Summary of Palm Oil Industry Conference Call Industry Overview - **Industry**: Palm Oil - **Key Countries**: Indonesia, Malaysia Core Insights and Arguments 1. **Indonesia's Palm Oil Production Forecast**: JAPKI predicts a 10% increase in Indonesia's palm oil production by 2025, but actual production may decrease by 2%-3% due to government land reclamation of illegally occupied areas, affecting 4.5 million hectares, or 1/6 of total planting area [1][2][7] 2. **Malaysia's Market Analysis**: Malaysia's production is only 1/5 of Indonesia's, limited by labor shortages and rising fertilizer costs. Monthly inventory fluctuates around 500,000 tons, insufficient to impact the market significantly [1][3][7] 3. **Biodiesel Policy Driving Demand**: Indonesia's B40 and B50 biodiesel initiatives are expected to significantly boost palm oil demand. Rising soybean oil prices in the US and Argentina are leading countries like India and China to switch to palm oil, resulting in a slight increase in recent inventories [1][4][7] 4. **Aging Palm Trees Increasing Supply Pressure**: Malaysia faces challenges with aging palm trees, which require frequent replacement to maintain stable supply. The slow replacement rate exacerbates supply issues [1][6][7] 5. **Global Biodiesel Development Trends**: While US biodiesel policies are cooling, there remains potential for demand growth. China is actively developing Sustainable Aviation Fuel (SAF), with a target to increase SAF blending to 5% within three years, supporting oil prices [1][12][14] Additional Important Insights 1. **Supply Changes in Indonesia and Malaysia**: Indonesia's palm oil production is crucial, with official figures indicating an annual output of 18-20 million tons. However, the transparency of these figures is low, and the government's land reclamation efforts are expected to significantly impact production [2][8] 2. **B50 Policy Status**: The B50 policy in Indonesia has completed testing but may face delays due to funding and technical issues. The new president is optimistic about advancing this policy [9][10] 3. **US Biodiesel Policy Impact**: Recent cooling in US biodiesel policies has created uncertainty, but demand is still expected to grow, with a projected 23% increase in soybean oil usage for biodiesel this summer [11] 4. **China's SAF Developments**: China is increasing its SAF production capacity, which will require more raw materials, thereby supporting overall oil prices [12][17] 5. **Malaysia's Export Adjustments**: Malaysia is reducing palm oil exports to meet domestic aviation fuel needs, tightening supply further [13][27] 6. **Global Biodiesel Trends**: Countries worldwide are pushing biodiesel projects, which will support palm oil demand. Chinese companies are pre-purchasing supplies to mitigate future shortages [27] Conclusion - The palm oil market is expected to tighten by 2025 due to supply constraints in Indonesia and Malaysia, while demand remains strong driven by biodiesel policies. Investment opportunities exist, but close monitoring of policy changes and execution is essential [7][22]

Core Viewpoint - The company, Beijing Hai New Energy Technology Co., Ltd. (Hai New Energy), has shown significant improvement in its financial performance in Q3 2025, driven by its bioenergy segment and strategic initiatives in supply chain and technology [3][4]. Group 1: Financial Performance - In Q3 2025, the company achieved a revenue of 958 million yuan, representing a substantial year-on-year increase of 63.82% [3]. - The net profit attributable to shareholders reached 93.33 million yuan, indicating a significant enhancement in profitability [3]. - For the first three quarters of 2025, total revenue was 1.942 billion yuan, with a net profit of 57.95 million yuan, marking a turnaround from losses in the previous year [3]. - The company's debt-to-asset ratio improved to 29.81% by the end of September 2025, down from 38.99% at the end of 2024, reflecting better financial health [3]. Group 2: Bioenergy Segment Growth - The bioenergy sector has become the main growth driver, with effective strategies to expand non-EU customer bases and fulfill long-term contracts for HVO (Hydrotreated Vegetable Oil) [4]. - The company has optimized its production processes, achieving better operational parameters than design specifications, which has led to reduced processing costs and enhanced risk resilience [4]. - Supply chain improvements have been made through long-term agreements with key suppliers, enhancing quality control and operational management [4]. Group 3: Accounts Receivable Management - The company has significantly reduced accounts receivable, with accounts receivable at 503 million yuan, down by 27 million yuan from the previous year [5]. - Other receivables decreased dramatically from 1.349 billion yuan to 181 million yuan, a reduction of 1.168 billion yuan, indicating improved cash flow management [5]. - Measures such as enhanced customer credit tracking and legal actions have been implemented to improve collection efficiency [5]. Group 4: SAF Market Trends - The price of Sustainable Aviation Fuel (SAF) has been on the rise, reaching an offshore average of 2,854 USD per ton as of October 31, driven by regulatory policies and increased demand [6]. - The EU's subsidy plans are expected to accelerate SAF adoption, with strong order volumes anticipated for Q4 2025 across the industry [6]. - The company plans to closely monitor SAF policy developments and actively expand its domestic and international markets [6]. Group 5: Future Development Plans - The company aims to focus on green development over the next three years, aspiring to become a "world-class green energy supplier" and a leader in bioenergy innovation [7]. - Strategic initiatives will include enhancing bioenergy core operations and refining the catalytic purification segment to support long-term growth [8]. - The company will invest in R&D to maintain a leading technological position in both bioenergy and catalytic purification sectors [8].