Summary of Langxin Technology Conference Call Company Overview - **Company**: Langxin Technology - **Industry**: Energy Technology Key Points and Arguments Financial Performance - Total revenue for the first three quarters of 2025 was approximately 2.45 billion yuan, a year-on-year decline of about 9% [3] - Net profit attributable to shareholders was 100 million yuan, down 34% year-on-year, with non-recurring net profit around 83 million yuan, a decrease of 30% [3] - Gross margin significantly improved to 47% compared to the same period last year [2][3] Business Segments - **Energy Digitalization**: Revenue was approximately 900 million yuan, down 10% year-on-year, primarily due to the divestiture of non-grid businesses and adjustments in grid business pace. Significant revenue growth is expected in Q4 [2][3] - **Energy Internet**: Revenue exceeded 1.3 billion yuan, an 8% increase year-on-year, driven by AI technology applications and rapid development of the electricity trading platform, with trading volume increasing over threefold [2][3] - **Public Charging Services**: Charging volume grew over 30% year-on-year, achieving a single quarter breakeven, but still incurred slight losses due to historical borrowing costs [2][8] Strategic Focus - The company is focusing on two main directions: - **To B**: Serving the grid with a focus on new power system construction through digitalization and intelligence [5] - **To C**: Connecting new energy assets with client value through the energy internet platform [5] Non-Core Business Divestiture - The divestiture of non-core businesses aims to enhance operational efficiency and focus on core energy technology [4] AI and Electricity Trading - The company utilizes AI trading models for market predictions, achieving a competitive advantage in the electricity market with a revenue per kilowatt-hour of approximately 0.02 yuan [2][11] - The AI model sources data from user load and public electricity market data, optimizing predictions through continuous iteration [12][13] Future Developments - The company is working with partners to promote the on-chain of new energy assets, focusing on global energy, new energy, and carbon-related asset rating, pricing, and index services [7] - The new composite control system is a key component of the new power system, integrating IoT data collection and load management [9] Market Trends and Challenges - The company anticipates that the public charging service will enter a profitable phase as market competition intensifies and electric vehicle ownership increases [8] - The development of energy storage devices will focus on both supply-side and user-side applications, aiming for integrated management [10] Green Electricity Direct Connection - The company views green electricity direct connection as part of the broader energy internet business framework, exploring feasibility through microgrid scenarios [14] Sustainability of Gross Margin Improvement - The increase in gross margin is attributed to the divestiture of low-margin businesses and the rise in high-margin platform operations, indicating a sustainable trend for future growth [15]