Core Viewpoint - Since 2025, gold and silver indices have shown significant increases, influenced by various factors including inflation rates, interest rates, and supply-demand dynamics [1] Inflation - The Consumer Price Index (CPI) peaked at 9.1% in June 2022 and has since shown a moderate decline, with core CPI and core Personal Consumption Expenditures (PCE) also trending downwards. However, CPI rebounded in February 2024, with June 2025 CPI rising 2.7%, exceeding expectations, and core CPI at 2.9%, in line with forecasts. PCE figures for June 2025 also surpassed market expectations, indicating a two-month inflation increase [1] Interest Rates - U.S. mid-term treasury yields have fluctuated, declining until January 2023, then rebounding since February 2024, approaching last year's highs before retreating again. The yields are currently experiencing wide fluctuations near 24-year lows [1] Supply and Demand - The gold market is experiencing a tight balance between supply and demand, with a slight increase in domestic supply and a notable rise in investment demand. Central banks continue to purchase over 1,000 tons of gold, maintaining a tight balance in the domestic market. Investment demand is expected to surge in the first half of 2025 [1] Employment Data - In July 2025, the U.S. added 73,000 jobs, marking a nine-month low, with average hourly earnings growth steady at 0.3% and an unemployment rate of 4.2%. Non-farm employment data significantly underperformed expectations [1] Market Outlook - Recent trends show gold futures rising after a strong opening, with Chicago gold surpassing previous highs. The focus is on whether Shanghai gold can break through its upper range. The market has been consolidating for several months, with potential support at the lower range. In the second half of 2025, central bank purchases, ETF investments, and a weak dollar are expected to support gold's wide fluctuations. A Fed rate cut is anticipated in September, with potential for further gold price increases in Q4 [1] Investment Strategy - The recommendation is to hold long positions in gold and observe market conditions for potential increases in positions, while maintaining a cautious stance on options [1]

Financial Data and Key Metrics Changes - The company recorded revenue of $481.2 million, a slight reduction of 1.4% year-over-year, but an increase of $58.2 million sequentially from Q1 [15] - New and used equipment sales in the Construction and Master Distribution segments increased by $24.7 million year-over-year, a 15.4% increase, while Material Handling segment sales decreased by $8.3 million [15][16] - Adjusted EBITDA for the quarter was $48.5 million, with a free cash flow before rent to sell decisioning of approximately $32 million [21][22] Business Line Data and Key Metrics Changes - The Construction Equipment segment saw new and used equipment sales increase by nearly $22 million, a 15% increase year-over-year, driven by strong demand in northern regions [17][19] - Material Handling segment revenues were modestly up quarter-over-quarter, but down year-over-year due to cautious spending among automotive and general manufacturing customers [7][19] - Master Distribution segment revenues increased by 25% to $20.9 million, driven by stronger dealer engagement and channel activity [9] Market Data and Key Metrics Changes - The Midwest and Canadian operations outperformed last year, particularly in aggregate and mining markets, while Florida's market remains resilient despite temporary pauses in private nonresidential projects [6][19] - The Material Handling customer base has been more affected by trade policy uncertainties, particularly among larger customers with greater import/export exposure [20] Company Strategy and Development Direction - The company is focused on capital allocation strategies, including a $30 million buyback program, and has repurchased nearly 1.2 million shares at an average price of $5.64 [11][25] - The outlook for the remainder of the year remains encouraging, especially with potential benefits from tax incentives in the One Big Beautiful Bill [11][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the business model and the diversity of end markets providing stability through down cycles [11] - There is confidence in the construction segment's backlog and customer sentiment, which is expected to drive equipment purchases despite macroeconomic uncertainties [39] Other Important Information - The company continues to optimize its product support business, specifically in the construction segment, to drive labor gross margins higher and reduce SG&A spend [16] - The adjusted EBITDA guidance for 2025 has been slightly trimmed to a range of $171.5 million to $181.5 million, primarily due to tariff impacts and expected continued drag in product support and rental departments [23] Q&A Session Summary Question: Impact of the Big Beautiful Bill on demand - Management expects the Big Beautiful Bill to impact construction more than other segments, with potential benefits seen primarily in Q4 2025 [30] Question: Material Handling customer hesitancy - Bookings in July were strong, indicating that customer hesitancy may be subsiding, particularly for fleets due for replenishment [32][34] Question: SG&A discipline and expectations for the second half - Management believes they have found a good level for fixed costs and expects to maintain that level, while being open to increasing variable expenses related to sales [36] Question: Construction activity and customer purchasing behavior - Confidence in backlog is the primary driver for customer equipment purchases, with tax benefits being a secondary factor [39][40] Question: Geographic performance in construction - Florida remains strong, while other manufacturing-oriented regions show softer sentiment [46][48] Question: M&A opportunities - The company sees opportunities in M&A, particularly related to succession planning issues rather than solely economic cycles [50][51] Question: Margin profile and competitive environment - Margins are stabilizing, particularly in heavy equipment, while compact equipment faces more challenges [56][58] Question: Rental fleet utilization and rates - Utilization has improved but is still below targets, with rental rates remaining stable across product categories [59][62]

