[Introduction] On August 1st, the National Development and Reform Commission held a press conference to interpret the current economic situation and economic work. An official from the Policy Research Office of the National Development and Reform Commission stated:The third batch of 69 billion yuan in ultra-long-term special government bonds for supporting the replacement of old consumer goods with new ones has been fully disbursed this year. The fourth batch of 69 billion yuan is scheduled to be disbursed in October, at which point the annual plan of disbursing 300 billion yuan will be completed.。 Data source: Longzhong Information From the perspective of domestic automobile production,2025 1-6The output of the month is in1555.4 Ten thousand units, year-on-year increase161.3 Tens of thousands of vehicles, rising11.57% The main domestic policies, such as the replacement policy, the new energy vehicle purchase subsidy, and the exemption from purchase tax, will continue to play a strong role in supporting and driving domestic automobile demand. It is expected that in the second half of the year, with the arrival of the peak demand season, domestic automobile production is likely to continue to rise. Source of data: Longzhong Information From the perspective of consumption, automobile sales showed an upward trend from 2021 to 2025. Supported by the two new subsidy policies, China's automobile sales gradually increased, with a growth rate of 11.92% in 2023. Sales reached 30.05 million units, accounting for 33.8% of global sales. In 2024, sales reached 31.43 million units, an increase of 1.38 million units compared to 2023. According to the latest data, the demand in the Chinese automobile market in 2025 remains stable, coupled with a gradual recovery in exports, with consumption reaching 15.65 million units from January to June. 。 Source of data: Longzhong Information From the perspective of the home appliance industry, the total output of the four major home appliance sectors reached 363.705 million units from January to June 2025, an increase of 9.193 million units compared to the same period last year, representing a year-on-year growth of 2.59%. Among them, washing machines and air conditioners showed significant year-on-year growth of 10.81% and 4.99%, respectively, mainly due to increased demand in the EU and UK markets. In addition, the rising demand in emerging markets such as Southeast Asia and South America has also provided strong support for domestic home appliance production. With the support of domestic trade-in subsidies and other policies, the production of domestic automobiles and home appliances has significantly increased. As the main application fields of modified polypropylene, this provides slight support for the orders of modified polypropylene enterprises. In July, the average order days for modified polypropylene was 11.13 days, an increase of 15.94% compared to 2024. It is expected that the orders for modified polypropylene may increase in the fourth quarter. Overall,Trade-in programs directly reduce consumers' replacement costs through subsidies, with a particularly significant impact on price-sensitive groups. In the automotive sector, the combination of new energy vehicle trade-in subsidies and purchase tax exemptions accelerates the replacement of fuel vehicles; in the home appliance sector, the demand for upgrading to energy-efficient and smart products is released, promoting inventory clearance in the industry. ExpectedIn October, with the arrival of a new round of trade-in funds and the approach of the Spring Festival, the demand for automobiles and home appliances continues to rise.

Panel industry giants warn that the second half of 2025 looks bleak; Innolux bluntly stated that shipments across all product lines will decline in the third quarter. On July 31, panel giants AUO and Innolux both warned that the traditional peak season in the second half of the year will not be as strong as usual. AUO has revised down its capital expenditure target for this year from the originally planned NT$30 billion to no more than NT$28 billion, a decrease of about 7%. Innolux frankly stated that demand has turned conservative, and shipments for all product lines will decline this quarter. Panels are essential components for consumer products such as mobile phones, laptops, and PCs. With both major companies warning that the peak season in the second half of the year will not be strong, it suggests that consumer product demand for the year-end Thanksgiving and Christmas seasons in Europe and the United States will be conservative, effectively cancelling the peak season. AUO held an earnings call on July 31. Chairman Peng Shuanglang admitted that due to factors such as the appreciation of the New Taiwan Dollar and uncertainty over tariffs, client-side inventory buildup this quarter is conservative, and brand manufacturers are strictly controlling inventory in response. The peak season effect in the second half of the year is expected to be weaker than in previous years. AUO estimates that shipments of all types of panel products this quarter will decline compared to the previous quarter. AUO also estimates that the average exchange rate of the New Taiwan Dollar against the US Dollar for the second half of the year will be 29. Since more than 90% of its revenue is denominated in US Dollars, it is expected that the New Taiwan Dollar revenue from the display business this quarter will decrease compared to the second quarter. However, US Dollar revenue is expected to remain flat with the second quarter. Considering the conservative end-market demand, AUO announced a downward revision of its 2025 capital expenditure target, lowering it from the originally planned within NT$30 billion to no more than NT$28 billion. In July last year, AUO announced its transformation plan towards three major operational pillars, aiming for the two main businesses, Mobility Solution and Vertical Solution, to account for more than half of its revenue by 2027. Regarding the details of the two major business outlooks for this season, AU Optronics General Manager Ko Fu-Jen pointed out that Mobility Solution's revenue in US dollars will maintain growth, while revenue in New Taiwan dollars is expected to decline by 5%. The annual related revenue is projected to increase by a single-digit percentage, slightly below the original forecast, mainly due to exchange rate effects. In the Vertical Solution segment, as AUO holds a 32.8% stake in ADLINK and increased its board seats in the June board reelection to gain control, the revenue will be consolidated in the third quarter, showing a quarter-on-quarter growth of 25%. Peng Shuanglang added that the combined revenue contribution of the two major businesses in the second quarter reached 43%, increasing by 2 percentage points year-on-year, steadily progressing towards the goal of exceeding 50% next year. Regarding the tariff issue, Peng Shuanglang reiterated that panels are components, with a low proportion directly exported to the United States, and most shipments are conducted under FOB terms, so the direct impact of tariffs is limited. Observing that customers' products are mostly on the exemption list, after AUO's acquisition of BHTC, it has completed operational layouts in Southeast Asia, India, Europe, Mexico, and North America. In the future, it can flexibly adjust according to tariff changes and does not rule out collaborating with the supply chain to evaluate the most suitable production model. On the same day, AUO also announced that the company will establish the positions of Group CEO and COO, which will be concurrently held by Chairman Paul Peng and President Frank Ko, respectively. AUO announced that, in response to the company's organizational structure for display technology, smart mobility, and vertical sectors, the Board of Directors has approved the establishment of the Group Chief Executive Officer position. Chairman Mr. Paul Peng will concurrently serve as Group CEO, overseeing the group's global strategy and development direction, as well as leading the group’s operational support units. In addition, to accelerate the integration among the three major operational pillars, business development, and global expansion, as well as to enhance organizational efficiency and collaborative operations, the Board of Directors has approved the establishment of the position of Group Chief Operating Officer, which will be concurrently held by the company's General Manager, Dr. Ko Fu-Jen. This move aims to respond to external changes, strengthen competitiveness, and expedite strategic transformation. The new personnel arrangement will take effect from August 1, 2025. Innolux stated that due to tariff issues and some customers having already pulled orders forward, panel demand in the second half of the year will become more conservative. Panel manufacturers in the industry generally adopt a production strategy based on demand, which helps maintain supply-demand balance and price order. Due to the sluggish market conditions, Innolux expects shipments across all product lines to decline this quarter. Shipments in the non-display sector and commercial displays are both expected to decrease by approximately 3% quarter-on-quarter, while consumer displays are estimated to decline by about 5% quarter-on-quarter.

International News Guide: Raw Materials - EVONIK Releases Q2 2025 Earnings Report: Declining Demand Impacts Performance Automotive - ZF Announces Mass Layoffs and Pay Cuts! 12,000 Employees Protest on Streets Packaging -BioLogiQ Receives $5 Mn Grant to Develop Innovative Packaging for Fresh Produce Medical - French Medtech Molding Connection for D&M Plastics Electronics - APPLE Releases Q3 2025 Fiscal Year Earnings Report: iPhone Sales Surpass 3 Billion Units, China Market Returns to Growth Construction - ORIENTAL YUHONG Plans to Acquire Leading Chilean Building Materials Retailer for RMB 880 Million Macro - JAPAN Insists on U.S. Fulfillment of Bilateral Agreement, Urges Immediate Tariff Reduction on Automobiles and Parts Price - Ethylene Asia: CFR Northeast Asia $820/tonne; CFR Southeast Asia $830/tonne   International News Details: 1. EVONIK Releases Q2 2025 Earnings Report: Declining Demand Impacts Performance Against an increasingly challenging economic environment, EVONIK INDUSTRIES AG reported an adjusted EBITDA of €509 million for Q2 2025, a 12% decrease compared to the strong performance in the same period last year. Over half of the decline in Q2 sales was attributed to unfavorable exchange rate fluctuations and the divestiture of the superabsorbent business, which was still part of EVONIK in the same period last year. Sales volume dropped 4% year-on-year, while product prices remained generally stable. Performance of C4 chain products was below average. Extended maintenance shutdowns of production facilities for products such as polyamide 12 also had a certain impact on sales. EVONIK expects that if the global economy does not deteriorate further, the full-year 2025 adjusted EBITDA will reach the lower end of the forecast range (€2.0 billion to €2.3 billion). 2. U.S. Imposes Largest-Ever Sanctions on IRAN! Involving a Chinese Port Company Recently, the U.S. TREASURY DEPARTMENT’S OFFICE OF FOREIGN ASSETS CONTROL (OFAC) announced sanctions on a shipping network controlled by Iranian businessman Mohammad Hossein Shamkhani, involving over 50 entities, individuals, and more than 50 oil tankers and container ships. This marks the largest-scale sanctions imposed by the U.S. government since its "maximum pressure" campaign against IRAN in 2018. 3. TEIJIN’s Bio-Based Polycarbonate (PC) Used in Organ Pipe Manufacture, Showcased at OSAKA-KANSAI WORLD EXPO   TEIJIN LIMITED announced that its tubes molded from biomass-derived polycarbonate (PC) resin have been used to manufacture the world’s first bio-plastic pipe organ. These transparent tubes were produced by Teiyo Co., Ltd., a subsidiary of TEIJIN LIMITED specializing in plastic molding. This innovative pipe organ will be exhibited in the "Rebirth Challenge" zone of the OSAKA Medical and Health Pavilion during the OSAKA-KANSAI WORLD EXPO in JAPAN from August 19 to 25, 2025. 4. ORIENTAL YUHONG Plans to Acquire Leading Chilean Building Materials Retailer for RMB 880 Million On the evening of July 31, ORIENTAL YUHONG announced that its wholly-owned subsidiaries ORIENTAL YUHONG Overseas Development Co., Ltd. and ORIENTAL YUHONG International Trade Co., Ltd. plan to jointly invest approximately $123 million (about RMB 880 million) with their own funds to acquire 100% equity of Construmart S.A. in Chile from the counterparty. After the transaction is completed, ORIENTAL YUHONG Overseas Development Co., Ltd. will hold 99% of Construmart’s equity, and ORIENTAL YUHONG International Trade Co., Ltd. will hold 1% of Construmart’s equity. 5. French Medtech Molding Connection for D&M Plastics French injection molder Groupe JBT has acquired D&M Plastics, an injection molding firm based in Burlington, IL, primarily serving the healthcare sector. The acquisition announced earlier this month will enable JBT to deliver reliable, localized services to its North American customer base, especially in terms of ISO Class 7 cleanroom production needs, the company said. 6. BioLogiQ Receives $5 Mn Grant to Develop Innovative Packaging for Fresh Produce BioLogiQ has been awarded grant funding through the USDA Foreign Agricultural Service’s $5 million Sustainable Packaging Innovation Lab (SPIL) at Clemson University, launched through the Assisting Specialty Crop Exports (ASCE) Initiative.The BioLogiQ/Clemson partnership will develop and commercialize cutting-edge packaging solutions to help U.S. farmers meet evolving global packaging and trade standards. The project will focus on flexible film, pallet wrap, and protective packaging used for fruits, vegetables, nuts, and specialty greens. 7. APPLE Releases Q3 2025 Fiscal Year Earnings Report: iPhone Sales Surpass 3 Billion Units, China Market Returns to Growth On August 1, APPLE released its Q3 2025 fiscal year earnings report for the period ending June 28, with quarterly revenue recording the largest increase since December 2021. The earnings report shows that APPLE’s total revenue in Q3 reached $94.04 billion, a year-on-year increase of 10%, and net profit reached $24.43 billion, a year-on-year increase of 9%. Notably, APPLE’s revenue in the China market during this quarter was $15.369 billion, an increase of 4% compared to $14.728 billion in the same period last year, ending the decline in the previous two quarters and returning to growth. 8. ZF Announces Mass Layoffs and Pay Cuts! 12,000 Employees Protest on Streets German leading automotive parts supplier ZF GROUP recently announced plans to cut approximately 11,000 to 14,000 jobs across GERMANY by the end of 2028. This marks the largest layoff plan in the company’s history, with most layoffs coming from production departments, including R&D staff. In response to the austerity policies and layoff plans, more than 12,000 employees across GERMANY took to the streets to oppose the board’s plan to further cut thousands of jobs and continue to suppress wages. Achim Dietrich, Chairman of ZF’s General Workers’ Union, revealed that if all the management’s demands are implemented, employees will have to give up 25% to 30% of their annual compensation through measures such as shorter working hours, cancellation of one-time bonuses, and reduction of excessive benefits, with significant variations across regions and positions.   Overseas Macro Updates:   JAPANESE Government and Automotive Industry Exchange Views on U.S. Tariffs According to NHK, on the same day, JAPANESE Prime Minister Shigeru Ishiba met with heads of several JAPANESE automotive industry groups to exchange views on the U.S.-JAPAN tariff agreement. JAPANESE automotive industry groups called on the JAPANESE government to provide support for the supply chain and formulate policies to stimulate domestic demand. Masanori Kataoka, Chairman of the JAPANESE AUTOMOBILE MANUFACTURERS ASSOCIATION and Chairman of ISUZU MOTORS LIMITED, stated that he hopes the JAPANESE government will continue dialogue with the U.S. to further reduce tariffs. JAPAN Insists on U.S. Fulfillment of Bilateral Agreement, Urges Immediate Tariff Reduction on Automobiles and Parts On August 1, Chief Cabinet Secretary Yoshimasa Hayashi stated at a press conference that JAPAN will continue to urge the U.S. to fulfill the reached bilateral agreement, including reducing tariffs on automobiles and parts. Hayashi emphasized: "U.S. President Trump has signed an executive order under the U.S.-JAPAN agreement to reduce bilateral tariffs to 15%... The JAPANESE government still insists that the U.S. should immediately take action to implement the agreement terms, especially the tariff reduction measures on automobiles and automotive parts." EU Initiates Anti-Dumping Investigation into Chinese Polyamide Yarns On July 29, the EUROPEAN COMMISSION issued a notice announcing the initiation of an anti-dumping investigation into polyamide yarns originating from China. The dumping investigation period for this case is from July 1, 2024, to June 30, 2025, and the injury investigation period is from January 1, 2022, to the end of the dumping investigation period. A preliminary ruling for this case is expected to be made within 7 months, with a maximum extension of 8 months. JAPAN Plans to Raise Minimum Wage to a New Record High Again A panel of the JAPANESE MINISTRY OF HEALTH, LABOR AND WELFARE plans to recommend a approximately 6% increase in the national average minimum wage for the current fiscal year, which would be the largest increase since 2002. The agency added that the proposed hourly increase of approximately 1118 yen ($7.43) would exceed last year’s 5% increase and be the largest since the current system was implemented, but did not cite sources. The government of JAPANESE Prime Minister Shigeru Ishiba set a target last year to increase the average minimum wage by 42% to 1,500 yen per hour by 2020.   Price Information:   USD/CNY Central Parity 7.1496, down 2 pips; previous trading day’s central parity 7.1494, previous trading day’s official closing price 7.1930, overnight closing price 7.1998. Upstream Raw Materials USD Market Prices Ethylene Asia: CFR Northeast Asia $820/tonne; CFR Southeast Asia $830/tonne. Propylene Northeast Asia: FOB Korea average price $730/tonne; CFR China average price $770/tonne. North Asia frozen cargo CIF price: propane $502-509/tonne; butane $472-479/tonne. South China frozen cargo for second half of August CIF price: propane $540-550/tonne; butane $510-520/tonne. Taiwan region frozen cargo CIF price: propane $502-509/tonne; butane $472-479/tonne. LLDPE USD Market Prices Film: $860-920/tonne (CFR Huangpu); Injection molding: $940/tonne (CFR Dongguan). HDPE USD Market Prices Film: $910/tonne (CFR Huangpu); Hollow: $855/tonne (CFR Huangpu); Pipe: $1,030/tonne (CFR Huangpu). LDPE USD Market Prices Film: $1,070-1,095/tonne (CFR Huangpu); Coating: $1,280/tonne (CFR Huangpu). PP USD Market Prices Homopolymer: $910-965/tonne (CFR Huangpu), up $10/tonne; Copolymer: $920-975/tonne (CFR Nansha); Transparent: $995-1,055/tonne (CFR Huangpu), down $5/tonne; Pipe: $1,160/tonne (CFR Shanghai).

