Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The current core contradiction in the oil and feed industry lies in the tug - of - war between macro "uncertainty" and industrial "certainty", the race between short - term supply chain "disturbance" and long - term "looseness", and the interweaving of demand "total ceiling" and "structural change" [6]. - The key to winning in the complex game is to build three abilities: identifying the main contradiction in the macro fog, managing inventory and procurement rhythm in supply chain disturbances, and transforming uncertainty into a deterministic business strategy through financial tools and innovative service models in the stock market [6]. - The overall profit space of the industry is compressed, but it provides opportunities for enterprises with professional and refined operation capabilities to build moats and achieve leap - forward development [6]. 3. Summary According to the Directory 3.1 Macro Narrative Dominates Pricing, and the Industrial Analysis Framework Needs Reconstruction - Traditional supply - demand fundamental analysis is temporarily "ineffective", and geopolitical conflicts and crude oil prices have become the core factors leading to short - term price fluctuations of oils and fats, especially palm oil and soybean oil, resulting in a "war premium" in market prices that deviates from industrial inventory and consumption data [2]. - Market sentiment has become extremely cautious, with both buyers and sellers adopting a wait - and - see attitude, leading to a decline in trading activity and a "stability - seeking" mindset. The analysis framework of physical operators needs to be upgraded to a new model of "macro trend judgment first, industrial fundamentals verification later" [2]. 3.2 Supply: Intense Game between Long - term Loose Expectations and Short - term Structural Disturbances - Although there is a consensus on the long - term supply loosening pattern brought by the bumper harvest of South American soybeans, short - term, policy - related supply chain disturbances have become the key to affecting market rhythm and profits [2]. - The normalization of customs quarantine has extended the clearance and quarantine time of Brazilian soybeans from about one week to 20 - 25 days, causing a regional and phased supply shortage in mid - early April. The market generally expects a "tight - first, loose - later" situation, with the core game point being the duration of the "tight" period rather than the adequacy of the total supply [3]. - The overall increase in logistics costs, including international sea freight, domestic road freight, and container freight, will be a new cost pressure throughout the year and may affect the efficiency of cargo turnover [3]. 3.3 Demand: Structural Opportunities and Rigid Support under the Total Ceiling - The demand side has entered the stock era, with the end of the total growth story, but internal structural changes have created new balances and opportunities [3]. - For oil consumption, domestic demand is saturated, and external demand and substitution have become new highlights. Soybean oil is squeezing the market share of other oil types, and the core growth point in the future is exports. Biodiesel policies are a long - term factor affecting global oil demand [3][4]. - Despite the continuous losses in pig farming, high inventory and slaughter weight provide rigid support for feed demand. The decline in soybean meal demand will be a slow and gradual process, providing price elasticity space for upstream supply disturbances [4]. 3.4 Industrial Evolution: Risk Management Advancement and Deep Differentiation of Business Models - The high - volatility and low - growth environment are accelerating the differentiation and evolution of each link in the industrial chain. The basis trading has become the mainstream in spot transactions, and the financialization of the industry has deepened [4]. - In the upstream crushing and trading links, the core is refined position management and arbitrage trading. In the mid - stream feed enterprises, the core strategy is to ensure stable supply and cost control. The downstream breeding industry is in a "slow bottom - grinding" stage, with slow capacity reduction and mainly quarterly rebounds driven by the fat pig slaughter rhythm [5].