Financial Data and Key Metrics Changes - Consolidated sales for the second quarter were $155.5 million, with adjusted EBITDA attributable to DMC at $13.5 million, exceeding the guidance range of $10 million to $13 million [3][4] - Adjusted EBITDA margin was 10.4%, down from 11.4% in the first quarter and 14.3% in the second quarter of the previous year [8][9] - Total debt decreased by 17% to approximately $59 million, with net debt reduced to roughly $46 million [7][10] Business Line Data and Key Metrics Changes - Arcadia's Building Products business reported second quarter sales of $62 million, down 5% sequentially and 11% year-over-year, reflecting weakness in the high-end residential market [3][4] - DynaEnergetics, the energy products business, had sales of $66.9 million, up 2% sequentially but down 12% year-over-year due to pricing pressure and weaker demand [4][5] - NobelClad's Composite Metals business reported sales of $26.6 million, down 5% sequentially but up 6% year-over-year, with a backlog of $37 million [5][6] Market Data and Key Metrics Changes - The high-end residential market and construction activity are facing challenges due to persistently high interest rates, impacting overall building activity [4][11] - NobelClad experienced a slowdown in bookings as customers await clarity on tariff actions, leading to lost business to non-U.S. suppliers [6][11] Company Strategy and Development Direction - The company is focused on deleveraging its balance sheet and strengthening its financial position in anticipation of future market recovery [3][7] - Arcadia is rightsizing its cost structure to align with current market conditions while refocusing on core exterior operations [4][11] - The company aims to prepare for the potential acquisition of the remaining 40% stake in Arcadia by late next year [15] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges due to high interest rates and uncertainty in the construction market, but expressed optimism about pent-up demand once conditions improve [13][14] - The company is maintaining tight cost controls and focusing on improving customer service and lead times [26][29] - Future guidance reflects macroeconomic concerns and the potential for volatility due to tariff policies and energy prices [11][12] Other Important Information - The company expects second quarter consolidated sales to be in the range of $142 million to $150 million, with adjusted EBITDA expected between $8 million and $12 million [10][11] - The company has made significant progress in improving its financial flexibility and reducing costs across its business segments [15] Q&A Session Summary Question: What is the impact of weakness in Arcadia? - The weakness is split between the high-end residential segment and deferred commercial projects due to tariffs and high interest rates [19][20] Question: What initiatives are being taken to drive profitability in Arcadia? - The focus is on improving customer service and reducing lead times, with no additional headcount until volume returns [26][27] Question: How is the balance sheet performing? - The business has performed well in net working capital, with expectations to convert EBITDA into free cash flow at a rate of 40% to 45% [34] Question: What are the expectations for Dyna's sales in the second half? - Sales are expected to trend lower in the primary U.S. markets, consistent with other players in the oilfield services space [56][57] Question: How are tariffs impacting pricing and costs? - Arcadia has successfully passed along tariff-driven increases, while NobelClad faces challenges due to project delays and demand impacts [48][50]