— Category Overview — Hair dryer | Electric toothbrush | Electric shaver 01 Market Index In the first half of 2025, the personal care small appliances market showed diverse development trends, with mixed sales performances across different categories. According to data from AVC (All View Cloud), the total online retail sales of personal care small appliances (including hair dryers, electric toothbrushes, and electric shavers) reached 11.97 billion yuan, representing a year-on-year decrease of 0.3%. By category, the hair dryer segment experienced a 10.5% year-on-year decline in retail sales due to the saturation of the high-speed hair dryer market and the fading of technological dividends, weakening its previous growth momentum. The electric toothbrush segment achieved a 0.5% scale increase driven by structural upgrades; the deep penetration of intelligent features, breakthroughs in cleaning technology iterations, and segmented designs targeting different user groups have become the core drivers enabling it to withstand market fluctuations. Meanwhile, the electric shaver segment performed exceptionally well, with retail sales soaring 10.5% year-on-year, propelled by the continued penetration of portable products and dual-driven product structure upgrades, emerging as a prominent highlight in the personal care small appliances market in the first half of the year. 02 Channel Structure Professional e-commerce platforms have taken the lead in growth by precisely operating and capturing user mindshare in the personal care small appliance category. The retail market shares of hair dryers, electric toothbrushes, and electric shavers increased by 5.4%, 5.2%, and 1.9% respectively. In contrast, the Douyin channel is facing challenges such as market saturation and insufficient growth momentum. How to break through these bottlenecks through content innovation and deeper category cultivation has become an urgent issue to address. Meituan, Alibaba, and JD.com are going all out as the battle for instant retail intensifies. According to estimates by the research team from the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, the total scale of instant retail in China reached 650 billion yuan in 2023, growing 9.46 times over five years with a compound annual growth rate exceeding 56%. Personal care small appliances, due to their moderate price and immediate usability, highly align with the consumption scenarios of instant retail and are expected to gain more growth opportunities amid this channel transformation. Channel integration is becoming deeper, with brands leveraging emerging platforms such as Douyin live streaming and Xiaohongshu for user education and brand awareness building. This, in turn, drives traffic back to traditional e-commerce platforms, forming a new pattern of coordinated channel development and supporting scale growth. 03 Product Trends Electric shavers are continuously advancing towards being more portable, trendy, efficient, and better for skin health management. Portability has become a mainstream trend, with market share rising from 23.9% in the first half of 2024 to 33.6% in the first half of 2025. Meanwhile, there is a significant upgrade in product premiumization, with the average price increasing by 23.7% year-on-year. As more brands enter the market, product innovation is emerging continuously. The design is becoming more refined and compact, with stainless steel and alloy materials enhancing the texture. Customizable elements, magnetic heads, and details such as sliding switches enhance the user experience. The iteration of efficient shaving technology is accelerating, with multi-head designs, optimized blade nets, and increased motor speed significantly improving shaving efficiency. Products suitable for sensitive skin, addressing men's skincare needs, and multi-functional products (shaving + nose hair trimming + facial cleansing + sideburn trimming) further meet consumers' higher demands for a comfortable shaving experience. Electric toothbrushes focus on smart upgrades, cleaning enhancements, and market segmentation. The intelligentization of electric toothbrushes is becoming more prominent, becoming a core competitiveness in the mid-to-high-end market. According to online data from AVC, in the first half of 2025, electric toothbrushes with app functionality will account for 47% of sales value, while those with smart display features will account for 36.6%. Products continue to upgrade, achieving a "thousand teeth, thousand faces" state by automatically adjusting the amplitude and vibration frequency according to different tooth surfaces. Since their debut in 2023, the penetration rate of oscillating electric toothbrushes has been continuously increasing, reaching a retail sales share of 20.3% in the first half of 2025. Some brands combine oscillation with visualization to provide a more intuitive cleaning experience. Children's electric toothbrushes are undergoing dual transformations in intelligentization and fun, with app functionality and smart displays both accounting for more than half. In terms of fun, besides cartoon appearances, designs like voice prompts, voice teaching, and brushing progress bars enhance children's initiative in brushing. High-speed hair dryers reach saturation, while blow-dryers with protective features and foldable models return to growth. Since 2021, high-speed hair dryers have experienced four years of rapid development, and now the market has become saturated. In the first half of 2025, the retail market share reached 74.7%, a year-on-year decrease of 2.5%. As the technology becomes increasingly mature, the value proposition of high-end features is gradually diminishing, and the market share of products priced between 200-300 yuan has significantly increased. Furthermore, in the context of severe product homogenization in the saturated high-speed market, hair care devices have returned to consumers' attention. The retail market share of nano water ion products has increased by 2.4% year-on-year, and foldable handles make them convenient for storage, precisely targeting business travelers. Conclusion The differentiated landscape of the personal care small appliance market in the first half of 2025 has essentially outlined the development trajectory for the entire year. For brands, it is necessary not only to keenly capture growth opportunities in various categories and continuously drive product innovation to create high-quality products that meet consumer expectations, but also to respond flexibly to channel transformations, optimize channel layouts, and enhance market penetration. Only by constantly adapting to market changes, using innovation as an oar and channels as a sail, can brands ride the waves of the personal care small appliance market and win broader development opportunities.

In the first half of 2025, China’s home appliance market saw significant growth driven by the “national subsidy” policy, with cleaning appliances standing out in particular. According to data from AVC (Aowei Cloud Network), sales revenue of cleaning appliances increased by 30% year-on-year, far surpassing the overall home appliance growth rate of 9.2%. The following chart, combined with data analysis, will interpret the market performance, popular categories, and future trends of cleaning appliances, providing reference for consumers and industry observers.

Recently, information that had previously been under strict confidentiality Alibaba AI Glasses The mystery has finally been unveiled!   Alibaba's first self-developed AI glassesQuark AI GlassesDebut"Take a look at the payment" This has attracted a lot of attention. After wearing the glasses, users can complete the scan code payment by facing the Alipay payment code through the smart glasses, without using a mobile phone throughout the process.   ▲Glasses scan code, voiceprint payment.   So, what other highlights does the product have? How is the progress of technological research and development? Let's take a look together~   Quark AI Glasses are deeply integrated with the Alibaba and Alipay ecosystems: they feature the Tongyi Qianwen large language model and Quark’s latest AI capabilities, and also supportGaode navigation, check payments on Alipay, compare prices on Taobao, business travel reminders on Fliggy...and other functions. The product is expected to be launched within the year.   A brand-new near-eye display navigation system projects the route directly in front of your eyes.   ▲Quark AI Glasses Same Style Search Feature.   ▲AI Image Recognition: Point the camera at the artifact, and AI will recognize it in real-time, instantly providing historical background and artistic value!     How are the appearance and configuration?   Appearance:By custom developing a dual voice coil large diaphragm miniaturized speaker, designing an ultra-narrow integrated FPC, and using titanium alloy.Integrated moldingThe temple arms make the glasses lighter while ensuring functionality.   The lens uses high refractive index lenses.Coating processThis results in a clearer visual experience and also allows the frame to be narrower and thinner.   In terms of battery life:Quark AI glasses useDual-battery and battery-swapping designThrough hot-swappable temples, users can quickly replace the main battery; paired with a battery case the size of a portable earphone box, it can achieve 24-hour battery life.   ▲Dual battery support + battery swapping design.   Shooting and Display:Alibaba since Super Raw Low-Light Processing AlgorithmThrough multi-frame fusion in the RAW domain and adaptive noise reduction, noise under low-light conditions is effectively suppressed, significantly improving the image signal-to-noise ratio.   In display technology, adoptDual MicroLED Light Engine SolutionSupports adjustable conjugate distance, ensuring optimal image display in both indoor and outdoor environments as well as in near and far-field scenarios.   It is understood that Quark AI Glasses use...JBD "Hummingbird Mini II" MicroLED Monochrome Light Engine。   ▲Source: JBD Vision Technology   Since the beginning of this year AI glasses have become the new favorite in the consumer market. Multiple manufacturers joining the market accelerate the process.   E-commerce platform data shows that in the first half of this year, the AI glasses market has...explosive growthCategory transaction volumeIncreased tenfold year-on-year.。   According to incomplete statistics, in the past six months, including Meta, Rokid, Huawei, Brands such as Baidu, Snap, Google, Thunderbird Innovation, Gudong Technology, Flash Technology, XREAL, Liangliang Vision, Tribute to the Unknown, Lenovo, Looktech, Hive/Boundary, Li Weike, TECNO, and many others have successively launched new AI glasses products.   The Reason Behind the AI Glasses "Going Viral" Which companies are the core component suppliers?   The AI glasses industry chain mainly consists of upstream component supply, midstream equipment manufacturing, and downstream applications.   The main components upstream includeChips, sensors, storage, display modules, optical modules, structural components, lenses The midstream involves complete machine manufacturing, including brand manufacturers and OEM manufacturers. Downstream application areas include commercial scenarios and personal scenarios.     Next Xiangxiang will focus on showing everyone the key points. AI glasses industry chain enterprises   Lens Technology   Researched and produced by Lens TechnologyAppearance parts, structural parts, optical lensesAlready applied to multipleHigh-end AI glasses and headsetsIn February this year, Lens Technology becameRokidThe overall assembly partner for the full range of AI glasses.From frames, lenses, functional modules to fully automated assembly, achieving full chain coverage.。   The company stated that with the continuous increase in the penetration rate of AI glasses, its early layout in this field is expected to become a new growth driver for the company.   GoerTek Inc. The world's leading consumer electronics OEM - GoerTek Co., Ltd., isCore OEM of Meta Ray-Ban AI GlassesIn 2025, the production capacity target is 10 million units, and it will be further deepened.Participate in the acoustics, optical components, and whole assembly of Xiaomi AI glasses.With an annual contracted production capacity of 3 million sets and a yield rate exceeding 95%.   Technical reserves coverLCOS optical engine module and arrayed waveguide grating solutionDeeply tied to major companies like Meta and Huawei, benefiting from the expansion of the global AI glasses market.   HC Semitek HC SemiTekMicroLED TechnologyIt can be used in AI glasses with display functions. This technology offers significant advantages such as high brightness, high color saturation, low power consumption, and high resolution.   Biwin Storage Biwin Storage has now become the main supplier of storage chips for many AI glasses manufacturers both domestically and internationally, includingXiaomi, Meta, Rokid, Thunderbird Innovation, etc.Brand.   BIWIN Storage stated that the company ranks among the top in market share for storage chips and will fully benefit from the explosive growth of AI glasses.   In 2024, the company's emerging edge AI business revenue will exceed 1 billion yuan.Year-on-year growth of approximately 294%, includingAI Glassessmartwatches, learning devices, translation devices, and several other emerging fields, among which,The performance in the field of AI glasses is particularly outstanding.It is expected that the company's revenue from AI glasses products will be in 2025.Expected to achieve a year-on-year growth of over 500%。   Rockchip Rockchip has a long-term accumulation in audio, video, display, ISP, and other related technology routes.RV Series Vision ChipsLeveraging the advantages of low-power solutions and self-developed ISP, this technology can be applied to AI glasses, and there are already customer projects using the company's products.   Mingyue Lens Bright Moon Lens’s business covers the entire industry chain, from lens material research and development to end-product sales. The company focuses on mid-to-high-end products.Optical resinResearch and development and production of lenses.   Mingyue Lens has partnered with Xiaomi to provide high-definition, lightweight lenses for Xiaomi AI glasses, marking its entry into the smart glasses field.   Haopeng Technology Haopeng Technology focuses onHigh Energy Density Battery TechnologyResearch and product manufacturing have been developed, forming a comprehensive layout in the field of AI intelligent wearables, with products coveringAI/AR/VR glassesAI headphones and other types of AI+ smart terminals.   The company has become a qualified supplier for a leading wearable brand's AI glasses, with mass production and shipment to various brand customers starting from Q3 2025.   …… The rapid development of the smart glasses industry Innovation in materials science is indispensable.   Transparent optical materials:Common materialsIncluding plastics and special glass, such asPolycarbonate (PC)，It provides clear visual effects and also features scratch resistance and impact resistance.   Structural materialsThe frame and casing need to be lightweight and sturdy. Currently, most AR/VR devices have adopted this approach.Nylon (PA)As structural component materials (including the frame, housing, headband, and buckle, etc.).   Sensor and camera materials:PC COCCommonly used for manufacturing lenses in head-mounted display devices.PMMALenses and optical components commonly used in some mid-range VR devices.   Connection and Communication Materials:AR glasses need to transmit data with external devices and require high-performance wireless communication materials. The materials includeLiquid Crystal Polymer (LCP)High-performance plastics, as well as semiconductor chip materials used for data storage.   Human contact materials:Silicone, thermoplastic elastomer materialsCommonly used for making facial contact pads, it is lightweight, soft, and breathable, significantly enhancing wearing comfort.  

