1. Report Industry Investment Ratings - **Oils and Fats**: Expected to fluctuate [6] - **Protein Meal**: Expected to fluctuate [6] - **Corn and Starch**: Expected to fluctuate weakly [7] - **Hogs**: Expected to fluctuate [8] - **Natural Rubber and No. 20 Rubber**: Expected to fluctuate strongly in the short - term [9] - **Synthetic Rubber**: Expected to fluctuate [11] - **Cotton**: Expected to fluctuate in the short - term [12] - **Sugar**: Expected to fluctuate weakly in the long - term, and run in the 5500 - 5750 range in the short - term [14] - **Pulp**: Expected to fluctuate [15] - **Double - Glue Paper**: Expected to fluctuate [16] - **Logs**: Expected to stop falling and stabilize [19] 2. Core Views of the Report - **Oils and Fats**: Affected by the relatively bearish MPOB report, the market sentiment is weak, and it may continue to adjust. Pay attention to the effectiveness of the lower technical support [6]. - **Protein Meal**: The market has both long and short factors, and the market will continue to fluctuate narrowly. Hold long positions at 2900 - 2910 and add positions on dips. It is recommended that oil mills sell on rallies, and downstream enterprises buy basis contracts or fix prices on dips [6]. - **Corn and Starch**: Maintain the idea of shorting on rallies in the fourth quarter. There is a short - term tight supply, and a short - term long - term long pattern is expected [7]. - **Hogs**: The expectation of "anti - involution" boosts the market. In the short - term, the supply is abundant, and the cycle is still under supply pressure. In the long - term, if the capacity - reduction policy is implemented, the supply pressure in 2026 will be gradually weakened. Pay attention to the reverse arbitrage strategy [8]. - **Natural Rubber**: After the decline, it stabilizes, and there will still be fluctuations in the short - term. The short - term trend is expected to fluctuate strongly [9]. - **Synthetic Rubber**: It returns to the fluctuating trend. The short - term price of butadiene is expected to rise slightly, and the market may fluctuate strongly [11]. - **Cotton**: The cotton price fluctuates within the range. Try short - term long positions when the price reaches the lower limit of the range [12]. - **Sugar**: In the long - term, the sugar price has a downward driving force due to the expected supply surplus in the new season. In the short - term, it runs in the 5500 - 5750 range, and pay attention to the support at 5500 [14]. - **Pulp**: The pulp futures fluctuate sharply with the listing of double - glue paper. It is expected to fluctuate [15]. - **Double - Glue Paper**: The fundamentals are weak, but the listing price is neutral to low. Consider range operation between 4000 - 4500 [16]. - **Logs**: The market is in a game between weak reality and peak - season expectation. The price may stop falling and stabilize in September [19]. 3. Summaries According to Relevant Catalogs 3.1 Oils and Fats - **Logic**: Due to the limited expected decline in US soybean yield per unit, combined with the impact of oil - meal arbitrage, US soybeans and soybean oil fell on Tuesday. The MPOB report is bearish, and domestic oils and fats fluctuated and fell yesterday. The US soybean is affected by drought, and the domestic soybean oil inventory may peak. The MPOB report on palm oil is bearish, and the domestic rapeseed oil inventory is slowly falling but still high year - on - year [6]. - **Outlook**: Affected by the bearish MPOB report, the market sentiment is weak and may continue to adjust [6]. 3.2 Protein Meal - **Logic**: Internationally, the Fed's rate cut in September is almost certain. There are factors such as the possible occurrence of La Nina and the expected increase in Brazil's soybean exports. Domestically, the state reserve plans to sell 22,500 tons of imported soybeans, and the soybean import volume is large. The demand for soybean meal may increase steadily [6]. - **Outlook**: Both domestic and international markets will continue to fluctuate within the range. Hold long positions at 2900 - 2910 and add positions on dips [6]. 