Summary of Conference Call Notes Industry Overview - The discussion primarily revolves around the bond market and its relationship with inflation, interest rates, and macroeconomic policies in the context of the Chinese economy [1][2][3][4][5][6][8][9][10][11][12][13]. Key Points and Arguments 1. **Market Sentiment and Interest Rates** - Short-term market sentiment is influenced by the results of Sino-US negotiations, unexpected tightening of funds, and rising stock markets, which collectively exert pressure on interest rates [1][2][11]. - The bond market experienced poor performance in July due to rising interest rates and market volatility, driven by policy expectations and structural policies [2][8]. 2. **Inflation and Demand-Supply Dynamics** - The potential for inflation to rise due to anti-involution policies hinges on the demand side stabilizing and supply-side contraction, but the sustainability of demand remains uncertain [1][3][4][5]. - The Producer Price Index (PPI) typically influences interest rates, but if the increase is solely supply-driven without demand support, the impact on the bond market will be limited [6][7]. 3. **Future Monetary Policy Expectations** - There is uncertainty regarding the likelihood of interest rate cuts or monetary easing before the end of the year. Without such measures, interest rates may stagnate, reducing the attractiveness of bond investments and potentially shifting funds to the stock market [8][9]. - The central bank is expected to maintain a flexible monetary policy, with potential interest rate cuts anticipated in September or October rather than August [9]. 4. **Economic Indicators and Market Trends** - Seasonal fluctuations in exchange rates and the recent rise in the US dollar index are increasing depreciation pressure on the Chinese yuan, which could affect market dynamics [12]. - The bond market outlook remains optimistic despite short-term stock market fluctuations, with adjustments viewed as buying opportunities [13]. 5. **Geopolitical Factors** - The ongoing Sino-US trade discussions have provided temporary relief, but long-term uncertainties persist, which are reflected in both the bond and stock markets [11]. Other Important but Overlooked Content - The discussion highlights the need for a comprehensive analysis of the structure and duration of price increases, emphasizing that traditional industries are experiencing weak demand, which limits the ability of supply-side factors to drive overall price increases [5]. - The potential for asset scarcity is deepening, as evidenced by a decline in government bond financing year-on-year, indicating a challenging environment for investors [12].

Report Overview - The report provides a comprehensive overview of the global asset market performance on August 1, 2025, including bond yields, exchange rates, stock indices, and futures trading data [3][5][6] Global Bond Market 10 - Year Treasury Bond Yields - In major economies on August 1, 2025, the US was at 4.218%, the UK at 4.526%, France at 3.346%, etc. There were various changes in the latest, weekly, monthly, and yearly periods. For example, the latest change in the US was -0.172, and the one - year change was -0.067 [3] 2 - Year Treasury Bond Yields - Yields and their changes are presented for different countries. For instance, China (1Y) was at 3.940 on August 1, 2025, with a latest change of 0.080 [3] Exchange Rate Market Dollar against Major Emerging Economies' Currencies - On August 1, 2025, the exchange rate of the dollar against the Brazilian real was 5.542, with a latest change of -1.04%. There were also changes in weekly, monthly, and yearly periods [3] RMB Exchange Rates - The on - shore RMB was at 7.193, the offshore RMB at 7.194, etc. on August 1, 2025, with different changes in different time frames [3] Global Stock Index Market Major Economies' Stock Indices - As of August 1, 2025, the Dow Jones was at 6238.010, the S&P 500 at 43588.580, etc. There were different latest, weekly, monthly, and yearly changes. For example, the latest change in the Dow Jones was -1.60%, and the one - year change was 14.94% [3] Other Stock Indices - The report also includes data on the Russian, Japanese, and other countries' stock indices, such as the Nikkei at 40799.600 on August 1, 2025, with a latest change of -0.66% [3] Stock Index Futures Trading Data Index Performance - The closing prices and percentage changes of A - shares, CSI 300, etc. are provided. For example, the closing price of A - shares was 3559.95 with a -0.37% change [5] Valuation - PE (TTM) and its环比 changes are given for CSI 300, S&P 500, etc. For example, the PE (TTM) of CSI 300 was 13.12 with a -0.07环比 change [5] Risk Premium - The risk premium and its环比 changes are presented for some indices. For example, the 1/PE - 10 rate of the S&P 500 was -0.44 with a 0.22环比 change [5] Fund Flows - The latest values and 5 - day average values of fund flows for A - shares, the main board, etc. are shown. For example, the latest value of A - share fund flow was -522.29 [5] Trading Volume - The latest trading volumes and环比 changes of the Shanghai and Shenzhen stock markets, CSI 300, etc. are provided. For example, the latest trading volume of the Shanghai and Shenzhen stock markets was 15983.51 with a -3376.84环比 change [5] Main Contract Basis - The basis and basis ratio of IF, IH, and IC are given. For example, the basis of IF was -25.33 with a -0.62% basis ratio [5] Treasury Bond Futures Trading Data - The closing prices and percentage changes of T00, TF00, etc. are presented. For example, the closing price of T00 was 108.435 with a 0.17% change [6] - The money market shows the R001, R007, and SHIBOR - 3M rates and their daily changes in basis points [6]

特朗普：杰罗姆·鲍威尔，一个顽固的白痴，现在必须大幅降低利率。 ...

