Core Viewpoint - Dongguan Xingda Packaging Co., Ltd. has been established with a registered capital of 30,000 RMB, indicating a new player in the packaging industry [1] Company Summary - The company is engaged in the sale of metal packaging containers and materials, as well as various other products including leather goods, plastic products, and paper products [1] - The business scope includes import and export of goods, internet sales (excluding items requiring permits), and packaging services [1] - The company is authorized to conduct business activities independently based on its business license, except for projects that require approval [1]

Group 1 - Linyi Hongliang Packaging Technology Co., Ltd. has been established with a registered capital of 10 million RMB [1] - The legal representative of the company is Zheng Jianzhi [1] - The company's business scope includes manufacturing paper and cardboard containers, sales of metal products, and various packaging materials [1] Group 2 - The company is authorized to engage in printing of packaging decoration and printed materials, subject to approval from relevant authorities [1] - The business activities are diversified, covering sectors such as plastic products manufacturing, daily necessities sales, and construction materials sales [1] - The company is allowed to operate independently within the scope of its business license, except for projects that require approval [1]

Company Overview - Xiangyang Shengjie Packaging Co., Ltd. has been established with a registered capital of 1 million RMB [1] - The legal representative of the company is Qin Hao [1] Business Scope - The company operates in various sectors including packaging services, manufacturing and sales of wooden containers, wood procurement, wood processing, and wood sales [1] - Additional business activities include sales of cork products, daily-use wooden products, plastic products, hardware retail, and metal tool sales [1] - The company is allowed to operate any projects that are not prohibited or restricted by laws and regulations [1]

Group 1 - Harbin Xinhui Chuang Packaging Co., Ltd. has been established with a registered capital of 500,000 RMB [1] - The legal representative of the company is Zhao Xingmin [1] - The business scope includes packaging services, sales of packaging materials and products, graphic design, office services, and retail of stationery and daily necessities [1] Group 2 - The company is authorized to conduct business activities independently based on its business license, except for projects that require approval [1]

Group 1 - A new company, Wuhu Niupai Packaging Co., Ltd., has been established with a registered capital of 2 million RMB [1] - The legal representative of the company is Sun Ertian [1] - The business scope includes packaging services, manufacturing and sales of paper products, plastic products, and various design and consulting services [1] Group 2 - The company is authorized to engage in printing of packaging decoration and food paper packaging products, subject to approval from relevant authorities [1] - The company can also conduct import and export activities, excluding licensed businesses [1] - The establishment of this company indicates potential growth in the packaging industry, particularly in the context of increasing demand for sustainable packaging solutions [1]

Trading Information Summary - On August 5, 2025, the stock price of Aoyuan Jin (002701) closed at 5.46 yuan, up by 0.18%, with a turnover rate of 0.95% and a trading volume of 242,700 hands, resulting in a transaction amount of 133 million yuan [1]. - On the same day, the capital flow indicated a net outflow of 8.8978 million yuan from main funds and a net outflow of 3.9507 million yuan from speculative funds, while retail investors showed a net inflow of 12.8485 million yuan [1][3]. Company Announcement Summary - Aoyuan Jin Technology Co., Ltd. announced the progress of guarantees within the scope of its consolidated financial statements. The key points include: - The fifth board of directors approved a proposal allowing mutual guarantees among the company and its subsidiaries for the next twelve months, effective from the approval date of the 2024 annual general meeting [1]. - A wholly-owned subsidiary, Aoyuan Jin International (West Asia) Co., Ltd., signed a SHARE PLEDGE AGREEMENT with East Asia Bank (China) Co., Ltd. Beijing Branch, pledging 65.50% equity of BALL UNITED ARAB CAN MANUFACTURING LLC to secure a 570 million yuan merger loan [1]. - As of July 31, 2025, the total balance of guarantees by the company and its subsidiaries amounted to 10,478.1712 million yuan, with specific guarantees accounting for significant percentages of net assets as of December 31, 2024 [1].