Report Summary 1. Core Viewpoints - The U.S. agricultural counselor maintains the forecast of Argentina's 2025/26 soybean production at 48 million tons, a 5% decrease from the 2024/25 season but still the fourth - highest in the past decade. The soybean export forecast is reduced by 500,000 tons, and the import forecast is lowered by 200,000 tons to 7 million tons. Brazil's 2025/26 soybean production is predicted to be below 180 million tons due to bad weather in Rio Grande do Sul. Strong U.S. soybean exports and potential production cuts in Brazil and Argentina support the upward trend of U.S. soybeans in the external market, and the domestic market shows a strong and volatile trend. Attention should be paid to near - month arrivals, soybean auctions, and basis repair processes [1]. - Indian importers cancelled about 25,000 tons of Russian soybean oil orders and 6,000 - 8,000 tons of South American soybean oil orders due to the increasing premium of soybean oil over palm oil. Palm oil imports in India increased by 10.1% in February compared to January, reaching the highest level since August 2025. The shift from soybean oil to palm oil purchases supports palm oil demand, leading to a significant price increase and a wider spread between soybean oil and palm oil. The situation in the Middle East is tense, and its development needs to be monitored [2]. 2. Summary by Related Content 2.1. Soybean Meal - Argentina's 2025/26 soybean production forecast remains at 48 million tons, down 5% from 2024/25, but the fourth - highest in the past decade. The soybean crushing forecast stays at 43 million tons, a year - on - year increase of 1 million tons. The export forecast is cut by 500,000 tons, and the import forecast is reduced by 200,000 tons to 7 million tons, the second - highest in history [1]. - Brazilian consulting agencies predict that Brazil's 2025/26 soybean production will be below 180 million tons due to bad weather in Rio Grande do Sul, the third - largest soybean - producing state in Brazil [1]. - Strong U.S. soybean exports and potential production cuts in Brazil and Argentina support the upward trend of U.S. soybeans in the external market. The domestic market shows a strong and volatile trend. Attention should be paid to near - month arrivals, soybean auctions, and basis repair processes [1]. 2.2. Edible Oils - Indian importers cancelled about 25,000 tons of Russian soybean oil orders and 6,000 - 8,000 tons of South American soybean oil orders due to the increasing premium of soybean oil over palm oil [2]. - In February, Indian palm oil imports increased by 10.1% to 844,000 tons compared to January, reaching the highest level since August 2025. Soybean oil imports increased by 8.7% to 303,000 tons, and sunflower oil imports decreased by 45.3% to 146,000 tons [2]. - The shift from soybean oil to palm oil purchases supports palm oil demand, leading to a significant price increase and a wider spread between soybean oil and palm oil. The situation in the Middle East is tense, and its development needs to be monitored [2].

1. Report Industry Investment Rating - No relevant information provided 2. Core Viewpoints - The export of US soybeans continues to show a strong trend, while the production in Brazil is slightly reduced. The expected dry weather in Argentina also supports the strong market trend. Before the soybean reserve release is confirmed, the market will mainly remain volatile [2]. - The tense situation in the Middle East has driven up crude oil prices, which in turn has led to a rebound in the oil market. It is expected that the oil market will remain strong in the short - term, but attention should be paid to the development of the Middle East situation [3] 3. Summary by Related Content 3.1 Soybean Meal - As of March 3, 2026, AgRural reported that the 2025/26 soybean harvest in Brazil was 39% complete, far lower than 50% in the same period last year. Due to the drought in Rio Grande do Sul, AgRural lowered the national soybean production forecast by 3 million tons to 178 million tons, but it will still be a record high, a year - on - year increase of 3.8% [1]. - According to the USDA压榨月报, the soybean crushing volume in the US in January 2026 was 227.8 million bushels, a month - on - month decrease of 0.9% and a year - on - year increase of 7%, slightly higher than the market expectation of 226.3 million bushels [1]. - As of the end of January 2026, the US soybean oil inventory was 2.433 billion pounds, a month - on - month increase of 11.7% and a year - on - year surge of 33.9%, the highest level since April 2023 and exceeding market expectations [1]. - As of the week ending February 26, 2026, the US soybean export inspection volume was 1,137,582 tons, compared with the revised 681,545 tons last week and 702,160 tons in the same period last year. As of now in the 2025/26 season, the total US soybean export inspection volume has reached 26,182,723 tons, a year - on - year decrease of 32.2%, and the US soybean exports have reached 58.4% of the annual export target [1]. 3.2 Oils - According to five industry traders, India's palm oil imports in February increased 10.1% month - on - month to 844,000 tons, reaching a six - month high. India's soybean oil imports in February increased 8.7% month - on - month to 303,000 tons, while its sunflower oil imports in February decreased 45.3% month - on - month to 146,000 tons. India's total edible oil imports in February decreased 1.4% month - on - month to 1.29 million tons [2]. - EIA data showed that about 2.8 billion pounds of renewable raw materials were used to produce biodiesel, renewable diesel, and sustainable aviation fuel in December, similar to November but significantly lower than nearly 3.4 billion pounds in December 2024 [2].

