Core Viewpoint - Indonesia plans to implement a mandatory standard of 10% bioethanol blending in gasoline by 2027 as part of its strategy to reduce fuel import dependency [1] Group 1: Government Initiatives - The Indonesian government is focusing on expanding the use of biofuels made from palm oil and sugarcane to achieve higher energy self-sufficiency [1] - The implementation of the 10% bioethanol blending standard is expected to require 1.4 million kiloliters of bioethanol [1] Group 2: Production and Supply Challenges - The introduction of the mandatory bioethanol blending has been delayed due to supply constraints of ethanol [1] - According to the Indonesian Ethanol Producers Association, the annual production capacity of bioethanol in Indonesia for 2024 is projected to be 303,325 kiloliters, but the actual production is only 160,946 kiloliters, with imports at 11,829 kiloliters [1] - Domestic demand for bioethanol in Indonesia last year was 125,937 kiloliters, while exports reached 46,839 kiloliters [1] Group 3: Alternative Raw Materials - Cassava, corn, and sugarcane are identified as alternative raw materials for ethanol production [1]

Core Viewpoint - Indonesia plans to implement a mandatory standard of 10% bioethanol blending in gasoline by 2027 as part of its strategy to reduce fuel import dependence [1] Group 1: Government Initiatives - The Indonesian government is focusing on expanding the use of biofuels made from palm oil and sugarcane to achieve higher energy self-sufficiency [1] - The implementation of the 10% bioethanol blending standard is expected to require 1.4 million kiloliters of bioethanol [1] Group 2: Production and Supply Challenges - The Indonesian Ethanol Producers Association reports that the annual production capacity of bioethanol in 2024 is projected to be 303,325 kiloliters, but the actual production is only 160,946 kiloliters [1] - The country imported 11,829 kiloliters of bioethanol, while domestic demand last year was 125,937 kiloliters, with exports reaching 46,839 kiloliters [1] Group 3: Alternative Raw Materials - Cassava, corn, and sugarcane are identified as alternative raw materials for ethanol production [1]

Financial Data and Key Metrics Changes - Comstock raised $34.5 million in gross proceeds from an oversubscribed equity raise, netting $31.8 million, which expanded the institutional shareholder base by over 30 new investors [6][8] - The company ended the quarter with $31.7 million in cash and equivalents, including $12.4 million at BIOLIUM, and net current assets of $21.3 million [9][52] - Comstock eliminated all debt, transitioning from $8.5 million in debt at the end of the previous year to being completely debt-free [8][9] Business Line Data and Key Metrics Changes - The solar panel recycling business is set to process approximately 100,000 tons per year, equating to over 3.3 million panels annually, with significant equipment deposits made for the first facility in Silver Springs, Nevada [7][22] - The company reported about $500,000 in billings for the third quarter, aligning with guidance of approximately $3.5 million for the year [23][66] Market Data and Key Metrics Changes - Silver demand hit record levels in 2025, driven by industrial uses, with expectations for continued growth in demand exceeding supply, positively impacting silver pricing [14][15] - The market for solar panel recycling is projected to grow significantly, with estimates of 33 million panels expected by 2030, up from 3.5 million currently [27][28] Company Strategy and Development Direction - Comstock is focused on expanding its solar panel recycling operations and positioning itself as a leader in silver production through its recycling processes [17][19] - The company aims to establish two additional facilities in the U.S. to capitalize on the growing market for solar panel recycling [29][86] - The strategic rationale includes leveraging land and energy requirements for data infrastructure, which is experiencing explosive growth [62][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong backlog of orders and increased engagement with customers, despite a temporary decline in revenue due to the sale of mining assets [66][68] - The company is preparing for the commissioning of its first facility in Q1 2026, with expectations to ramp up production significantly thereafter [83][87] Other Important Information - Comstock is actively working on refining processes for silver and other metals, with plans to start development as soon as the first plant is operational [90][93] - The company has signed multiple new Master Service Agreements (MSAs) with utilities and recyclers, enhancing its market position [80][81] Q&A Session Summary Question: Where does liquidity stand today? - Comstock reported $31.7 million in cash at the end of the quarter, with $12.4 million at BIOLIUM and net current assets of $21.3 million [52] Question: How long is the cash runway? - The company is fully funded for its business plans and aims for sustained profitability and growth [53] Question: Why the loss on debt extinguishment and what's left? - The $2.77 million loss reflects the payoff of certain notes, but the elimination of debt is seen as a positive step [54] Question: Should we expect any dilution now that Comstock is funded? - There are currently 51.26 million shares outstanding, and no new shares are anticipated to be issued for funding [55] Question: What will Comstock do with revenues once Plant one has funded future plants? - Revenues will be reinvested into expanding metals recycling capacity, with a focus on stabilizing cash generation [57] Question: Are there any plans to dilute to fund mining operations? - No new equity is anticipated to fund mining; funding will likely come from joint ventures or asset-level transactions [59] Question: What is the strategic rationale for continued funding of SSOF? - The properties are well-positioned for the growing data infrastructure market, requiring engagement and capital to capitalize on opportunities [61][64] Question: Why did revenue decline in Q3? - Revenue decline was attributed to the sale of mining assets, which affected lease revenue, but engagement in the market has increased [66][68] Question: What's behind the higher SG&A and R&D? - Increased SG&A is due to scaling operations, including rent and personnel costs, while R&D expenses are related to biolium and metals marketing [70][71] Question: What happened to the metals recovery business and equipment? - The focus has shifted entirely to solar panel recycling, with no ongoing metals recovery business outside of this area [74][75] Question: Why not build smaller cookie-cutter plants to cut transportation costs? - The strategy is to locate plants close to solar panel sources to minimize logistics costs, with a focus on scalability and throughput [76][78] Question: How are you monetizing all recycled materials? - The company sells clean aluminum, glass, and silver-rich tailings, with plans to refine materials for higher value in the future [79] Question: Can you elaborate on the current MSAs and the solar panel supply? - Three new significant MSAs were signed, including with a major utility and a prominent recycler, enhancing market share [80][81] Question: When will the Silver Spring site hit capacity? - The site is expected to ramp up production starting in Q2 2026, with a goal of reaching full capacity by late 2027 [83][86] Question: What about silver refining? - Plans for silver refining are in development, with a focus on maximizing value from all materials processed [90][93]

