Core Insights - Hagar hf. reported strong financial performance for Q2 of the 2025/26 financial year, with significant increases in sales, gross profit, and net profit compared to the previous year [5][9][11] - The company is expanding its operations with a new retail center in the Faroe Islands, which is expected to enhance its market presence [6][12] Financial Performance - Sales for Q2 reached 51,817 million ISK, marking an 11.2% increase from Q2 2024/25, while sales for the first six months totaled 99,932 million ISK, a 10.2% growth [5][9] - Gross profit for Q2 was 12,874 million ISK, representing a gross margin of 24.8%, up from 21.8% in Q2 2024/25 [5][9] - EBITDA for Q2 was 5,485 million ISK, or 10.6% of sales, with a six-month EBITDA of 9,531 million ISK, or 9.5% of sales [5][9] - Net profit for Q2 was 2,556 million ISK, equating to 4.9% of sales, and for the first six months, profit was 3,721 million ISK, or 3.7% of sales [5][9] Operational Highlights - Customer visits to grocery stores in Iceland increased by nearly 5%, with the number of units sold growing by just under 2% [6] - Fuel sales volume decreased by 2.0%, attributed to a decline in sales to industries despite an increase in retail sales [6] - Hagar's new loyalty program is set to launch soon, aimed at enhancing customer service and value [6][13] Strategic Developments - The company is constructing a new 3,000 m² retail center in Runavík, Faroe Islands, which will include new stores and restaurants, scheduled to open in November [6][12] - Hagar's share buyback program amounted to 395 million ISK during the quarter, involving 3.7 million shares [7] Management Outlook - Management has raised its EBITDA guidance for the financial year 2025/26 to a range of 17,000-17,500 million ISK, reflecting strong operational performance [8][16] - The company emphasizes its commitment to operational efficiency and business development, aiming to strengthen its market position further [16]

Core Viewpoint - The emergence of "new energy refueling stations" in Anhui province claims to sell a fuel that can completely replace diesel, but investigations reveal that these stations are selling a product called "liquid wax alcohol ether," which is not recognized as a new energy fuel by the state and operates outside regulatory oversight [1][5][12]. Group 1: Product and Pricing - The so-called new energy fuel, "liquid wax alcohol ether," is priced between 5.55 to 5.68 yuan per liter, while the diesel price at Sinopec's stations is 6.64 yuan per liter, making it an attractive option for consumers [5]. - The product is not officially recognized as a new energy fuel by the Anhui Provincial Energy Bureau, which indicates that it is not included in the energy regulatory framework [5][10]. Group 2: Regulatory and Safety Concerns - Many refueling stations lack proper safety measures, with reported issues such as staff smoking during fuel extraction and inadequate fire safety equipment [8]. - The rapid growth of these refueling stations across nearly 30 provinces raises concerns about safety and compliance, prompting local governments to hold meetings and form task forces for joint inspections [12]. Group 3: Market Impact - The sales of diesel in the Guangde area have decreased by approximately 1,180 tons from January to July 2025 compared to the same period last year, primarily due to competition from "liquid wax alcohol ether" refueling stations [10]. - The unclear product positioning of "liquid wax alcohol ether" means that these refueling stations are not subject to the same strict regulations that govern traditional fuel stations, complicating enforcement for local regulatory bodies [10][11].