Core Viewpoint - The organic food industry in China is entering a new phase characterized by production expansion, quality improvement in processing, strong market demand, and deepening international cooperation. The country is now the third-largest organic consumer market globally and the fifth-largest in organic agricultural cultivation [1][5]. Industry Overview - Organic food is defined as agricultural products produced and processed according to organic farming standards and certified by organic certification organizations. It is increasingly favored by consumers worldwide due to its health and environmental benefits [1][5]. - The organic food industry in China is supported by government policies that integrate it into the green agriculture development strategy, enhancing certification standards and providing various support measures [7]. Market Demand and Growth - The demand for organic food in China is expected to continue growing due to rising income levels and increasing health consciousness among consumers. The market size is projected to reach 133.06 billion yuan in 2025 and 152.12 billion yuan in 2026 [1][6]. - By 2025, China's organic food production is expected to reach 37.234 million tons, with domestic demand at 36.707 million tons. By 2026, production is projected to increase to 39.845 million tons, with domestic demand rising to 39.288 million tons [1][5]. Certification and Industry Structure - As of 2024, there are 18,200 enterprises with over 30,000 organic product certifications in China, with a certified organic area of 6.655 million hectares, including 3.589 million hectares of organic farmland, reflecting a year-on-year growth of 14.32% [5]. - The organic food industry chain consists of upstream raw material supply (agriculture, livestock, aquaculture) and downstream sales channels (supermarkets, specialty stores, e-commerce) [6]. Competitive Landscape - Leading companies in the organic food sector leverage large-scale organic cultivation bases and comprehensive quality control systems to dominate the mid-to-high-end market. Notable companies include Heilongjiang Beidahuang Agricultural Co., Ltd., Shandong Xiwang Food Co., Ltd., and China Shengmu Organic Milk Ltd. [8][9]. - Heilongjiang Beidahuang Agricultural Co., Ltd. is recognized as a major player with significant resources and modern agricultural practices, contributing to national food security [8]. - Shandong Xiwang Food Co., Ltd. specializes in various healthy oils and has implemented advanced automated production processes to ensure product quality and safety [9]. Industry Trends - The Chinese organic food industry is experiencing a favorable environment for growth due to multiple factors, including policy support, consumer demand expansion, and technological advancements. The market is expected to continue evolving towards diversification, quality enhancement, convenience, and value [10].

Group 1: Market Overview - The Spring Festival holiday marks the peak season for the New Year goods market, with significant activity observed in supermarkets and wholesale markets in Anqing [1] - Supermarkets have increased inventory levels significantly, with stock for staple goods like rice, flour, and cooking oil rising by 3 to 4 times compared to normal levels [4] Group 2: Supply and Demand - The sales volume of staple goods during the Spring Festival is approximately 30% higher than usual, with new product offerings like "mini rice bags" and "trial oils" quickly selling out [4][12] - The transaction volume of vegetables, grains, and fruits at the Anqing Haijixing Agricultural Products Logistics Park has nearly doubled compared to regular days [5] Group 3: Specialty Products - The dried goods section in supermarkets has become a popular shopping destination, featuring a wide variety of products from local and international sources [6] - Sales of cured meats have shown a differentiated trend, with traditional whole cuts remaining stable while sales of sausages have increased by nearly 50% [8] Group 4: Price Stability and Promotions - The "惠民菜篮子" (benefit vegetable basket) initiative has been launched earlier this year, offering vegetables at prices 2 to 3 yuan lower per kilogram than market rates, with some varieties priced below 1 yuan [11] - The city has initiated a 20-day promotional campaign for benefit vegetables, expecting sales to exceed 360 million jin and a total discount amount of 5 million yuan [12]

