Core Viewpoint - The successful listing of the Amova E Fund ChiNext Index ETF on the Singapore Exchange (SGX) provides investors with a new channel to capitalize on growth opportunities driven by innovation in China [1][2] Group 1: Product Overview - The Amova E Fund ChiNext Index ETF is the first Singapore ETF hedged in Singapore dollars, offering exposure to high-growth, innovative companies listed on the Shenzhen Stock Exchange [1] - The ETF is managed by Nikko Asset Management and focuses on key industries that drive China's economic transformation towards high value-added sectors, including technology, healthcare, and advanced manufacturing [1] Group 2: Market Context - The launch of this ETF aligns with the increasing market interest in China's innovation and growth themes, enhancing the range of A-share ETFs available under the SGX and Shenzhen Stock Exchange mutual fund scheme [2] - The ChiNext Index targets the 100 largest and most liquid growth companies in China, closely aligned with national strategic priorities such as digitalization, green energy, and industrial upgrading [1] Group 3: Impact on SGX - The successful listing of the Amova E Fund ChiNext Index ETF increases the total number of ETFs listed on SGX to 48, with total assets under management (AUM) exceeding 14 billion Singapore dollars [2]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1.67 billion, representing a 6% increase reported and 5.3% core growth year-over-year [9][27] - Operating margin was 25.1%, absorbing some incremental tariff costs, and EPS was $1.31, growing 7% compared to Q2 2024 [9][33] - Gross margin was 54.1%, down from the previous year due to tariffs, currency, and product mix [31] Business Line Data and Key Metrics Changes - The Agilent CrossLab Group reported revenue of $713 million, growing 9%, driven by double-digit growth in consumables and automation [28] - Life Sciences and Diagnostics Market Group revenue was $654 million, growing 3%, with high single-digit growth in pathology and NASD [29] - Applied Markets Group revenue was flat at $300 million, with growth in spectroscopy offset by declines in gas chromatography [29] Market Data and Key Metrics Changes - All regions experienced growth: Americas grew low single digits, EMEA grew mid single digits, and China led with 10% growth [12] - India delivered high teens growth, prompting the opening of a new solution center [13] - Environmental and forensics grew 6% globally, driven by strong demand for PFAS testing [15] Company Strategy and Development Direction - The company is executing its three-year Ignite transformation strategy, focusing on operational efficiency and tariff mitigation [11][20] - Agilent acquired BioVectra for approximately $1 billion to expand CDMO capabilities [20] - The company is committed to innovation, launching new products in cell analysis and chromatography [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth prospects despite macroeconomic uncertainties [26] - The company is maintaining its core growth rate guidance of 2.5% to 3.5% for the year [26][35] - Management highlighted the importance of strategic pricing initiatives to mitigate tariff impacts [21][88] Other Important Information - The company is tracking over 350 regulations globally related to PFAS testing, anticipating significant market growth by 2030 [16] - Operating cash flow was $221 million, with capital expenditures of $114 million [33] - The company ended the quarter with a net leverage ratio of 1, indicating a strong balance sheet [33] Q&A Session Summary Question: Order trends in the quarter - Management noted that orders grew low single digits in Q2, with stable business across regions and no significant pull forward from pharma tariffs [50][51] Question: Expectations for NASD and BioVectra - Management expressed confidence in double-digit growth for NASD in the second half of the year, supported by strong order visibility [56] Question: Impact of tariffs on consumables - The $15 million pull forward in consumables was driven by customer actions in response to high tariff rates, with no overall revenue impact expected [64][65] Question: Differences in ordering patterns in pharma - The majority of business is on the QAQC and development side, with small molecule growth of 10% in the quarter [72] Question: PFAS regulation impacts - PFAS testing grew 75% year-over-year, with expectations for continued strong results despite regulatory uncertainties [74] Question: Reshoring and capacity build-outs - Discussions with pharma customers regarding reshoring are still in early stages, with potential tailwinds expected in the next 2-3 years [84] Question: Pricing strategies - The company has established enterprise pricing capabilities and is on track for approximately 100 basis points of price realization for the year [88][90]

Financial Data and Key Metrics Changes - The company authorized an additional $7.5 billion in shares for its accelerated buyback program, representing 21% of outstanding equity [3][4] - Operating cash flows reached over $141 million, the highest for the first quarter, with free cash flows totaling $107 million for the quarter and $620 million for the trailing twelve months [12] - The company has successfully reduced its leverage from three times to two times over the past two years, maintaining a strong balance sheet [12] Business Line Data and Key Metrics Changes - The residential segment saw growth primarily due to outdoor products, with margins holding well [16] - The commercial foodservice business experienced success from investments in the ice and beverage platform, although muted buying levels from major chain customers offset some gains [14] - Food processing revenues dropped due to customer-driven delivery delays, but the company anticipates higher sequential revenue in Q2 [15][19] Market Data and Key Metrics Changes - The company is facing tariff-related costs estimated to increase annual expenses by approximately $150 million to $200 million, with a significant portion attributed to foreign-sourced componentry from China [6][18] - The company expects to offset tariff impacts by the end of the year through operational actions and pricing adjustments [7][18] Company Strategy and Development Direction - The company plans to separate its food processing business into a standalone public company by early 2026, aiming to unlock shareholder value and enhance strategic focus [4][5] - The company is focusing on market expansion opportunities in adjacent markets such as poultry, pet foods, and snacks [5][22] - Strategic investments have been made to drive sustainable long-term growth, particularly in automation, digital technologies, and IoT connectivity [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenging market conditions affecting major chain customers but remains optimistic about sequential revenue increases throughout the year [17][20] - The company is confident in its ability to navigate tariff challenges and believes it is well-positioned to capitalize on market opportunities [7][45] - The long-term outlook for the food processing segment remains bullish, with a robust pipeline of opportunities [21][24] Other Important Information - The company plans to hold a dedicated Shareholder Day in Q4 to present further details on the strategic roadmap for the food processing business [6] - The company has received multiple industry awards for its innovative products, highlighting its commitment to innovation [10][99] Q&A Session Summary Question: 2025 sales guidance and segment outlook - Management indicated that the full-year outlook is primarily driven by the commercial segment, with expectations for improvement over the year despite current challenges [30][32] Question: Buyback decision rationale - The buyback decision was influenced by the company's strong cash flow, balance sheet position, and belief that the current share price does not reflect the business's strength [39][41] Question: Tariff impact and share gains - Management expressed confidence in offsetting tariff costs through operational initiatives and highlighted opportunities for share gains due to a strong U.S. manufacturing footprint [44][46] Question: Segment-level tariff cost allocation - The estimated tariff impact is weighted more towards commercial (approximately 70%), followed by residential (20%), and food processing (10%) [53] Question: Revenue outlook and new store openings - Management expects sequential improvement in revenue for Q2 and noted that new store openings are anticipated to be higher in the second half of the year [62] Question: Competitive pricing landscape - The company has observed competitors implementing price increases ranging from 10% to 25%, while it plans a mid-single-digit increase [83]

