Report Industry Investment Rating - Not provided in the given content Core Viewpoints - The downward trend of the external sugar market has slowed down, lingering at a low level, weakening the downward pressure on domestic prices. The domestic demand is in the peak season, boosting the center of the white sugar futures price to rise slightly during stable operation. However, the increase in imports and the expectation of loose global supply will limit the upside potential of prices. It is recommended to wait and see for now [2][3] Summary by Relevant Catalogs Futures Market - The closing price of the main white sugar futures contract was 5,845 yuan/ton, a decrease of 31 yuan; the position of the main contract was 324,831 lots, a decrease of 18,873 lots; the number of warehouse receipts was 20,150, a decrease of 492; the net long position of the top 20 futures positions was 800 lots; the effective warehouse receipt forecast was 0 [2] Spot Market - The estimated import processing price of Brazilian sugar within the quota was 4,458 yuan/ton, a decrease of 54 yuan; the estimated import price of Brazilian sugar outside the quota (50% tariff) was 5,662 yuan/ton, a decrease of 72 yuan; the estimated import processing price of Thai sugar within the quota was 4,509 yuan/ton, a decrease of 55 yuan; the estimated import price of Thai sugar outside the quota (50% tariff) was 5,729 yuan/ton; the spot price of white sugar in Kunming was 5,920 yuan/ton, up 10 yuan; the spot price in Nanning was 6,050 yuan/ton, unchanged; the spot price in Liuzhou was 6,120 yuan/ton, unchanged [2] Upstream Situation - The national sugar crop planting area was 1,480 thousand hectares, an increase of 60 thousand hectares; the planting area of sugar cane in Guangxi was 835.09 thousand hectares, a decrease of 12.86 thousand hectares; the national cumulative sugar production was 1,116.21 million tons, an increase of 5.49 million tons; the national cumulative sugar sales volume was 811.38 million tons, an increase of 86.92 million tons; the national industrial sugar inventory was 304.83 million tons, a decrease of 81.43 million tons; the national sugar sales rate was 72.69%, an increase of 7.47 percentage points; the monthly sugar import volume was 420,000 tons, an increase of 70,000 tons; the monthly total sugar exports from Brazil were 3.359 billion tons, an increase of 1.1024 billion tons [2] Industry Situation - The price difference between imported Brazilian sugar and the current price of Liuzhou sugar within the quota was 1,502 yuan/ton, an increase of 53 yuan; the price difference between imported Thai sugar and Liuzhou sugar within the quota was 1,451 yuan/ton, an increase of 54 yuan; the price difference between imported Brazilian sugar and Liuzhou sugar outside the quota (50% tariff) was 298 yuan/ton, an increase of 71 yuan; the price difference between imported Thai sugar and Liuzhou sugar outside the quota (50% tariff) was 231 yuan/ton, an increase of 70 yuan [2] Downstream Situation - The cumulative year-on-year growth rate of refined sugar production was 16.7%, an increase of 2.6 percentage points; the cumulative year-on-year growth rate of soft drink production was 2.9%, a decrease of 0.1 percentage point [2] Option Market - The implied volatility of at-the-money call options for white sugar was 10.22%, a decrease of 0.26 percentage points; the implied volatility of at-the-money put options was 10.23%, a decrease of 0.16 percentage points; the 20-day historical volatility was 4.6%, an increase of 0.01 percentage points; the 60-day historical volatility was 6.95%, an increase of 0.01 percentage points [2] Industry News - According to the report of the Brazilian Sugarcane Technology Center, the average yield and quality of sugarcane in the central-southern region declined in June. As of June in the 2025/26 crushing season, the sugar content index (ATR) of sugarcane decreased by 3.1% year-on-year, from 125.2 kg/ton to 121.4 kg/ton [2] Suggested Attention - There is no news today [2]

Core Viewpoint - Guangnong Sugar Industry is moving forward with its fundraising plan of up to 260 million yuan for logistics and working capital, despite doubts about the necessity of expansion given its low warehouse capacity utilization [1][2]. Fundraising and Utilization - The company plans to raise a maximum of 260 million yuan, with 194 million yuan allocated for the "Yunou Logistics Sugar Storage Intelligent Distribution Center Phase II Expansion Project" and 66 million yuan for working capital and bank loan repayment [2]. - Guangnong Sugar's self-owned warehouse capacity utilization is currently at 21.66%, down from 61.19%, indicating underutilization and raising questions about the need for further expansion [2][3]. Financial Health and Debt Levels - The company has a high debt ratio, consistently above 90%, projected to be 94.5% by 2024, with the fundraising expected to reduce it to 88.41%, which remains high [3][4]. - As of 2024, Guangnong Sugar has cash and cash equivalents of 761 million yuan against short-term interest-bearing liabilities of 2.56 billion yuan, resulting in a low cash-to-debt ratio of 0.3 [3][6]. Profitability and Performance Fluctuations - The company has experienced significant profit volatility, with two years of losses and three years of profits since 2020, largely due to the cyclical nature of sugar prices [5][6]. - The gross profit margin for self-produced sugar dropped to 9.67% in 2022 but rebounded to over 13% in 2023, although the overall profitability remains weak with net profit margins of 0.48% and 0.62% in the last two years [6][7]. Risks and Future Outlook - The logistics and warehousing business is highly sensitive to sugar price cycles, and any fluctuations could lead to renewed losses for Guangnong Sugar [7]. - The company has accumulated unremedied losses of 2.38 billion yuan, and if significant losses occur in the future, it may face the risk of negative net assets and potential delisting [7].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - International sugar market: Brazil's total sugar production may be adjusted downward due to lower yields and a historically high sugar - to - cane ratio. Asian producers, especially India, have optimistic production estimates. With potential increased sucrose use by Coca - Cola and PepsiCo and procurement demand from countries like Pakistan, the international sugar price is expected to fluctuate widely between 16 - 18 cents per pound [2][20]. - Domestic sugar market: The sales of domestic sugar are progressing ahead of schedule, imports have increased significantly, and processed sugar has been put on the market in large quantities with stable prices. The cost of some previously priced raw sugar is similar to that of domestic sugar, so the market pressure is limited. The domestic market has achieved a relay supply pattern between domestic and processed sugar. The upside of sugar prices later depends on consumption, with an expected operating range of 5700 - 6000 yuan per ton [2][20][22]. - Operation suggestion: Conduct band trading on Zhengzhou sugar futures [3][23]. 3. Summary by Relevant Catalogs 3.1 Market Review - In July, Zhengzhou sugar futures trended higher with high basis and a shift from net short to net long positions in the main contracts, supported by fast sales and capital inflows. International sugar prices oscillated at low levels, rebounding after falling below 16 cents per pound but then being pressured by India's abundant supply expectations and dropping again [4]. 3.2 International Market Analysis - **Brazil**: In the second half of June, the sugar - to - cane ratio in South Brazil reached a record high of 53.15%, with a cumulative ratio of 51.02%, up 2.3 percentage points year - on - year. However, due to weather, the cane crushing volume was low. Considering the relatively low cane yield and sugar content and limited room for further increase in the sugar - to - cane ratio, Brazil's 2025/26 sugar production may be reduced [6]. - **India**: Ample rainfall has led to high expectations for a large sugar harvest in the 2025/26 season. The USDA predicts India's sugar production will reach 35 million tons. As of mid - July 2025, India's sugar exports were 65 - 70 million tons, and the ISMA expects 80 million tons by the end of August, with 20 million tons of the quota unexported. The sugar industry requests an extension of the export license to December 31. If the harvest is good, India could export 100 - 150 million tons in the new year [9]. 3.3 Domestic Market Analysis - **Sales progress**: In June, Guangxi sold 495.3 thousand tons of sugar, an increase of 77.3 thousand tons year - on - year, with an industrial inventory of 1.3244 million tons, a decrease of 330.8 thousand tons. Yunnan sold 195.3 thousand tons, a decrease of 66 thousand tons, with an industrial inventory of 667.6 thousand tons, an increase of 68.5 thousand tons. Some sugar mills in Guangxi have cleared their inventories, and the overall sales are ahead. Yunnan's inventory reduction is slower but is expected to improve in July [11][12]. - **Imports**: In June 2025, China imported 420 thousand tons of sugar, an increase of 390 thousand tons year - on - year, the highest in the past decade. From January to June 2025, the cumulative import was 1.04 million tons, a decrease of 260 thousand tons year - on - year. In the 2024/25 season, the cumulative import was 2.51 million tons, a decrease of 600 thousand tons. Brazil accounted for 76% of raw sugar imports in the first half of 2025, and about one million tons of imported sugar are expected later. In June, the total import of syrups and sugar - containing premixes under certain tax codes was 115.7 thousand tons, a decrease of 103.2 thousand tons year - on - year. The import of 1702 - item syrups is shrinking, but Thai - flavored syrups and premixes show signs of growth [15][18].