Group 1 - The article highlights the vibrant market for New Year goods, showcasing a blend of domestic and international products available in local markets, enhancing consumer experience during the festive season [1][2] - The "Shared Big Market · Export to China" event launched on February 4, 2026, features a one-stop global procurement exhibition, integrating high-quality international products into the Spring Festival shopping experience [4][6] - In Yiwu, Zhejiang, the largest small commodity distribution center, European goods such as Spanish wine and Polish milk are being delivered via the China-Europe freight trains, creating a "mobile European New Year goods market" [6] Group 2 - The inclusion of intangible cultural heritage elements in the New Year goods market is enriching consumer choices and experiences [7] - Various cultural events, such as the "Non-Heritage New Year Goods Market" in Hangzhou, are merging traditional festive elements with modern trends, reflecting the dynamic nature of consumer preferences [11] - The "Cultural Festival" in Chongqing on February 5, 2026, features nearly a hundred enterprises, providing a diverse range of products across multiple consumption categories [14] Group 3 - E-commerce platforms are launching "New Year Festival" specials, facilitating the online purchase of both global products and local specialties, enhancing accessibility for consumers [17] - In Xinjiang, local agricultural products like walnuts and dates are gaining popularity through live streaming and online sales, contributing to rural revitalization efforts [19] - Postal and express delivery services are increasing capacity and establishing dedicated transportation lines to ensure timely delivery of both imported and local products during the festive season [21]

Summary of Key Points from the Conference Call Industry Overview - The global vegetable oil supply is expected to increase in the 2025/26 fiscal year, but consumption growth is stronger, leading to a decrease in the inventory-to-consumption ratio, projected to drop to around 3% for the fourth consecutive year [2][3] - The demand for edible and industrial uses is the main driver, with biodiesel production accounting for over 25% of total vegetable oil consumption [1][4] Core Insights and Arguments - The U.S. is expected to introduce new policies that could significantly increase the mandatory blending volume of biodiesel, potentially raising the requirement from 3.35 billion gallons in 2025 to between 5.1 and 5.6 billion gallons, a 60% increase, which will substantially boost U.S. soybean oil demand [5][7] - Different countries use various types of vegetable oils for biodiesel production, leading to varied market responses. The U.S. primarily uses soybean oil, while Indonesia focuses on palm oil, and the EU utilizes multiple types [6][8] - Indonesia plans to maintain its B40 biodiesel blending policy due to insufficient subsidy levels, while potentially increasing export tariffs to support its biodiesel industry [1][8] Market Dynamics - Global palm oil production growth is slowing, while industrial demand continues to rise, leading to decreased export capacity. The new U.S. clean fuel policy is expected to further drive soybean demand, impacting the global supply landscape [9] - The international market is seeing price increases for soybean and canola due to U.S. clean fuel policies, while domestic prices in China are constrained by a large livestock sector and low-cost formulations [10] Price Trends and Impacts - India imports a significant amount of palm oil (8-9 million tons annually), and fluctuations in palm oil prices compared to soybean oil will influence its import decisions [11][12] - The expected decline in Malaysian palm oil inventory from 3.05 million tons in December 2025 to around 2.9 million tons in January 2026 is attributed to seasonal production cuts and drought conditions in Indonesia [14] Biodiesel Policy Implications - The global biodiesel policy in 2026 is likely to favor soybean oil, with Brazil expected to increase biodiesel production by 400,000 tons and the U.S. by 2 million tons, consuming all production increases [13] - The lack of a B50 policy in Indonesia may reduce demand but is expected to be offset by overall consumption increases, maintaining price support [17] Supply Chain Considerations - The supply chain for vegetable oils is highly concentrated, with 70% of soybean cultivation in the U.S., Canada, Brazil, and Argentina, and over 80% of palm oil produced in Malaysia and Indonesia [15] - The volatility of crude oil prices significantly impacts the energy attributes of vegetable oils, with around 25% of vegetable oil used for biodiesel production [16] Future Outlook - The current weather conditions in South America are favorable for soybean production, with Brazil's output expected to be between 176 million and 181 million tons, ensuring ample global supply [18] - The government's strategic release of stored soybeans has alleviated supply tightness, and with a large new soybean harvest expected, the likelihood of future shortages is low [19] - Despite high oilseed inventories, soybean oil prices may remain relatively strong in the short term due to overall supply dynamics [20]

