Core Viewpoint - The recent announcement by Fangda Carbon to withdraw from the restructuring of the Shanshan Group has added new uncertainties to the restructuring process of this well-known company valued in the billions, which is currently facing significant financial challenges [1][2]. Group 1: Company Restructuring - Fangda Carbon announced its withdrawal from the substantive merger and restructuring of Shanshan Group and its subsidiary, Ningbo Pengze Trading Co., Ltd., after previously participating in the restructuring process [1]. - The company incurred a loss of 50 million yuan as it had paid a due diligence deposit and engaged in various discussions regarding asset valuation and other key matters [1]. - The decision to withdraw was based on insufficient due diligence time and the inability to make a reasonable valuation of the target assets, leading to a cautious assessment of the associated risks [1]. Group 2: Financial Situation - Shanshan Group is facing a substantial debt burden, with liabilities estimated at around 50 billion yuan, and the total debts of the entire "Shanshan system" potentially exceeding 80 billion yuan [3]. - As of September 29, 2025, the confirmed debts of Shanshan Group and its subsidiary amounted to 33.55 billion yuan, with a short-term debt gap of 5.3 billion yuan [7]. - Despite the financial turmoil, Shanshan Co., Ltd. reported a revenue of 4.95 billion yuan for the third quarter of 2025, reflecting a year-on-year increase of 10.91%, and a net profit of 76.29 million yuan, which surged by 1253.04% [8]. Group 3: Market Reaction - Following Fangda Carbon's announcement to exit the restructuring, its stock price experienced a rise, increasing from 5.69 yuan per share on January 5 to 5.92 yuan per share by January 8 [2]. - Shanshan Co., Ltd. maintained a relatively stable stock performance, indicating that Fangda Carbon's withdrawal did not significantly impact its market position [2]. Group 4: Historical Context - The restructuring process has been complicated by internal family disputes following the death of the founder, Zheng Yonggang, which has led to a loss of trust among banks and market participants [6]. - The ongoing family power struggle culminated in a boardroom change in November 2024, but the company still faces significant operational challenges [6]. - The restructuring process has seen multiple rounds of investor recruitment, with the second round currently underway, as the company seeks to stabilize its financial situation [3][4].

Core Viewpoint - Nitto Denko announced an investment of 39 billion yen (approximately 1.748 billion RMB) to build a new factory in Toyohashi, Aichi Prefecture, which is expected to significantly enhance the company's production capacity in the display materials sector [1]. Group 1: Investment and Production Capacity - The new factory is projected to be completed by January 2028 and will focus on expanding the production capacity of optical clear adhesive (OCA) films and component fixing tapes [4]. - OCA is a specialized adhesive film used to bond multi-layer structures within display panels with high transparency and durability, particularly important for foldable devices [4]. - The investment is based on a forward-looking judgment regarding the foldable device market, aiming to ensure a stable supply chain and support ongoing business expansion [4]. Group 2: Global Production Layout - Nitto Denko's global capacity expansion is not limited to Japan; its wholly-owned subsidiary has recently completed a production base for OLED polarizers in Sichuan, China, with a total investment of 2 billion RMB [5]. - The Sichuan project occupies 90 acres and features a building area of 60,000 square meters, primarily producing OLED polarizers and E-Mask large-size optical films [5]. - The first domestic 8.6-generation E-Mask optical protection film production line is expected to commence operations in February next year [5].

Core Viewpoint - The new display industry in Sichuan is rapidly developing, with significant investments and projects being signed, indicating a strong growth trajectory in the sector [1][4][5]. Investment Projects - On November 3, 2023, 13 new display industry cooperation projects were signed in Chengdu, with a total investment of 15.74 billion yuan [1]. - Key projects include the R&D and manufacturing base for display and semiconductor target materials by Daocai Technology, the iQIYI Film and Television New World project, and the Southwest headquarters and R&D testing base of Shanghai Weicai Technology [4]. Industry Chain Development - The display industry chain in Sichuan is becoming increasingly comprehensive, with multiple key projects making significant progress since the last World Display Industry Innovation Development Conference [5]. - Notable developments include: - A 2 billion yuan OLED polarizer production base by Nitto Materials, which commenced production in September 2023 [4]. - The construction of a full-color M-LED new display chip base by Huike in Nanchong, which will have a total monthly production capacity of 1 million chips [4]. - The TFT LCD module production line by Sichuan Pengguan Electronic Technology Co., with an investment of approximately 300 million yuan, expected to start production in early 2026 [4]. Overall Industry Growth - Since the last conference, Sichuan has introduced 103 new display industry ecosystem projects, with total investments exceeding 130 billion yuan [5]. - Chengdu alone has attracted 57 projects with total investments surpassing 50 billion yuan [6]. - As of the first half of 2025, there are 47 ongoing projects in the new display industry in Sichuan, representing a nearly 50% increase compared to the same period last year [6].