Summary of Key Points from the Conference Call Industry Overview - The biofuel industry is experiencing rapid capacity expansion in China, with total capacity reaching 1.16 million tons, primarily using waste oils as raw materials [1][2] - The competition in the biofuel sector may intensify, but companies with technological and customer advantages, such as Jiaao Environmental, are expected to remain competitive [1][2] Key Insights on Biofuels - The price of Sustainable Aviation Fuel (SAF) has been on a continuous rise since April 2025, with the European FOB high price reaching $2,790 per ton, marking an increase of approximately 47% year-to-date [1][3][4] - In contrast, the price increase for the raw material Used Cooking Oil (UCO) was only 9.4%, indicating that SAF manufacturers like Jiaao Environmental may see significant profit improvements in Q4 2025 [4] Export Trends - China's biodiesel exports saw a year-on-year decline of 27.5% in the first three quarters of 2025, but there was a marginal improvement in Q3 with a 15% year-on-year increase and a 39% quarter-on-quarter increase [1][5] - The average export price for biodiesel in the first three quarters was $1,123 per ton, reflecting a 5.2% increase year-on-year [5] - The export market structure for biodiesel is shifting, with increased export proportions to Malaysia, Singapore, and Hong Kong due to EU anti-dumping tariffs and rising demand for marine fuel blending in Southeast Asia [1][6] UCO Market Performance - In Q3 2025, China's UCO export volume decreased by 11% year-on-year and 7% quarter-on-quarter, primarily due to the cancellation of export tax rebates and increased domestic SAF production [1][7] - The average export price for UCO in Q3 was $1,082 per ton, which is a 20% year-on-year increase [7] Regulatory Environment and Future Outlook - Multiple countries, including the EU, UK, and Singapore, are implementing or planning to implement mandatory blending policies for SAF, which is expected to drive global demand for SAF and its raw materials like UCO [1][8] - The National Development and Reform Commission (NDRC) in China has proposed a minimum renewable energy consumption target, indicating stronger domestic promotion of SAF, which provides a positive outlook for core listed companies in the sector [1][9] Recommendations - It is suggested to focus on processing companies like Jiaao Environmental and Zhuoyue New Energy, as well as upstream raw material suppliers like Shanhai Environmental and Langkun Technology, due to expected improvements in profitability in Q4 2025 [1][10]