3.3 Corn and Starch - **Logic**: The domestic corn price shows a differentiated trend. The supply is short - term tight, and the demand has a phased increase. With the approaching of the new grain listing, the selling pressure will gradually appear in the fourth quarter [7]. - **Outlook**: Look for short - selling opportunities on rallies when the new grain is concentratedly listed. Consider reverse arbitrage [7]. 3.4 Hogs - **Logic**: The Ministry of Agriculture plans to hold a symposium on hog production capacity regulation enterprises on September 16. In the short - term, the supply is abundant, and the demand is stable. In the long - term, the "anti - involution" policy may drive the price to strengthen in 2026 [8]. - **Outlook**: The spot price is expected to fluctuate. The futures market is in a pattern of "weak reality + strong expectation", and pay attention to the reverse arbitrage strategy [8]. 3.5 Natural Rubber and No. 20 Rubber - **Logic**: The rubber market stabilizes after a sharp decline. The short - term fundamentals are strong, and there are many speculative themes. The supply increase may be postponed, and the downstream purchasing enthusiasm recovers after the price decline [9]. - **Outlook**: The short - term trend is expected to fluctuate strongly [9]. 3.6 Synthetic Rubber - **Logic**: The BR market stabilizes after a large decline and returns to the fluctuating trend. It follows the natural rubber market, and the cost of raw material butadiene provides support. The supply and demand fundamentals support the market to fluctuate in a narrow range [11]. - **Outlook**: The short - term price of butadiene may rise slightly, and the market may fluctuate strongly [11]. 3.7 Cotton - **Logic**: The domestic cotton market has low inventory and marginal improvement in demand. The new cotton commercial inventory is tight, and the demand is improving but the upward driving force is insufficient. Wait for the new cotton purchase price to give direction [12]. - **Outlook**: Fluctuate in the short - term. Try short - term long positions when the price reaches the lower limit of the range [12]. 3.8 Sugar - **Logic**: In the new season, although the drought in Brazil reduces the sugarcane yield, the sugar production is expected to increase due to the high sugar - making ratio. The supply in Southeast Asia is expected to increase. The domestic supply marginally increases, and the sugar price has a downward driving force [14]. - **Outlook**: In the long - term, the sugar price may decline. In the short - term, it runs in the 5500 - 5750 range, and pay attention to the support at 5500 [14]. 3.9 Pulp - **Logic**: The pulp futures fluctuate sharply with the listing of double - glue paper. The supply and demand change little, and it may be due to emotional speculation. The needle - broadleaf pattern is differentiated, and the price may continue to decline [15]. - **Outlook**: The pulp futures are expected to fluctuate [15]. 3.10 Double - Glue Paper - **Logic**: The fundamentals are bearish, with over - supply in the industry, declining demand, and high inventory. The listing price is neutral to low, and consider range operation between 4000 - 4500. Pay attention to reverse arbitrage in the early stage of listing [16]. - **Outlook**: The fundamentals are weak, but the listing price is neutral to low. Consider range operation [16]. 3.11 Logs - **Logic**: The log market is in a game between weak reality and peak - season expectation. The inventory is decreasing, and the demand is expected to increase. The price may stop falling and stabilize in September [19]. - **Outlook**: The price may stop falling and stabilize in September [19].