Group 1 - The International Monetary Fund (IMF) has slightly raised its global economic growth forecasts for 2025 and 2026 to 3% and 3.1% respectively, while emphasizing potential negative impacts from trade disruptions [1] - Economic growth forecasts for China and the United States have been increased to 4.8% and 1.9% respectively for this year [1] - The US dollar index has been rising, reaching a one-month high of 99.141, influenced by market expectations of trade agreements between the US and major trading partners [1] Group 2 - The Bank of Japan is expected to maintain its current interest rate of 0.5% and may seek further rate hikes depending on economic conditions [2] - The core consumer price index in Tokyo for July showed a year-on-year increase of 2.9%, slightly below market expectations of 3% [2] - The political situation in Japan, including the recent loss of parliamentary control by the ruling party, is affecting the yen's exchange rate, with expectations for the USD/JPY to fluctuate between 146 and 150 [2]

日本央行如期维持政策利率不变，决定获得全票通过。日本央行声明重申，若经济和物价展望能实现，将会加息。物价趋势将与下半年的展望目标相一致。但贸易和其他政策如何演变依旧高度不确定，2025和2026财年经济面临下行风险。#行情 日元在利率决议公布后短线小幅走强。 ...

Report Investment Rating - No information provided regarding the industry investment rating Core View - Gold continued to decline. The Fed kept interest rates unchanged in July, but two Fed officials voted against the decision. Powell stated that no decision has been made on the first rate cut in September as expected by the market, but "downside risks in the labor market are obvious." With the progress of trade negotiations, the US dollar index strengthened, and gold prices weakened continuously. Silver also declined against the backdrop of an overall correction in industrial products. After the US reached trade agreements with Japan and the EU, risk aversion cooled, but there is still some uncertainty in China-US negotiations. Trump has been pressuring the Fed to cut rates, but rates are expected to remain unchanged in July, and the market is speculating on a possible rate cut in September. Recent US economic data shows resilience, US CPI has rebounded, and the impact of tariff policies is smaller than feared, with subsequent impacts likely to gradually increase. The implementation of the "Big and Beautiful" bill further boosts expectations of US fiscal deficits, and the People's Bank of China continues to increase its gold holdings. The long-term drivers for gold still provide support, but the high price makes upward movement hesitant. Gold and silver are likely to continue to show a volatile performance [5] Summary by Related Catalogs Futures Market - For Shanghai Gold 2510, the current price is 770.68, down 3.10 (-0.40%) from the previous close, with an open interest of 214,105 and trading volume of 206,379. For Shanghai Gold 2512, the current price is 772.76, down 3.00 (-0.39%), with an open interest of 115,693 and trading volume of 25,383. For Shanghai Silver 2510, the current price is 9,090.00, down 102.00 (-1.11%), with an open interest of 392,370 and trading volume of 689,866. For Shanghai Silver 2512, the current price is 9,110.00, down 103.00 (-1.12%), with an open interest of 210,377 and trading volume of 71,085 [2] Spot Market - The previous closing price of Shanghai Gold T+D was 769.48, up 2.29 (0.30%); the previous closing price of London Gold was 758.13, down 9.39 (-1.22%); the previous closing price of Shanghai Silver T+D was 9,166.00, up 3.00 (0.03%); the previous closing price of London Silver was 37.10, down 1.10 (-2.87%) [2] Inventory - The current value of the Shanghai Futures Exchange's gold inventory is 33,462 kg, an increase of 2,199.00 kg from the previous value; the current value of the silver inventory is 1,208,094 kg, an increase of 3,228.00 kg. The current value of COMEX gold inventory is 38,514,461, an increase of 347,929.37; the current value of COMEX silver inventory is 504,338,309, an increase of 2,041,750 [2] Related Derivatives - The current value of the US dollar index is 99.9684, up 1.06% from the previous value; the S&P index is 6,362.9, down 0.12%; the US Treasury yield is 4.38, up 0.92%; Brent crude oil is 72.75, up 0.01%; the US dollar to RMB exchange rate is 7.2123, up 0.44%. The current value of the SPDR Gold ETF holdings is 44,315 tons, an increase of 1.00 ton; the SLV Silver ETF holdings is 44,315 tons, an increase of 1.00 ton. The net position of CFTC speculators in silver is 33,486, an increase of 481; the net position in gold is 32,895, a decrease of 1,451 [2] Macroeconomic News - The Fed kept the federal funds rate target range unchanged at 4.25% - 4.5% for the fifth consecutive time early today, in line with expectations. Powell said it's too early to say whether the Fed will cut rates in September as the financial market expects. Trump announced a 50% tariff on imported semi-finished copper products starting August 1. The US GDP annualized quarterly growth rate in Q2 was 3%, significantly exceeding the expected 2.4%. The core PCE price index annualized quarterly growth rate in Q2 was 2.5%, down from 3.5% but higher than the expected 2.3%. The US ADP employment in July increased by 104,000, exceeding expectations but still far below last year's average [3][4]