Investment Rating - The report maintains a "Positive" investment rating for the industry [11] Core Insights - The domestic SAF (Sustainable Aviation Fuel) market has seen a significant price increase of 46.7% year-to-date, which is higher than the 9.4% increase in UCO (Used Cooking Oil) prices, indicating improved profitability for companies in this sector [2][6][18] - The demand for biodiesel in the Asia-Pacific region is driving a notable increase in China's biodiesel exports, particularly in Q3 2025, which saw a 15.0% year-on-year growth [7][25] - The report suggests focusing on raw material suppliers and processing companies, such as Zhuoyue New Energy, as the industry shows an upward trend in profitability and demand [2][9] Summary by Sections SAF & HVO - Four domestic companies have received export approval for a total capacity of 1.16 million tons of SAF, with the second batch of export whitelist being established in October 2025 [6][17] - The price of European FOB SAF has increased by 46.7% this year, leading to a favorable outlook for company profitability as the price gap between products and raw materials continues to widen [6][18] Biodiesel - China's biodiesel exports reached 647,000 tons in the first three quarters of 2025, a decrease of 27.5% year-on-year, but Q3 2025 saw a significant recovery with a 15.0% year-on-year increase [7][25] - The average export price of biodiesel in Q3 2025 was $1,152 per ton, reflecting an 11.7% year-on-year increase [7][25] UCO - In Q3 2025, China's UCO exports totaled 635,000 tons, a decrease of 11.2% year-on-year, attributed to the cancellation of export tax rebates in December 2024 [8][37] - The average export price for UCO in Q3 2025 was $1,082 per ton, up 19.7% year-on-year, driven by increased international demand due to EU regulations [8][37] Market Outlook - The report anticipates further supportive policies for the domestic market, particularly in renewable energy consumption targets, which will benefit the biodiesel sector [9][47] - The SAF industry is expected to grow significantly as multiple countries implement blending targets and incentives, transitioning from planning to actual demand [9][47]

Core Insights - The average first-day increase for two new stocks last week was 263%, with Chaoying Electronics rising nearly 400% and a single subscription yielding approximately 34,000 yuan [1] - Three new stocks are scheduled for subscription this week, indicating ongoing market activity despite potential short-term fluctuations [3] Group 1: New Stock Offerings - Fengbei Biological, scheduled for subscription on October 27, is a leading company in the comprehensive utilization of waste oil resources, with significant partnerships in the biofuel sector [1][4] - Delijia, set for subscription on October 28, is a global leader in wind turbine main gearbox supply, with a projected global market share of 10.36% in 2024, ranking third globally [2][5] Group 2: Financial Projections - Fengbei Biological expects a net profit of 106 million to 116 million yuan for the first three quarters of 2025, representing a year-on-year growth of 22.29% to 33.82% [4][5] - Delijia anticipates a net profit of 582 million to 635 million yuan for the first three quarters of 2025, with a year-on-year increase of 52.37% to 66.27% [7][5] - Zhongcheng Consulting projects a net profit of 70 million to 72 million yuan for the first three quarters of 2025, with a slight decline compared to the previous year [8]

Group 1: Market Overview - The average first-day increase for two new stocks this week was 263%, with Chaoying Electronics rising nearly 400%, resulting in a profit of approximately 34,000 yuan per subscription [1] - Short-term market sentiment may experience fluctuations due to the upcoming holiday and the ongoing third-quarter report disclosures, but the medium to long-term bullish atmosphere remains intact [1] Group 2: Upcoming IPOs - Three new stocks are scheduled for subscription next week, including two on the Shanghai Stock Exchange and one on the Beijing Stock Exchange [3] - Fengbei Biological, set to be subscribed on October 27, is a leading company in the comprehensive utilization of waste oil resources, with significant partnerships in the biofuel sector [1][5] - Delijia, scheduled for subscription on October 28, is a global leader in wind turbine main gearbox supply, with a projected global market share of 10.36% in 2024 [2] Group 3: Company Financials - Fengbei Biological expects a net profit of 106 million to 116 million yuan for the first three quarters of 2025, representing a year-on-year growth of 22.29% to 33.82% [5][6] - Delijia anticipates a net profit of 582 million to 635 million yuan for the first three quarters of 2025, indicating a growth of 52.37% to 66.27% [7] - Zhongcheng Consulting projects a net profit of 70 million to 72 million yuan for the first three quarters of 2025, reflecting a slight decline compared to the previous year [9][10]

Financial Performance - Total Net Sales increased to $1564 million in Q3 2025, a 10% increase compared to $14219 million in Q3 2024[4] - Gross Margin increased to $387 million in Q3 2025, a 234% increase compared to $3136 million in Q3 2024[4] - Net Income increased to $194 million in Q3 2025, a 148% increase compared to $169 million in Q3 2024[4] - EPS Diluted increased to $012 in Q3 2025, a 91% increase compared to $011 in Q3 2024[4] - Combined Adjusted EBITDA increased to $2449 million in Q3 2025, a 35% increase compared to $2367 million in Q3 2024[4] Segment Performance - Feed segment Adjusted EBITDA increased to $174 million in Q3 2025, a 316% increase compared to $1322 million in Q3 2024[4] - Food segment Adjusted EBITDA increased to $716 million in Q3 2025, a 256% increase compared to $57 million in Q3 2024[4] - Fuel segment Adjusted EBITDA decreased to $216 million in Q3 2025, a 638% decrease compared to $597 million in Q3 2024[4] Balance Sheet - Cash and cash equivalents were $91 million as of September 27, 2025[5] - Total debt was $4104 billion as of September 27, 2025[5]