Group 1 - The core investment projects in Chongzhou, such as the 2.25 billion yuan production base of Zhongfa Tianxin (Sichuan) Aerospace Technology Co., Ltd. and the 2 billion yuan OLED polarizer production base of Nichia Materials Technology (Chengdu) Co., Ltd., are crucial for enhancing the manufacturing capacity of the region [2][3] - Chongzhou is positioned as an "advanced manufacturing cluster" within Chengdu's development strategy, aiming to achieve 80 billion yuan in revenue this year and 100 billion yuan by 2027, thereby entering the list of the top 100 manufacturing counties in China [2][3] - The county-level new cities in Chengdu have significantly contributed to the city's manufacturing growth, with Chongzhou attracting major companies in electronics and home furnishings, accounting for 45% of the province's home furnishing industrial output [3][4] Group 2 - Chongzhou is accelerating the development of new growth points in aerospace, commercial satellites, and low-altitude economy, with plans for infrastructure such as the Tian Gong Airport [4][5] - The establishment of the Chengdu Clean Energy Innovation and Transformation Base and the high-end energy equipment industry is supported by Chengdu's policies regarding land use and industrial introduction [5][6] - The Chongzhou Aerospace Technology Industrial Park is being developed to support the entire industry chain for commercial satellite research, manufacturing, and operation, with significant investments from companies like Guoxing Aerospace Technology Co., Ltd. [6]

Core Viewpoint - The OLED industry is experiencing rapid development in both upstream and downstream supply chains, with significant investments exceeding 13.4 billion RMB in various projects during the first three quarters of 2025, focusing on materials, equipment, and key components [2][13]. Investment Projects Overview - Numerous OLED supply chain projects have entered the stages of signing, construction, or production, with a total investment exceeding 13.4 billion RMB [2]. - Key areas of investment include materials, equipment, and mask plates, highlighting the collaborative development and vertical integration within the industry [13]. Materials Sector - The materials sector has seen a surge in project activity, particularly in optical films, structural/barrier materials, and process consumables [4]. - Notable projects include: - Nitto Denko's 2 billion RMB OLED polarizer production base, which commenced production in September [6]. - Wida Optoelectronics' 499 million RMB project for dye-based polarizers, currently in equipment installation [6]. - Hongmao Optoelectronics' 2.2 billion RMB high-end polarizer project, expected to produce 24.6 million square meters annually [6][7]. Equipment Sector - Domestic equipment for OLED production is being delivered as the construction of 8.6-generation AMOLED panel lines progresses [11]. - Key equipment projects include: - Aolai's delivery of the first batch of 8.6-generation linear evaporation source equipment to BOE [11]. - Huaxing's development of the first domestic G8.6 AMOLED touch screen detection equipment [11]. - Jiazhi's delivery of the first 8.6-generation OLED De-mura equipment [11]. Mask Plates Sector - The mask plate sector has also seen significant project advancements: - Lu Wei Optoelectronics' 2 billion RMB high-precision mask project, which will establish 11 high-end mask production lines [10]. - Quanyan Optoelectronics' G8.6 metal mask project, with an expected annual output value of 600 million RMB upon completion [10]. - Qingyi Optoelectronics' high-precision mask production base, with a total investment of 2 billion RMB [10]. Conclusion - The OLED industry is transitioning from merely expanding panel production capacity to systematically constructing and strengthening the entire supply chain ecosystem, with capital flowing into core materials, mask plates, and equipment [13].

Core Insights - Chengdu's second industry investment increased by 21.3% year-on-year from January to August, becoming the main engine for investment growth in the city [3][4][5] Group 1: Investment Growth - The investment structure in Chengdu is being optimized, with a significant focus on effective investment and the cultivation of new productive forces [3][4] - The automotive industry in Chengdu saw a remarkable investment growth of 67.9% from January to August, leading among key sectors [5] Group 2: Key Projects and Collaborations - Nitto Denko's OLED polarizer production base has officially commenced operations in Chengdu, marking a significant expansion since the company's initial investment in 2017 [3][4] - A partnership between the Qingbaijiang District and Huawei has been established to enhance smart manufacturing and promote innovation in emerging industries [4][6] Group 3: Technological Advancements - The collaboration with Huawei is transitioning from "smart manufacturing" to "digital-physical integration," focusing on accelerating the transformation of traditional manufacturing and the development of new industries [6][7] - Chengdu's high-tech industry investment grew by 16.8% year-on-year from January to August, indicating a continuous increase in investment proportion [7]

Core Insights - The company focuses on two core businesses: lithium battery anode materials and polarizers, contributing to the development of the new energy and new display industries [1] Group 1: Lithium Battery Anode Materials - The company’s 6C products are currently in mass supply to consumer and power sectors, leading in market share [1] - To address the challenges of silicon-based material expansion and fast charging limitations, the company has developed a new CVD silicon-carbon anode using gas-phase nanotechnology to control silicon particle size, suppress expansion, and enhance cycling performance [1] - The company has introduced ultra-long cycle graphite, utilizing non-stop graphitization technology to form a super-crystal wave structure, significantly improving material compression and expansion resistance, supporting battery cell cycle life exceeding 15,000 times, and meeting energy storage market demands [1] Group 2: Polarizers - The company holds over 1,800 patents covering global markets including China, Japan, South Korea, and Europe [1] - Through a combination of independent research and acquisition integration, the company has achieved a technological leap from LCD polarizers to a dual-category of "LCD + OLED" [1]