International News Guide: Raw Materials News - Canada's Debrand receives CleanBC fund to tackle clothing plastic waste disposal challenges Automotive News - BMW Group's first-half net profit drops 29% year-on-year Electronics News - Iveco Group NV agrees to split its business Packaging News - Amcor develops lightweight polypropylene caps for household products Macro News - New Zealand government lifts ban on offshore oil and gas exploration Price Information - Ethylene Asia: CFR Northeast Asia $820/ton; CFR Southeast Asia $830/ton   Details of International News:   1.Trump announces suspension of de minimis exemptions for all countries On July 30 local time, the official website of the White House released an executive order signed by Trump, suspending the duty-free treatment for low-value imported products from all countries, namely the "de minimis" treatment. This means that small parcels exported to the United States by all countries/regions via postal services will no longer enjoy duty-free treatment. They must enter the United States through standard customs declaration procedures, submit complete import documents, and pay applicable tariffs and taxes, including additional tariffs. 2.Shell's adjusted profit in the second quarter is $4.26 billion Shell's second-quarter revenue was $65.41 billion, compared with an estimate of $64.8 billion; adjusted profit was $4.26 billion, compared with an estimate of $3.74 billion; adjusted earnings per share was $0.72, compared with an estimate of $0.60. 3.JD.com plans to acquire German electronics retail giant CEconomy AG On July 31, JD.com announced on the Hong Kong Stock Exchange that it has decided to make a voluntary public takeover offer to all shareholders of CECONOMY AG, the parent company of European consumer electronics retailers MediaMarkt and Saturn, through its wholly-owned indirect subsidiary JINGDONG Holding Germany GmbH. It will acquire all issued and outstanding bearer shares of CECONOMY at a cash consideration of 4.60 euros per share and establish a strategic investment partnership. The transaction values CECONOMY at approximately 2.2 billion euros, equivalent to more than 18 billion yuan. If the transaction is successfully completed, it will set a new record for Chinese e-commerce companies' overseas expansion into Europe. 4.Iveco Group NV has agreed to split its business Iveco Group will sell its defense business (IDV and ASTRA brands) to Leonardo SpA and the remaining business to Tata Motors Ltd. The total value of the two transactions is approximately 5.5 billion euros (equivalent to $6.3 billion). 5.Amcor develops lightweight polypropylene caps for household products Amcor has developed a polypropylene (PP) cap for household products, which combines a unique shape with a lightweight design, helping brands enhance visual appeal while contributing to their sustainability commitments. Amcor stated that this new "Hector Child-Resistant Cap (CRC)" weighs only 7.25 grams, making it one of the lightest caps on the market, which can significantly save materials and reduce carbon dioxide emissions. Compared with traditional 14-gram caps, an order of one million Hector caps can reduce plastic usage by 6.75 tons. 6.Origin partners with Hordijk to mass-produce sustainable PET caps in Europe Origin Materials and Dutch packaging manufacturer Royal Hordijk Packaging announced a strategic partnership to mass-produce polyethylene terephthalate (PET) caps, marking an important step in promoting circular packaging solutions in the European market. 7.Canada's Debrand receives CleanBC fund to tackle clothing plastic waste disposal challenges Debrand is a reverse logistics solutions provider based in Vancouver, Canada, serving apparel and retail brands in North America. The company has received more than $325,000 in funding from the "CleanBC Plastics Action Fund", which is jointly managed by the Government of British Columbia and Alacrity Canada and is part of the Ministry of Environment and Climate Change Strategy. 8.UK waste management giant Bifa closes Washington plastic recycling plant Bifa, a leading UK waste management company, announced the closure of its plastic recycling plant in Washington, Sunderland. According to "Sustainable Plastics", the plant ceased operations in early 2025 due to increasingly difficult market conditions, especially the sluggish demand for washed high-density polyethylene (HDPE) and polypropylene (PP) flakes, affecting approximately 80 employees. The Washington plant, built in 2020 with an investment of 7 million pounds (approximately 8.1 million euros), was a key part of Bifa's strategy to enhance the recycling capacity of commonly used plastic packaging (such as milk bottles, buckets, and trays made of HDPE and PP). In 2023, Bifa planned to invest another 13 million pounds to double the plant's capacity, but this expansion plan was later shifted to another Bifa plant in Redcar.   Overseas Macro Market Information:   【White House official: Trump will impose higher tariffs on countries that fail to reach trade agreements】 On July 30 local time, a White House official told the media that Trump will sign an executive order on July 31 local time to impose higher tariff rates on several countries that fail to reach trade agreements by the August 1 deadline. It may include some of the United States' largest trading partners, including Canada and Mexico. 【Bank of Japan announces interest rate decision, keeps rates unchanged】 The Bank of Japan approved the interest rate decision by a 9-0 vote, keeping the interest rate unchanged, in line with expectations. 【New Zealand government lifts ban on offshore oil and gas exploration】 On July 31 local time, the New Zealand government lifted the ban on offshore oil and gas exploration. New Zealand's Resources Minister Sean Jones pointed out that this move is expected to increase natural gas supply and ease energy cost pressures. However, the decision has triggered strong opposition from environmental groups in the country, who are worried that this policy may damage New Zealand's environmental image. 【BMW Group's first-half net profit drops 29% year-on-year】 On July 31, BMW Group announced that its total operating income in the first half of the year was 67.685 billion euros, a year-on-year decrease of 8.0%; net profit was 4.015 billion euros, a year-on-year decrease of 29.0%. 【Toyota suspends production due to tsunami impact】 Nikkei News reported that due to supply chain disruptions caused by the tsunami, Toyota Motor will suspend 11 production lines at 7 factories in Japan starting from Thursday night.   Price Information:   Ethylene Asia: CFR Northeast Asia $820/ton; CFR Southeast Asia $830/ton. Propylene Northeast Asia: FOB South Korea average price $730/ton, down $10/ton; CFR China average price $770/ton. North Asia frozen cargo CIF: propane $505 - $512/ton; butane $490 - $497/ton. South China frozen cargo CIF for August delivery: propane $540 - $550/ton; butane $525 - $535/ton. Taiwan region frozen cargo CIF: propane $505 - $512/ton; butane $490 - $497/ton. 【LLDPE US dollar market price】 Film: $860 - $920/ton (CFR Huangpu); Injection molding: $940/ton (CFR Dongguan); 【HDPE US dollar market price】 Film: $910/ton (CFR Huangpu); Hollow: $855/ton (CFR Huangpu); Pipe: $1030/ton (CFR Huangpu); 【LDPE US dollar market price】 Film: $1070 - $1095/ton (CFR Huangpu); Coating: $1280/ton (CFR Huangpu). 【PP US dollar market price】 Homopolymer: $900 - $965/ton (CFR Huangpu); Copolymer: $920 - $975/ton (CFR Nansha), down $20/ton; Transparent: $1000 - $1055/ton (CFR Huangpu); Pipe: $1160/ton (CFR Shanghai).

For many electronic and electrical (E&E) Component, when polyamide66（PA66When the strength and rigidity of cannot meet the requirements, BASF's customers now have more customized options to choose from.PA66/6TProduct:Ultramid® T6000It is a high-temperature resistant polyamide material that exhibits superior performance in humid and high-temperature environments.PA66mechanical and dielectric properties. At the same time, the lower hygroscopicity ensures good dimensional stability, thereby filling the gap for BASF.Ultramid® AdvancedPoly(phenylenediamide):PPAThe gaps in the product portfolio.Ultramid® T6000Can be compared with the standardPA66Easily processed at similarly low mold temperatures. In addition to durable orange and gray colors, this material also has good colorability and can be customized into products with different shades of white. Its flame-retardant grades all use halogen-free flame retardants.Ultramid® T6000is by BASF2020The improved upstream integration developed after the acquisition of Solvay's polyamide business in that yearPA66/6TThe compound is now available as a material solution to customers worldwide. Ultramid® T6000With excellent fluidity, it is an ideal material for producing miniature and complex electronic and electrical components, such as high-voltage connectors and miniature circuit breakers.MCB...as well as components for electric power systems and consumer electronics. For example,...Ultramid® T6340 G6High-voltage connectors suitable for use in electric vehicles can provide safe and reliable connections between the battery and inverter or between the power distribution unit and the motor, even in high-temperature environments.Ultramid® T6000It facilitates the efficient and safe transmission of electric power. Even when high current surges occur during rapid acceleration, it can continuously and reliably respond throughout the entire vehicle lifecycle. At the same time, it ensures high-quality component design based on compact and flexible geometry, as well as weight and cost optimization. Ultramid® T6340G6 ULThe yellow card indicates that it has excellent flame-retardant properties.0.4The thickness reaches millimeters.V-0Flame retardant ratingCTIThe value (comparative tracking index) is as high as600Submit (according toIEC60112Standard): with standardPA66Compared to others, it has a lower creepage distance and better insulation performance, thereby enabling the miniaturization of electronic and electrical components.0.4Electrical with millimeter thicknessRTI(relative temperature index) as high as150°C 0.8Millimeter thicknessGWFI(Glow-wire flammability index) is960°CThis ensures that even under high-temperature conditions, thin-walled components can continue to function properly. BASFPPABusiness Development DepartmentAndreas Stockheim Display:“OurUltramid® T6000filledPA66 PPAPerformance gaps in the field of electronic and electrical applications. Tests indicate,90°C 110°CThe mold temperature has no significant effect on its good mechanical properties and surface appearance. Therefore, manufacturers can continue to use existing mold equipment, including water cooling devices, together with...PPACompared to this, it can even save energy. We look forward to working with our clients to fully unleash.Ultramid® T6000The potential in multi-color innovative electronic and electrical components.” As a leader in the polyamide market, BASF relies onUltramid® T6000Become one of the few currently able to provide long-lasting orangeRAL 2003Pre-coloringPA66/6TThe company’s compound product can maintain color stability even under prolonged high-temperature conditions, enabling long-lasting color identification, which is crucial for safety in high-voltage applications. By using customized pigments and halogen-free flame retardants, the material can also effectively prevent electrochemical corrosion, performing exceptionally well especially in humid and warm environments. In addition to pre-colored compounds in black, gray, orange, and white, customers can also use...ULCertified masterbatch self-coloring. For fuel cell components, high-purity materials without flame retardants can be used.Ultramid® T6300HG7Materials.