Financial Data and Key Metrics Changes - Net sales for the second quarter were $1,340 million, down 1% on a constant currency basis [27] - Adjusted EBITDA was $293 million, up 3% on a constant currency basis [27] - Adjusted earnings per share increased to $0.89, up 7% as reported and 10% on a constant currency basis [28] - Adjusted tax rate improved to 24.4% from 25.5% in the same period last year [28] Business Line Data and Key Metrics Changes - Food segment net sales were $896 million, flat as favorable pricing offset softer volumes [30] - Protective segment net sales were $439 million, down 3% as reported and 4% in constant currency [33] - Food adjusted EBITDA was $210 million, up 3%, with a margin of 23.4%, up 50 basis points [32] - Protective adjusted EBITDA was $78 million, down 5%, with a margin of 17.8%, up 20 basis points from the first quarter [33] Market Data and Key Metrics Changes - The U.S. beef cycle saw a decline of 7% in slaughter rates, impacting the food segment [22] - EMEA region for food showed strength with volumes up low single digits [32] - North American market pressures accelerated in the second quarter, affecting food service and industrial processing [19] Company Strategy and Development Direction - The company is focused on transforming its Protective segment and improving customer engagement [12][14] - New product innovations include the Jiffy embossed paper mailer and hybrid auto vac solutions [15] - The company is optimizing its manufacturing footprint and has opened a new facility in Lakeland, Florida [16] Management's Comments on Operating Environment and Future Outlook - Management noted a stable second quarter despite global trade uncertainties and tariff impacts [10][11] - The company remains cautious about the second half of the year due to market uncertainties and lower growth expectations [17] - Management expressed confidence in the ongoing transformation and capital allocation discipline, with net debt below $4 billion for the first time since 2022 [25][26] Other Important Information - The company is maintaining its sales guidance range of $5.1 billion to $5.5 billion and adjusted EBITDA guidance of $1.075 billion to $1.175 billion [36] - Free cash flow guidance remains at $400 million, with capital expenditures expected to be lower than originally anticipated [38] Q&A Session All Questions and Answers Question: What does the volume impact for the second half look like for food? - Management expects a volume mix in the second half to be down three points in Q3 and Q4, primarily due to consumer spending shifts [46] Question: How should we think about near-term outlook for margins specific to food? - Management indicated that while there is a margin impact from volume loss, network optimization efforts are expected to balance out margins [55] Question: Can you talk about specific cost takeouts expected for the second half? - Management highlighted a focus on cost takeout initiatives, aiming for approximately $90 million in savings for the full year [60] Question: Are you seeing any slowdown in bidding and order activity? - Management reported no significant change in order patterns and remains optimistic about the performance of the industrial portfolio [71] Question: Why is the adjusted EBITDA range for 2025 so wide? - Management attributed the wide range to conservatism and low visibility regarding end markets, preferring to wait for more clarity in Q3 [78] Question: Can you describe your issue with procuring specialty resins? - Management clarified that there are no procurement issues but noted challenges related to tariffs impacting certain specialty resins [80]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 were $1.34 billion, down 1% on a constant currency basis [24] - Adjusted EBITDA for the quarter was $293 million, up 3% on a constant currency basis [24] - Adjusted earnings per share increased to $0.89, up 7% as reported and 10% on a constant currency basis [25] - Adjusted EBITDA margin was 22%, up 70 basis points [27] Business Line Data and Key Metrics Changes - Food segment net sales were $896 million, flat as favorable pricing offset softer volumes [28] - Protective segment net sales were $439 million, down 3% as reported and 4% in constant currency [31] - Food adjusted EBITDA was $210 million, up 3%, with a margin of 23.4%, up 50 basis points [30] - Protective adjusted EBITDA was $78 million, down 5%, with a margin of 17.8%, up 20 basis points from the first quarter [31] Market Data and Key Metrics Changes - The U.S. beef cycle saw a decline of 7%, impacting the overall protein markets [20] - EMEA and Asia regions for the food business showed strength with volumes up low single digits [30] - The North American market faced pressures, particularly in the food service sector, leading to a shift in consumer spending [18] Company Strategy and Development Direction - The company is focused on transforming its Protective segment and improving customer engagement [12] - A new Chief Financial Officer, Kristin Actis Grande, is expected to drive transformation and shareholder value [6][7] - The company is optimizing its manufacturing footprint and has opened a new facility in Lakeland, Florida [15] - The strategy includes simplifying the organization and moving closer to the markets served [23] Management's Comments on Operating Environment and Future Outlook - Management noted a stable second quarter despite global trade uncertainties and tariff impacts [9] - The company remains cautious about the second half of the year due to market uncertainties and lower growth expectations [15][23] - The outlook for the food business is impacted by shifting consumer spending patterns, particularly towards value grocery [18] Other Important Information - The company generated $81 million in free cash flow in the first half of 2025 [32] - The net leverage ratio was 3.6 times, with a goal to reduce it to approximately 3.0 times by 2026 [32] - The company is maintaining its sales guidance range of $5.1 billion to $5.5 billion for the year [34] Q&A Session Summary Question: Impact of beef headwinds on volume expectations - Management indicated that the cattle cycle is expected to impact volumes, with a forecast of down 3% to 4% for 2025 and flat in 2027 [41][43] Question: Near-term outlook for food margins - Management expressed confidence in maintaining margins despite headwinds, citing ongoing productivity improvements [51][52] Question: Specific cost savings and guidance maintenance - Management highlighted ongoing cost takeout initiatives and network optimization efforts to bolster earnings [57][58] Question: Order activity and market dynamics - Management reported no significant changes in order patterns and remains optimistic about internal initiatives driving growth [66][68] Question: Full year EBITDA range and conservatism - Management clarified that the wide EBITDA range reflects conservatism due to market volatility and uncertainty [74] Question: Specialty resins procurement challenges - Management noted that while procurement is not an issue, tariff impacts have affected certain specialty resins [76][78] Question: Cattle cycle in South America and Australia - Management indicated strong performance in both regions, with expectations for continued strength [94][95]

