Core Viewpoint - Roman Co., Ltd. reported a significant increase in revenue for the third quarter, but net profit experienced a decline compared to the previous year [1] Financial Performance - The company achieved a revenue of 300 million yuan in the third quarter, representing a year-on-year growth of 50.74% [1] - The net profit attributable to shareholders was 7.8581 million yuan, showing a year-on-year decrease of 26.30% [1] - The net profit excluding non-recurring gains and losses was 6.1321 million yuan, which is a year-on-year increase of 25.97% [1] - Basic earnings per share were reported at 0.07 yuan [1]

Financial Performance - The company's operating revenue for the third quarter reached ¥299,747,290.94, an increase of 50.74% compared to the same period last year[5] - The total profit for the period was ¥10,470,734.27, reflecting a decrease of 9.56% year-over-year[5] - The net profit attributable to shareholders was ¥7,858,104.88, down 26.30% from the previous year[5] - The net profit excluding non-recurring gains and losses was ¥6,132,148.25, an increase of 25.97% year-to-date[5] - The basic earnings per share for the quarter was ¥0.07, a decrease of 22.22% compared to the same period last year[6] - The net profit for the year-to-date period increased by 33.55% due to reduced impairment losses on receivables[9] - The net profit for the first three quarters of 2025 reached ¥20,873,763.06, a significant increase from ¥11,315,607.23 in the same period of 2024, representing an 84.5% growth[26] - The total profit for the first three quarters of 2025 was ¥31,259,285.23, up from ¥16,518,695.19 in 2024, indicating a 89.5% increase[26] Assets and Liabilities - The total assets of the company increased to ¥2,889,794,052.41, representing a growth of 29.14% from the end of the previous year[6] - The company's total assets increased to CNY 2,255,465,467.37 as of September 30, 2025, up from CNY 1,871,330,528.76 on December 31, 2024, representing a growth of approximately 20.5%[31][33] - Total liabilities increased to ¥1,533,420,478.29 as of September 30, 2025, compared to ¥961,178,424.14 at the end of 2024, representing a growth of 59.6%[23] - The company's total liabilities increased to CNY 927,978,816.48 as of September 30, 2025, up from CNY 579,596,236.36 at the end of 2024, indicating a rise of about 60.0%[32][33] Cash Flow - The company reported a cash flow from operating activities of -¥130,113,136.30 year-to-date[5] - The net cash flow from operating activities for the first three quarters of 2025 was -¥130,113,136.30, an improvement compared to -¥158,225,558.11 in 2024[28] - The company's cash flow from operating activities showed a net outflow of CNY -137,294,012.03 for the first three quarters of 2025, slightly worse than the outflow of CNY -132,182,550.20 in 2024[37] - The cash inflow from financing activities for the first three quarters of 2025 was ¥333,265,336.71, a substantial rise from ¥47,907,729.33 in 2024[29] - The company incurred a net cash outflow from investing activities of -¥3,089,373.19, an improvement from -¥182,498,474.82 in the previous year[29] Shareholder Information - The total number of common shareholders at the end of the reporting period was 10,239[12] - The largest shareholder, Sun Jianming, holds 19,657,500 shares, representing 18.03% of the total shares[12] - The top ten shareholders do not participate in margin trading or securities lending activities[13] Strategic Initiatives - The company successfully secured two significant energy storage projects with a total capacity of 50MW and 89.44MWh, marking a strong foothold in the energy storage sector[17][18] - The company’s immersive night tour project based on the "Harry Potter" IP is set to launch in Shenzhen in the second half of 2025, marking its first entry into the mainland China market[19] - The company’s services for the Shanghai International Light Festival attracted over 21.8 million participants, enhancing its market presence in the light art sector[15] - The company has established a comprehensive service matrix for the Shanghai International Light Festival, involving 1 main venue and 8 sub-venues[14] - The company is focusing on deepening its strategic layout in the Ningde Times commercial energy storage ecosystem, aiming for high-quality industry development[18] - The company’s digital entertainment segment is leveraging its acquisition of Holovis to enhance its immersive experience technology and expand international IP cooperation[19] Research and Development - Research and development expenses for the first three quarters of 2025 were CNY 15,282,951.81, slightly higher than CNY 14,223,737.55 in the same period of 2024[35] Other Financial Metrics - The company's cash and cash equivalents increased to ¥552,470,799.70 as of September 30, 2025, up from ¥422,144,708.03 at the end of 2024, representing a growth of 30.8%[21] - Accounts receivable rose to ¥643,257,185.33 as of September 30, 2025, compared to ¥569,718,737.07 at the end of 2024, indicating an increase of 12.9%[21] - Inventory increased significantly to ¥133,477,980.08 from ¥46,475,095.27, marking a growth of 187.5%[21] - Non-current assets totaled ¥912,018,828.54 as of September 30, 2025, up from ¥707,999,150.32 at the end of 2024, reflecting an increase of 28.8%[22] - The company's long-term equity investments increased to CNY 666,515,685.52 as of September 30, 2025, from CNY 461,498,262.60 at the end of 2024, representing a growth of approximately 44.5%[31] - The company's total owner's equity reached CNY 1,327,486,650.89 as of September 30, 2025, compared to CNY 1,291,734,292.40 at the end of 2024, reflecting an increase of about 2.8%[33] Accounting Standards - The company will not apply new accounting standards starting from 2025[39]

