Huatai Securities' research report highlights that during the first half of the year, the profitability of bulk chemical companies hit a low ebb. Nevertheless, downstream products and fine chemicals demonstrated an overall uptick, buoyed by sectors such as automotive and home appliances. In the second quarter, the oil and gas industry chain grappled with pressures; however, some midstream products within the bulk chemical sector began to show signs of improvement in their supply and demand dynamics. Although the profitability of downstream products and fine chemicals has experienced only marginal enhancements due to export impacts, it is anticipated that as the negative repercussions of overseas tariff policies gradually wane, coupled with a projected decrease in industry capital expenditures in the latter half of 2025, along with improved exports to Asia, Africa, and Latin America, as well as a rebound in domestic demand, the industry's fortunes are expected to steadily improve. In the short term, it is prudent to concentrate on product varieties that exhibit resilience in both domestic and international demand, as well as those where the competitive environment improves first, such as refrigerants and amino acids, along with downstream sectors like modified plastics and additives.