Core Viewpoint - Angel Yeast (600298.SH) announced plans to acquire a 55% stake in Hohhot Tongtang Technology Co., Ltd. (Shengtong Sugar Industry) for 506 million yuan, aiming to enhance its sugar production capabilities and optimize its industrial structure [1][2]. Group 1: Acquisition Details - The acquisition involves purchasing 55% of Shengtong Sugar Industry from Zheng Jianchen at a price of 2.30 yuan per share, totaling 506 million yuan [1]. - Shengtong Sugar Industry, established in 2017, focuses on beet sugar production and has an annual production capacity of 125,000 tons of edible sugar and 35,000 tons of molasses [1][2]. - The valuation report indicates that the total equity of Shengtong Sugar Industry is assessed at 919 million yuan, reflecting a 63.8% appreciation [1]. Group 2: Strategic Implications - Post-acquisition, Shengtong Sugar Industry will become a subsidiary of Angel Yeast, contributing to the company's consolidated financial statements and supporting the development of its sugar segment and downstream industries [2]. - The acquisition is expected to enhance Angel Yeast's sustainable profitability and overall competitiveness in the market [2]. Group 3: Performance Commitment - The acquisition agreement includes a performance guarantee, requiring Shengtong Sugar Industry to achieve a combined net profit and unlevered free cash flow of no less than 173 million yuan from 2025 to 2027 [2]. - If performance targets are not met, the commitment party must provide cash compensation; conversely, exceeding targets will result in rewards for Angel Yeast [2].

Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - This week, the price of Zhengzhou Sugar 2509 contract rose with a weekly increase of about 0.86%. Internationally, the monsoon season has led to a good supply outlook in major Asian sugar - producing countries, casting a shadow over the raw sugar market price. However, news of Coca - Cola changing its formula, significant year - on - year increase in China's recent imports, and potential buyers like Pakistan, the Philippines, and Iran have improved demand to some extent. Domestically, the price discrepancy between domestic and international markets has opened the profit window for out - of - quota imports, releasing import pressure. In June, China imported 420,000 tons of sugar, a significant year - on - year increase, which suppressed sugar prices. On the demand side, the summer consumption peak has led to inventory - building needs in the food and beverage industry and a recovery in seasonal consumption such as cold drinks, providing some support for prices. Overall, the downward trend of the external market has slowed down, and its suppressing effect on domestic prices has weakened. Coupled with the domestic peak consumption season, the sugar futures price is expected to fluctuate upwards in the short term, but the increase in imports and the expected global supply surplus will limit the upside potential. It is recommended to go long at low prices with a light position in the short term and control risks. Future factors to monitor include consumption and exports of Brazilian and Indian sugar [8]. 3. Summary by Directory 3.1 Week - on - Week Summary - Zhengzhou Sugar 2509 contract price rose with a weekly increase of about 0.86%. The external market is under pressure from supply surplus expectations but supported by demand improvement. Domestically, import pressure and demand support co - exist, and the price is expected to fluctuate upwards in the short term. Future factors to watch are consumption and Brazilian/Indian sugar exports [8]. 3.2 Futures and Spot Market - **Futures Market**: The price of the US Sugar 10 - month contract rose with a weekly increase of about 1.15%. As of July 8, 2025, the non - commercial long position of ICE No. 11 sugar was 201,975 contracts, a 2.08% week - on - week increase; the non - commercial short position was 262,426 contracts, a 0.88% week - on - week decrease; the non - commercial net position was - 60,451 contracts, a 9.66% week - on - week increase. The net position of the top 20 in the Zhengzhou sugar futures was - 4,166 contracts, and the Zhengzhou sugar warehouse receipts were 20,842 contracts [9][19]. - **Spot Market**: As of July 25, the sugar price in Liuzhou, Guangxi was 6,120 yuan/ton, and the spot price in Kunming, Yunnan was 5,910 yuan/ton. As of July 22, 2025, the estimated import processing price (out - of - quota, 50% tariff) of Brazilian sugar was 5,665 yuan/ton, a 0.49% week - on - week decrease; the