Financial Data and Key Metrics Changes - Net sales and revenues decreased by 16% to $12.763 billion, while net sales for equipment operations fell by 18% to $11.171 billion [13] - Net income attributable to Deere and Company was $1.804 billion, or $6.64 per diluted share [13] - Equipment operations margin was 18.8%, demonstrating strong execution despite challenging market dynamics [12] Business Line Data and Key Metrics Changes - Production and Precision Ag segment net sales were down 21% to $5.230 billion, with an operating profit of $1.148 billion and a 22% operating margin [14] - Small Ag and Turf segment net sales decreased by 6% to $2.994 billion, with an operating profit of approximately $574 million and a 19.2% operating margin [15] - Construction and Forestry segment net sales declined by 23% to $2.947 billion, with an operating profit of $379 million and a 12.9% operating margin [24] Market Data and Key Metrics Changes - Large ag equipment industry sales in the U.S. and Canada are expected to decline by approximately 30% due to high interest rates and trade uncertainty [17] - Small ag and turf industry demand in the U.S. and Canada is projected to decrease by 10-15% [18] - European industry sales are expected to decrease by about 5%, while South American sales forecasts remain flat [19][20] Company Strategy and Development Direction - The company remains committed to its Smart Industrial strategy, focusing on innovation and advanced technology integration [10][12] - Plans to invest $20 billion in the U.S. over the next decade to enhance product development and manufacturing capabilities [11] - The company aims to navigate uncertain markets while maintaining investments in value-creating products and solutions [7] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of customer relationships and maintaining focus during periods of volatility [5][6] - The outlook for fiscal year 2025 has been broadened due to a fluid tariff environment, with net income guidance now between $4.75 billion and $5.5 billion [30] - Management expressed optimism about future opportunities despite current market challenges [12][68] Other Important Information - The company is actively working on mitigating tariff impacts, with an expected pre-tax tariff impact of over $500 million for fiscal year 2025 [38] - The company has seen stabilization in the North American ag market, which may provide reassurance if uncertainties abate [50] Q&A Session Questions and Answers Question: Can you discuss the SaaS models and the Precision Essential product line? - The company has three main SaaS offerings: precision digital technologies, sense and ag technologies, and forthcoming autonomous solutions [74][75] - The Precision Essentials product line includes core elements of precision agriculture, offered at a lower upfront cost with an annual license [74] Question: What is the implied profitability for the PPA segment in the second half? - The tariff impact and a mix impact from North American large ag being down are significant factors affecting profitability [82] Question: How will the early order program pricing change in 2026? - The structure of early order programs will remain similar, providing price flexibility as tariffs evolve [87] Question: Can you clarify the price-cost conversation and potential pricing strategies for 2026? - The company is reviewing list prices for 2026 to ensure they can continue to push pricing ahead of inflation [99]

Core Viewpoint - The company Shiji Information plans to acquire an additional 13.5% stake in its subsidiary, Sihon Software, through a share issuance at a price of 6.54 yuan per share, aiming to enhance control and operational efficiency in the retail digitalization sector [1][2]. Group 1: Acquisition Details - Shiji Information currently holds 66.23% of Sihon Software and the acquisition will strengthen its control over the subsidiary [2]. - The transaction involves three parties: Shanghai Yunxin Venture Capital, Zhang Yuhong, and Zhang Wei, who will sell their combined 13.5% stake [1]. - The acquisition is expected to improve Shiji Information's profitability and risk resilience [2]. Group 2: Sihon Software's Background - Sihon Software focuses on providing digital solutions for small and medium-sized retail businesses, facilitating their transformation into smart stores [2]. - The company has previously attempted to go public on the Beijing Stock Exchange and the ChiNext but failed both times due to various challenges [3][4]. Group 3: Financial Performance - In the first three quarters of 2024, Sihon Software reported revenues of 242 million yuan, a decrease of 10.79% year-on-year, and a net profit of 81 million yuan, down 9.90% [5]. - Shiji Information's overall revenue for the same period was 2.015 billion yuan, with a net profit of 158,830 yuan [5]. - The company is facing significant losses, with a projected net loss of 140 million to 220 million yuan for 2024, representing an increase in loss compared to the previous year [6]. Group 4: Reasons for Performance Decline - The decline in profitability is attributed to increased R&D expenditures and higher amortization of intangible assets, leading to significant operational losses [7]. - The company is undergoing a critical transformation towards globalization and platformization, which requires substantial investment in product development [7].