Core Viewpoint - The successful issuance of China's first "carbon asset + rural revitalization" dual-labeled medium-term note by Shanghai Pudong Development Bank and Guangxi Guokong Capital Operation Group represents an innovative financial product that aligns with national "dual carbon" goals and rural revitalization strategies, providing a replicable model for green financing and regional economic development [1][4][6] Group 1: Financial Innovation - The medium-term note has a total issuance scale of 500 million yuan and a five-year term, linking carbon assets to create new pathways for green financing [1][4] - The note's core innovation lies in its carbon asset yield as the underlying support, offering investors additional carbon asset yield distribution linked to the issuer's subsidiaries' carbon quotas [4] - The issuance attracted significant market interest, with a subscription multiple of nearly three times, reflecting confidence in Guangxi Guokong Group's capabilities and strategic positioning in the green low-carbon sector [4][5] Group 2: Fund Utilization - Proceeds from the medium-term note will primarily support the procurement of raw materials for sugar production, specifically purchasing sugarcane from local farms to ensure stable supply [5] - The funding is strategically directed towards rural revitalization and the real economy, transforming financial resources into drivers for rural development and industrial upgrades [5] - This initiative aims to enhance employment and income for sugarcane farmers, thereby activating the rural economy's self-sustaining capabilities [5][6] Group 3: Strategic Positioning - Guangxi Guokong Group, established in June 2025 with a registered capital of 11 billion yuan, integrates resources from various state-owned enterprises under the Guangxi State-owned Assets Supervision and Administration Commission [4] - The group focuses on leveraging Guangxi's policy advantages and unique industries, aiming to become a leading state-owned capital operation company and a top food industry enterprise in China [4]

Report Industry Investment Rating No relevant content provided. Core Viewpoints - On September 2, the A-share market and multiple futures varieties showed diverse trends, influenced by factors such as market supply - demand, policy restrictions, and international market conditions [1][2][3][4][5][7][8][9][11][12] Summary by Variety Stock Index Futures - On September 2, the three major A - share indexes collectively declined. The Shanghai Composite Index fell 0.45% to 3858.13 points, the Shenzhen Component Index dropped 2.14% to 12553.84 points, and the ChiNext Index decreased 2.85% to 2872.22 points. The trading volume of the two markets reached 2875 billion yuan, an increase of 125 billion yuan from the previous day. The CSI 300 index also adjusted downward, closing at 4490.45, a decrease of 33.26 [1][2] Coke and Coking Coal - Coke: On September 2, the weighted coke index showed weak consolidation, closing at 1599.6, a decrease of 6.9. There is a temporary supply contraction due to upcoming northern regional restrictions, while steel mills also face restrictions, and cost support is weakening [2][4] - Coking Coal: On September 2, the weighted coking coal index fluctuated weakly, closing at 1110.9 yuan, a decrease of 9.2. Some mines in major coal - producing areas have suspended production, and downstream enterprises will face restrictions, resulting in weak supply and demand [3][4] Zhengzhou Sugar - Affected by the reduction in spot prices and short - selling pressure, the Zhengzhou Sugar 2601 contract declined on September 2 and continued to fall slightly at night. India will allow unrestricted use of sugarcane juice, syrup, and molasses for ethanol production in the new season [4] Rubber - Shanghai rubber showed a narrow - range fluctuation on September 2 and closed slightly higher. Boosted by rising crude oil prices, it rose slightly at night. As of August 31, 2025, the total inventory of natural rubber in Qingdao decreased by 0.4 million tons, a decline of 0.6% [5] Soybean Meal - Internationally, on September 2, CBOT soybean futures were weak. The US soybean harvest will start in mid - to - late September, and Brazil's 2025/2026 soybean production is expected to reach a record 1.782 billion tons, a 5.6% increase year - on - year. Domestically, on September 2, soybean meal futures fluctuated. The M2601 contract closed at 3050 yuan/ton, a 0.13% decrease. High imports and high processing volumes have led to sufficient supply, and the price is under pressure [5] Live Hogs - On September 2, live hog futures fluctuated weakly. The LH2511 contract closed at 13595 yuan/ton, a 0.22% decrease. In September, supply is sufficient, and some areas face disease risks. Although there is a recovery in terminal demand due to the start of the school season, the support for prices is limited. In the medium - to - long - term, the supply pressure in the fourth quarter is high [7] Palm Oil - On September 2, palm oil futures continued a slight rebound but lacked upward momentum. The main contract P2601 closed at 9422, a 0.4% increase. Malaysia's August palm oil exports increased by 30.53% year - on - year, while production decreased by 2.65% [8] Shanghai