Core Viewpoint - Roman Co. reported a significant increase in revenue for Q3 2025, but net profit experienced a decline compared to the previous year [1] Financial Performance - In Q3 2025, the company achieved a revenue of 300 million yuan, representing a year-on-year growth of 50.74% [1] - The net profit attributable to shareholders was 7.8581 million yuan, showing a year-on-year decrease of 26.30% [1] - Basic earnings per share for Q3 2025 were 0.07 yuan [1] Year-to-Date Performance - For the first three quarters of 2025, the company reported a total revenue of 732 million yuan, which is a year-on-year increase of 63.10% [1] - The net profit attributable to shareholders for the first three quarters was 21.0863 million yuan, reflecting a year-on-year growth of 33.55% [1] - Basic earnings per share for the first three quarters were 0.19 yuan [1]

Core Insights - The company reported a third-quarter revenue of 300 million, representing a year-on-year increase of 50.74% [1] - The net profit for the third quarter was 7.8581 million, showing a decline of 26.30% [1] - For the first three quarters, the total revenue reached 732 million, with a year-on-year growth of 63.10% [1] - The net profit for the first three quarters was 21.0863 million, reflecting a year-on-year increase of 33.55% [1]

Market Overview - The professional engineering sector experienced a decline of 1.61% on October 16, with Huadian Technology leading the drop [1] - The Shanghai Composite Index closed at 3916.23, up 0.1%, while the Shenzhen Component Index closed at 13086.41, down 0.25% [1] Stock Performance - Notable gainers in the professional engineering sector included: - China Aluminum International (601068) with a closing price of 5.26, up 1.35% [1] - Southeast Network Framework (002135) at 4.71, up 1.29% [1] - China National Materials International (600970) at 9.42, up 0.96% [1] - Significant decliners included: - Huadian Technology (601226) at 7.44, down 4.25% [2] - Zhongyan Dadi (003001) at 23.62, down 3.83% [2] - Jinggong Steel Structure (600496) at 4.08, down 3.32% [2] Capital Flow - The professional engineering sector saw a net outflow of 541 million yuan from institutional investors, while retail investors contributed a net inflow of 411 million yuan [2][3] - The capital flow for specific stocks indicated: - Roman Co. (605289) had a net inflow of 28.30 million yuan from institutional investors [3] - Jinggong Steel Structure (600496) saw a net inflow of 61.01 million yuan from retail investors [3] - ST Tianlong (300029) had a net inflow of 1.50 million yuan from retail investors [3]