Core Viewpoint - Xiwang Food has been recognized as one of the top 500 key enterprises in China's food industry for 2025, with a focus on enhancing its market share in corn germ oil to 35% [1] Group 1: Company Achievements - Xiwang Food has been awarded as one of China's top ten grain and oil groups and brands, and its edible oil products have received multiple gold awards at the World Oil Expo [1] - The company has actively contributed to the establishment of a quality traceability system for edible oils, setting industry standards [1] Group 2: Technological Advancements - Xiwang Food has led the way in smart and automated upgrades of its equipment, achieving full-process quality control from raw materials to finished edible oil [1] - The company has established a unique smart factory with an Industry 4.0 concept, producing packaging materials for edible oils, ensuring comprehensive control over production [1] Group 3: Commitment to Sustainability - Since being recognized as a national-level green factory in 2019, Xiwang Food has focused on circular economy and green production, enhancing its green manufacturing system [2] - The company has obtained the first "carbon label" in the edible oil industry and has passed greenhouse gas verification and clean production audits [2] - Xiwang Food aims to continue its green and innovative development, leveraging digital management and innovative technologies to transform green investments into brand value [2]

Group 1 - On January 30, a container truck loaded with imported goods entered the Yiwu Comprehensive Bonded Zone for bonded warehousing [1] - Customs officers conducted inspections of imported health products in the cross-border e-commerce warehouse within the Yiwu Comprehensive Bonded Zone [7] - Workers in the cross-border e-commerce warehouse were seen packing and labeling express delivery orders for imported goods that had completed customs declaration [2][8] Group 2 - A China-Europe freight train carrying imported products such as red wine, sunflower oil, and sparkling water was unloading at the Yiwu railway port [4] - Customers were observed purchasing imported goods, including Spanish ham and red wine, at a store specializing in Spanish imports within the Yiwu China Import Commodity City [5]

Core Viewpoint - Xiwang Food is expected to report a significant increase in losses for the fiscal year 2025, with projected net losses ranging from 880 million to 1.32 billion yuan, compared to a loss of 444 million yuan in the previous year, indicating a year-on-year doubling of losses [1][2]. Financial Performance - The company anticipates a net profit attributable to shareholders of a loss between 880 million and 1.32 billion yuan for 2025, compared to a loss of 443.57 million yuan in the same period last year [2]. - The expected net profit after deducting non-recurring gains and losses is projected to be a loss between 880 million and 1.3 billion yuan, compared to a loss of 432.73 million yuan in the previous year [2]. - Basic earnings per share are expected to be between -1.22 yuan and -0.82 yuan, compared to -0.41 yuan per share last year [2]. - The company has reported consecutive losses over the past three years, with cumulative losses amounting to approximately 1.08 billion yuan from 2022 to 2024 [2]. Operational Challenges - The increase in losses is attributed to rising prices of raw materials, particularly whey protein, and intensified competition in the sports nutrition sector [2]. - The company plans to recognize an impairment loss on intangible assets estimated between 950 million and 1.5 billion yuan, subject to final audit [2]. Strategic Outlook - Despite the challenges, the management aims to implement significant corrective measures in 2026 to improve future performance [4]. - The company plans to optimize product costs by diversifying its product portfolio, shifting towards high-margin products, and reducing reliance on whey protein [4]. - Xiwang Food intends to expand into new product categories, including new proteins, creatine, peptides, and collagen, to build a strong innovative product line [4]. Market and Cost Management - The company will increase investment in digital channels, focusing on high-margin categories through platforms like Amazon, while optimizing product offerings at Walmart [5]. - A strict cost control policy will be adopted, including dynamic budget monitoring, expenditure reduction, and optimization of organizational structure to enhance operational efficiency [5]. - As of January 30, the company's stock price decreased by 1.25% to 3.17 yuan per share, with a total market capitalization of approximately 3.422 billion yuan, indicating stagnant stock performance over the past year [5].