In August 2025, the production data of domestic white goods (air conditioners, refrigerators, washing machines) was recently released by Industry Online.The total scheduled production volume for the three major categories is26.97 million units, down 8.89% month-on-month and 4.9% year-on-year. This data reflects the complex situation of the current white goods market: domestic demand shows a polarized pattern of “two extremes,” while exports continue to face the dual pressures of trade policies and weak global demand. Air conditioners: Domestic sales are polarized, exports are under pressure. In August, the production of household air conditioners was 11.443 million units, a month-on-month decrease of 27.58%.Compared to the same period last year, production performance has declined. 2.8%. Among them, domestic production scheduling reached 6.735 million units, a sharp month-on-month decline of 32.72%. Although low-penetration markets such as Northeast China experienced significant demand growth due to high temperatures, with Midea air conditioners’ sales in Heilongjiang and Jilin increasing by 356% year-on-year, and Xiaomi air conditioners’ sales in Northeast China reaching 20 times that of the same period last year, sales growth in mature markets such as East China and South China remained steady, reflecting the stage characteristics of the air conditioner domestic market where both existing and new demand coexist. Due to early release of some demand during the June e-commerce promotions, although the high temperatures in July stimulated consumption, domestic production scheduling declined by 22.93% month-on-month. In August, production scheduling decreased by 5.3% year-on-year. Manufacturers have lowered their market expectations for the second half of the year and are cautiously controlling inventory. ExportsIn August, the scheduled production for household air conditioner exports was 4.708 million units, a month-on-month decline of 18.74%, marking the fifth consecutive month of decline. The downward trend in production is expected to continue in September and October. Since May and June, the export market has shown a clear downward trend, with declines of varying degrees across all continents except Oceania. The implementation of reciprocal tariff policies in multiple countries, the end of restocking by overseas importers, significant inventory pressures in some regions, as well as geopolitical and logistics issues in the Middle East and Southeast Asia, have all contributed to considerable pressure on the export market. Refrigerators: Domestic Sales Shrink, Export Divergence In August, refrigerator production was 7.62 million units, an increase of 3.67% month-on-month.However, compared with the same period last year, production performance has declined. The domestic sales production schedule reached 3.24 million units, an increase of 8.36% month-on-month, but a decrease of 11.5% compared to the same period last year. The early demand pull-forward by the 618 promotional event, coupled with insufficient consumer momentum during the traditional off-season, and extended high-temperature vacations, all contributed to the contraction in domestic refrigerator production schedules year-on-year. In the first half of the year, the refrigerator industry experienced multiple rounds of intense competition and production schedule volatility. In the future, the industry will face challenges such as fragmented channels, diversified demand, product structure upgrades driven by national subsidy policies, and industry adjustments due to the implementation of new energy efficiency standards. The reshuffling process is accelerating, and the reconfiguration of manufacturer structures is intensifying. Export Production Scheduling 4.38 million units, a slight month-on-month increase, but an 8.3% decrease compared to the same period last year. Affected by the high base number from the same period last year, tariff policies, market demand, and the summer holidays, exports showed differentiation. Traditional European and American markets were weak, exports to the North American market dropped significantly due to tariff impacts, while emerging markets such as Africa and Latin America became the main drivers of export growth. Changes in the U.S. import structure indicate that China’s market share for refrigerators has significantly declined since May. The global tariff environment has become more complex since August, which will further affect the export pattern of refrigerators. Washing Machines: Domestic Sales Improving, Export Restrictions Persist In August, washing machine production was 7.911 million units, an increase of 22.75% month-on-month.Compared to the same period last year, production performance has declined. The domestic sales production plan is 3.6 million units, a month-on-month increase of 18.4%, representing a 6.9% decline compared to the same period last year, showing a good trend with a consecutive month-on-month increase. The expansion of domestic washing machine production capacity, along with a promising performance in the washing and care industry structure, has resulted in an increased proportion of large-capacity and high-priced products. With the support of "national subsidies," the proportion of 12 kg products has increased, and companies are shifting their strategy towards promoting high-end products. The allocation of funds for trade-in programs also significantly boosted the domestic sales production plan in August. Export Scheduling 4.311 million units, a month-on-month increase of 26.4%, and a slight year-on-year growth of 1.2% compared to the same period last year. In the second half of 2024, washing machine exports will face constraints such as a high base period, trade policies, and technical compliance requirements. The high export base in the second half of 2024 will create pressure, while the U.S. tariff policy on steel household appliances may prompt the EU to follow suit. Additionally, new EU regulations and standards will further increase export barriers. The production data for white goods in August indicates that the industry is currently experiencing the growing pains of transformation: domestic demand growth relies on dual optimization of regional and product structures, while exports need to cope with significant fluctuations in the trade environment. Against this backdrop, leading companies are seizing opportunities through technological upgrades and global expansion, while small and medium-sized manufacturers may become further marginalized. In the future, policy incentives (such as trade-in programs), upgrades in energy efficiency standards, and the development of emerging markets will become key variables for industry breakthroughs. Author: Zhuansu Shijie Market Research Expert Zhao Hongyan

According to data from Canalys reported by the Zhitong Finance app, Huawei reclaimed the top position in the Chinese smartphone market in the second quarter of 2025, while Apple Inc. (AAPL.US) ranked fifth. Image Huawei nova 14 Huawei ranked first with a shipment volume of 12.2 million units, representing a year-on-year increase of 15% and a market share of 18%. Vivo closely followed, with shipments reaching 11.8 million units, accounting for 17% of the market share. However, compared to its shipment volume of 13.1 million units in the second quarter of 2024, Vivo experienced a year-on-year decline of 10%. Canalys analyst Lucas Zhong stated, "Huawei has launched the Nova 14 series, its first to feature the HarmonyOS 5.0 system. This move is expected to accelerate the expansion of its independent ecosystem user base, while also placing higher demands on system compatibility and user experience." The report added that vivo implements a staggered release strategy through the new X200, S30, and Y300 series models to cover a broader customer base. OPPO (including OnePlus) ranked third with a shipment volume of 10.7 million units, holding a market share of 16%. Xiaomi achieved year-on-year growth for the eighth consecutive quarter, ranking fourth with a shipment volume of 10.4 million units. The report pointed out that in May, Xiaomi launched its self-developed chip XRing O1, which is equipped in flagship models Xiaomi 15s Pro and Xiaomi Pad 7 Ultra, demonstrating its long-term commitment to independent research and development as well as high-end products. Apple ranked fifth with a shipment volume of 10.1 million units, a year-on-year increase of 4%. In the second quarter, Apple strategically adjusted the pricing of the new iPhone 16 series to boost demand for the shopping season. However, the initial growth momentum was hindered due to the pricing being too high to meet the national subsidy standards. According to the report, as the stimulus effect brought by the national subsidy policy at the beginning of the year gradually weakened, the smartphone market in mainland China declined by 4% year-on-year in the second quarter. Amber Liu, Business Director at Canalys, stated that the mainland China smartphone market is expected to achieve moderate growth for the entire year and is likely to surpass the global market by 2025. "With economic resilience becoming apparent in the second half of the year, consumer confidence is expected to continue recovering. As manufacturers adopted cautious channel strategies during the subsidy surge to avoid stockpiling, inventory levels have remained healthy. The subsidy policies in the first half of the year have already released a large amount of demand in advance, and manufacturers are currently facing the challenge of maintaining the momentum for device replacement."

On July 30, Luo Wei, head of imaging at Honor, stated,Our Ultra is something that no one has ever seen or even imagined. The blogger "Director" is Guan Tongxue who revealed this information.Honor will first release the Honor Magic8 and Magic8 Pro, and then launch the Magic8 Ultra. The progress is currently going smoothly. Previously, Luo Wei explicitly stated that the Honor Magic8 series will not feature a 1-inch main camera. We will not blindly stack hardware, nor will we waste time on flashy but impractical designs, as this does not align with my hardware design philosophy. Luo Wei pointed out that Honor will invest in hardware for functions that AI currently cannot achieve; hardware that cannot realize its capabilities without AI at present; and hardware for functions where AI can currently enhance performance by 100 times. He emphasized that within three years, Honor will leave its competitors far behind, with plans going smoothly, even faster than I expected. Stay tuned. Of course, this is not our main goal; our primary aim is to create valuable products for users. By moving a bit faster and being more competitive, we hope others can keep up, ultimately benefiting consumers. According to leaked information, the Honor Magic8 series will debut in October and will be among the first to feature the MediaTek Dimensity 9500 and Qualcomm Snapdragon 8 Elite 2 flagship platforms. The new products are highly anticipated.  

As the number of global 5G base stations surpasses 5 million, the price of foldable smartphones drops to the 3,000 yuan range, and AI large models begin to deeply integrate into mobile operating systems, the 5G smartphone industry in 2025 is undergoing a qualitative transformation from a single communication tool to an "intelligent mobile terminal + digital ecosystem gateway." The latest "2025-2030 Global 5G Smartphone Industry Market In-depth Analysis and Development Planning Consulting Comprehensive Research Report" released by the Zhongyan Puhua Industry Research Institute points out that global 5G smartphone shipments will increase from 1.8 billion units in 2025 to 3.2 billion units by 2030, with the Chinese market maintaining a stable share of over 35%. Meanwhile, the industry's value focus is shifting from hardware manufacturing to ecosystem services. 1. Current State of Market Development 1.1 The global market shows a pattern of "rising in the East and declining in the West." China, India, and Southeast Asia have become growth engines. According to data from CIEH, the penetration rate of 5G phones in China will exceed 75% in 2024. In the Indian market, due to aggressive subsidies from operators such as Reliance Jio, the share of 5G phones will jump from 12% in 2023 to 45% in 2025. In the European and American markets, operators are gradually canceling 5G plan subsidies, forcing manufacturers to enhance product premium capabilities through technological innovation—Apple's iPhone 17 series, equipped with Satellite Communication 2.0 technology, enables video calls without ground network coverage, driving the market share of its high-end models back up to 28%. 1.2 Foldable Phones: From "Novelty" to "Mainstream" Technological breakthroughs have sparked a price revolution. In 2024, models such as the Huawei Mate X5 and Samsung Galaxy Z Fold6 have brought foldable phone prices down to the 8,000-yuan range, a 60% decrease compared to first-generation products. The key driver is the increased maturity of the industrial supply chain: BOE has developed a "nano-silver wire + UTG glass" composite screen with a bending lifespan exceeding one million cycles; hinge technology has advanced to "waterdrop 2.0," reducing the gap when folding to just 0.1 mm. According to China Research Puhua, foldable phone shipments are expected to reach 120 million units in 2025, accounting for 35% of the high-end market (over $600). Honor foldable phone (Image source: Honor) 1.3 AI Large Models Reshape the Paradigm of Human-Computer Interaction Edge AI deployment has become a new battleground. Chips like Qualcomm Snapdragon 8 Gen4 and MediaTek Dimensity 9400 integrate NPU computing power exceeding 100 TOPS, supporting local operation of large models with 7 billion parameters on smartphones. Xiaomi's Surge OS 2.0 "AI Assistant" can automatically generate meeting minutes and intelligently plan itineraries; vivo's Blue Core large model achieves "seamless wake-up"—when users pick up their phones, the system preloads frequently used apps based on usage habits. This transformation is reshaping user engagement: users with AI-enabled phones see an increase of 1.2 hours in daily usage time. 2. Industry Chain Restructuring 2.1 Breakthrough in Upstream Materials to Overcome "Chokepoint" Challenges The domestic supply chain is rising comprehensively. In the chip sector, SMIC's N+2 process has achieved a yield rate exceeding 85%, providing a 7nm process alternative for brands like Huawei and Honor. Yangtze Memory's Xtacking 3.0 technology enables UFS4.0 storage chips to reach read and write speeds of 4.2GB/s, a 20% improvement over overseas competitors. In the display sector, TCL China Star Optoelectronics Technology has developed "polarizer-free" OLED technology, reducing screen power consumption by 30%, which has been applied to the OPPO Find X8 series. More advanced explorations are underway: a laboratory has developed a "graphene cooling film" with a thermal conductivity of 1500 W/m·K, five times that of traditional copper foil. 2.2 Intelligent Upgrading of Midstream Manufacturing The "dark factory" has revamped its production logic. The Foxconn Zhengzhou campus has built a fully 5G-connected factory, utilizing digital twin technology to dynamically adjust production lines. When a shortage of a certain model of camera module is detected, the system automatically switches the idle production line to an alternative supplier's plan, reducing the order delivery cycle by 40%. In the quality control phase, the AI visual inspection system can identify screen defects at the 0.01mm level, reducing the defective product outflow rate to 0.003%. These transformations are strongly supported by policy: the government provides a 30% equipment subsidy for smart manufacturing demonstration projects, and a certain province offers VAT reductions for companies undergoing digital transformation. 2.3 Expansion of Downstream Application Scenarios 5G and AI are fostering new consumption patterns. In the entertainment sector, Tencent's "Yuan Meng Zhi Xing" and other cloud games enable "click-to-play," allowing users to play without downloading installation packages larger than 10GB. In health management, the Honor Magic7 series features "seamless vital signs monitoring" technology, which uses millimeter-wave radar to detect heart rate and breathing frequency in real time, with an error rate of less than 2%. More noteworthy is the enterprise-level market: a logistics company has equipped 5,000 couriers with 5G private network phones, combined with AR glasses to achieve a fully digital process of "one-click scanning - route planning - anomaly reporting," increasing delivery efficiency by 35%. 3. Future Market Outlook 3.1 Communication Technology Enters the "5.5G Era" According to China Research Institute, it is predicted that 5G-A (5G-Advanced) will begin commercial use in 2026, with its downlink rate exceeding 10Gbps and latency reduced to below 1ms. This will drive two major transformations: first, the "integrated sensing and communication" capability, where smartphones can perceive changes in the surrounding environment and act as cooperative nodes in autonomous driving scenarios; second, the support for "passive IoT," enabling low-power communication by reflecting 5G signals in the environment, which may be applied to smart wearable devices in the future. On the policy front, the Ministry of Industry and Information Technology plans to build 1 million 5G-A base stations by 2027, focusing on coverage in industrial parks, transportation hubs, and other scenarios. 3.2 Morphological Innovation Breaks Through Physical Limits Wearable phones are becoming a new species. A certain brand's "wristphone" concept product features a flexible screen with a scroll design; when unfolded, it is a 7-inch tablet, and when folded, it takes the form of a smartwatch. Huawei is exploring a "brain-computer interface phone" that uses non-invasive sensors to capture brainwaves, enabling "mind-controlled" photography and messaging. These innovations are reshaping the industry's value distribution—profits from selling screen modules by a certain foldable screen manufacturer now account for 45% of the total device profit. 3.3 Ecological Competition Replaces Hardware Involution The "Mobile + AI + IoT" super terminal model is taking shape. The Xiaomi SU7 car features "seamless phone-to-car interface" technology, allowing users' mobile applications to automatically project onto the central control screen when they get in the car, and unfinished tasks continue on the phone after getting out; Apple's Vision Pro deeply integrates with the iPhone, enabling virtual screens to leverage the phone's computing power. Zhongyan Puhua believes that by 2030, revenue from ecosystem services will account for more than 30% of total revenue for mobile phone manufacturers, with new business models such as software subscriptions and digital content revenue sharing becoming mainstream. The 5G mobile phone industry has transcended the boundaries of communication equipment and evolved into a crucial hub connecting the digital world with physical life. According to the China Research and Development Industry Research Institute, the next five years will be a critical period for reshaping the industry landscape. Companies need to possess underlying technological innovation capabilities (such as chips and materials), scenario-defining capabilities (foldable screens, AI applications), and ecosystem integration capabilities (vehicle-machine connectivity, IoT collaboration) in order to secure a place in the market feast of 3.2 billion units. For investors, three major sectors deserve focused attention: first, the 5G-A related industry chain, including millimeter-wave chips and integrated sensing modules, with the market size expected to exceed 80 billion yuan by 2027; second, the foldable screen materials field, where sub-segments such as UTG glass and hinge MIM parts are growing at a rate of 45%; third, the AI smartphone ecosystem, where manufacturers capable of deploying large models on the edge have profit margins 10-15 percentage points higher than traditional companies. In this era of profound transformation, only enterprises that wield innovation as their spear and ecology as their shield can navigate through cycles and sail toward the industrial blue ocean.

