Financial Data and Key Metrics Changes - Consolidated gross profit for Q3 2025 was $19.4 million, an increase of 8.8% compared to Q3 2024 [13] - Adjusted EBITDA for Q3 2025 was $5.5 million, slightly down by 1.4% from $5.6 million in Q3 2024 [13] - Adjusted EPS remained stable at $0.42 for both Q3 2025 and Q3 2024 [13] Business Line Data and Key Metrics Changes - In healthcare, gross profit for Q3 2025 was $9.0 million, up 8.5% from $8.3 million in Q3 2024, with school revenue growing 20.7% to $24.4 million [13][14] - Engineering gross profit for Q3 2025 reached $6.9 million, a 17.3% increase from $5.9 million in Q3 2024, marking the best engineering gross profit quarter in company history [15] - IT, life sciences, and data solutions group gross profit for Q3 2025 was $3.5 million, down 4.2% from $3.7 million in Q3 2024 [16] Market Data and Key Metrics Changes - The company reported a record engineering backlog for 2026, exceeding $70 million, compared to $21 million for 2025 at the same time last year [15] - Billable hours for the first four weeks of October 2025 increased by 18% compared to the same period in 2024, indicating strong momentum heading into Q4 [15] Company Strategy and Development Direction - The company is focusing on expanding its healthcare services and enhancing its brand awareness, which has led to increased traction and a stronger talent pool [2][3] - In life sciences, the company is capitalizing on industry shifts by partnering with AI-driven companies to streamline compliance and reduce turnaround times [5] - The engineering segment is emphasizing its integrated model and strategic partnerships to enhance procurement agility and mitigate resource bottlenecks [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Q4 2025, expecting it to yield the highest quarterly gross profit and adjusted EBITDA of the fiscal year [17] - The company anticipates continued growth in the aerospace and defense sectors, with many programs still in their infancy [12] - Management acknowledged challenges with medical costs but indicated that measures are being taken to address these long-term [20][44] Other Important Information - The company experienced excess medical costs of approximately $1.8 million year-to-date, with Q3 particularly impacted [3] - SG&A expenses included $800,000 in medical claims over budget for Q3 alone [16] Q&A Session Summary Question: Impact of foreign candidates in the healthcare group - Management indicated that they have a pipeline of at least 300 nurses ready to come over if visa issues are resolved, with potential for 50-60 nurses in the near term [18][19] Question: Predictability of excess medical costs - Management suggested that the current level of excess medical costs is likely to continue into Q4, with long-term measures being implemented to reduce these costs [20] Question: Performance of the industrial process segment - Management noted that while the industrial process segment is stable, it requires a different trajectory for growth, with potential upside expected in 2026 [25][27] Question: Growth opportunities in energy services - Management confirmed that energy services are a significant growth area, focusing on tier-one utility clients and exploring new partnerships [30][32] Question: Capital allocation and share buyback program - Management discussed the balance between available debt and the share buyback program, emphasizing the undervaluation of their stock and the potential for future dividends [56][58]

