PresentationHello, everyone, and welcome to today's RHI Magnesita November Trading Update Call. My name is Seb, and I'll be the operator for your call today. [Operator Instructions] I will now hand over to Stefan Borgas to begin the call. Please go ahead.Stefan BorgasCEO & Executive Director Thank you very much, Seb. Good morning, ladies and gentlemen. Thank you for joining RHI Magnesita's 10-month trading update. Ian and I will lead you through what happened during the quarter, over the course of the next ...

Group 1 - The stock of Shikong Technology (605178) reached a historical high with a peak increase of nearly 10% before retreating to a 3% gain, with trading volume exceeding 1.2 billion yuan [1] - The company announced that the recent stock price surge has deviated significantly from the Shanghai Composite Index and the decoration industry index, indicating potential market overheating and irrational speculation risks [1] - The company plans to acquire 100% equity of Jiahe Jingwei through a combination of share issuance and cash payment, but the transaction faces long approval cycles and uncertainties, with no immediate impact on the company's consolidated financial statements [1] Group 2 - From 2021 to the third quarter of 2025, the company has reported continuous losses, with revenues of 746 million yuan, 330 million yuan, 203 million yuan, 341 million yuan, and 215 million yuan, and net losses of 20 million yuan, 212 million yuan, 204 million yuan, 266 million yuan, and 116 million yuan respectively [2] - Investors are advised to be aware of the operational performance risks associated with the company's ongoing losses [2]

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $180.4 million, including $35.6 million of acquisition expenses, compared to $13.5 million in the second quarter. Excluding these expenses, net operating income was $206.5 million or $2.70 per share [4] - Net interest income totaled $475 million, an increase of $8 million or 1.7% from the second quarter, driven by organic growth in average loans and earning assets [4] - Fee income increased by 12.4% on a linked quarter basis, excluding market valuation changes on equity positions [4] Business Line Data and Key Metrics Changes - Investment banking saw nearly a 14% increase in activity from the second quarter, driven by agency and mortgage-backed trading [4] - Quarterly loan production surpassed $2 billion for the first time, with strong organic growth momentum [5] - CNI (Commercial and Industrial) loans were the strongest contributor, with more than 14% annualized growth over the second quarter average balances [5] Market Data and Key Metrics Changes - Loan growth outpaced peer banks, with UMB reporting an 8% annualized increase in average loan balances compared to the 5.5% median increase reported by peers [6] - Total nonperforming loans were $132 million or 35 basis points of loans, with a slight increase attributed to two legacy HTLF loans [9] Company Strategy and Development Direction - The company successfully completed the full systems and brand conversion of Heartland Financial USA, Inc., which is expected to enhance growth opportunities [3] - UMB aims to augment loan growth with acquired deposits through M&A, focusing on high-quality partnerships to support its growth strategy [67][68] - The company is optimistic about the integration of Heartland's lenders, enhancing customer focus and operational efficiency [53][60] Management's Comments on Operating Environment and Future Outlook - Management expects charge-off levels to remain near or below historical averages for the remainder of the year, despite a slight increase in nonperforming loans [9] - The company anticipates continued strong loan activity and pipeline in both legacy and HTLF markets, with a strong pipeline looking ahead into the fourth quarter [6] - Management expressed confidence in the economic outlook, noting that borrowers are performing well [40] Other Important Information - The Board of Directors declared a quarterly dividend of $0.43 per share, representing a 7.5% increase from the prior quarter [10] - The effective tax rate for the third quarter was 20.4%, with expectations for the full year to be between 19% and 22% [17] Q&A Session Summary Question: Can you dissect the production trends and their sustainability? - Management noted that loan growth is driven by local penetration and the capacity of the officer corps, with early signs of success from the Heartland acquisition [21][22] Question: Any updates on credit quality? - Management expressed satisfaction with credit quality, stating that reserves have been established for identified loans, and they expect charge-offs to align with previous guidance [25][32] Question: What is the outlook for expenses in Q1 2026? - Management indicated that cost savings from the Heartland acquisition are expected to materialize by the end of Q1 2026, with some inflationary pressures anticipated [46][50] Question: How is the integration of Heartland's lenders progressing? - Management highlighted that the integration has been smooth, with enhanced support and quicker turnaround times for clients [53][60] Question: What opportunities exist for new loan production across Heartland's regions? - Management identified significant opportunities in various markets, particularly California and Wisconsin, emphasizing low penetration rates [64][66] Question: How does the company view M&A opportunities? - Management reiterated that while they do not need to pursue M&A, they are open to strategic acquisitions that can enhance their deposit base [67][68] Question: What is the outlook for the trust and securities processing division? - Management noted strong growth driven by asset servicing and corporate trust, with expectations for continued momentum [88][91]

