According to the Zhitong Finance APP, Donghai Securities released a research report stating that the quota for second-generation refrigerants will be reduced in 2025, while the total production quota for third-generation refrigerants will remain at baseline levels. The supply-demand relationship for second and third-generation refrigerants is still tightening. Since 2025, refrigerant prices have been steadily rising, with ZJJH and Yonghe announcing significant year-on-year growth in their semi-annual net profits. The refrigerant industry is expected to maintain a high level of prosperity, and the profitability of related production enterprises is likely to improve significantly.

Key points from Donghai Securities:

In June 2025, third-generation refrigerant prices rose, while fluoropolymer prices slightly declined.

As of June 30, 2025, according to Baichuan Yingfu data, the prices of third-generation refrigerants R32, R125, and R134a were 52,500 yuan/ton, 45,500 yuan/ton, and 49,000 yuan/ton, respectively, increasing by 2.94%, 0%, and 1.03% compared to the end of April. The price of R22 was 35,000 yuan/ton, down 1,000 yuan/ton from the previous month, but up 16.67% year-on-year; the price difference was 26,990 yuan/ton, down 1.53% from the end of last month. After a rebound, fluoropolymer prices showed fluctuations. As of June 30, 2025, the prices of PTFE suspension medium particles, dispersion emulsions, and dispersion resins in China were 38,300 yuan/ton, 29,000 yuan/ton, and 41,000 yuan/ton, respectively; the prices of PVDF granules, powders, and lithium battery grades were 62,000 yuan/ton, 60,000 yuan/ton, and 55,000 yuan/ton, respectively; HFP was priced at 33,500 yuan/ton.

In July, air conditioning production showed a year-on-year decline, and production in August and September is expected to continue to decline year-on-year.

According to data from the industry online, the total production of household air conditioners in China from July 2025 to September 2025 was 15.8 million units, 11.2295 million units, and 10.6497 million units, with year-on-year growth rates of -1.96%, -4.60%, and -12.80%, respectively.

Industry News

ZJJH and Yonghe announced semi-annual performance forecasts. ZJJH expects its net profit attributable to shareholders of the listed company for the first half of 2025 to be between 1.97 billion yuan and 2.13 billion yuan, an increase of 1.136 billion yuan to 1.296 billion yuan compared to the same period last year, representing a year-on-year growth of 136% to 155%. Yonghe expects its net profit attributable to shareholders of the listed company for the first half of 2025 to be between 255 million yuan and 280 million yuan, an increase of 142 million yuan to 167 million yuan compared to the same period last year, representing a year-on-year growth of 126.30% to 148.49%.

Target Aspects

It is recommended to pay attention to leading companies in the refrigerant industry and fluorochemical production enterprises with a relatively complete industrial chain, such as ZJJH (600160.SH), Sanmei Co., Ltd. (603379.SH), and related fluorochemical raw material companies like Jinshi Resources (603505.SH).

Risk Warning

Risks related to changes in refrigerant quota policies; risks related to changes in raw material prices; risks related to demand falling short of expectations