Copper - Positive macro factors and supply - tightening expectations will support copper prices. With low inventory and high premiums in China, and the approaching peak consumption season, demand is expected to increase. However, high prices may suppress some purchasing intentions [8] Cotton - On the night of September 2, the main contract of Zhengzhou cotton closed at 14045 yuan/ton. The base - price quotation at Xinjiang's designated delivery warehouses was at least 900 yuan/ton, and the inventory decreased by 189 lots [9] Iron Ore - On September 2, the main contract of iron ore 2601 fluctuated and closed up 0.06%. Global shipments have reached a high for the year, and arrivals have increased. Short - term prices are in a fluctuating trend due to production cuts in the Beijing - Tianjin - Hebei region [9] Asphalt - On September 2, the main contract of asphalt 2510 fluctuated and rose 1.17%, closing at 3551 yuan. The capacity utilization rate has decreased, inventory reduction is slow, and with the approaching peak demand season, prices are expected to fluctuate [9] Logs - On September 2, the log futures contract 2511 opened at 820, closed at 810.5, and increased in positions by 755 lots. The price broke below the 60 - day moving average. The spot prices in Shandong and Jiangsu remained stable. There is a game between strong expectations and weak reality, and attention should be paid to factors such as peak - season prices, imports, and inventory [9][10][11] Steel Products - On September 2, rb2601 closed at 3117 yuan/ton, and hc2601 closed at 3298 yuan/ton. The market lacks strong macro - drivers, and the fundamentals are weak, which may continue to suppress prices [11] Alumina - On September 2, ao2601 closed at 3022 yuan/ton. Some domestic enterprises are under maintenance, and production and operating rates have slightly declined, but the supply is still relatively loose, and the market may continue to be weak [11] Shanghai Aluminum - On September 2, al2510 closed at 20720 yuan/ton. Macro sentiment is favorable, but the peak - season expectations have not been realized. The fundamentals are weak, and the price is in a range - bound trend [12]

Group 1 - The core viewpoint is that dividend low-volatility ETFs, particularly the Taikang Dividend Low-Volatility ETF (560150), are showing strong performance and growth, with significant increases in net value and scale over the past year [1][2] - As of September 1, 2025, the Taikang Dividend Low-Volatility ETF has achieved a net value increase of 20.00% over the past year, ranking first among comparable funds [1] - The A-share market has seen a record high in cash dividend announcements, with over 800 listed companies declaring a total dividend amount of 642.8 billion yuan, marking a historical peak [1] Group 2 - According to Everbright Securities, dividend assets are considered core assets in the A-share market, possessing irreplaceable value compared to growth stocks, especially with many companies announcing profit distribution plans for the 2024 fiscal year [2] - The Taikang Dividend Low-Volatility ETF closely tracks the CSI Dividend Low-Volatility Index, which selects 50 securities based on liquidity, continuous dividends, moderate dividend payout ratios, positive growth in earnings per share, and low volatility [2]

Core Insights - Neijiang, a small city in Sichuan, has gained public attention as a filming location for the movie "Walking and Stopping," starring Gao Yuanyuan and Hu Ge, and is noted for its unique retro charm and sweet heritage [1][3] Group 1: Historical and Cultural Significance - Neijiang is located in the southeastern part of the Sichuan Basin, with a history spanning 2000 years, and is known as the hometown of famous painter Zhang Daqian [3] - The city was historically prosperous due to its sugar industry, earning it the nickname "Sweet City" [3][9] - The old town features winding streets and staircases, with Dati Alley being a notable location that contributes to Neijiang's reputation as "Little Hong Kong" [3] Group 2: Local Lifestyle and Attractions - The old streets of Neijiang are filled with the aroma of local delicacies, such as fried cakes, and are bustling with life, showcasing a vibrant local culture [6] - The contrast between the lively old town and the tranquility of Shengshui Temple highlights the city's diverse atmosphere [6] - Neijiang's culinary offerings, including its famous beef noodles and various local snacks, play a significant role in the city's identity and appeal [9] Group 3: Emotional Connection and Tourism - For those who have left Neijiang, the memories associated with its streets and food evoke a deep sense of nostalgia and belonging [9] - The city's unique charm continues to attract more visitors, drawn by its retro style and sweet heritage [9]