in - quota price was 4,460 yuan/ton, also a 0.49% week - on - week decrease. The estimated import processing price (out - of - quota, 50% tariff) of Thai sugar was 5,743 yuan/ton, a 0.50% week - on - week decrease; the in - quota price was 4,520 yuan/ton, a 0.48% week - on - week decrease. As of last week, the in - quota profit of imported Brazilian sugar was 1,480 yuan/ton, a 0.07% week - on - week decrease; the out - of - quota profit was 275 yuan/ton, a 1.85% week - on - week increase. The in - quota profit of imported Thai sugar was 1,420 yuan/ton, a 0.07% week - on - week decrease; the out - of - quota profit was 197 yuan/ton, a 3.14% week - on - week increase [24][27][32]. 3.3 Industry Chain Situation - **Supply Side**: By the end of May 2025, the 2024/25 sugar - making season had ended, and the national sugar production was 1.11621 million tons, a year - on - year increase of 119,890 tons or 12.03%. As of May 30, 2025, the industrial inventory was 304,830 tons, a year - on - year decrease of 32,210 tons. In June 2025, China imported 420,000 tons of sugar, a significant year - on - year increase, but the cumulative import from January to June was only 1.04 million tons, a 19.7% year - on - year decrease [36][40][44]. - **Demand Side**: As of May 31, 2025, the cumulative national sugar production was 1.11621 million tons, a 0.49% month - on - month increase; the cumulative sales volume was 811,380 tons, a 12.00% month - on - month increase; the sales rate was 72.69%, a 11.45% month - on - month increase. As of June 30, 2025, the monthly output of refined sugar was 337,000 tons, a 10.61% month - on - month decrease; the monthly output of soft drinks was 1.84285 million tons, a 14.24% month - on - month increase [48][53]. 3.4 Option and Stock - Futures Correlation Market - **Option Market**: The implied volatility of at - the - money options in the sugar market this week is presented in the chart of the implied volatility of the underlying of the Sugar 2509 contract [54]. - **Stock Market**: The chart of the price - to - earnings ratio of Nanning Sugar Industry is provided [58].

Core Viewpoint - Guangxi is the largest sugarcane planting base and sugar production area in China, playing a crucial role in ensuring national sugar supply security. Guangxi Agricultural Investment Sugar Industry Group Co., Ltd. (Guangnong Sugar) emphasizes the integration of party building and production to demonstrate its responsibilities as a state-owned enterprise [1]. Group 1: Party Building and Community Engagement - Guangnong Sugar has signed cooperation agreements with 27 party branches and 29 village committees, focusing on community development and agricultural support, including road repairs and technical training for farmers [2][4]. - The company has established a "Party Building and Community Co-construction" initiative, which aims to enhance sugarcane production and farmer income, with expected increases of 5%-10% in total sugarcane yield for participating villages [2][3]. Group 2: Operational Strategies and Management - To address the challenges faced by sugar enterprises, Guangnong Sugar has implemented a "Sugar Industry Pioneer Grid Management" initiative, creating a structured network to support farmers and enhance production efficiency [3][4]. - The company has expanded its sugarcane planting area to 1.5256 million acres for the 2024/25 season, an increase of 160,300 acres compared to the previous season, ensuring a solid foundation for production growth [4]. Group 3: Workforce Development and Training - Guangnong Sugar focuses on strengthening its workforce by enhancing the capabilities of party organization leaders and improving the quality of party member development, particularly among frontline workers and technical experts [7][8]. - The company has adopted a dual training model for party personnel, combining internal training with external programs to improve their skills and effectiveness in supporting the company's goals [7]. Group 4: Market Expansion and Product Development - Guangnong Sugar's subsidiary, Guangxi Qiaowang Paper Mold Products Co., Ltd., has successfully entered international markets, showcasing its environmentally friendly paper tableware at a major trade fair in Dubai and establishing preliminary cooperation with over 20 international clients [8]. - The company is committed to market expansion and has formed a "Market Sales Assault Vanguard Team" to drive sales initiatives, leveraging the leadership of party members to enhance market outreach [8][9].