Financial Data and Key Metrics Changes - The company achieved a significant milestone by surpassing a $500 million annualized gross revenue pace for the first time, indicating strong business model performance [3] - For Q3 2025, the company reported an 11% year-over-year growth in both gross and net revenue, with net revenue reaching $112 million [4] - Adjusted EBITDA grew by 7.6% year-over-year to $18.3 million, representing a 16.3% margin on net revenue [8] - GAAP net income increased dramatically to $6.6 million for Q3 2025, compared to $700,000 in the same period last year [6] - Cash flow from operations more than doubled to $26.5 million from $12.4 million year-over-year [6][11] Business Line Data and Key Metrics Changes - Transportation and power, utilities, and energy sectors grew over 20% during the quarter, contributing to more than 40% of the company's top line [4] - Organic net revenue, excluding acquisitions, grew by 6.6% for Q3 2025, with transportation up 10% and power and utilities up 13% [7][9] - Building infrastructure grew by 8% year-over-year, while natural resources and imaging saw a slight decline [9][21] Market Data and Key Metrics Changes - The company ended the quarter with a record backlog of $448 million, up 18% year-over-year, with significant contributions from building infrastructure and transportation [10] - The power, utilities, and energy division experienced a 38% year-over-year growth, driven by national investments in electrification and renewables [19] Company Strategy and Development Direction - The company is focused on leveraging technology and innovation to enhance margins and scalability, with ongoing investments in AI-enabled solutions [12][23] - M&A activity remains a priority, with a strong pipeline of strategic opportunities, particularly in transportation and power sectors [28][50] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in continued revenue growth, citing a healthy backlog and strong sales across various sectors [17][23] - The company reaffirmed its full-year 2025 guidance and initiated 2026 guidance with expected net revenue between $465 million and $480 million [23] Other Important Information - The company has expanded its revolver to $210 million, providing approximately $150 million in available liquidity for growth initiatives [11][12] - Non-cash stock compensation as a percentage of revenue decreased to 4.4% for the first nine months of 2025, down from 7.3% a year earlier [15][16] Q&A Session Summary Question: Competitive pressure from Total Solutions packages in data center business - Management does not see this as a threat, as larger firms often subcontract specialized work to companies like theirs [26][27] Question: M&A focus areas - The company is focused on expanding in transportation, power and energy, and water-related opportunities, rather than specific regions [28] Question: Fourth-quarter revenue acceleration - Management indicated a healthy backlog and strong sales, expecting revenue growth in the fourth quarter [33] Question: Margins and growth investments - Margins may fluctuate due to labor timing and investments in growth, but overall, the company aims to maintain a margin band of 16-18% [38] Question: Data center bidding opportunities - There are increasing opportunities in the data center market, with larger facilities being developed [45][46] Question: Solar business outlook - The solar business is expected to remain strong in 2026, driven by tax credits, but may taper off in 2027 [49] Question: M&A activity outlook - The company remains committed to M&A, with a strong pipeline and strategic focus for future acquisitions [50] Question: Building infrastructure growth in 2026 - The company plans to allocate labor effectively across markets, anticipating growth in building infrastructure [56]

Core Viewpoint - The company is transitioning from a pure EPC contractor to a full-service provider in the mining industry, expanding its business scope from mining construction to mining operations and supporting services [1] Group 1: Business Transformation - The company has historically focused on mining construction projects but is now evolving to offer comprehensive services across the mining value chain [1] - By deeply engaging in the production and operational phases of its clients, the company has established closer and long-term partnerships, creating a positive cycle in project acquisition and value creation [1] Group 2: Future Direction - The company plans to continue its integrated transformation strategy within the industry chain, aiming to consolidate and expand its core competitive advantages in the mining services sector [1]

Group 1: Business Performance - In the first three quarters of 2025, the company signed new contracts worth 5.532 billion CNY, a slight increase of 1.53% year-on-year [1] - The new contracts in the pulp and paper industry amounted to 2.305 billion CNY, continuing to grow due to projects signed in Malaysia and Thailand [1] - Orders in the petrochemical and new energy materials sectors declined due to reduced fixed asset investments [1] Group 2: International Business Expansion - The company signed new overseas contracts worth 1.754 billion CNY in the first three quarters of 2025, representing a growth of 44.23% year-on-year [1] - The focus of overseas business is on regions such as Southeast Asia, the Middle East, and Africa, particularly along the "Belt and Road" initiative [2] Group 3: Strategic Planning - The company is currently drafting its "14th Five-Year Plan," focusing on traditional industry transformation and the development of emerging industries such as bioengineering, new energy, and environmental protection [2] Group 4: Dividend Policy - The company has maintained a cash dividend policy, distributing a total of 1.22 billion CNY to investors over 19 years, which is 44.49% of the net profit of 2.742 billion CNY [3] - In 2024, the cash dividend was 144 million CNY, accounting for 43% of the net profit [3] Group 5: Market Value Management - The company is committed to enhancing its intrinsic value through consistent performance growth and has implemented stock incentive plans and targeted stock issuances [4] - The company has received an A-level rating from the Shenzhen Stock Exchange for two consecutive years, reflecting its commitment to improving information disclosure quality [4] Group 6: Cash Flow Management - The company reported negative net cash flow from operating activities primarily due to timing differences in cash receipts and payments related to total engineering contracting [5] - Measures are being taken to strengthen accounts receivable management, including setting recovery rates as performance indicators and forming special teams for collection [6]