Report Industry Investment Rating No relevant information provided. Core Viewpoints of the Report - On September 29, A-share stock indexes rose, with the Shanghai Composite Index up 0.37%, the Shenzhen Component Index up 0.99%, and the ChiNext Index up 2.23%. The trading volume of the two markets was 2798.3 billion yuan, a decrease of 172.5 billion yuan from the previous day. The CSI 300 index was strong on that day, closing at 4496.76, a rise of 32.98 [1][2]. - The weighted index of coke trended weakly on September 29, closing at 1643.0, a decrease of 15.4. The weighted index of coking coal was weakly consolidated, closing at 1149.0 yuan, an increase of 0.6 [3][4]. - The price of US sugar oscillated slightly lower on September 29. Zhengzhou sugar futures prices oscillated slightly higher at night due to bargain - hunting after a large short - term decline. The supply gap of sugar in the 2025/26 season is expected to narrow significantly [5]. - The rubber futures price oscillated slightly lower on September 29 due to the decline in crude oil prices [6]. - The soybean meal futures price may continue to oscillate and adjust, showing a pattern of weak supply and demand. The focus is on the progress of Sino - US trade negotiations and soybean imports [7]. - The live pig futures price may run weakly and oscillate. The focus is on the slaughter rhythm and market demand [8]. - The Shanghai copper futures price will remain at a high level, but the uncertainty of the Fed's interest - rate cut path and trade situation may affect the market [9]. - The iron ore futures price is in an oscillating trend in the short term [9]. - The asphalt futures price will oscillate in the short term [10]. - The steel price will be under pressure and show an oscillating bottom - seeking trend, and the focus is on the performance of peak - season demand [12]. - The alumina industry is expected to gradually recover with the arrival of the traditional peak season [12]. - The electrolytic aluminum industry has positive expectations, with supply increasing slightly and demand gradually recovering [13]. Summaries According to Relevant Catalogs Stock Index Futures - On September 29, the Shanghai Composite Index closed at 3857.93, up 0.37%; the Shenzhen Component Index closed at 12696.15, up 0.99%; the ChiNext Index closed at 2890.13, up 2.23%. The trading volume of the two markets was 2798.3 billion yuan, a decrease of 172.5 billion yuan from the previous day [1]. - The CSI 300 index closed at 4496.76 on September 29, a rise of 32.98 [2]. Coke and Coking Coal - On September 29, the weighted index of coke closed at 1643.0, a decrease of 15.4; the weighted index of coking coal closed at 1149.0 yuan, an increase of 0.6 [3][4]. - Coke: Mainstream coke enterprises proposed the eighth round of price increase. The supply increased, and the demand was affected by end - of - month production restrictions. The average profit per ton of coke for 30 independent coking plants was 55 yuan/ton [5]. - Coking coal: Some domestic mines had production disruptions, and the Mongolian coal customs clearance decreased slightly. The downstream demand will be restricted by end - of - month production restrictions [5]. Sugar - In the first half of August, the sugar production in the central and southern regions of Brazil increased by 15.96% year - on - year to 3620000 tons. The supply gap in the 2025/26 season is expected to narrow significantly to 231000 tons from 4.88 million tons this year [5]. Rubber - On September 29, the rubber futures price oscillated slightly lower due to the decline in crude oil prices. As of August 29, the inventory and warehouse receipts of natural rubber and 20 - grade rubber in the Shanghai Futures Exchange changed [6]. Soybean Meal - The international soybean futures price rose on August 29, while the domestic soybean meal futures price was weakly oscillating. The domestic supply was abundant, and the demand was weak. The price may continue to oscillate and adjust [7]. Live Pig - On August 29, the live pig futures price oscillated weakly. The demand showed signs of slow recovery, but the supply pressure in the fourth quarter of this year and the first quarter of next year was still large [8]. Shanghai Copper - The Shanghai copper futures price will remain at a high level. The domestic supply of copper concentrates is relatively tight, and the demand is expected to be good in the peak season. However, the uncertainty of the Fed's interest - rate cut path and trade situation may affect the market [9]. Iron Ore - On August 29, the iron ore 2601 main contract oscillated and closed up, with a gain of 0.77% and a closing price of 787.5 yuan. The global shipment and arrival volume decreased last week, and the price was in an oscillating trend in the short term [9]. Asphalt - On August 29, the asphalt 2510 main contract oscillated and closed up, with a gain of 0.17% and a closing price of 3507 yuan. The production capacity utilization rate decreased, and the price will oscillate in the short term [10]. Steel - The steel price is under pressure due to weak supply and demand, but the cost increase may limit the downward space. It will show an oscillating bottom - seeking trend, and the focus is on the peak - season demand [12]. Alumina - The supply of bauxite will gradually decrease, and the domestic supply of alumina may increase slightly. The demand is stable, and the industry is expected to recover with the arrival of the peak season [12]. Electrolytic Aluminum - The supply of electrolytic aluminum will increase slightly, and the demand will gradually recover with the arrival of the peak season. The industry has positive expectations [13].