1. Report Information - Report Name: Sugar Daily Report - Date: July 25, 2025 - Researchers: Wang Haifeng, Lin Zhenlei, Yu Lanlan, Hong Chenliang, Liu Youran [2][3] 2. Market Review and Operational Suggestions Futures Market Conditions - SR509 closed at 5866 yuan/ton, up 40 yuan or 0.69%, with an increase of 9969 contracts in open interest [7]. - SR601 closed at 5668 yuan/ton, up 18 yuan or 0.32%, with an increase of 7680 contracts in open interest [7]. - US Sugar 10 closed at 16.27 cents/pound, down 0.01 cents or -0.06%, with an increase of 4799 contracts in open interest [7]. - US Sugar 03 closed at 16.91 cents/pound, up 0.01 cents or 0.06%, with an increase of 2469 contracts in open interest [7]. Market Trends - On Wednesday, New York raw sugar futures fluctuated weakly. The main October contract closed down 0.06% to 16.27 cents/pound. The London ICE white sugar futures' main October contract closed down 0.2% to $471.40/ton. There were rumors that India might allow new - season sugar exports due to a bumper new - season sugarcane crop, which affected raw sugar prices. However, the current market sugar price is not high enough to support Indian exports [7]. - The main contract of Zhengzhou sugar closed up in a fluctuating manner. The 09 contract closed at 5866 yuan/ton, up 40 yuan or 0.69%, and the open interest increased by 9969 contracts. The spot prices in domestic producing areas slightly decreased. The price of Nanning sugar was 6070 yuan, and that of Kunming sugar was 5860 yuan. Recently, the domestic commodity market rose generally due to the anti - involution theme, and Zhengzhou sugar was slightly affected, showing a stronger trend than raw sugar [8]. 3. Industry News - Coca - Cola will launch a signature cola product using sucrose in the US market this fall, confirming a recent statement by President Donald Trump [11]. - The European crop monitoring agency MARS lowered the 2025 EU sugar beet yield forecast to 74.8 tons per hectare, down from last month's forecast of 76.3 tons per hectare, but still 2% higher than the average of the past five years [11]. - In June 2025, China imported a total of 11.55 tons of syrup and premixed powder (tax codes 1702.90, 2106.906), a year - on - year decrease of 10.35 tons. From January to June 2025, the total import was 45.91 tons, a year - on - year decrease of 49.24 tons. As of June in the 2024/25 sugar - crushing season, the total import was 109.83 tons, a year - on - year decrease of 26.95 tons [11]. - In June 2025, China imported 42 tons of sugar, a year - on - year increase of 39.23 tons. From January to June 2025, China imported 105.08 tons of sugar, a year - on - year decrease of 25.12 tons, a decline of 19.29%. As of June in the 2024/25 sugar - crushing season, China imported 251.26 tons of sugar, a year - on - year decrease of 64.93 tons, a decline of 20.54% [11]. - In June 2025, China's dairy product output was 2.546 million tons, a year - on - year increase of 4.1%; from January to June, it was 14.33 million tons, a year - on - year decrease of 0.3%. In June 2025, China's beverage output was 18.428 million tons, a year - on - year increase of 3.2%; from January to June, it was 93.089 million tons, a year - on - year increase of 2.9% [11]. 4. Data Overview Trading Volume and Open Interest of Top 20 Seats in Zhengzhou Sugar's Main Contract - The total trading volume was 332,449 lots, an increase of 87,359 lots. The total long - position volume was 250,320 lots, an increase of 8,473 lots. The total short - position volume was 237,085 lots, an increase of 7,251 lots [24]. - Among them, Dongzheng Futures (on behalf of clients) had the highest trading volume of 76,875 lots, an increase of 24,293 lots; CITIC Futures (on behalf of clients) had the highest long - position volume of 76,332 lots, an increase of 3,151 lots; COFCO Futures (on behalf of clients) had the highest short - position volume of 54,245 lots, an increase of 3,136 lots [24].