Group 1 - The company has experienced a significant stock price increase, with a closing price of 57.71 yuan per share and a continuous limit-up for six trading days [1] - The company has announced plans to acquire 100% equity of Shenzhen Jiahe Jingwei Electronics Technology Co., Ltd. through a combination of share issuance and cash payment [1] - The target company's business model involves sourcing storage chips, PCBs, and various components, and producing memory modules and solid-state drives primarily for the personal consumer market [1][2] Group 2 - The target company operates in the storage product sector, which is different from the company's main business, indicating a lack of prior experience in the storage industry [2] - The company has reported continuous losses from 2022 to the first half of 2025, with revenues of 330 million yuan, 203 million yuan, 341 million yuan, and 144 million yuan, and net losses of 212 million yuan, 204 million yuan, 266 million yuan, and 66 million yuan during the same periods [2]

Core Viewpoint - The stock price of Beijing New Space Technology Co., Ltd. has experienced significant fluctuations, with a cumulative increase of 123.90% since September 2025, raising concerns about potential market overheating and irrational speculation [2][10]. Stock Trading Anomalies - The company's stock price recorded a cumulative deviation of over 20% on October 27 and 28, 2025, indicating abnormal trading conditions as per Shanghai Stock Exchange regulations [2][5]. - The stock price surged by 46.41% during the period from October 23 to 28, 2025, which is significantly higher than the performance of the Shanghai Composite Index and the decoration industry index [2][10]. Financial Performance - The company has reported continuous losses from 2022 to the first half of 2025, with revenues of 330 million yuan, 203 million yuan, 341 million yuan, and 144 million yuan, and net losses of 212 million yuan, 204 million yuan, 266 million yuan, and 66 million yuan respectively [2][11]. Valuation Metrics - The company's latest price-to-book ratio stands at 4.10, which is significantly higher than the industry average of 2.31 for the "E50 Construction Decoration and Other Construction Industries" category [2][10]. Acquisition and Integration Risks - The company plans to acquire 100% equity of Shenzhen Jiahe Jingwei Electronic Technology Co., Ltd., which operates in a different industry (storage products) and poses integration risks due to the company's lack of prior experience in this sector [3][15]. - The acquisition is subject to board and shareholder approval, as well as regulatory approvals, which introduces uncertainty regarding the transaction's completion [3][7]. Market and Operational Environment - The company has confirmed that its production and operational status remains normal, with no significant changes in the internal or external business environment, aside from the announced acquisition [6][7]. - The target company's business model involves sourcing storage chips and components primarily from trade companies, which may expose the company to supply chain risks [3][15].

Core Viewpoint - Skyworks Solutions (SWKS.US) is in potential acquisition talks with competitor Qorvo (QRVO.US) to consolidate their smartphone RF chip businesses, driven by weakening orders from their largest customer, Apple (AAPL.US) [1] Group 1: Company Performance - Skyworks Solutions' stock price increased over 13%, reaching $85.69 [1] - Qorvo's market capitalization is approximately $8.4 billion, with its stock price rising over 11.8% to $103 following the acquisition rumors [1] Group 2: Market Context - Both companies have issued warnings about declining shipment orders from Apple, indicating a loss of market share to competitors [1] - The potential merger is seen as a strategy to enhance bargaining power and achieve scale advantages in response to the cooling demand from Apple and increasing competition [1]

Core Viewpoint - The company has announced a significant stock price fluctuation, with a cumulative increase of over 20% in closing prices over two consecutive trading days, indicating abnormal trading activity [1] Group 1: Transaction Details - On October 23, the company disclosed a plan for issuing shares and cash to acquire assets, along with related announcements on the Shanghai Stock Exchange [1] - The transaction requires further review and approval from the company's board of directors and shareholders, as well as regulatory authorities, introducing uncertainty regarding its implementation [1] Group 2: Business Integration - The target company specializes in the research, design, production, and sales of storage products such as memory modules and solid-state drives, which are in a different industry from the company's main business [1] - Prior to this transaction, the company had no experience in the storage industry, indicating a potential challenge in integration post-acquisition [1] Group 3: Risks Associated with the Transaction - The company faces various risks including the possibility of transaction suspension, audit and evaluation completion issues, undetermined pricing, adjustments to the transaction plan, high concentration of suppliers for raw materials, fluctuations in operating performance, and high customer concentration [1]