International News Highlights:   Policy News-European Carmakers Welcome, and Worry About, U.S. Tariff Deal Investment News-Adnoc takeover of Covestro hit by EU foreign subsidies probe Automotive News-Toyota Tsusho's ASR-derived recycled plastic adopted for Toyota's front fender Packaging News-Kreyenborg’s IR-Clean Technology decontaminates PET flake Macro News-UBS Asks Advisors to Reduce Sales of Complex Foreign Exchange Products Price Information-CNY/USD Central Parity Rate Reported at 7.1511, Down 44 Points   The Details of International News：   1. European Carmakers Welcome, and Worry About, U.S. Tariff Deal Europe’s automakers expressed a mixed sense of relief and wariness the day after a trade agreement was reached between the United States and the European Union on Sunday. The companies welcomed a reduction in U.S. tariffs on imported cars and parts, to 15 percent from 25 percent, but warned that even a lower levy would hurt their businesses. After an initial rally, major European carmakers’ shares turned sharply lower on Monday. Volkswagen, Mercedes-Benz and BMW all fell more than 3 percent. Porsche and Stellantis, which owns Chrysler and Jeep as well as the European brands Peugeot and Fiat, dropped more than 4 percent. 2. Toyota Tsusho's ASR-derived recycled plastic adopted for Toyota's front fender Toyota Tsusho Corporation announced that recycled plastic derived from ASR (Automotive Shredder Residue) manufactured by its Group company K.K. Planic ("Planic") has been adopted for the first time in a Toyota vehicle in Japan for the front fender seal of the Crown "Sport." As it is difficult to sort collected plastics that include ASR-derived plastics by material, it is hard to conduct Car to Car recycling, which requires high quality, so the plastics have mainly been incinerated (thermal recycling). Amid these circumstances, Planic has become the first company in Japan to introduce advanced gravity separation technology and equipment, which has been put to practical use in Europe, enabling the manufacture of high-quality recycled plastic and Car to Car recycling. This has become a major strength of the company. 3. Adnoc takeover of Covestro hit by EU foreign subsidies probe The proposed €14.7 billion takeover by Abu Dhabi National Oil Co. (Adnoc) of Covestro AG has been hit by a new in-depth EU probe under foreign subsidies regulations just two months after clearing a previous EU antitrust investigation.   4. Benvic redesigns plastics for sustainable future Global manufacturing faces an unpredictable and uncertain future: Supply chains everywhere face disruption from a multitude of causes and from the growing pains of the new circular economy.The constrained economic outlook has made all companies adopt a more cautious and balanced business outlook - differentiating products and product costs for a variety of needs in a much more fragmented marketplace 5. Kreyenborg’s IR-Clean Technology decontaminates PET flake The European Food Safety Authority (EFSA) has issued a positive "Scientific Opinion" to Germany-based Kreyenborg under EU 2022/1616 for its infrared technology, IR-Clean, that decontaminates recycled polyethylene terephthalate (PET) flakes so they can be used to produce food packaging. With EFSA’s approval of its process, Kreyenborg's IR-Clean system will be assigned a unique recycling authorization number (RAN) and listed in a public register, the company says. Macro Market Information:   【UBS Asks Advisors to Reduce Sales of Complex Foreign Exchange Products】The Financial Times quoted informed sources as saying that UBS has asked advisors to stop promoting structured foreign exchange products called Range Target Profit Forwards (RTPFs) to many clients. After US President Trump announced tariff hikes in April, which led to sharp fluctuations in the US dollar, some clients suffered losses, and the bank has paid more than 100 "goodwill" payments to clients. 【Trump Says US Will Attack Again if Iran Restarts Nuclear Program】US President Trump told the media in Scotland on July 28 that Iran has sent unfriendly signals, and if Iran restarts its nuclear program, the US will launch another attack to destroy Iran's nuclear facilities in a short time. After the US struck three Iranian nuclear facilities in June this year, Iranian officials have repeatedly emphasized that they will not abandon the uranium enrichment program. Iranian Foreign Minister Araghchi posted on social media on July 28 that if the US and Israel carry out another aggression against Iran, Iran will take firm and powerful retaliatory actions. 【US Trade Representative Says More Trade Negotiations with India Needed】With only a few days left until the August 1 deadline for tariff hikes, US Trade Representative Greer said that more negotiations with India on the trade agreement are still needed. Greer said in an interview on Monday that the US side needs to conduct more negotiations to assess the Indian government's determination to reach a trade agreement. He admitted that he had previously suggested that an agreement with New Delhi might be reached soon, but he emphasized that India's long-standing policy of protecting its domestic market means that reducing trade barriers will represent a major policy shift. 【Hong Kong Monetary Authority to Hold Technical Briefing on Stablecoin Issuer Regulatory Regime Today】Hong Kong's "Stablecoin Regulation" will be formally implemented on August 1. On July 29, the Hong Kong Monetary Authority (HKMA) announced that it will hold a technical briefing on the stablecoin issuer regulatory regime at 4:30 pm. It is reported that the technical briefing will be hosted by senior officials of the HKMA, including Deputy Chief Executive Chan Wai-man, Assistant Chief Executive Chan King-hung in charge of regulations and anti-money laundering, Assistant Chief Executive Ho Hon-kit in charge of monetary management, and Head of Digital Finance Ho Wang-che. 【Thai Finance Minister Says: Thailand Is Very Close to Reaching a Trade Agreement with the US】 Thai Finance Minister Pichai Chunhavajira: The US will resume tariff negotiations with Thailand. Thailand is very close to reaching a trade agreement with the US and is expected to reach the main part of the tariff agreement. The tariff rates between Thailand and the US are likely to be lower than 36%. The tariff announcement on Thailand will be issued by the US. 【Stellantis' First-Half Adjusted Operating Income Below Estimates】 Stellantis' first-half adjusted operating income was €540 million, a year-on-year decrease of 94%, compared with the estimate of €1.33 billion. The first-half adjusted operating margin was 0.7%, compared with 10% in the same period last year and the estimate of 1.97%. The first-half net loss was €2.26 billion, compared with a profit of €5.65 billion in the same period last year and the estimated loss of €855.3 million. The first-half net revenue was €74.26 billion, a year-on-year decrease of 13%, compared with the estimate of €74.96 billion.   Price Information:   【CNY/USD Central Parity Rate】 The CNY/USD central parity rate was reported at 7.1511, down 44 points; the previous session's central parity rate was 7.1467, the previous session's official closing price was 7.1729, and the previous night session's closing price was 7.1787. 【Upstream Raw Material USD Market Prices】 Ethylene Asia: CFR Northeast Asia $820/ton; CFR Southeast Asia $830/ton. Propylene Northeast Asia: FOB Korea average $740/ton; CFR China average $770/ton. North Asia frozen cargo CIF price: propane $507-$509/ton; butane $487-$489/ton. South China frozen cargo August CIF price: propane $536-$546/ton; butane $521-$531/ton. Taiwan region frozen cargo CIF price: propane $507-$509/ton; butane $487-$489/ton. 【LLDPE USD Market Prices】 Film: $860-$920/ton (CFR Huangpu); Injection molding: $950/ton (CFR Dongguan); 【HDPE USD Market Prices】 Film: $910-$920/ton (CFR Huangpu); Blow molding: $855-$865/ton (CFR Huangpu); Pipe: $1030/ton (CFR Huangpu), down $10/ton; 【LDPE USD Market Prices】 Film: $1070-$1095/ton (CFR Huangpu), down $5/ton; Coating: $1280/ton (CFR Huangpu), down $70/ton; 【PP USD Market Prices】 Homopolymer: $925-$965/ton (CFR Huangpu), up $10/ton; Copolymer: $940-$950/ton (CFR Nansha); Film grade: $1030/ton (CFR Nansha); Transparent grade: $1000-$1055/ton (CFR Huangpu), down $10/ton; Pipe: $1160/ton (CFR Shanghai).

According to sources from JD Technology, JD has established an intelligent robotics division, which falls under the 3C home appliances division. It is reported that JD.com has been actively making moves in the robotics field. On July 21, it completed investments in three leading embodied intelligence companies: Qianxun Intelligence, Zhuji Power, and Zhongqing Robotics. In May 2025, JD.com also participated in a new round of financing for Zhiyuan Robotics, alongside investors such as Shanghai Embodied Intelligence Fund and SAIC. Shanghai Securities News reported on March 24, 2025, that JD.com has confirmed the establishment of an embodied intelligence business unit focusing on home scenarios. In the same month, JD Exploration Research Institute developed and open-sourced China's first dual-arm mobile robot operation dataset, JD ManiData, and also collaborated with multiple institutions to launch a framework for constructing an atomic skill library. During the 2025 World Artificial Intelligence Conference, JD.com upgraded its large model brand to JoyAI and launched the embodied intelligence brand JoyInside, endowing robots and other terminal devices with high emotional intelligence interaction capabilities. It has already established collaborations with more than ten leading brands, offering a rich and diverse range of products.

On July 22, 2025, media reported that a notice of bankruptcy liquidation application from a well-known integrated stove company in Shengzhou, Zhejiang, had been released. This news sparked heated discussions. However, as the case is not yet concluded, the name of the company is temporarily not being disclosed. The difficult days for integrated stove companies are far from over. Recently, Zhejiang Meida and Shuai Feng Electric, two listed integrated stove companies, successively released their performance forecasts for the first half of 2025. On the basis of a net profit decline of over 70% last year, both companies are still showing signs of an expanding downward trend in the first half of 2025. Why has the growth of this once highly sought-after "new hotspot" come to a halt, and how are companies currently "saving themselves"? The integrated stove industry remains in a period of deep adjustment, with the industry winter continuing. According to the semi-annual performance forecast of ShuaiFeng Electric, the net profit attributable to the owners of the parent company for the first half of 2025 is expected to be between 2.3 million yuan and 3.4 million yuan, a year-on-year decrease of 91.54% to 94.28%. The net profit excluding non-recurring items for the first half is expected to be a loss of 5.8 million yuan to a loss of 3.9 million yuan, a year-on-year decrease of 112.14% to 118.05%. Zhejiang Meida's half-year performance forecast shows that the net profit for the first half of the year is expected to be between 11.5 million yuan and 15.5 million yuan, representing a decline of 84.11% to 88.21% compared to the same period last year; the net profit after deducting non-recurring gains and losses is expected to be between 10 million yuan and 14 million yuan, a decrease of 85.59% to 89.71% compared to the same period last year. The two companies believe that the external reasons for the decline in performance include the impact of the overall market situation, the continued downturn in the real estate market, and the weakening of consumer spending power. The internal reasons include adjustments in the company's product structure and a decrease in average product prices. According to data from Aowei Cloud Network, the retail sales of China's home appliance market (excluding 3C products) reached 453.7 billion yuan in the first half of 2025, a year-on-year increase of 9.2%. However, integrated stoves have continued to perform poorly, with retail sales of 6.6 billion yuan in the first half of the year, a year-on-year decrease of 27.6%, and retail volume of 780,000 units, a year-on-year decline of 24.1%. Since 2022, the integrated stove industry has suddenly shifted from rapid growth to continuous decline. Besides the unfavorable external factors mentioned by the aforementioned companies, during the rise of integrated stoves, many enterprises entered the market in a rush, causing product and functional homogenization. To compete for market share, many companies resorted to price competition. These factors have made the integrated stove industry struggle to move forward. Taking the gross profit margin data of Zhejiang Meida, Mars, and Yitian Intelligent as examples, from 2020 to 2024, Zhejiang Meida’s integrated stove gross profit margin dropped from 56.52% to 42.02%, Mars’ integrated stove gross profit margin decreased from 52.06% to 44.07%, and Yitian Intelligent’s integrated stove gross profit margin fell from 46.29% to 41.88%. It is not difficult to see the intense competition in the integrated stove industry from these figures. The former "Four Little Dragons" of the integrated stove industry are now without exception deep in the mire. In addition, more small and medium-sized enterprises are struggling, with companies like Zhejiang Alien Appliance Co., Ltd., Shengzhou Yiduo Kitchen Appliance Co., Ltd., and Shengzhou Kushino Appliance Co., Ltd., which have declared bankruptcy in the past two years, all having been part of the integrated stove industry. "Investing in whatever is popular": The anxiety behind cross-industry expansion Faced with a harsh reality, listed integrated stove companies have also begun to vigorously pursue "side businesses." Yitian Intelligent recently announced that it has jointly invested with two other enterprises to establish Shanghai Deshu Cloud Private Equity Fund Partnership (Limited Partnership). The total committed capital of the partnership is planned to be 2 billion RMB, of which Yitian Intelligent and its related parties intend to commit 998 million RMB. The fund’s primary investment directions include technology innovation enterprises in the fields of artificial intelligence, big data, computing power, IDC, information industry, and advanced manufacturing.   Zhejiang Meida announced its plan to invest 110 million yuan to acquire a 4.8657% equity stake in Magic Vision Intelligent Technology (Shanghai) Co., Ltd., officially entering the intelligent driving sector. Martian has officially entered the fields of general artificial intelligence (AGI) and humanoid robots by taking stakes in Beijing Stardust Era Technology and Daimeng (Shenzhen) Robotics Technology. Suenfon Electric Appliances established a new media technology company and a green gold mine recycling resources company successively in May and June of this year. It is evident that these companies are targeting currently hot sectors. However, can cross-industry expansion truly reverse the downward trend? This "invest in whatever is popular" strategy also reveals the anxiety of manufacturing enterprises. The integrated stove market continues to face pressure, with multiple challenges from traditional range hoods, stoves, and integrated cooking centers, while price wars erode profits. For companies to survive, transformation seems imperative. However, these sideline businesses, which have little relation to their main operations, not only have low relevance to the existing kitchen appliance industry and fail to create complementary synergies within the industrial chain, but the aforementioned integrated stove companies also face various challenges in talent, resources, and other aspects in technological fields such as artificial intelligence and intelligent driving. "The crossover of integrated stove enterprises seems more like a helpless move rather than a strategic upgrade. If they cannot establish a second growth curve in their main business, these investments are likely to become financial games," an unnamed industry insider admitted. Despite the industry downturn, only companies that combine technological accumulation with genuine user needs can weather the cycle. Integrated stove companies should not only seek survival externally but also rethink their value positioning and how to achieve long-term growth through innovation in their main business.