Financial Data and Key Metrics Changes - Consolidated net revenue increased by 3.8% year-over-year, with a 5.2% increase in volume growth driven by e-commerce activity in North America [12][20] - Adjusted EBITDA declined by 18% for the quarter, or 12% excluding a non-cash impact of $1,200,000 from Amazon warrants [15][24] - Gross profit declined by 12% on a constant currency basis, with a 13% decline in gross profit in Europe and Asia Pacific due to lower sales and higher production costs [22][24] Business Line Data and Key Metrics Changes - North America was the key driver of top-line performance, with sales up 12.2% and volumes up 14.8% compared to Q2 2024 [13][20] - Automation revenue increased by 34% year-over-year, with expectations of full-year automation revenue between $40 million and $45 million [15][20] - Europe and Asia Pacific volumes were flat compared to the prior year, with Europe facing growth challenges due to tariff and trade uncertainties [14][20] Market Data and Key Metrics Changes - North America experienced solid growth, while Europe and Asia Pacific faced challenges, with combined revenue in Europe and APAC decreasing by 2.7% on a constant currency basis [20][21] - The energy market in Europe improved, with Dutch natural gas prices down more than 30% from early Q1 peaks, which is expected to positively impact margins [18][20] Company Strategy and Development Direction - The company is focusing on cost reduction and margin improvement initiatives, particularly in North America, with expectations for these efforts to take effect in Q3 [8][10] - A strategic multiyear deal in North America is anticipated to be transformational for the business, consuming significant capacity in the Shelton facility [6][11] - The company is transitioning to a more global organizational structure to enhance operational efficiency and scalability [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improved financial performance in the second half of the year, driven by cost improvement initiatives and deeper relationships with enterprise customers [6][7] - The company expects to see a normalization of input costs and improved margins in the second half, particularly in North America [17][18] - Management acknowledged the challenging start to the year but emphasized the groundwork laid for future growth and expansion [30][36] Other Important Information - The company has reduced headcount by 3% since April as part of cost-cutting measures [9] - The liquidity position remains strong, with a cash balance of $49.2 million and no drawings on the revolving credit facility [25][26] - The company is evaluating strategic sourcing options to minimize the impact of tariffs on capital expenditures [28] Q&A Session Summary Question: Can you provide a bridge on EBITDA between 2024 and 2025? - Management expects volumes to be up by high single digits, but gross margin is anticipated to compress by about five points due to various pressures including warrants and temporary inefficiencies [38][40] Question: What is the outlook for Europe in July? - July showed volume growth in Europe, indicating potential stabilization, but management cautioned that it is too early to declare a trend [42][44] Question: How much of the gross margin decline was due to product mix in North America? - Approximately 4.7 points of margin pressure was related to warrants and temporary issues, with expectations for margin improvement beginning in Q3 [46][48] Question: What is the free cash flow outlook? - The company expects to finish the year with $70 million to $75 million in cash, lower than initial expectations due to lower EBITDA and inefficiencies [50][51] Question: What factors give confidence in the PPS business stepping up in the second half? - Management highlighted large enterprise wins in North America and improved conditions in Europe as key drivers for expected volume growth [56][58]

Core Viewpoint - Ball Corporation reported better-than-expected Q2 earnings driven by strong demand for aluminum cans in North America and Europe, and raised its annual profit guidance [1] Group 1: Financial Performance - Q2 revenue increased by 7.8% to $3.34 billion, surpassing market expectations of $3.12 billion [1] - Adjusted earnings per share were $0.90, exceeding the anticipated $0.87 [1] - Global shipments of aluminum packaging products grew by 4.1%, up from 2.6% in the previous three months [1] Group 2: Market Demand - Increased demand from packaged food companies is attributed to consumers opting for canned foods and beverages amid high inflation [1] - Beverage packaging sales in North and Central America rose from $1.47 billion to $1.61 billion year-over-year [1] Group 3: Future Outlook - The company expects comparable earnings to grow by 12% to 15% by 2025, an increase from the previous forecast of 11% to 14% [1] Group 4: Cost Management - Tariffs on steel and aluminum have raised input costs for companies like Ball [2] - The company believes the direct impact of announced tariffs is manageable and is working closely with customers to mitigate the effects of aluminum price fluctuations [2] - The CEO indicated that the company is strictly controlling costs in light of potential geopolitical uncertainties and market volatility in the second half of the year [2]