Core Viewpoint - The recent issuance of the "Opinions on Supporting Chengdu to Enhance Core Functions and Accelerate High-Quality Development" reflects the importance of Chengdu as a major city in China, aiming to strengthen its economic scale, core competitiveness, and functional quality to set a new benchmark for high-quality development and governance in super-large cities [1] Economic Scale and Growth - Chengdu's GDP is projected to exceed 3.2 trillion yuan by the end of the 14th Five-Year Plan period, requiring an average annual increase of over 140 billion yuan from 2025 to 2030 [3] - Chengdu's GDP for 2024 is estimated at 2.35 trillion yuan, significantly higher than Xi'an, which is nearly half of Chengdu's GDP [2] - Chengdu's economic growth has been robust, with a year-on-year GDP growth rate leading among the top ten cities in China [2] Industrial Development and Coordination - Chengdu's economy relies heavily on consumption, contributing over 65% to its economic growth, and it is one of the seven cities in China with a retail sales total exceeding 1 trillion yuan [4] - The city is focusing on enhancing its industrial base, with significant investments in manufacturing, including a major AMOLED production line by BOE, which is expected to make Chengdu a leading flexible display production base [7] - The "two-legged" approach to economic development emphasizes both consumption and industrial growth, addressing the need to strengthen the industrial sector while boosting consumer spending [6][7] Regional Coordination and Urban Development - The "strong county and active district" strategy aims to address economic imbalances within Chengdu, promoting coordinated development across its districts and surrounding areas [8][9] - Chengdu is implementing targeted development plans for its eight county-level cities, enhancing transportation links and economic contributions from these areas [9][10] - The city is fostering collaboration with surrounding regions to enhance resource sharing and economic integration, exemplified by successful partnerships in various industries [10][11]

Core Insights - Chengdu has established 11 key industrial chains with revenues reaching the billion-level scale, with two new advanced manufacturing clusters added, bringing the total to five [1][3] - The city aims to accelerate the formation of trillion-level industrial chains in software and information services, cultural tourism, and has seen breakthroughs in integrated circuits, new displays, biomedicine, and the silver economy [1][4] - As of July this year, the monitored 7,268 industrial chain enterprises in Chengdu reported an 8.2% year-on-year increase in revenue and a 12.2% increase in total profit, indicating a stable upward trend in the industry [1] Industrial Development Strategy - The "chain strengthening" strategy has been a significant choice for Chengdu to enhance its industrial development and urban competitiveness since its introduction in December 2021 [1][3] - Chengdu ranks eighth in the national advanced manufacturing city rankings, with five national advanced manufacturing clusters and 12 provincial strategic emerging industry clusters established [1][3] Recent Developments - The completion of a 2 billion yuan OLED polarizer production base by Nichia Materials Technology (Chengdu) Co., Ltd. fills a gap in Chengdu's upstream polarizer materials sector [2] - The city is focusing on clustering enterprises along the same industrial chain to enhance competitiveness, as demonstrated by the collaboration between local companies and suppliers [2][3] Future Directions - Chengdu plans to categorize and collaboratively build advantageous industrial clusters, targeting trillion-level chains in software, information services, and cultural tourism, while pushing for breakthroughs in several other sectors [4][5] - The establishment of a Scene Innovation Promotion Center aims to foster new technologies and products through innovative applications in emerging fields like humanoid robots and intelligent driving [4][5] Financial Support and Mechanisms - Chengdu's financial institutions are set to provide comprehensive services to key industrial chain enterprises, with over 60 functional funds established to support the development of chain-leading and specialized enterprises [5] - The city will implement measures such as "one chain, one special class" and "one chain, one policy" to ensure lifecycle support for industrial chain development [5]

Group 1: Company Acquisition and Development - The acquisition of Jinli Co., Ltd. is currently under review by the Shenzhen Stock Exchange, with the application documents accepted on June 12, 2025, and draft reports disclosed on July 23, September 3, and September 9, 2025 [2][3] - The company is actively promoting the acquisition process and acknowledges the existing uncertainties, advising investors to pay attention to future announcements [2][3] - The project for lithium battery composite electrolyte membrane materials is progressing as planned, with main equipment installation underway [3] Group 2: Strategic Business Expansion - The company aims to enhance its presence in the lithium battery separator sector through the acquisition of 100% equity in Jinli Co., Ltd. and associated fundraising efforts [3] - The goal is to leverage the public company platform to drive high-quality development of Jinli Co., Ltd. and improve the company's profitability and shareholder returns [3] Group 3: Product Development and Market Applications - The subsidiary Weida Optoelectronics produces a range of optical film products, including polarizers and anti-fog films, primarily for downstream display module customers [3] - These products are applied in various fields such as automotive displays, industrial control displays, OLED displays, smart home displays, and anti-fog glasses [3]