Core Viewpoint - The industrial control and power equipment industry experienced rapid profit growth in Q3 2025, indicating a high level of prosperity [2][3]. Industry Overview - The industrial control and power equipment industry reported a revenue increase of 11% year-on-year for Q1-Q3 2025, with Q3 showing a 9% increase. Net profit for the same period grew by 17%, with Q3 net profit increasing by 15% [2]. - The overall gross margin for the industry remained stable at 22.7% in Q3 2025, reflecting a slight decrease of 0.8 percentage points year-on-year and 0.5 percentage points quarter-on-quarter [2]. - Operating cash flow for the industry saw a net inflow of 234 billion, representing a 23% year-on-year increase [2]. Segment Performance - The industrial control segment achieved a revenue of 101.7 billion in Q1-Q3 2025, with a year-on-year growth of 21%, and a net profit of 8.8 billion, also up by 21% [2][3]. - In Q3 2025, the industrial control segment generated a revenue of 38.5 billion, a 21% increase year-on-year and a 10% increase quarter-on-quarter, with a net profit of 2.95 billion, up 14% year-on-year but down 11% quarter-on-quarter [2][3]. - The cable segment reported a revenue increase of 6.36% year-on-year, but net profit decreased by 42.46% [3]. - The ultra-high voltage/high voltage segment saw a revenue increase of 5.37% and a net profit increase of 48.51% year-on-year [3]. - The secondary equipment segment achieved a revenue of 26.9 billion in Q3 2025, with a year-on-year growth of 18.5% and a net profit of 2.75 billion, up 8.3% [4]. Financial Health - The operating cash flow for the industrial control segment was a net inflow of 40.9 billion in Q3 2025, showing a 2% decrease year-on-year [3]. - The inventory levels increased significantly, with a year-on-year rise of 24.37%, while operating cash flow improved by 23% [4]. - The gross margin for the secondary equipment segment was 26.4% in Q3 2025, reflecting a year-on-year decrease of 2.7 percentage points, while the net profit margin was 10.3%, down by 1.0 percentage points [4].

Group 1: New Energy Vehicles - The overall holding in the new energy vehicle sector increased, with upstream lithium mines, midstream, core components, and new technologies rising, while holdings in complete vehicles and charging piles decreased [2][3] - The holding proportion of the new energy vehicle sector in Q3 2025 is 5.28%, up 1.13 percentage points from the previous quarter [2][3] - Upstream lithium mine holdings rose by 1.24 percentage points to 2.86% in Q3 2025; midstream holdings increased by 0.69 percentage points to 8.92% [2][3] Group 2: Renewable Energy - The photovoltaic sector's holding proportion in Q3 2025 increased to 4.18%, up 1.43 percentage points from the previous quarter [3] - In the photovoltaic sector, silicon materials, silicon wafers, components, and inverters saw a decline in holdings, while battery holdings increased [3] - The wind power sector's holding proportion rose to 3.46%, with increases in the complete machine, tower & sea pile, and submarine cable segments [3] Group 3: Nuclear Power - The nuclear power sector's holding proportion decreased to 0.73%, down 0.05 percentage points from the previous quarter [4] Group 4: Industrial Control & Power Equipment - The overall holding in the industrial control and power electronics sector in Q3 2025 is 6.21%, up 1.06 percentage points from the previous quarter [6] - The power equipment sector's holding proportion increased to 1.81%, up 0.33 percentage points from the previous quarter [6] Group 5: Energy Storage - The overall holding in the energy storage sector decreased to 5.60%, down 2.20 percentage points from the previous quarter [6] - Energy storage batteries saw an increase in holdings by 2.04 percentage points to 7.97% in Q3 2025, while PCS holdings decreased slightly [6]