Report Industry Investment Rating - No industry investment rating is provided in the report. Core Viewpoints - International sugar market has a supply - side overhang due to favorable supply prospects in major Asian sugar - producing countries during the monsoon season, which keeps the raw sugar market price under pressure. In the domestic market, there is a divergence between domestic and foreign price strengths. The profit window for out - of - quota imports is open, and the import pressure has been released. In June, China imported 420,000 tons of sugar, a significant year - on - year increase, suppressing sugar prices. On the demand side, during the summer consumption peak, the food and beverage industry has inventory replenishment needs, and seasonal consumption of cold drinks has recovered, providing some support for prices. Overall, domestic demand is rising, domestic futures price performance is stronger than the overseas market, with multiple factors at play, and the market is expected to move in a volatile manner. It is recommended to keep an eye on arrivals at ports and summer consumption, and for now, it is advisable to wait and see [2]. Summary by Relevant Catalogs Futures Market - The closing price of the sugar futures main contract is 5,866 yuan/ton, up 32 yuan; the main contract's open interest is 342,009 lots, an increase of 9,969 lots. The number of sugar warehouse receipts is 20,940, down 158. The net long position of the top 20 futures holders is - 8,187 lots. The total of valid warehouse receipt forecasts for sugar is 0. The estimated import processing price of Brazilian sugar within the quota is 4,460 yuan/ton, down 22 yuan; that of Thai sugar is 4,520 yuan/ton, down 22 yuan [2]. 现货市场 - The estimated import price of Brazilian sugar outside the quota (50% tariff) is 5,665 yuan/ton, down 28 yuan; that of Thai sugar is 5,743 yuan/ton, down 29 yuan. The spot price of white sugar in Kunming is 5,910 yuan/ton, down 10 yuan; in Nanning, it is 6,050 yuan/ton, unchanged; in Liuzhou, it is 6,120 yuan/ton, unchanged [2]. Upstream Situation - The national sugar - crop planting area is 1,480 thousand hectares, an increase of 60 thousand hectares. The planting area of sugarcane in Guangxi is 835.09 thousand hectares, a decrease of 12.86 thousand hectares [2]. Industry Situation - The cumulative national sugar production is 1,116.21 million tons, an increase of 5.49 million tons; the cumulative national sugar sales volume is 811.38 million tons, an increase of 86.92 million tons. The national industrial sugar inventory is 304.83 million tons, a decrease of 81.43 million tons. The national sugar sales rate is 72.69%, an increase of 7.47 percentage points. The monthly sugar import volume is 420,000 tons, an increase of 70,000 tons. Brazil's total sugar exports are 3.359 billion tons, an increase of 1.1024 billion tons. The price difference between imported Brazilian sugar and the current price of Liuzhou sugar within the quota is 1,480 yuan/ton, down 1 yuan; that of Thai sugar is 1,420 yuan/ton, down 1 yuan. Outside the quota (50% tariff), the price difference for Brazilian sugar is 275 yuan/ton, up 5 yuan; for Thai sugar, it is 197 yuan/ton, up 6 yuan [2]. Downstream Situation - The cumulative year - on - year growth rate of refined sugar production is 16.7%, an increase of 2.6 percentage points; the cumulative year - on - year growth rate of soft drink production is 2.9%, a decrease of 0.1 percentage points [2]. Option Market - The implied volatility of at - the - money call options for sugar is 8.79%, an increase of 1.33 percentage points; that of at - the - money put options is 8.79%, an increase of 1.34 percentage points. The 20 - day historical volatility of sugar is 4.62%, a decrease of 0.71 percentage points; the 60 - day historical volatility is 6.92%, a decrease of 0.11 percentage points [2]. Industry News - The Brazilian Sugarcane Technology Center reported that the average yield and quality of sugarcane in the central - southern region declined in June. On Wednesday, the ICE raw sugar October contract closed down 0.06%, while the domestic sugar 2509 contract closed up 0.69%. Internationally, with the arrival of the monsoon season, the supply outlook for major Asian sugar - producing countries is favorable, and the expectation of oversupply has been weighing on the raw sugar market price [2].