Report on Stock Index Futures Spread Core View - Presents the latest values, historical quantiles, and daily changes of various spread indicators for stock index futures including IF, IH, IC, and IM on July 31, 2025 [1]. Summary by Category - **Futures - Spot Spread**: IF's futures - spot spread is -14.84, with a 32.30% change from the previous day and a 28.70% historical 1 - year quantile; IH's is 0.65, IC's is -99.29, and IM's is -114.28 [1]. - **Inter - delivery Spread**: Different inter - delivery spreads for IF, IH, IC, and IM are presented, showing their latest values, changes, and historical quantiles [1]. - **Cross - variety Ratio**: Ratios such as CSI 500/CSI 300, IC/IF, etc. are provided, along with their latest values, changes, and historical quantiles [1]. Report on Bond Futures Spread Core View - Displays the latest values, changes, and historical quantiles of indicators like IRR, basis, inter - delivery spread, and cross - variety spread for bond futures on July 31, 2025 [2]. Summary by Category - **IRR**: For example, the IRR of a certain bond on July 30, 2025, is 1.5292, with a 0.0063 change from the previous day and a 21.20% historical quantile [2]. - **Basis**: TF's basis on July 30, 2025, is 0.0007, T's is 1.4179, etc. [2]. - **Inter - delivery Spread**: TS, TF, T, and TL's inter - delivery spreads are presented, including their latest values, changes, and historical quantiles [2]. - **Cross - variety Spread**: Spreads such as TS - TF, TS - T, etc. are provided, along with their latest values, changes, and historical quantiles [2]. Report on Precious Metals Futures - Spot Core View - Compares the closing prices of domestic and foreign precious metals futures, spot prices, basis, ratios, interest rates, exchange rates, inventory, and positions on July 30, 2025 [4]. Summary by Category - **Futures Closing Price**: Domestic AU2510 contract closed at 773.78 yuan/gram on July 30, 2025, with a 0.30% increase; COMEX gold closed at 3327.90 dollars/ounce, up 0.08% [4]. - **Spot Price**: London gold was at 3275.05 dollars/ounce on July 30, 2025, down 1.53%; Shanghai Gold Exchange's gold T + D was at 769.48 yuan/gram, up 0.30% [4]. - **Basis**: The basis of gold TD - Shanghai gold main contract is -4.30, with a -0.05 change and an 8.40% historical 1 - year quantile [4]. - **Ratio**: The ratio of COMEX gold to silver is 89.52, up 3.34% [4]. - **Interest Rate and Exchange Rate**: The 10 - year US Treasury yield is 4.38, up 0.9% [4]. - **Inventory and Position**: The inventory of Shanghai Futures Exchange's gold increased by 7.03% to 33462 [4]. Report on Container Shipping Industry Futures - Spot Core View - Analyzes the spot quotes, container shipping indices, futures prices, basis, and fundamental data of the container shipping industry on July 31, 2025 [6]. Summary by Category - **Spot Quote**: The 6 - week future freight reference from Shanghai to Europe for MAERSK is 3003 dollars/FEU on July 31, 2025, down 0.06% [6]. - **Container Shipping Index**: SCFIS (European route) settled at 2316.56 on July 28, 2025, down 3.50% from July 21 [6]. - **Futures Price and Basis**: EC2602 contract closed at 1532.0 points on July 30, 2025, up 0.70%; the basis of the main contract is 802.4, down 1.15% [6]. - **Fundamental Data**: Global container shipping capacity supply remains unchanged at 3273.16 FTEU on July 31, 2025; the port punctuality rate in Shanghai is 34.57, down 18.66% [6]. Report on Trading Calendar Core View - Lists overseas and domestic economic indicators and financial events on July 31, 2025 [7]. Summary by Category - **Overseas Data/Info**: At 2:00, the US Federal Reserve announced the interest rate decision (upper limit) and the FOMC released the interest rate resolution; at 17:00, the eurozone announced the June unemployment rate [7]. - **Domestic Data/Info**: At 9:30, China announced the July official manufacturing PMI; at 15:00, SMM announced the total social inventory of electrolytic copper [7].