Latest data from the National Bureau of Statistics shows that from January to June 2025, industrial enterprises above designated size nationwide achieved total profits of 3.4365 trillion yuan, a year-on-year decrease of 1.8%. However, the manufacturing sector achieved total profits of 2.59006 trillion yuan, a year-on-year increase of 4.5%, becoming a key pillar of the industrial economy. Notably, manufacturing profits in June turned from a 4.1% decline in May to a 1.4% growth, indicating a stabilizing and recovering trend. From the perspective of sub-sectors, the rubber and plastic products, automobile manufacturing, and consumer electronics industries showed differentiated development characteristics. Source: National Bureau of Statistics Rubber and Plastic Products Industry Operating Under Pressure Source: National Bureau of Statistics Industry Fundamentals: The rubber and plastic products industry achieved total profits of 72.49 billion yuan, a year-on-year decrease of 2.8%, performing weaker than the overall manufacturing sector. From January to June 2025, the cumulative operating revenue of the rubber and plastic products industry reached 1.49064 trillion yuan, a cumulative increase of 3.7%. However, revenue growth failed to effectively translate into profit improvement, leaving the industry in an overall predicament of "increasing revenue without corresponding profit growth." This situation is mainly due to the dual pressure of rising costs and falling product prices, which is also intuitively reflected in the data. From January to June 2025, the operating costs of the rubber and plastic products industry reached 1.26637 trillion yuan, a year-on-year increase of 4.1%, outpacing the industry's revenue growth during the same period, indicating significant cost pressures. Meanwhile, product manufacturers struggled to fully pass on rising costs to downstream customers, leading to compressed profit margins. This imbalanced profit distribution between upstream and downstream sectors has put the rubber and plastic products industry at a disadvantage in the industrial chain. Divergent Performance Across Application Sectors In the first half of the year, among sub-sectors of manufacturing, the automobile manufacturing industry and the computer and communication equipment manufacturing industry stood out, with total profits of 244.42 billion yuan (+3.6%) and 302.41 billion yuan (+3.5%) respectively, leading industrial growth. In June alone, 4 out of 8 sectors in the equipment manufacturing industry saw profit growth. Among them, driven by factors such as rapid sales growth due to carmaker promotions and increased investment income of key enterprises, profits in the automobile industry surged by 96.8%; profits in electrical machinery, instrumentation, and metal products industries grew by 18.7%, 12.3%, and 6.2% respectively. Below is a brief analysis of the automobile manufacturing and consumer electronics industries. 1. Automobile Manufacturing Industry Leading Strongly As a pillar industry of the national economy, the automobile manufacturing industry demonstrated strong growth momentum in the first half of 2025. Particularly in June alone, profit growth soared to 96.8%, hitting a new high for monthly growth in recent years. This explosive growth was mainly driven by the continuous effectiveness of the national "trade-in" policies and the rapid penetration of the new energy vehicle (NEV) market. In the first half of 2025, the national NEV penetration rate exceeded 45%, an increase of 12 percentage points compared to the same period in 2024, driving upgrading and expansion of the entire automobile industry chain. Driven by vehicle manufacturers, demand for automotive plastic parts showed explosive growth, especially with the significantly increased application proportion of lightweight materials such as polypropylene (PP) and polyamide (PA) in engineering plastics for battery casings, interior parts, bumpers, and other components. Industry estimates suggest that the average plastic usage per NEV is higher than that of traditional fuel vehicles. With the rising NEV penetration rate, the market scale of automotive plastic parts is expected to further expand. 2. Continuous Recovery in Consumer Electronics The computer, communication, and other electronic equipment manufacturing industry showed a steady recovery trend in the first half of 2025, with computer 整机 manufacturing growing by 97.2% in June alone, becoming another key driver of manufacturing growth. This growth trajectory aligns with the recovery trend in the global consumer electronics market and reflects China's strong competitiveness and industrial chain advantages in consumer electronics manufacturing. In the first half of 2025, as inflationary pressures eased in major economies and consumer confidence recovered, global shipments of smartphones, tablets, personal computers, and other electronic products all achieved positive growth. According to a report by International Data Corporation (IDC), global smartphone shipments grew by 6.8% year-on-year in the second quarter, ending seven consecutive quarters of decline. As the world's largest electronics producer, China naturally became a major beneficiary of this recovery. The recovery in consumer electronics directly drove demand for supporting components such as plastic casings and insulating materials, with the proportion of high-value-added products such as modified plastics and environmentally friendly materials continuing to rise. Ongoing Effectiveness of Consumer Goods Trade-in Policies Analysis shows that the effectiveness of the "Two News and Two Keys" (focusing on new products, new models, key areas, and major projects) policies has been reflected in industrial enterprise profits, with rapid profit growth in electronics, home appliances, kitchen and bathroom, and other industries. In June, profits in smart unmanned aerial vehicle manufacturing, computer 整机 manufacturing, household air conditioner manufacturing, and household ventilation appliance manufacturing grew by 160.0%, 97.2%, 21.0%, and 9.7% respectively; profits in related sectors such as optoelectronic device manufacturing and computer component manufacturing increased by 29.6% and 16.9% respectively. Trade-in policies for consumer goods have been an important measure to boost consumption this year. Wu Gai, Deputy Director of the Economic Construction Department of the Ministry of Finance, recently stated that in the first half of the year, trade-in work for consumer goods achieved positive results, with sales of automobiles, home appliances, home decoration, mobile phones, and other commodities reaching 1.6 trillion yuan. Retail sales of home appliances and audio-visual equipment, cultural office supplies, communication equipment, and furniture by enterprises above designated size increased by 30.7%, 25.4%, 24.1%, and 22.9% year-on-year respectively, driving a 5% year-on-year growth in total retail sales of consumer goods. Summary The development of the rubber and plastic products industry is affected by both upstream and downstream sectors due to its position in the industrial chain. On one hand, strong demand from high-growth industries such as automobiles and electronics provides a broad market for related plastic products; on the other hand, fluctuations in raw material prices and higher environmental requirements bring cost pressures to enterprises. Under such circumstances, product innovation and process upgrading have become key for enterprises to break through difficulties. Overall, the rubber and plastic products industry is expected to show the following development trends in the future: first, continuous optimization of product structure with an increasing proportion of high-end plastic parts; second, accelerated technological innovation with continuous improvement in material performance and process levels; third, deepened green transformation with expanded application of environmentally friendly materials and energy-saving processes; fourth, strengthened industrial chain collaboration for joint development with downstream industries such as automobiles and electronics. Supported by national policies and guided by market demand, the rubber and plastic products industry is expected to achieve steady improvement in quality and efficiency during adjustments, providing strong support for high-quality development of the manufacturing sector. Editor: Lily              

