LSI Industries (NasdaqGS:LYTS) Q2 2026 Earnings call January 22, 2026 11:00 AM ET Company ParticipantsJim Galeese - CFOJim Clark - President and CEOConference Call ParticipantsSameer Joshi - AnalystGeorge Gianarikas - AnalystAlex Riegel - AnalystAaron Spychala - AnalystChristopher Glynn - AnalystOperatorGreetings and welcome to the LSI Industries Fiscal 2026 Second Quarter Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal ...

Group 1: Competitive Advantage - The company emphasizes the importance of maintaining a moderate scale advantage as a foundation for competitiveness [2] - Strong R&D capabilities are crucial due to the highly customized nature of buses, enabling quick responses to customer needs [2] - Establishing a comprehensive sales and after-sales service network is essential for customer experience and brand reputation [2] Group 2: Domestic Market Growth - The domestic bus market is expected to maintain a stable annual update volume, driven by structural upgrades and renewals [3] - The international market is showing a continuous growth trend, influenced by China's increasing global influence and manufacturing strengths [3] Group 3: Hydrogen Fuel Cell Technology - The company is actively researching fuel cell technology and conducting product validation in policy-supported regions [3] - Challenges for large-scale commercialization include hydrogen storage, transportation, and infrastructure [3] Group 4: Brand Value and Market Positioning - The term "cost-performance ratio" reflects China's manufacturing advantages but indicates a need for improved brand premium [4] - Continuous product quality enhancement and innovation are necessary for long-term brand elevation and profit improvement [4] - The company aims to gradually enhance product value and brand positioning by leveraging its complete supply chain in new energy buses [4] Group 5: International Market Strategy - The strategy focuses on "point-to-surface" expansion, prioritizing countries with established orders and good reputations as regional benchmarks [5] - This approach aims to efficiently expand business by utilizing existing brand recognition and service networks [5] Group 6: Brand Building in Overseas Markets - The company is actively involved in international brand-building activities, leveraging the reputation of Shandong Heavy Industry Group's subsidiaries [6] - Utilizing group resources and channel synergies is key to successful overseas market expansion [6]

Core Viewpoint - The renewal of the exclusive agency agreement between Gaoshi Medical and Schwind eye-tech-solutions GmbH signifies a strengthened strategic partnership, enhancing Gaoshi Medical's competitive advantage in the refractive surgery equipment market in China [1] Group 1: Agreement Details - Gaoshi Medical's subsidiary, Shanghai Gaoshi Mingwang Medical Equipment Co., Ltd., has officially renewed its exclusive agency agreement with Schwind eye-tech-solutions GmbH for the Chinese market, including mainland China, Hong Kong, and Macau [1] - The partnership with Schwind, a key supplier since their initial collaboration in 2009, has lasted over 16 years, indicating a stable and long-term relationship [1] Group 2: Market Implications - The renewal of the exclusive agency agreement is crucial for consolidating Gaoshi Medical's competitive edge in the refractive surgery equipment market in China [1]

Group 1: Company Overview - The company, Yinchuan Weili Transmission Technology Co., Ltd., specializes in precision gearboxes and has made significant advancements in its core products and smart factory construction [2][3]. Group 2: Technical Barriers and Competitive Advantages - The manufacturing of wind turbine gearboxes involves high technical barriers, requiring precise design, processing, and assembly to ensure reliability and longevity while maintaining compactness and ease of maintenance [2][3]. - The company has established a competitive edge through substantial R&D investments, which are essential for maintaining market competitiveness in a capital-intensive industry [3]. Group 3: Market Outlook - The global wind power installed capacity is projected to grow significantly, with an expected addition of 981 GW from 2025 to 2030, averaging 164 GW annually, which will drive demand for wind turbine gearboxes [4]. - In China, the wind power market is particularly robust, with an anticipated increase of 86 GW in new installations in 2024, representing an 11% year-on-year growth, significantly outpacing global averages [4]. Group 4: Production and Quality Control - The company has implemented comprehensive information systems (PLM, ERP, MES, DNC) to manage the complex production processes of its diverse product range effectively [5]. - Quality control is ensured through proprietary testing equipment that simulates actual operating conditions, alongside certifications such as ISO9001 and IATF16949, which uphold high standards throughout the production cycle [5].