Investment Rating - The report maintains an "Outperform" rating for the construction and decoration industry, indicating an expected performance that exceeds the broader market index [3][13]. Core Insights - The Shanghai Municipal Economic and Information Commission has released an action plan aimed at the high-quality development of the smart terminal industry, targeting a total scale exceeding 300 billion yuan by 2027, with the goal of establishing over three globally influential consumer-grade terminal brands and nurturing two leading enterprises [1]. - The report highlights the potential benefits for companies such as Roman Holdings, Pudong Construction, and Suzhou Planning, which are expected to capitalize on the growth of the smart terminal industry and related sectors [1][8]. - The action plan emphasizes the enhancement of intelligent computing terminal scales and the development of products supporting lightweight inference for large models, which is anticipated to drive significant growth in the computing power industry in Shanghai and the Yangtze River Delta region [1]. Summary by Sections Smart Terminal Industry Development - The action plan aims for the smart terminal industry in Shanghai to surpass 300 billion yuan by 2027, with specific targets for artificial intelligence computing devices [1]. - The report anticipates a compound annual growth rate (CAGR) of 27% for the smart computing center market in China from 2023 to 2028, with Shanghai positioned as a leading high-tech area [1]. Collaboration with Low-altitude Economy - The report discusses the synergy between low-altitude economy and computing power business, suggesting that advancements in satellite internet terminal products could enhance applications in various fields [1]. - It posits that increased low-altitude flight frequency will necessitate more AI computing power for task prioritization and optimal flight routing, benefiting related enterprises [1]. Beneficiary Companies - Three categories of companies in the Yangtze River Delta construction and building materials sector are identified as potential beneficiaries: 1. Construction companies expanding into computing power business, with recommendations for Roman Holdings and Pudong Construction [8]. 2. Low-altitude facility design and operation companies, including Suzhou Planning and others [8]. 3. Companies likely to benefit from AI-enabled production and entertainment asset operations, such as Zhi Te New Materials [8].

Core Viewpoint - Roman Technology Co., Ltd. has shown significant stock price growth and strong financial performance in recent periods, indicating potential investment opportunities in the company [1][2]. Financial Performance - As of June 30, 2025, Roman achieved a revenue of 432 million yuan, representing a year-on-year growth of 72.92% [2]. - The net profit attributable to shareholders was 13.23 million yuan, with a year-on-year increase of 158.02% [2]. - Cumulative cash dividends since the A-share listing amount to 79.45 million yuan, with 27.44 million yuan distributed over the past three years [3]. Stock Market Activity - Roman's stock price increased by 196.41% year-to-date, with a 1.77% rise over the last five trading days, 68.09% over the last 20 days, and 118.60% over the last 60 days [1]. - The company has appeared on the "龙虎榜" (a list of stocks with significant trading activity) twice this year, with the latest appearance on September 12 [1]. Shareholder Information - As of June 30, 2025, the number of shareholders decreased by 15.54% to 7,572, while the average circulating shares per person increased by 18.40% to 14,307 shares [2]. - The top ten circulating shareholders include 富国均衡优选混合 and 富国成长领航混合, with stable holdings compared to the previous period [3]. Business Overview - Roman Technology specializes in landscape lighting planning, design, construction, and remote control management services [1]. - The revenue composition includes 39.31% from the digital entertainment sector, 38.10% from urban lighting, and 22.33% from intelligent energy sources [1].

Summary of Roman Holdings Conference Call Company Overview - **Company**: Roman Holdings (罗曼股份) - **Industry**: Digital Entertainment, Power Computing, Landscape Lighting Key Points Financial Performance - In 2022, Roman Holdings experienced negative growth due to the pandemic and a decline in municipal construction, leading to a loss in 2024 attributed to decreased gross margins, increased management expenses, and impairment provisions [2][3] - The company achieved a compound annual growth rate (CAGR) of 39.5% in revenue from 2015 to 2021, with a net profit margin consistently above 15% [2][3] Strategic Acquisitions - Roman Holdings acquired UK-based Holovis in 2024 to enter the digital entertainment sector, aiming for rapid growth through this transformation [4] - The company plans to acquire Wutong Tree Technology, a computing service provider, to establish a foothold in the computing industry [6] Wutong Tree Technology - Wutong Tree Technology reported a revenue of 130 million yuan in the first half of 2025, with a gross margin of 25% and a net margin of 15%, outperforming peers [2][7] - The company has secured orders worth approximately 550 million yuan as of September 5, 2025, including a 3 billion yuan project in Wuhu and a 1.5 billion yuan cooperation framework with the local government [9][10] Technological Advantages - Wutong Tree Technology boasts four core competitive advantages: 1. Superior server performance using GP GPU technology [7] 2. Integrated services with 100% liquid cooling technology, significantly improving heat dissipation efficiency [8] 3. Strong financial performance with a gross margin of 25% and net margin of 15% [7] 4. Early entry into the education sector, leveraging resources from university incubators [7] Industry Outlook - The computing industry in Wuhu is expected to grow significantly, with local government support and partnerships with major telecom companies [11] - The AI industry in China is projected to reach 352.2 billion yuan by 2025, with Wutong Tree positioned to benefit from this growth [6] Synergies and Future Growth - The acquisition of Holovis is expected to enhance Roman Holdings' immersive experience design business, benefiting from the rising demand for offline experience stores [13][14] - Holovis aims for revenues of over 50 million pounds in FY2025 and 60 million pounds in FY2026, with net profits projected between 3 to 4 million pounds [15] Traditional Business Prospects - Roman Holdings' traditional landscape lighting business is anticipated to rebound due to government policies promoting consumption and municipal construction projects [16] - The company has secured a 200 million yuan entertainment project in Saudi Arabia, indicating strong international growth potential [16] Overall Profitability and Future Outlook - Excluding Wutong Tree's contributions, Roman Holdings expects a significant recovery in net profits from its other two business segments in 2025-2027, with estimates of 102 million, 124 million, and 153 million yuan respectively [17] - The market has not fully priced in Wutong Tree's technological and performance advantages, suggesting a positive long-term growth outlook for Roman Holdings [17]