"Vatti range hoods sell well in third- and fourth-tier cities; products priced at 1,000 to 2,000 yuan can meet the normal usage needs of these areas," a sales representative at Beijing's East Third Ring JD MALL told "Chuangye Zui Qianxian." "Range hoods are hard to break, but their specifications vary. For example, range hoods with higher wind pressure parameters can prevent heavy smoke backflow, making them suitable for urban households. However, in third- and fourth-tier county markets, it is difficult to sell range hoods and stoves that cost several thousand yuan." On the second floor of JD MALL, in the "JD Selected" best-seller area, various popular models from major home appliance brands on the JD platform are displayed. In the range hood and stove set area, products from Fotile, Robam, Midea, and Vatti are competing against each other. However, the salesperson's comment, "bestselling in third and fourth-tier cities," defined the positioning of this established home appliance company. Image / JD MALL Best-Selling Products Area The appliance brand, which was once known as the "Three Musketeers of Fang, Lao, and Hua" alongside Fotile and Robam, has now fallen significantly behind. In 2024, Vatti Corporation's revenue exceeded 6.3 billion yuan, while Fotile and Robam Appliances both achieved revenues of over 10 billion yuan during the same period. Currently, Vatti Corporation's market value exceeds 5.5 billion yuan, Fotile Group is not listed, and Robam Appliances' market value has surpassed 18 billion yuan. The traditional home appliance giant, which once set the "double hundred billion" goal, seems to have failed to seize the breakthrough direction of emerging high-end appliances after experiencing internal equity struggles and chaotic channels. Instead, it remains entrenched in the traditional kitchen appliance business for a long time. An elephant turning around is easier said than done.  1 "The first stock of kitchen appliances" becomes a laggard. Vatti Corporation, established in 1992, was born in Zhongshan, Guangdong. It initially engaged in the research and production of kitchen appliances. Nowadays, its product range covers traditional kitchen appliances such as range hoods and stoves, as well as emerging kitchen appliances like dishwashers, integrated stoves, and steam oven combos. In its early years, Vatti quickly opened up the market with its reputation for being affordable and high quality. In the year it was founded, its sales exceeded 40 million yuan. In September 2004, Vatti Co., Ltd. successfully listed on the SME board of the Shenzhen Stock Exchange, becoming the "first stock in the kitchen appliance industry." Vatti, which now appears somewhat desolate, also had its moments of glory. In 2006, Vatti became the exclusive supplier of gas appliances for the Beijing 2008 Olympic Games and successfully developed and manufactured the Olympic Games' "Xiangyun" torch. To this day, the Olympic "Xiangyun" torch they produced still hangs in a prominent position in Vatti's sales stores as a testament to their past glory. Image / Vatti Official Website In 2015, Pan Yejiang, who had just assumed the position of Chairman of Vatti, was 38 years old and full of vigor, much like Vatti itself, which was in its prime — that year, Vatti Co., Ltd. achieved a revenue of over 3.7 billion yuan and a net profit attributable to the parent company of 200 million yuan. The group's "double hundred billion" goal was also proposed in that year, aiming for both annual revenue and market value to exceed ten billion. At that time, this seemed like an easily achievable performance target for Vatti. In 2018, Vatti gained significant attention with its marketing campaign "If the French team wins the World Cup, Vatti will refund the full amount," which earned the company considerable public interest. However, the glory was soon replaced by performance fluctuations. In 2019 and 2020, Vatti Corporation's revenue decreased by 5.69% and 24.14% year-on-year, with the 2020 revenue even falling below 5 billion yuan. Although revenue has improved in the subsequent years, the company's net profit attributable to shareholders still declined by 49.17% and 30.98% year-on-year in 2021 and 2022, respectively. In 2024, driven by national subsidy policies, Vatti Corporation showed signs of recovery in its performance. The company's revenue exceeded 6.3 billion yuan, achieving a net profit attributable to the parent company of 485 million yuan, with year-on-year growth rates of 2.23% and 8.39%, respectively. By the first quarter of 2025, Vatti Corporation's performance changed again. The company's revenue and net profit were 1.26 billion yuan and 106 million yuan, with year-on-year growth rates of -8.8% and -14.33%, respectively. Vatti Corporation stated that the performance base in the first quarter of 2024 is relatively high, and last year's "national subsidy" policy drove a significant wave of sales at the end of the year, which has cannibalized the market demand at the beginning of this year. Meanwhile, the "window period" in the policy implementation for 2024 and 2025 has led to a decline in market demand in January and February. According to estimates by CICC, the contribution rate of the national subsidy policy to Vatti's revenue in 2024 is approximately 15%, while in 2025 this proportion drops to less than 5%, directly leading to a weakening of the company's growth momentum. As a downstream market of the real estate industry, the growth of the kitchen appliance sector also depends on the prosperity of the real estate market. In the first quarter of 2025, new projects in the Chinese real estate fine decoration market decreased by 38.9% year-on-year, and the market size decreased by 42.1%. The market lacks motivation for kitchen appliance replacements, and as a result, Vatti Corporation's products are naturally not selling as well as before. More importantly, compared to Fotile, which focuses on high-end kitchen appliances, and Robam, which is adept at creating the "wash and disinfect integration" concept, Vatti's brand positioning appears to be somewhat unclear. In 2023, Vatti upgraded its brand positioning to "Fashionable Scientific Kitchen Appliances," proposing the standard system of "easy to use, good-looking, and easy to clean." However, this positioning not only has vague boundaries but also struggles to leave a deep impression on consumers. Even the "Integrated Cooking Center," which is prominently promoted on the official Vatti website, doesn't have much presence in terminal stores. It features a dual-chamber steam oven below the stove, emphasizing a multifunctional cooking experience in a small space. The store sales staff only mentioned that it can be linked for cooking, with a separate range hood, and that other equipment can be paired below the stove, without providing much detailed information.   Image / Vatti Store's "Integrated Cooking Center" Declining performance and lack of distinctive products have caused the "first kitchen appliance stock" to lose its luster.  2 Infighting Aftermath Vatti Corporation is not a common family-owned business. The company was founded by seven people: Pan Quanzhi (Pan Yejiang's father), Huang Wenzhi, Huang Qijun, Guan Xiyuan, Li Jiakang, Deng Xinhua, and Yang Jianhui. Early on, the seven founders agreed to evenly split the shares and not allow relatives to enter the factory, earning them the nickname "The Seven Gentlemen of Vatti." However, the early agreement of "no relatives allowed in the factory" was gradually broken as the founding team aged, 20 years after the establishment of Vatti Corporation. In 2012, Youjia Electric merged with Baide Kitchenware. Pan Yejiang, the son of Pan Quanzhi, one of the "Seven Gentlemen of Vatti," is the founder of Youjia Electric. Baide Kitchenware was jointly founded by Pan Yejiang and his second uncle, Pan Jinzhi, and third uncle, Pan Yuanzhi. Image / Black & Decker Official Website Subsequently, Vatti Corporation acquired 100% equity of Bette Kitchen and Bath through a "share issuance + cash" method, and Pan Yejiang consequently entered the management team of the listed company. Immediately after, Pan Yejiang acquired the shares of several company veterans and quickly became the new actual controller of the listed company. Pan Yejiang's aggressive tactics and the contentious process of dismissing veterans led to continuous conflicts. The "Seven Gentlemen" members also sued Vatti Corporation, but ultimately lost the case. This internal power struggle only came to an end many years later. A decade-long internal power struggle within the management has also led to ongoing turbulence within Vatti. Over the ten years of Pan Yejiang's leadership, four general managers have been replaced, with an average tenure of less than two years, and the marketing system has undergone seven structural adjustments. The company proposed the "Double Hundred Billion" goal in 2015, which was changed in 2017 to "One Hundred Billion in Three Years, Number One in Five Years, Two Hundred Billion in Six Years." Subsequently, the company's performance declined, and this goal was no longer mentioned by the management. While most home appliance brands are focusing on emerging channels such as platform e-commerce and live-streaming e-commerce, Vatti's offline channels are unexpectedly thriving. According to Vatti Corporation's financial report, Vatti has now established an integrated online and offline omni-channel management system. In 2024, the company will continue to expand its offline channels, primarily through an agency system. These offline channels consist of distribution channels, LKA channels, major KA channels, innovative channels, and pre-installation channels, with a focus on differentiated product offerings. In 2024, the company will add more than 500 new offline franchise stores throughout the year and establish local life partnerships with multiple platforms such as Douyin, Meituan, and Amap, promoting over 1,500 offline stores to join online platforms. According to the financial report, in 2024, Vatti Corporation's revenue from offline channels, online channels, and engineering channels (referring to the business of appliance companies cooperating with real estate developers for kitchen appliance installations in furnished homes) were 3.148 billion yuan, 2.059 billion yuan, and 300 million yuan, respectively. The year-on-year growth rates were 11.07%, -5.95%, and -40.46%. Among these, the offline channel revenue accounted for 49.4% of the total, with a rapid year-on-year growth, contributing significantly to Vatti's performance. Vatti Corporation's financial report did not disclose the number of outlets for the main brand, but Vatti's official website only revealed two stores in the Beijing area. Image / Vatti Official Website According to "Entrepreneurship Frontline," a search for "Vatti Appliances" on Dianping only reveals two locations: the JD MALL in Chaoyang District and B&Q North Fourth Ring. However, the staff at the latter mall informed "Entrepreneurship Frontline" that Vatti had withdrawn from B&Q last month. Most of Vatti's products are priced the same online and offline. Combined with national subsidies and mall discounts (for example, the JD MALL offline promotion where spending over 10,000 yuan gets a 1,000 yuan discount, with a maximum discount of 3,000 yuan), some products may be a few hundred yuan cheaper offline than online. This might be one of the reasons for the growth in Vatti's offline channel sales. Notably, in 2024, the gross profit margin of Vatti Corporation's offline channels was 39.45%, a slight increase of 0.79% year-on-year; the gross profit margin of online channels was 49.78%, a year-on-year decrease of 1.42%. In terms of regions, Vatti has been continuously increasing its focus on second, third, and fourth-tier cities as well as township markets in recent years. In 2024, its new retail channel GMV growth rate reached 41.35%, with over 3,000 new stores opened, and the revenue share from lower-tier markets increased to 35%. However, relying too heavily on offline channels has also planted hidden risks for the company's future development. On one hand, the coverage area of offline channels is limited. It is not difficult to find from Vatti's official website that the layout of its stores in a city is mostly in single digits. In particular, home appliance and furniture malls are often sparsely populated. Vatti's offline channels still maintain rapid growth, but compared to the higher profit margins online, this may inevitably affect the company's profits. On the other hand, "Entrepreneurship Frontline" visited several brand stores and found that most kitchen appliances have limited smart features, primarily focusing on gesture control, smoke-stove linkage, and timed shut-off. Traditional parameters that demonstrate product functions are more convenient for young consumers to compare prices online, giving online channels greater growth potential.  3 Emerging Kitchen Appliances Have Reached the Next Level Unlike its peers who are vigorously developing emerging kitchen appliances such as integrated stoves and dishwashers, Vatti remains "committed" to the traditional kitchen appliance field. According to the financial report, in 2024, apart from the sales of 2.537 million units of range hoods, which increased by 7.22% year-on-year, the sales of stoves, disinfecting cabinets, and cabinets declined by 0.57%, 18.96%, and 57.59%, respectively. During the same period, the three major categories of the company – range hoods, stoves, and water heaters – contributed over 86.8% of the revenue, while other kitchen equipment and related businesses accounted for only 13% of the total revenue. Although Vatti has repeatedly emphasized its high-end brand positioning in its financial reports, the company still focuses on traditional range hood and stove products, which also indirectly indicates that it is gradually losing its voice in the high-end kitchen appliance market. "Vatti range hoods and stoves can meet basic needs, but if it's for young people's new home renovations, they tend to choose brands with better specifications like Fotile and Robam," the aforementioned sales personnel stated. "In terms of emerging kitchen appliances like dishwashers and steam ovens, if the budget permits, people will consider brands like Robam, Casarte, or even Siemens. However, at the same price, consumers are more inclined to buy Midea, as it offers high cost-effectiveness, with a steam oven priced at just over 3,000 yuan. Vatti's dishwashers sell less." As consumers' living standards improve and consumption concepts shift, the demand for emerging kitchen appliance categories such as integrated stoves, dishwashers, and steam ovens has grown rapidly. However, Vatti, which has been slow in transitioning to high-end products, seems to have missed this opportunity for upgrading in the kitchen appliance industry. For example, Midea has invested tens of millions to enhance emerging kitchen appliance categories. Since entering the integrated dishwasher market in 2021, its performance has doubled for three consecutive years. Haier's smart kitchen scenario also integrates a series of emerging kitchen appliance categories, such as integrated stoves and dishwashers. FOTILE, Robam, and other "veteran players," along with "new players" like Martian and Zhejiang Meida, are also vying for the emerging kitchen appliance market. Fotile has entered the scenario-based market with its integrated cooking centers, achieving a customer unit price exceeding 20,000 RMB. Meanwhile, Zhejiang Meida has bet on integrated stoves, reaching a peak profit scale of 665 million RMB. From the research and development perspective, the investment of kitchen appliance companies in emerging categories is more evident. In 2024, Vatti Corporation's R&D investment amounted to 263 million yuan, with an R&D expense ratio of 4.13%. During the same period, Marsman Company's R&D investment was 107 million yuan, with an R&D expense ratio as high as 7.78%. As two kitchen appliance companies with similar market values, Marsman's stock price is more than twice that of Vatti, and its R&D expense ratio is also significantly higher than Vatti's. In terms of patents, in 2024, Vatti Corporation added 885 new patent technologies, bringing the total number of patents to 4,416. In comparison, Fotile has accumulated 15,000 authorized patents, with more than 4,000 of them in the range hood category. In recent years, Vatti has been committed to creating the "Fashion + Kitchen" concept and launched the "Clean Kitchen Solution." Pan Yejian also stated the intention to focus on the national-level issue of kitchen cleanliness. During visits to multiple kitchen appliance brand stores by "Entrepreneurial Frontline," it was found that Vatti's brand positioning and product features are not prominent. When introducing products at different price points, Vatti store salespeople did not highlight the "clean" technology feature of the product. Its smoke-stove linkage and timed ignition functions are also common features in current smoke and stove products. In contrast, although the stores of Fotile, Robam, and Mars are not large, Fotile's range hoods feature a concealed and flush design as their main characteristic. Robam's dishwashers focus on "washing and disinfecting in one," while Mars' integrated stoves not only have a dishwasher set below the cooktop but also offer an integrated sink. Each has its flagship products and distinctive memorable features. Vatti stores primarily feature kitchen hood and stove sets, while dishwashers and integrated products occupy less space. In contrast, Fotile and Robam dishwashers and steam-oven combination appliances take up more prominent positions. From online channels, it is not difficult to find the weakness of Vatti in the sales of emerging kitchen appliances. The flagship models of Boss and Fotile's steam oven have sold thousands or even tens of thousands of units, while Vatti's steam oven sales are only 300+. Moreover, their dishwasher sales are only in two digits. ◀ Swipe to see more ▶ Image / Vatti Tmall Flagship Store Traditional kitchen appliance business and offline channels are undoubtedly Vatti's comfort zone. However, as the kitchen appliance industry itself enters a more high-end and intelligent era, Vatti finds it difficult not only to catch up with long-standing competitors like Fotile and Robam in the short term, but also faces challenges from emerging brands aiming for overtaking in curves. In the era of emerging kitchen appliances, Vatti is facing a comprehensive siege, and there is not much time left for it. *Note: The featured image in the text is from the official website of Vatti; other uncredited images are from Shetu.com, based on the VRF protocol.

Since 2025, the National Development and Reform Commission, in earnest implementation of the Party Central Committee and the State Council's decision to carry out the "Two New" policies, has collaborated with relevant departments and localities to strengthen coordination at different levels. It rapidly established a policy system for exchanging old consumer goods for new ones, orderly allocated ultra-long-term special treasury bonds, and continuously improved the working mechanism during implementation, promoting significant success in the exchange of old consumer goods for new ones. As of July 16, 2025, a total of 280 million people nationwide have applied for subsidies for exchanging old consumer goods for new ones, driving related product sales to exceed 1.6 trillion yuan. In the first half of the year, retail sales of home appliances and audiovisual equipment, cultural office supplies, communication equipment, and furniture in units above designated size increased by 30.7%, 25.4%, 24.1%, and 22.9% year-on-year, respectively. Passenger car retail sales grew by 10.8%, supporting a 5% year-on-year increase in the total retail sales of consumer goods. With the help of the trade-in policy, the home appliance market showed resilient growth in the first half of 2025. According to data compiled by AVC (AVC), the retail sales of China's home appliance market (excluding 3C) increased by 9.2% year-on-year from January to June 2025. The third batch of 69 billion yuan in national subsidies has been allocated, and the fourth batch is on the way. In the field of trade-in for consumer goods this year, two batches of central funds totaling 162 billion yuan were allocated in January and April to support localities in carrying out trade-in work for consumer goods in the first and second quarters. Previously, some areas suspended national subsidies for certain consumer goods due to the exhaustion of trade-in subsidy funds. However, with the latest batch of national subsidy funds now allocated to the localities, the national subsidies will continue. Recently, the National Development and Reform Commission, together with the Ministry of Finance, has allocated the third batch of this year's ultra-long-term special government bonds totaling 69 billion yuan to local governments to support the trade-in of consumer goods. Next, efforts will continue to strengthen overall coordination, enhance monitoring and scheduling, improve implementation mechanisms, and steadily and orderly advance the trade-in of consumer goods. One is to continue to disburse central funds in an orderly manner. As planned, the fourth batch of 69 billion yuan of super long-term special treasury bonds will be issued in October this year to support local implementation of the policy for upgrading consumer goods. Second, promote the balanced use of funds by local governments. In collaboration with the Ministry of Finance, the Ministry of Commerce, and other departments, urge local governments to detail fund utilization plans by sector and time period, optimize subsidy distribution methods, and ensure that policy implementation is more smooth and orderly, with funds being used in a balanced manner until the end of the year. Third, continuously improve the policy implementation mechanism. In collaboration with the Ministry of Commerce, the State Administration for Market Regulation, and other departments, strengthen the supervision of product quality and pricing, urge participating enterprises to operate in accordance with laws and regulations, strictly prevent risks such as "price hikes before subsidies" and fraudulent subsidy claims, ensure the standardized implementation of policies, and fully leverage the effectiveness of the "Two New" policies. For the home appliance industry, the signal that national subsidy policies continue to increase is already clear. This is the critical period to seize policy dividends and ride the momentum. With the implementation of the third batch of funding and the advancement of subsequent measures, consumers' demand for upgrading home appliances will usher in a new wave of growth. This is especially true for energy-saving and smart products, whose market space will further expand, injecting growth momentum into the continuous recovery of the home appliance market.

