Financial Data and Key Metrics Changes - Total revenue increased approximately 16.6% year-on-year to $221.3 million, reflecting organic growth of 6.4%, a 9.4% benefit from acquisitions, and a 0.8% benefit from foreign currency [10] - Adjusted operating margin increased 30 basis points year-on-year to 19% [10] - Adjusted earnings per share increased 8.9% year-on-year to $2.08 [10] - Free cash flow for the second quarter was $13 million, compared to $2.2 million a year ago [11] - Adjusted gross margin was 42.1%, up 120 basis points year-over-year [7] Business Line Data and Key Metrics Changes - Electronics segment revenue increased 20.6% year-on-year to a record $115.7 million, driven by organic growth of 11.1% and acquisition benefits [11] - Engineering Technologies revenue increased 35.3% to $30.6 million, driven by a 33.4% benefit from a recent acquisition and organic growth of 1.2% [13] - Scientific revenue increased 5.5% to $19.5 million, due to acquisition benefits, partially offset by an organic decline of 2.6% [14] - Engraving revenue increased 13.6% to $35.7 million, driven by organic growth of 10.3% [15] - Specialty Solutions segment revenue decreased 7.2% year-on-year to $19.8 million [15] Market Data and Key Metrics Changes - Sales into fast growth markets were approximately $61 million, accounting for 28% of total sales [5] - Sales from fast growth markets are expected to grow over 45% year-on-year and exceed $270 million [8] - Orders of approximately $231 million were the highest quarterly intake ever, indicating strong demand [6] Company Strategy and Development Direction - The company is focused on aligning organic and inorganic growth investments around secular end markets and new products [18] - The strategy includes increasing R&D spending from 1% to 3% of sales to drive new product development [5] - The company aims to deliver mid- to high single-digit organic growth in the fiscal third quarter and remains on track for fiscal 2026 sales outlook [4][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2026 sales outlook, barring unforeseen economic disruptions [7] - The company noted that the momentum from new product sales and fast growth markets is expected to continue [18] - Management highlighted the importance of clarity in trade agreements, such as the recent India-EU trade deal, for long-term planning [33] Other Important Information - The company declared a quarterly cash dividend of $0.34 per share, an approximately 6.3% increase year-on-year [17] - The company expects capital expenditures between $33 million and $38 million for fiscal 2026 [17] - The net leverage ratio currently stands at 2.3, with plans to further reduce it [16] Q&A Session Summary Question: Can you explain the purchase accounting related to the redeemable non-controlling interest? - Management provided a detailed explanation of the accounting treatment for the acquisition of Amran and Narayan, emphasizing the alignment of incentives between owners and Standex [24][25][27] Question: How would you characterize the competitive environment for the Grid business? - Management described the market as one of customer intimacy, where they have established strong relationships with major OEMs, allowing them to compete effectively [30][32] Question: What is the status of capacity expansion projects? - Management discussed ongoing capacity expansions in Croatia, Mexico, and Houston, indicating that these expansions are crucial for meeting future demand [61][62] Question: What are the expectations for fast growth sales? - Management confirmed that fast growth sales are expected to exceed $270 million, with significant contributions from the grid business and other sectors [54][82] Question: What are the implications of the recent trade deal between India and the EU? - Management expressed optimism that clarity in trade would benefit their operations and long-term planning [33] Question: Can you elaborate on the margin decline in the Specialty Solutions segment? - Management attributed the decline to challenging market conditions in North America but expects improvements in the upcoming quarter [104] Question: What is the outlook for the engraving business? - Management indicated a positive outlook for the engraving business, with expectations of increased activity in North America and Europe [107]

Financial Performance - In the first three quarters of 2025, the company achieved operating revenue of 9.807 billion CNY, a decrease of 5.60% year-on-year [3] - Net profit attributable to shareholders was 1.165 billion CNY, down 58.23% compared to the previous year [3] - Subsidiary JinSai Pharmaceutical generated revenue of 8.213 billion CNY, a slight increase of 0.61%, but net profit decreased by 49.96% to 1.421 billion CNY [3] - Subsidiary Baike Bio reported revenue of 474 million CNY, a significant decline of 53.76%, with a net loss of 158 million CNY, down 164.76% [3] - Subsidiary Huakang Pharmaceutical's revenue was 542 million CNY, down 5.38%, with a net profit of 36 million CNY, an increase of 2.46% [3] - Subsidiary Gaoxin Real Estate achieved revenue of 544 million CNY, a decrease of 7.97%, with a net profit of 23,700 CNY, down 99.39% [3] New Product Developments - JinBeiXin (伏欣奇拜单抗), a new treatment for acute gouty arthritis, was launched in July 2025, generating over 55 million CNY in sales by Q3 2025 [5] - The product MeSiYa, targeting