Core Viewpoint - The article emphasizes the importance of state-owned enterprises (SOEs) in driving high-quality economic development in Guangxi, highlighting various initiatives to enhance the competitiveness and innovation of these enterprises. Group 1: Development of "New Brands" - Guangxi is focusing on cultivating "new brands" which represent emerging industries and innovative enterprises, addressing the gap between Guangxi and more developed regions in China [2] - The Guangxi State-owned Assets Supervision and Administration Commission (SASAC) is implementing measures to promote the growth of "new brands" through project-driven technology and industry development [2] - The emphasis on innovation as a primary driver for high-quality development is crucial for the leadership role of SOEs [2] Group 2: Upgrading "Old Brands" - "Old brands" in Guangxi, such as local food and cultural products, face challenges like outdated technology and market positioning [4] - The SASAC is enhancing the competitiveness of "old brands" through technological upgrades and product innovation [5] - Companies like Xijiang Dairy are adopting innovative marketing strategies to revitalize "old brands" and attract new customers [5] Group 3: Empowering "Original Brands" - "Original brands" represent traditional industries in Guangxi, which are undergoing transformation towards high-end, intelligent, and green production [7] - The introduction of smart technologies in traditional sectors, such as coal management and agriculture, is improving efficiency and sustainability [8] - Companies are leveraging AI and data analytics to enhance operational efficiency and drive innovation in traditional industries [9] Group 4: Expanding "External Brands" - Guangxi is enhancing its international logistics capabilities, exemplified by the establishment of overseas warehouses to facilitate cross-border trade [10] - The SASAC is implementing policies to support the international expansion of enterprises, focusing on sectors like automotive and machinery [13] - Export sales from Guangxi's SOEs have shown significant growth, indicating successful penetration into international markets [13]

Core Viewpoint - The article emphasizes the importance of state-owned enterprises (SOEs) in driving high-quality economic development in Guangxi, highlighting various strategies and policies aimed at fostering innovation, upgrading traditional industries, and enhancing international operations. Group 1: Development of "New Brands" - Guangxi is focusing on cultivating "new brands" which represent emerging industries and innovative enterprises, addressing the gap between Guangxi and more developed regions in China [2] - The Guangxi State-owned Assets Supervision and Administration Commission (SASAC) is implementing measures to promote the growth of "new brands" through project-driven technology and industry development [2] - The emphasis on innovation as a primary driver for high-quality development is crucial for the leadership role of SOEs [2] Group 2: Upgrading "Old Brands" - Traditional "old brands" in Guangxi, such as local food and cultural products, face challenges like low technological content and market misalignment [4] - The SASAC is enhancing the competitiveness of "old brands" through technological upgrades and product innovation, ensuring cultural heritage is preserved while promoting economic growth [5] - Companies like Yufeng Cement are successfully transitioning from traditional production to technology-driven operations, achieving significant awards and patents [5][6] Group 3: Empowering "Original Brands" - "Original brands" represent Guangxi's traditional industries, which are undergoing transformation towards high-end, intelligent, and green production [7] - The introduction of smart technologies in traditional sectors, such as coal management and agriculture, is enhancing efficiency and precision [8] - Companies are leveraging AI and data analytics to optimize operations and drive innovation, contributing to the overall competitiveness of the "original brands" [9] Group 4: Expanding "External Brands" - Guangxi is actively promoting "external brands" by enhancing international logistics and supply chain capabilities, exemplified by the establishment of overseas warehouses [10] - The SASAC is implementing supportive policies to facilitate the international expansion of enterprises, with a focus on sectors like automotive and engineering machinery [11] - Export sales from Guangxi's