Core Viewpoint - Guangnong Sugar Industry has received approval from the Shenzhen Stock Exchange for its application to issue shares to specific investors, pending final approval from the China Securities Regulatory Commission (CSRC) [1] Fundraising Details - The company plans to raise a total of up to 26 million yuan, with net proceeds allocated to the "Yun'ao Logistics Sugar Storage Intelligent Distribution Center Phase II Expansion Project" and to supplement working capital and repay bank loans [1][2] - The total investment for the Yun'ao Logistics project is approximately 20.79 million yuan, while the amount for working capital and loan repayment is 6.6 million yuan, totaling 27.39 million yuan [2] Issuance Conditions - The issuance will target no more than 35 specific investors, including securities investment funds, securities companies, trust companies, financial companies, insurance institutional investors, and qualified foreign institutional investors [2] - The final list of investors will be determined after approval from the Shenzhen Stock Exchange and the CSRC [2][4] Share Issuance Specifications - The shares will be issued at a price not lower than 80% of the average trading price over the 20 trading days prior to the pricing date [4] - The number of shares issued will not exceed 30% of the total share capital before the issuance, which is estimated to be up to 120,095,945 shares [4] Control and Ownership - Guangxi Rural Investment Group, the controlling shareholder, holds 38.23% of the company’s shares, and the issuance will not change the control structure, as the ownership percentage will decrease to 29.41% post-issuance [4] - The actual controller of the company remains the Guangxi Autonomous Region State-owned Assets Supervision and Administration Commission [4] Underwriting Information - The lead underwriter for this issuance is Guohai Securities Co., Ltd., with representatives Jiang Yaping and Li Jinhai [5]

Group 1: Report Information - Report Name: Sugar Daily Report [1] - Date: July 24, 2025 [2] - Researcher: Wang Haifeng, Lin Zhenlei, Yu Lanlan, Hong Chenliang, Liu Youran [3] Group 2: Market Review and Operation Suggestions - **Futures Market Quotes** - SR509 closed at 5834 yuan/ton, up 9 yuan or 0.15%, with a position of 332,040 contracts, a decrease of 2,120 contracts [7] - SR601 closed at 5656 yuan/ton, up 1 yuan or 0.02%, with a position of 126,227 contracts, an increase of 2,396 contracts [7] - ICE US Sugar 11 Oct closed at 16.26 cents/lb, down 0.11 cents or 0.67%, with a position of 392,620 contracts, a decrease of 4,151 contracts [7] - ICE US Sugar 11 Mar closed at 16.88 cents/lb, down 0.15 cents or 0.88%, with a position of 215,397 contracts, a decrease of 1,492 contracts [7] - **Market Analysis** - New York raw sugar futures trended weaker on Tuesday. The market rumor that India may allow new - season sugar exports due to a bumper cane crop affected the raw sugar price, but the current low price is not enough to support Indian exports [7] - Zhengzhou sugar futures' main contract closed higher. Recently, the domestic commodity market rose due to the "anti - involution" theme, and Zhengzhou sugar was slightly affected, showing a stronger trend than raw sugar. In the third quarter, the supply of refined sugar will gradually increase, which will suppress the domestic sugar price [8] Group 3: Industry News - Coca - Cola will launch a signature cola product using sucrose in the US market this fall [11] - The European Union's crop monitoring agency MARS lowered its 2025 sugar beet yield forecast to 74.8 tons per hectare from 76.3 tons last month, but it is still 2% higher than the five - year average [11] - In June 2025, China imported 115,500 tons of syrup and premixes, a year - on - year decrease of 103,500 tons. From January to June 2025, the total import was 459,100 tons, a year - on - year decrease of 492,400 tons. From the 2024/25 sugar season to June, the total import was 1,098,300 tons, a year - on - year decrease of 269,500 tons [11] - In June 2025, China imported 420,000 tons of sugar, a year - on - year increase of 392,300 tons. From January to June 2025, the total import was 1,050,800 tons, a year - on - year decrease of 251,200 tons or 19.29%. From the 2024/25 sugar season to June, the total import was 2,512,600 tons, a year - on - year decrease of 649,300 tons or 20.54% [11] - In June 2025, China's dairy product output was 2.546 million tons, a year - on - year increase of 4.1%. From January to June, the total output was 14.33 million tons, a year - on - year decrease of 0.3% [11] - In June 2025, China's beverage output was 18.428 million tons, a year - on - year increase of 3.2%. From January to June, the total output was 93.089 million tons, a year - on - year increase of 2.9% [11] Group 4: Data Overview - **Transaction and Position Data of Top 20 Seats in Zhengzhou Sugar Futures' Main Contract** - Dongzheng Futures (for clients) had the highest trading volume of 52,582 lots, an increase of 3,443 lots [22] - CITIC Futures (for clients) had the highest long position of 73,181 contracts, an increase of 1,840 contracts [22] - COFCO Futures (for clients) had the highest short position of 51,109 contracts, an increase of 1,037 contracts [22]