Core Viewpoint - The Zhenjiang Product Quality Supervision and Inspection Center has successfully passed the CB laboratory on-site review by the IECEE, achieving international recognition for all 14 IEC standard testing projects submitted [1] Group 1: Achievements and Recognition - The Zhenjiang Quality Inspection Center has established partnerships with renowned international certification organizations such as Dekra and SGS, providing efficient and reliable testing and certification services for electrical enterprises in Zhenjiang and surrounding areas [1] - The center has served over 20 enterprises, with a total of 116 certification inspection batches, and products are exported to regions including Southeast Asia and Europe [1] Group 2: Impact on Competitiveness - The successful CB laboratory review signifies that the Zhenjiang Quality Inspection Center has reached an internationally advanced level in low-voltage electrical product testing [1] - The testing reports issued by the center, based on relevant international standards, will be mutually recognized in over 50 countries globally, enhancing service efficiency and significantly boosting the international competitiveness of Zhenjiang enterprises [1]

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $783 million for Q3 2025, representing a 7.1% increase compared to the same quarter last year and a 6.3% increase on an organic basis [12][5] - Adjusted EBITDA grew 18.6% year-over-year to $217 million, with an adjusted EBITDA margin of 27.7%, up 270 basis points from the previous year [12][13] - Adjusted net income for Q3 was $119 million, reflecting a 14.4% increase from the prior year, with adjusted diluted earnings per share rising to $0.56 from $0.49 [13][14] Business Line Data and Key Metrics Changes - In the industrial segment, revenues increased by 8.2% to $343 million, with a 7.3% organic growth driven by certification testing and ongoing services [15] - The consumer segment saw revenues of $340 million, up 5.9% overall and 5.3% organically, with strong demand for non-certification testing in consumer technology [16] - The software and advisory segment reported revenues of $100 million, a 7.5% increase overall and 6.5% organically, with advisory revenue growing by 8.8% [17] Market Data and Key Metrics Changes - The company experienced balanced growth across all geographic markets, with notable strength in the U.S., Greater China, and ASEAN regions, particularly in data center-related services [39][40] - There was significant growth in Vietnam, Thailand, and India, while traditional markets like Germany, Japan, and Taiwan showed slight contractions [33] Company Strategy and Development Direction - The company is focusing on transformative industry trends such as energy transition, electrification, and digital transformation to drive sustainable growth [4][9] - A restructuring initiative was announced to streamline operations, reduce expenses, and focus on core growth areas, which is expected to generate annual run-rate savings and margin expansion [10][19] - The launch of Landmark Artificial Intelligence Safety Certification Testing aims to build public trust in AI technologies, reflecting the company's commitment to innovation [22] Management's Comments on Operating Environment and Future Outlook - Management noted that customer demand remains resilient despite geopolitical uncertainties, with ongoing investments expected to drive future growth [10][21] - The full-year 2025 guidance was strengthened, with expectations for consolidated organic revenue growth now in the range of 5.5%-6.0% [19][20] - The company anticipates a modest headwind to organic revenue growth in 2026 due to exiting non-strategic service lines, but overall growth rates for core businesses are expected to remain stable [76][78] Other Important Information - The company generated $317 million in free cash flow year-to-date, up 47% from the previous year, and held $255 million in cash and cash equivalents as of September 30 [17][18] - A new credit facility was established to enhance financial flexibility and support ongoing investments [18] Q&A Session Summary Question: Impact of macroeconomic conditions in China on business - Management acknowledged ongoing uncertainty due to tariffs but noted a shift towards a new normal where customers are adapting to the situation and diversifying supply chains [26] Question: Performance of the software and advisory segment - The strong performance was attributed to the completion of several advisory projects, leading to high staff utilization, though future quarters may not maintain the same level of performance [29] Question: Growth dynamics across regions - Growth was observed in all regions, with particular strength in the U.S. and Greater China, especially in data center-related services [39] Question: Details on the restructuring plan - The restructuring will involve exiting non-strategic service lines, which represent about 1% of total revenue, allowing the company to focus on higher quality growth areas [37][46] Question: Pricing contribution in Q3 - Pricing contributed significantly to revenue growth, particularly in ongoing certification services, with a balanced contribution from both price and volume [55] Question: Outlook for organic growth despite restructuring - The company expects to maintain overall growth rates, with the restructuring creating a temporary organic headwind due to exiting certain service lines [78]