state-owned enterprises have shown significant growth, indicating successful penetration into international markets [13]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q2 2025 reached $55 million, with year-to-date EBITDA amounting to $91 million, reflecting a 60% year-over-year decline in both periods [10][11][12] - Sales totaled $392 million during Q2, with year-to-date sales reaching $716 million, driven by higher volumes sold across operations despite lower prices [10][11] Business Line Data and Key Metrics Changes - In the Sugar, Ethanol, and Energy business, crushing volume was 20% lower year-over-year due to fewer effective milling days and a selective slower milling pace [12][13] - Farming business reported a 12% year-over-year increase in total production, attributed to higher planted area and record productivity in rice operations [12][20] - Adjusted EBITDA for the Farming business totaled $1 million during the quarter, with year-to-date EBITDA at $18 million, impacted by lower international prices and higher costs [21][23] Market Data and Key Metrics Changes - Rice prices have significantly decreased, but customized rice varieties at premium prices are being offered to offset global price drops [7] - Dairy processing volumes are increasing due to a growing market presence, while efforts are ongoing to expand the product portfolio [7][20] Company Strategy and Development Direction - The company aims to be the lowest cost producer while diversifying operations across geographies and products, which serves as a natural hedge against commodity price fluctuations and weather risks [5][6] - A memorandum of understanding was signed with Tether to explore using a portion of energy production for bitcoin mining, indicating a potential innovative project [8] - The company is focusing on improving margins by reducing leased area by approximately 30% in response to challenging price and cost conditions [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reaching similar crushing levels to the previous year despite a difficult start to the season, citing improved crushing rates in July and August [31][32] - The company is constructive about sugar and ethanol prices, anticipating a potential increase due to lower sugarcane yields and strong ethanol demand [35][36] - Management acknowledged the need to maintain a net leverage ratio below 2.0 times EBITDA while exploring both organic and inorganic growth opportunities [67][68] Other Important Information - Net debt increased to $699 million, 11% higher year-over-year, primarily due to higher short-term borrowings for working capital [23][24] - The company has committed $45 million to shareholder distribution, including dividends and share repurchases [27] Q&A Session Summary Question: Expectations for crushing figures and sugar prices - Management indicated that despite a challenging first quarter, they expect to crush similar amounts of sugarcane as last year, driven by improved performance in July and August [31][32] - They anticipate sugar prices to react positively due to lower sugarcane yields and strong ethanol demand [35][36] Question: Quality of cane and yield expectations - Management expects yields to be flat year-over-year, with a slight decrease in TRS content due to frost affecting sugarcane [41][45] Question: Triggers for hedging next season - Management believes sugar prices could react in the short term based on Brazilian crop impacts, with plans to accelerate hedging once market conditions clarify [54][55] Question: Partnership with Tether and its impact - The partnership is seen as a potential opportunity to sell energy at attractive prices, with ongoing evaluations to determine feasibility [74]

Group 1 - The London market for Robusta coffee futures is experiencing its largest weekly increase in over 20 years, with a cumulative rise of 12% this week, the highest since June 2010 [1] - Supply tightness from the two major producing countries, Vietnam and Brazil, is disrupting the market, with Vietnam entering its off-season and reduced harvests limiting supply [1] - Brazilian farmers are currently reluctant to sell their stocks, focusing primarily on fulfilling forward contract deliveries [1] Group 2 - Sugar futures have declined ahead of the release of Brazil's late July production data, despite ongoing production lagging behind last year's figures [1] - The market's concerns over supply shortages have eased as more sugarcane is being used for sugar production rather than ethanol [1]