Core Viewpoint - Yangjie Technology (300373.SZ) announced plans to acquire 100% equity of Dongguan Better Electronics Technology Co., Ltd. for a total transfer price of RMB 2.218 billion [1] Group 1: Transaction Details - After the transaction, Better Electronics will become a wholly-owned subsidiary of Yangjie Technology [2] - The transaction is classified as a related party transaction but does not constitute a major asset restructuring [2] - The transaction requires approval from the shareholders' meeting, with related shareholders abstaining from voting on relevant proposals [3] Group 2: Performance Commitment - A performance commitment is set for the period from 2025 to 2027, with a total net profit of no less than RMB 555 million after deducting non-recurring gains and losses [3] - The performance commitment parties will jointly establish a holding platform, Dongguan Beiju, which will acquire no less than RMB 716 million of Yangjie Technology's shares through bulk trading [3] - If the net profit exceeds the committed amount, 30% of the excess will be used to reward the management team of Better Electronics [3] Group 3: Valuation and Risks - The valuation of Better Electronics shows a significant increase, with an assessed value of RMB 2.22 billion compared to a book value of RMB 599 million, resulting in an increase of RMB 1.621 billion and a growth rate of 270.46% [4] - Better Electronics previously attempted an IPO but failed due to declining capacity utilization and sustainability concerns regarding its performance growth [4] - The company has no controlling shareholder, with a group of shareholders holding a combined 39.35% stake [4] Group 4: Financial Performance - For the fiscal year 2024 and the first quarter of 2025, Better Electronics reported revenues of RMB 837 million and RMB 218 million, respectively, with net profits of RMB 148 million and RMB 41.13 million [5] - As of March 31, 2024, Better Electronics had total assets of RMB 1.024 billion and equity of RMB 590 million [5] Group 5: Strategic Synergies - Better Electronics specializes in the R&D, production, and sales of power electronic protection components, with over 20 years in the industry and various accolades [5] - The acquisition is expected to enhance Yangjie Technology's product and technology portfolio, strengthen its market position in the power electronics sector, and create synergies in downstream customer relationships [6] - The collaboration will allow for shared R&D outcomes, improving Yangjie Technology's research capabilities and technical accumulation [6] Group 6: Market Reaction - As of September 11, Yangjie Technology's stock rose by 3.36%, closing at RMB 65.27 per share, with a total market capitalization of RMB 35.46 billion [7]

Core Viewpoint - Yangjie Technology announced a significant acquisition of 100% equity in Dongguan Better Electronics Technology Co., Ltd. for a total price of RMB 2.218 billion, following Better Electronics' failed IPO attempt [1][3]. Group 1: Acquisition Details - The acquisition will make Better Electronics a wholly-owned subsidiary of Yangjie Technology, and it is classified as a related party transaction, requiring approval from the shareholders' meeting [2]. - The transaction includes performance commitments, with a total net profit of no less than RMB 555 million from 2025 to 2027, excluding non-recurring gains and losses [2]. - The performance commitment parties will establish a holding platform, Dongguan Beiju, which will acquire at least RMB 716 million worth of Yangjie Technology shares through bulk trading, with these shares pledged to Yangjie Technology's subsidiary [2]. Group 2: Financial Performance and Valuation - Better Electronics' assessed value is RMB 2.22 billion, showing a significant increase compared to its book value of RMB 599 million, resulting in a valuation increase of RMB 1.621 billion, or 270.46% [3]. - The company's revenue for 2024 and Q1 2025 was RMB 837 million and RMB 218 million, respectively, with net profits of RMB 148 million and RMB 41.13 million [4]. Group 3: Strategic Implications - Better Electronics specializes in power electronic protection components and has received various industry accolades, indicating its strong market position [4]. - The acquisition is expected to enhance Yangjie Technology's product and technology portfolio, strengthen its market position in the power electronics sector, and create synergies in product offerings and customer bases [5]. - The collaboration is anticipated to improve research and development capabilities and technical integration, thereby enhancing the overall competitiveness of Yangjie Technology's core business [5].

Group 1 - The company plans to acquire a 39.2308% stake in Shanghai Wutongshu High-tech Co., Ltd. for cash consideration of 196 million yuan [1] - Upon completion of the transaction, the target company will be included in the company's consolidated financial statements and will become a subsidiary [1] - The target company primarily engages in AIDC computing power infrastructure integration services, which is in a different industry from the company's main business [1] Group 2 - The transaction is expected to help the company expand into new market areas and enhance collaboration in technology research and development [1] - The company aims to strengthen resource sharing and cooperative value creation with the target company, improving customer cooperation stability and stickiness [1] - This acquisition is intended to diversify the company's revenue sources and provide more profit growth opportunities [1]