Summary of the Conference Call for Jiaao Environmental Protection Company Overview - **Company**: Jiaao Environmental Protection - **Industry**: Biofuels, specifically focusing on bio-jet fuel and biodiesel Key Points and Arguments Sales and Revenue Performance - In Q3 2025, Jiaao Environmental Protection sold **105,000 tons** of bio-jet fuel, benefiting from delayed shipments from June, with an average monthly shipment of **30,000 tons** from July to September [2][3] - The price of bio-jet fuel increased from **11,500 RMB/ton** in July to over **15,000 RMB/ton** in September, with an expected price of **17,000 RMB/ton** in October (approximately **2,500 USD**) [2][5] - The company reported a net profit of **53 million RMB** in Q3 2025, with a loss of **40 million RMB** from its main business, while the bio-jet fuel segment contributed **90 million RMB** to the profits [3] Business Challenges - The biodiesel segment faced instability in orders and frequent production stoppages, leading to losses [2][6] - Funding was primarily allocated to the Lianyungang project and raw material procurement, limiting the production capacity of biodiesel [6] Market Dynamics - SaaS prices are rising due to insufficient market supply and strong demand, particularly in Europe, where production capacity is limited [2][7] - The second-generation biodiesel in China is at a disadvantage due to anti-dumping issues, exacerbating supply-demand imbalances [7] Future Projections - The company anticipates that low-carbon policies, such as B24 (24% biodiesel mixed with 76% low-sulfur fuel), may help mitigate losses in the biodiesel segment in Q4 [6] - Price expectations for Q1 2026 are projected to remain high, with stability expected in Q4 2025 and Q1 2026, but uncertainty exists for the following quarters [8] Strategic Partnerships - Jiaao Environmental Protection has a long-term cooperation agreement with BP, ensuring a stable supply chain and fixed annual supply volumes, with prices adjusted according to market conditions [13] - The company plans to increase its stake in Lianyungang Jiaao due to improved profitability [15] Project Developments - The progress of the second-phase project is contingent on domestic policies, with potential construction starting in 2026 and production in 2027 [2][9] - The investment for the second phase is expected to be significantly lower than the first phase, with reduced unit depreciation costs [10][11] Pricing Strategies - Domestic bio-jet fuel prices may adopt a guiding pricing mechanism to stabilize production, contrasting with the market-driven pricing in international markets [12] - The pricing mechanism for products like Dafu is based on average prices, which may reflect in the following month's performance due to a lag effect [16] Market Opportunities - The impact of Haike Chemical's **300,000 tons** capacity on the market is noted, with a call for China to seize the opportunity to expand supply amid European project delays [9] Additional Important Insights - The company is focused on ensuring long-term stable procurement from partners like China National Aviation Fuel, which aligns with their investment strategies [14]

Core Viewpoint - The report from Industrial Securities highlights the ongoing development of domestic SAF (Sustainable Aviation Fuel) capacity, emphasizing the critical role of upstream raw material supply, particularly waste cooking oil resources, and suggests focusing on companies like Shanhigh Environmental Energy and Jiaao Environmental Protection due to their strategic advantages in this sector [1][2]. Group 1: SAF Market Dynamics - The implementation of mandatory blending policies in multiple regions is driving significant growth in SAF demand, marking a pivotal year for market expansion [2]. - SAF is recognized as a key solution for the aviation industry's carbon reduction challenges, with the EU's blending policy set to increase from 2% in 2025 to 6% by 2030 and 70% by 2050, leading to an expected demand increase of approximately 130,000 tons in 2025 [2]. - China's SAF demand is projected to reach about 2.49 million tons by 2030 if the blending ratio aligns with IATA recommendations, indicating a reliance on exports to manage production capacity [2]. Group 2: Raw Material Supply and Industry Leaders - The supply of used cooking oil (UCO) is limited due to stable population and consumption patterns in China, making it a scarce resource for SAF production [3]. - Shanhigh Environmental Energy is positioned as a leader in the UCO industry, with plans to increase its processing capacity from 5,660 tons per day to between 8,000 and 10,000 tons per day within three years [3]. - The company has demonstrated operational efficiency improvements, with a projected capacity utilization rate of 79.1% in 2024 and a significant increase in net profit driven by SAF demand [3]. Group 3: Industry Capacity and Performance - China leads globally in SAF production capacity, with an estimated total capacity of around 1.05 million tons per year, accounting for approximately 50% of the global total [4]. - Jiaao Environmental Protection is at the forefront of the industry, with a current operational capacity of 500,000 tons per year and plans for an additional 500,000 tons, alongside securing export licenses [4]. - The company has seen substantial revenue growth, with a 78% increase in revenue in Q2 and a return to profitability in Q3 due to rising SAF prices and increased production [4].