Core Insights - The professional engineering sector experienced a rise of 2.21% on September 30, with Shikong Technology leading the gains [1] - The Shanghai Composite Index closed at 3882.78, up 0.52%, while the Shenzhen Component Index closed at 13526.51, up 0.35% [1] Stock Performance - Shikong Technology (605178) closed at 35.83, with a gain of 10.01% and a trading volume of 57,600 shares [1] - China Zhongzhi (601618) also saw a significant increase of 10.00%, closing at 3.85 with a trading volume of 4,899,700 shares [1] - Other notable performers included Roman Co. (605289) with a 6.11% increase, and Honglu Steel Structure (002541) with a 5.40% increase [1] Market Capital Flow - The professional engineering sector saw a net inflow of 409 million yuan from institutional investors, while retail investors experienced a net outflow of 262 million yuan [2] - The main stocks with significant net inflows included China Zhongzhi with 426 million yuan and Roman Co. with 77.27 million yuan [3] - Conversely, retail investors showed a net outflow from stocks like China Zhongzhi and Roman Co., indicating a shift in investment behavior [3]

Investment Rating - The report maintains an "Add" rating for the company [2][6]. Core Insights - The company is set to acquire a 39.2% stake in Wu Tongshu Technology, a leading AIDC service provider, which is expected to significantly enhance its position in the intelligent computing center market valued at over 1 trillion yuan [4][44]. - Wu Tongshu Technology has committed to achieving a net profit of no less than 400 million yuan from 2025 to 2027, indicating strong growth potential [4][44]. - The report highlights four key advantages of Wu Tongshu Technology: superior server performance, excellent liquid cooling technology, strong profitability, and a solid presence in the education sector [43][44]. Summary by Sections 1. Company Overview - The company, established in 1999, specializes in landscape lighting design, construction, and operation services, with rapid revenue and profit growth from 2015 to 2021 [14]. - The company has expanded its business scope by acquiring Holovis and is now pursuing the acquisition of Wu Tongshu Technology to enhance its capabilities in computing services and immersive experiences [24]. 2. AIDC Business - The domestic intelligent computing center market is projected to reach 288.6 billion yuan by 2028, with a CAGR of 27% [27][40]. - Wu Tongshu Technology's server performance is reported to be at 80%-90% of international leading levels, with a significant cost advantage [43][56]. - The company has a strong order reserve of 3.55 billion yuan, with a high probability of fulfilling its performance commitments [4][43]. 3. Financial Projections - The report forecasts the company's net profit to grow significantly from 101.75 million yuan in 2025 to 153.49 million yuan in 2027, reflecting a growth rate of 392.04% and 23.45% respectively [6][7]. - The expected revenue for 2025 is projected at 1.29 billion yuan, with a growth rate of 87.97% [7]. 4. Market Trends - The report notes that the AI industry is experiencing rapid growth, with the Chinese AI market expected to reach 352.2 billion yuan by 2025, driven by advancements in large model technologies [28][30]. - The demand for intelligent computing is expected to rise sharply, with the market size for intelligent computing projected to reach 259 billion yuan by 2026 [35].