Core Viewpoint - Southbound funds increased their holdings in Sinopec Engineering (02386.HK) by 1.3625 million shares on November 4, 2025, indicating a positive sentiment towards the company [1]. Summary by Category Shareholding Changes - In the last five trading days, Southbound funds increased their holdings on three occasions, with a total net increase of 586,000 shares [1]. - Over the past 20 trading days, Southbound funds reduced their holdings on 12 days, resulting in a cumulative net reduction of 2.0735 million shares [1]. - As of now, Southbound funds hold 380 million shares of Sinopec Engineering, accounting for 26.63% of the company's total issued ordinary shares [1]. Company Overview - Sinopec Engineering Co., Ltd. primarily engages in engineering contracting services and operates through four segments: - Design, Consulting, and Technology Licensing, providing services to the refining and chemical industries [2]. - Engineering Contracting, offering comprehensive engineering, procurement, construction, maintenance, and project management services [2]. - Construction, focusing on infrastructure for the refining and chemical industries, including new construction, renovation, expansion, and maintenance services [2]. - Equipment Manufacturing, involved in the design, research and development, manufacturing, and sales of equipment and components needed in refining and chemical facilities [2].

Group 1 - The company Libet announced the convening of its fifth board meeting on October 30, 2025, to review the proposal for the third quarter report of 2025 [1] - For the year 2024, the company's revenue composition is as follows: engineering services account for 79.03%, industrial module design and manufacturing for 20.73%, and other businesses for 0.24% [1] - As of the report, Libet's market capitalization is 4.9 billion yuan [1]

Core Insights - Kaifeng Zhuchang Metal Co., Ltd. has been established with a registered capital of 5 million RMB [1] - The company is involved in a wide range of activities including the sale of metal materials, non-metallic minerals, and engineering management services [1] Company Overview - The legal representative of the company is Liu Weichao [1] - The registered capital is 5 million RMB [1] Business Scope - The company’s business activities include: - Sale of metal materials and ores [1] - Sale of non-metallic minerals and products [1] - Sale of new metal functional materials [1] - Engineering management and design services [1] - Consulting services in engineering cost and enterprise management [1] - Sale of various construction materials including waterproofing products and lightweight building materials [1] - Sale and processing of non-ferrous metal alloys and machinery [1] - Sale of chemical products (excluding licensed chemicals) [1] - Sale and acquisition of timber [1]

Core Viewpoint - China Aluminum International (601068.SH) reported a decline in both revenue and net profit for the first three quarters of 2025 compared to the previous year [1] Financial Performance - The total operating revenue for the first three quarters reached 15.219 billion yuan, representing a year-on-year decrease of 5.72% [1] - The net profit attributable to shareholders was 119 million yuan, down 52.68% year-on-year [1] - The basic earnings per share were 0.0078 yuan [1]

Core Viewpoint - The stock of Huasun Engineering (02236) dropped over 20% following the announcement of restrictive measures against Lukoil by the UK and the US, which will lead to the termination of contracts worth approximately 8.3 billion RMB [1] Group 1: Company Impact - Huasun Engineering's shares fell by 20.65%, trading at 0.365 HKD with a transaction volume of 2.1492 million HKD [1] - The company announced that contracts with Lukoil will terminate by November 21, with accounts receivable from these contracts amounting to approximately 8.3 billion RMB [1] - The revenue and gross profit from these contracts accounted for about 4% and 7.5% of the company's mid-year revenue and gross profit, respectively [1] Group 2: Regulatory Environment - On October 15, the UK government imposed restrictive measures on Lukoil [1] - On October 22, the US Treasury Department's Office of Foreign Assets Control listed Lukoil and any entity owning 50% or more of Lukoil as a specially designated national [1]

Core Viewpoint - 中铝国际 reported a significant increase in new contract signings for the first three quarters of 2025, indicating strong growth in its business operations [1] Group 1: Contract Performance - The total new contracts signed by 中铝国际 for the first three quarters of 2025 amounted to RMB 21.46 billion, representing a year-on-year increase of 21.68% [1] - New industrial contracts reached RMB 20.51 billion, accounting for 95.58% of the total new contracts, with a year-on-year increase of 32.96% [1] - New EPC (Engineering, Procurement, and Construction) contracts totaled RMB 18.25 billion, reflecting a year-on-year increase of 29.92% [1] - New overseas contracts amounted to RMB 5.02 billion, showing a substantial year-on-year increase of 115.91% [1]