Core Viewpoint - The company reported a positive operational recovery in Q1 2025, with revenue and net profit showing sequential growth despite industry adjustments [1][2] Financial Performance - In Q1 2025, the company achieved revenue of 663 million yuan and a net profit of 444 million yuan, reflecting a quarter-on-quarter increase of 2.06% and 19.26% respectively [1] - The gross margin remained high at 93.85%, indicating strong pricing power amid competitive pressures [1] Product Development and Innovation - The company invested 58.54 million yuan in R&D, accounting for 8.82% of revenue, which is an increase of 1.65% year-on-year [1] - A new product, a domestic jaw filler, is expected to launch soon, leveraging its safety and support features to enhance performance in the second half of the year [1] Global Expansion Strategy - The company is accelerating its global market presence by acquiring 85% of REGEN Biotech Inc. for approximately 190 million USD, which will enhance its access to high-end regenerative products [2] - The new production facility in South Korea will alleviate capacity constraints and facilitate product penetration in 34 countries [2] Financial Health - As of March 2025, the company had cash reserves of 3.546 billion yuan, a significant increase of 134.10% from the end of 2024, and total equity exceeding 8.393 billion yuan [2] - The company’s total liabilities decreased by 17.29% compared to the end of 2024, indicating a healthy financial structure [2] Industry Context - The medical aesthetics industry is facing challenges from supply-side reforms and extended consumer decision cycles, but the company’s diversified strategies in R&D, globalization, and financial stability position it for long-term growth [2]

Financial Data and Key Metrics Changes - The company achieved 11% organic revenue growth in 2024, marking the second consecutive year of double-digit organic growth [5][10] - Adjusted operating income grew by 41%, and adjusted diluted earnings per share increased by 21% [11] - Free cash flow for the full year 2024 was $163 million, representing a 70% increase from the prior year [34] Business Line Data and Key Metrics Changes - Cardiopulmonary segment revenue for Q4 was $182 million, an 11% increase year-over-year, with full-year revenue of $684 million, growing 14% [11][13] - Epilepsy revenue increased by 1% in Q4, with U.S. epilepsy revenue growing by 4% year-over-year [15][16] - The company expects cardiopulmonary revenue to grow by 7% to 8% in 2025 and global epilepsy revenue to grow by 4% to 5% [13][17] Market Data and Key Metrics Changes - The hypoglossal nerve stimulation market for obstructive sleep apnea is expected to approach $2 billion by the end of the decade [7] - The company noted a growing worldwide prevalence of obstructive sleep apnea, with significant unmet needs in the market [60] Company Strategy and Development Direction - The company is focusing on innovation and growth, with a clear strategy to enhance its talent and culture [8][40] - Investment will be increased to accelerate product development in obstructive sleep apnea and difficult-to-treat depression [7][26] - The company aims to leverage its clinical and scientific expertise to expand into new therapeutic areas [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue delivering strong financial results and achieving significant milestones in innovation [5][40] - The company is optimistic about the future growth potential in both core and new markets, driven by strong clinical data and market demand [60][100] Other Important Information - The company plans to submit a PMA for obstructive sleep apnea in the first half of 2025, with a limited commercial launch expected thereafter [63] - Adjusted free cash flow is projected to be between $135 million and $155 million for 2025, reflecting increased capital spending [36] Q&A Session Summary Question: Can you help us understand the U.S. and EU cardiopulmonary performance in the quarter? - Management acknowledged a challenging comparison due to previous high growth but noted sequential growth in HLM placements and strong demand for consumables [46] Question: What is the impact of the launch of the new ECMO related product? - Management highlighted that innovation is a key focus and expects the new product to drive growth in 2025 [50][57] Question: How much are you spending to prepare for the sleep apnea launch? - The company invested $27 million in 2024 and plans to invest an additional $8 million in 2025, shifting focus from clinical spend to product development [61] Question: What are the execution issues in the OUS epilepsy business? - Management identified personnel issues as isolated across different markets and expressed confidence in returning to growth [66] Question: Can you provide insight into revenue phasing for 2025? - Management indicated that Q1 is typically the lowest quarter, with growth expected to ramp up throughout the year [69] Question: What is the expected impact of the Siena ruling? - Management stated that they do not anticipate a decision at the upcoming hearing but expect a ruling in the first half of 2025 [78] Question: How does the company view capital allocation between core business and new initiatives? - Management emphasized the importance of sustaining growth in core businesses while also investing in new growth opportunities [100]