cancer-related cachexia, achieved nearly 100 million CNY in sales during the first three quarters of 2025 [5] - The company is focusing resources on promoting new products with high market potential to drive future growth [5] Collaborations and Partnerships - The company has partnered with ALK-Abelló A/S to expand its product pipeline in the respiratory allergy field, leveraging its sales channels for rapid promotion [6] - The collaboration includes both injectable and tablet forms of desensitization products, with plans to expedite clinical trials for the tablet version [6] Research and Development Pipeline - The company is advancing clinical trials in traditional areas like endocrine metabolism and women's health, as well as innovative directions in oncology and immunology [7] - Key projects include: - GenSci134, a long-acting growth hormone for adults, currently in Phase I trials [8] - GenSci098, a TSHR antagonist for thyroid conditions, progressing through Phase I trials [8] - GenSci120, a PD-1 agonist, expected to enter Phase II trials in early 2026 [8] - Multiple antibody-drug conjugates (BsADC) for various cancers are in the pipeline, with clinical trial applications submitted [8] H Share Listing Progress - The company submitted its H Share listing application to the Hong Kong Stock Exchange at the end of September 2025, receiving regulatory acceptance in mid-October [9]

Financial Data and Key Metrics Changes - Total revenue increased approximately 23.2% year on year to $222 million, reflecting a 23.4% benefit from recent acquisitions and a 1.2% benefit from foreign currency, partially offset by an organic revenue decline of 1.4% [18][20] - Adjusted operating margin increased 350 basis points year on year to a record 20.6%, with adjusted operating income increasing 48.8% on the revenue increase [20] - Adjusted earnings per share increased 20.6% year on year to a record $2.28 [20] Business Line Data and Key Metrics Changes - **Electronics Segment**: Revenue increased 43.2% year on year to $115.2 million, driven by a 41% benefit from acquisitions and organic growth of 0.3% [20][21] - **Engineering Technologies Segment**: Revenue increased 26.8% to $32 million, driven by a 25% benefit from the recent NexStarlight acquisition and organic growth of 0.9% [23] - **Scientific Segment**: Revenue increased 2.3% to $17.9 million, due to a 16.1% benefit from recent acquisition, partially offset by an organic decline of 13.9% [24] - **Engraving Segment**: Revenue increased 0.6% to $33 million, driven by a 1.2% benefit from foreign currency, partially offset by an organic decline of 0.6% [25] - **Specialty Solutions Segment**: Revenue decreased 1.2% year on year to $23.9 million, primarily due to general market softness [25] Market Data and Key Metrics Changes - Sales into fast growth markets were approximately $184 million, exceeding expectations of $170 million, driven by growth in data center demand and grid modernization [30] - Fast growth market sales are expected to grow approximately 45% year on year, exceeding $265 million in fiscal year 2026 [31] Company Strategy and Development Direction - The company is focused on new product development, with plans to launch more than 15 new products in fiscal year 2026, expected to contribute over 300 basis points of incremental growth [31] - The company aims to achieve fiscal year 2028 long-term targets of sales exceeding $1.15 billion and adjusted operating margin greater than 23% [32] - The company is positioned to benefit from long-term secular tailwinds in end markets, particularly in electrical grid, space, and defense [15][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving over $100 million in incremental sales growth in fiscal year 2026, driven by acquisitions, new products, and fast growth markets [10][31] - Management noted that the company is well-positioned in a fluid economic environment due to strong customer relationships and disciplined pricing strategies [32] Other Important Information - The company paid down approximately $27 million in debt during the fiscal fourth quarter, with a net leverage ratio currently at 2.6 [27][28] - The company declared a quarterly cash dividend of 32¢ per share, representing a 6.7% increase year on year [28] Q&A Session Summary Question: Potential for upside in the $100 million revenue increase for fiscal 2026 - Management indicated that the $100 million estimate could be conservative, with potential upside from acquisitions and organic growth [36][38] Question: Performance of the EV business - Management noted a slight dip in EV sales in 2025 but anticipates growth in 2026 with new model introductions [39][40] Question: Ramp-up of the Amarin business in Croatia - Management expects initial shipments of single-digit millions in fiscal 2026, with potential growth to over $30 million in three years [41][42] Question: Demand in the electronics segment - Management reported a 16% year-on-year increase in orders, primarily driven by OEMs [50][52] Question: Scientific segment margins and NIH funding impact - Management acknowledged the impact of NIH funding cuts but does not expect significant changes in demand from that channel [67] Question: Acquisition pipeline and appetite for new acquisitions - Management confirmed ongoing work in the acquisition pipeline and a willingness to pursue new opportunities as leverage improves [97]