After the power bank controversy, companies represented by Huawei, Anker Innovations, and EVE Energy began planning and discussing how to promote the mobile power bank industry’s transformation from a "price war" to a "quality war." According to information from the China Chemical and Physical Power Supply Industry Association, the association recently organized a symposium on compliance guidance and healthy development of the power bank industry in Shenzhen. This symposium received strong support from the Shenzhen Municipal Market Supervision Administration and the Shenzhen Municipal Bureau of Industry and Information Technology. Reference image (Source: Times Financial Image Library) The meeting gathered representatives from the Shenzhen power bank and lithium battery industry chain, including enterprises such as PISEN, Huawei, UGREEN, Baseus, Anker Innovations, TORRAS, Sunwoda, and EVE Energy. They conducted in-depth discussions on topics such as improving the quality of power bank products and perfecting the quality control system, reaching significant consensus. At the meeting, Liu Tianpeng, Deputy Secretary-General of the Mobile Power Bank Branch of the China Chemical and Physical Power Industry Association, stated that the current domestic power bank market size is approximately 15 billion yuan (excluding the shared power bank rental market capacity). Nationwide, more than 700 companies have obtained the mobile power bank CCC certification, with about 286 certified manufacturing companies in Shenzhen alone. The industry exhibits an "ant market" distribution, with a certain degree of internal competition and malicious low-price competition. According to information released by the State Administration for Market Regulation, as of July 25, a total of 8,756 CCC certificates for power banks have been suspended nationwide, 609 have been revoked, and there are 4,967 valid certificates. Liu Tianpeng stated that in the future, the government will increase the frequency of market inspections, especially targeting low-quality and low-priced power bank products, enhancing regulatory efforts and imposing harsher penalties on non-compliant products and companies. In addition, the new national standards for power banks are currently being expedited for drafting. These standards will impose stricter requirements on the essential safety indicators of power bank batteries, intelligent power management and protection of power banks, and key control requirements during the production process of critical components such as battery cells. It is expected that many non-compliant small enterprises will be largely eliminated. As Shenzhen is a major production hub for power banks nationwide, the industry chain should strengthen collaborative innovation, actively invest in technological research and development, improve product quality, and prepare to meet the new national standards. "With the national standards for mobile power supplies becoming increasingly strict and the improvement of product quality, the industry is undergoing a strategic transition from a 'price war' to a 'quality war.' This shift has profound significance for rebuilding the market trust system and promoting the sustainable development of the industry. Given consumers' rigid demand for portable energy access, the overall market capacity for mobile power supplies in China is expected to continue to rise," said Liu Tianpeng. Previously, on July 15, the Ministry of Industry and Information Technology announced that it is openly soliciting opinions on the project of formulating and revising the "Safety Technical Specifications for Mobile Power Supplies." The mandatory national standard to be formulated this time will set stricter technical standards for mobile power supplies, including power banks. Recently, the State Administration for Market Regulation issued the "Notice on Conducting a Concentrated Rectification of Power Bank Quality and Safety," instructing market regulation departments across the country to carry out a nationwide concentrated rectification of power bank quality and safety from July to September 2025. This aims to comprehensively strengthen the quality and safety supervision of power bank products, effectively safeguarding the lives and property of the people as well as public safety. On July 11, the China Chemical and Physical Power Supply Industry Association organized a joint discussion with representatives from the mobile power bank and lithium battery industry chain. They reached a consensus on strengthening industry self-discipline to correct the development misconception of “prioritizing cost over safety” and to curb unhealthy price competition at the expense of quality. The association also called on the entire industry to jointly uphold the "Self-Discipline Initiative for the Mobile Power Bank Industry." The "Industry Self-Discipline Initiative for Power Banks" proposes the following: First, adhere firmly to the safety baseline and build a solid foundation of quality. Strictly implement the national CCC certification regulations, establish a comprehensive quality monitoring system covering the entire production process, ensure full-process consistency checks of key parameters such as battery cells, strictly follow on-site production sampling inspection requirements, guarantee that mass-produced products are completely consistent with inspection samples, and thoroughly eliminate false compliance behaviors such as "certifying one set while producing another." Second, it is necessary to improve the quality control system and strictly manage the supply chain. Establish a fully digital traceability mechanism for key components such as battery cells and protection boards, strengthen incoming material quality inspection, collaborate with qualified and compliant enterprises to dismantle defective products, and ensure that defective battery cells do not re-enter the market. Thirdly, strengthen technological innovation to enhance intrinsic safety. Increase investment in safety technology research and development to improve the intrinsic safety of battery cell products and enhance the protective design of electronic circuits in power banks. Utilize advanced detection technologies to identify potential defects and hazards in the battery production process, eliminating risks of internal short circuits caused by foreign objects at the microscopic level during cell manufacturing. We must work together to build an industry ecosystem and resist malicious competition. Refuse to purchase inferior battery cells, and do not rely solely on unit price as the core criterion for battery cell procurement. Choose battery cells that have been certified by CCC. 5. Enhance communication with users and fulfill social responsibilities. Establish a consumer communication mechanism: proactively disclose defective models, involved batches, and risk principles of recalled products; open a "dedicated recycling channel" to prevent consumers from retaining risky products due to refusal of courier delivery; strengthen publicity through public media to guide the public to purchase power banks with CCC certification marks. It is understood that this symposium focused on introducing the "Mobile Power Industry Self-Regulation Initiative." The participating company representatives unanimously expressed their intention to actively respond to the initiative's call, driven by technological innovation and anchored in quality and safety, to strictly adhere to the new CCC certification regulations and regulate market behavior.

Recently,Satellite ChemistryPublishedThe semi-annual performance forecast for 2025 shows an expected net profit attributable to shareholders of the listed company to be between 2.7 billion and 3.15 billion yuan, representing a year-on-year increase of 31.32% to 53.20%.。 What are the profitable secrets of satellite chemicals? What is the production capacity situation? Which projects are about to be put into operation this year? Let's take a look below. 1. LayoutWhy is starting with C2/C3 so profitable? Satellite ChemistryStarting from the C3 industrial chain (acrylic acid and esters) in 1992, and entering the C2 industrial chain (ethane cracking to produce ethylene) in 2017, the company has gradually developed into a leading domestic light hydrocarbon chemical enterprise through vertical integration expansion and technological innovation. Since 2021, it has been expanding into high-end new materials and new energy sectors. Satellite ChemistryLong-term layout of basic chemical raw materials and derivatives, including propylene, acrylic acid and esters, ethylene glycol, ethylene oxide, polyethylene, polystyrene, polyether monomers, and superabsorbent resin.These products have mature application scenarios, covering multiple fields such as plastics, textiles, building materials, and sanitary products. The market demand is stable but highly competitive, and the profit margins are limited under traditional production models. Star ChemistryHow to achieve thisHigh performance growthOn the one hand, there are new technologies, such asSatellite Chemicals has also developed a green, low-energy process for the efficient catalytic hydration of ethylene oxide to produce ethylene glycol, achieving a high conversion rate of ethylene oxide.More than 99.995% ethylene glycol selectivity improvement, cost per ton reduction, and annual efficiency increase of over 100 million yuan. On the other hand, it is aimed at high-end.Overall, when olefin integration enterprises extend to the downstream of the industrial chain, the higher the technical requirements, the stronger the profitability usually is. POE, EAA, α-olefins, and other new materials belong to the high value-added sector, with technical capability being their core competitive advantage. What is the potential for domestic substitution in high-end downstream products of C2 and C3 chains?Satellite ChemistryIndicates,Currently, the domestic industryThe structural problem of "oversupply in the low-end and shortage in the high-end" is becoming increasingly prominent.High-end polyolefin The self-sufficiency rate is only65% of high-end polyethylene and POE products are highly dependent on imports. High-end polyethylene materials have good economic benefits and extremely high technical barriers. The technical challenges of high-performance catalysts, polymerization processes, and comonomers remain key factors hindering the increase in the localization rate of high-end polyolefin materials.In the future,==Leverage the first-mover advantage fully.Promote the localization process of high-end polyolefin materials.   2. Key Satellite Chemical Projects Inventory The key to profitability in the olefin industry chain lies in moving towards downstream segments with high technical requirements and high added value. Satellite Chemical has seized this point and laid out a series of key projects, as detailed below: 1、Total Investment266 billion yuan！High-end New Materials Project On the morning of June 24, 2024, the domestic first α-olefin comprehensive utilization high-end new materials industrial park project (hereinafter referred to as the high-end new materials project), invested and constructed by Satellite Chemical in Xuwei New District, Lianyungang, officially commenced construction. Total investment in the high-end new materials projectThe project, with an investment of 26.6 billion yuan, adopts independently developed high-carbon α-olefin technology to extend downstream into high-end polyolefins, polyethylene elastomers, lubricating oil base oils, ultra-high molecular weight polyethylene, and other high-end new materials.The market space is vast, and the by-product hydrogen is utilized as a resource to promote the construction of a new energy system. The project is constructed in two phases. The situation for the first phase is investment.12.15 billion yuan, mainly for construction.Two sets of 100,000 tons/year α-olefin (LAO) units, one 900,000 tons/year polyethylene unit (45×2) #3, one 450,000 tons/year polyethylene unit #5, one 120,000 tons/year butadiene extraction unit #2, one 260,000 tons/year aromatics processing integrated unit, and supporting 2,000,000 tons/year raw material processing unit #3 (including WAO supporting unit).Warehousing,LNG storage tanks, auxiliary facilities, and off-site pipelines projects. Phase II main construction3 sets of 100,000 tons/year alpha-olefin (LAO) units, 3 sets of 200,000 tons/year polyolefin elastomer (POE) units, 1 set of 30,000 tons/year polyalpha-olefin (PAO) unit, 1 set of 350,000 tons/year poly** unit.#and supporting 2 million tons/Year Raw Material Processing Unit 4#Warehousing, auxiliary facilities, off-site pipelines, and other projects. Regarding Recent Developments！On July 16th, the environmental impact assessment for the polyethylene elastomer industrial pilot plant project of Lianyungang Petrochemical Co., Ltd. was accepted! The project involves an investment of 140 million yuan to construct a polyethylene elastomer industrial pilot plant, building a new set of industrial pilot facilities capable of producing 500 tons per year of C4 polyethylene elastomer or 600 tons per year of C8 polyethylene elastomer.   2. Investment3 billion！Satellite ChemistryEnhance high performanceCatalyst The year 2025On June 20th, Satellite Chemical announced at a major project signing ceremony held in the Nanhu District of Jiaxing that it will invest 3 billion yuan to construct high-performance catalytic...New MaterialsThis strategic layout marks a crucial step for the company in its transition towards becoming a low-carbon chemical new materials technology enterprise. The project will focus on creating an industrial platform that integrates the research, production, and application of catalysts, covering ethylene production.High-end products such as α-olefin catalysts and polyolefin elastomer catalysts are considered core technologies in the chemical industry chain. Breakthroughs in high-performance catalysts will strongly support Satellite Chemical's development in the four strategic areas of new energy materials and new polymer materials. In recent years, Satellite Chemical has continuously increased its investment in research and development, achieving significant breakthroughs in several catalyst fields. Its independently developed ethylene production...Both 1-octene catalysts and POE catalysts have been industrially validated, achieving an advanced international level of technology. The company currently holds over 500 global patents, with catalyst-related patents accounting for 20%. 3、Total Investment 440 million yuan！A 90,000-ton acrylic acid and 100,000-ton refined acrylic acid project. On January 6, 2025, Satellite Chemical commenced the construction of a project in Nanhu District, Jiaxing, with an annual production capacity of 90,000 tons of acrylic acid and 100,000 tons of refined acrylic acid, with a total investment of 440 million yuan. The project covers an area of 38,000 square meters and is expected to generate an additional annual output value of 1.36 billion yuan and tax revenue of 195 million yuan after it becomes operational. Currently, the satellite chemical company contracted by China Chemical Equipment Technology Co., Ltd.The tower heat exchanger (crystallizer) for the expansion project of 90,000 tons/year of acrylic acid and 100,000 tons/year of refined acrylic acid has been successfully shipped. It is mainly used for purifying general acrylic acid into high-purity acrylic acid and processing super absorbent polymer (SAP), thus laying a solid foundation for raw materials in the high-end resin layout.  Investment of 1.2 billion yuan!300,000-ton Super Absorbent Polymer (SAP) Project The year 2025January 18th，Satellite ChemistryOfficially sign the annual production at the headquarters.The 300,000-ton Super Absorbent Polymer (SAP) project was personally chaired by Chairman Yang Weidong. The total investment for this project is 1.2 billion yuan, and it will involve the construction of a 56,000 square meter production base. Once completed, it will become a significant part of the domestic SAP production capacity layout. Superabsorbent resin(SAP)It is a hydrophilic polymer compound with a loosely cross-linked network structure. Over 90% of SAP is used in the hygiene products field (among which baby diapers account for approximately 70%, adult incontinence products account for approximately 17%, and feminine hygiene products account for approximately 9%).   3. Can the progress towards high-end transformation live up to expectations? Satellite ChemistryHow far can we go on the path of high-end and domestic development? The key lies in two aspects.。 1、Stability of core material supplyHow to ensure? Satellite Chemical's core response to the scenario where "other countries globally are planning ethane feedstock process production lines and in the next two to three years, U.S. ethane may be consumed by more countries" lies in building a raw material supply barrier based on its existing unique advantages. The company, through joint ventures with suppliers, owns proprietary ethane pipelines and export facilities and has established a mature ethane shipping fleet. These supporting conditions, in the current global context of insufficient ethane pipelines and export facilities and a scarcity of specialized shipping vessels, become its unique competitive advantage. This ensures a stable supply of ethane feedstock, providing critical support for the continuous advancement of high-end, domestic projects, and allows the company to maintain its footing amidst potential challenges of raw material constraints. 2、 Can POE, which is highly dependent on imports, turn the situation around? While ensuring a stable supply of ethane feedstock and laying a solid foundation for high-end and domestic production, Satellite Chemical also demonstrates strong capabilities in breaking the dependency on imported key materials, especially in The field, which is highly dependent on imports, has significant advantages. As the core material for photovoltaic encapsulation films, POE is in high demand in fields such as photovoltaics and new energy vehicles due to its excellent electrical insulation, aging resistance, and high and low-temperature performance. However, the domestic market has long been highly dependent on imports. Satellite Chemical, through the independent development of high-selectivity ethylene tetramerization technology to produce high-purity 1-octene, has successfully overcome the raw material bottleneck in POE production. This technology has high barriers and provides core support for the localization of POE. Satellite Chemical stated that the company The industrialization of the POE project is steadily progressing, with plans to commence production as soon as possible. This will not only effectively alleviate the current reliance on imports for POE in the domestic market but also enable the company to leverage its technological advantages and industrial chain synergy to gain a foothold in this high-potential market. This further solidifies its leading position in the localization of high-end new materials. Sources: Huizheng Consulting, Polyolefin People, International Financial News, Chemical New Materials