing on R&D in battery materials, responding to strong market demand and achieving significant growth in sales [23][25] - The company is leveraging China's advanced technology and talent pool to enhance its innovation capabilities and maintain a competitive edge in the global market [24][25] - The expansion of production capacity and digitalization initiatives are set to further strengthen the company's position in the battery materials sector [25]

Core Viewpoint - The company has demonstrated strong performance in Q1, driven by effective efficiency measures and solid business fundamentals, with positive contributions from various business segments [1][2]. Group 1: Q1 Performance - The Catalytic Business Group showed strong results, particularly in automotive catalysts, benefiting from its market position and customer coverage [1]. - The Recovery Business Group also performed well, with rising prices of precious metals enhancing the performance of precious metal refining and management businesses [1]. - Demand for gold and silver as safe-haven investments supported the jewelry and industrial metals sectors amid macroeconomic and geopolitical uncertainties [1]. Group 2: Special Materials and Battery Solutions - The Special Materials Business Group's overall performance met expectations, with the Battery Materials Solutions Group also aligning with forecasts [2]. Group 3: Impact of US Tariff Policy - The new US tariff policy, effective from April, is expected to have limited direct impact on the company's operations by 2025, thanks to customer contract structures and a flexible global supply chain [3]. Group 4: 2025 Outlook - The company confirmed its 2025 outlook, projecting adjusted EBITDA to be between €720 million and €780 million, assuming stable metal prices and no significant new developments [4].