Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was approximately $58 million, slightly better than previous expectations but still below targets [6][17] - Revenue decreased by 3% year-over-year despite a 5% increase in volumes, primarily due to lower oil prices affecting contractual pass-throughs [17] - Gross profit declined by 20% compared to the previous year, driven by lower demand in key regions and adverse fixed cost absorption [17][18] Business Line Data and Key Metrics Changes - In the rubber segment, volumes increased by 7%, but revenue decreased due to oil-related pass-throughs and adverse geographic mix [18] - Specialty segment saw year-over-year and sequential volume gains, but improvements were skewed towards lower-margin applications [19] Market Data and Key Metrics Changes - Tire production in the U.S. is down approximately 29%, with a 20% decline across Europe, and closer to 35% in Western Europe [5] - Truck and bus tire imports surged over 50% year-over-year in July, indicating potential pre-tariff stockpiling [11] Company Strategy and Development Direction - The company is focusing on self-help actions to improve structural costs and overall competitiveness, aiming for positive free cash flow despite current headwinds [5][15] - Actions include rationalizing underperforming production lines and optimizing the production network to enhance competitiveness [13][15] Management's Comments on Operating Environment and Future Outlook - Management noted soft demand in key markets due to global industrial activity malaise, impacting specialty end markets [5] - There are signs of potential demand recovery, but the company is not counting on it and is taking proactive measures [5][23] Other Important Information - A non-cash goodwill impairment charge of $81 million was recorded during the quarter [19] - The company expects full-year free cash flow in the range of $25 million to $40 million [20][22] Q&A Session Summary Question: Expectations for Q4 volumes and contract negotiations for 2026 - Management expects longer seasonal shutdowns and inventory management in Q4, with contract negotiations for next year behind schedule [24][25] Question: Impact of the Laporte plant on volumes and earnings in 2026 - The Laporte plant is expected to have a negative impact on volumes and earnings in 2026 due to startup costs [26] Question: Potential for earnings improvement in 2026 with sustained import tire pressure - Earnings improvement will depend on the outcome of negotiations and the efficiency projects being implemented [27] Question: Thoughts on industrial rebound in 2026 or 2027 - A rebound would require a return to pre-COVID conditions with strong demand from OEMs and normalized trade flows [30] Question: Are tire importers receiving government support? - The Section 232 tariffs are not sufficient to completely price out imported tires, and the market dynamics are shifting towards tier two brands [32][33]

Group 1 - The core point of the news is that Heimao Co., Ltd. experienced a stock decline of 5.04%, with a current share price of 10.93 yuan and a total market capitalization of 8.037 billion yuan [1] - Heimao Co., Ltd. is primarily engaged in the production and sales of carbon black, coal tar refined products, and white carbon black, with carbon black accounting for 75.93% of its main business revenue [1] - The company was established on July 12, 2001, and went public on September 15, 2006, located in Jingdezhen, Jiangxi Province [1] Group 2 - Among the top ten circulating shareholders of Heimao Co., Ltd., a fund under Southern Fund has recently entered the list, holding 4.0689 million shares, which is 0.55% of the circulating shares [2] - The Southern CSI 1000 ETF (512100) has a total scale of 64.953 billion yuan and has achieved a year-to-date return of 27.06% [2] - The fund manager of Southern CSI 1000 ETF is Cui Lei, who has been in the position for 6 years and 322 days, with the best fund return during the tenure being 137.06% [3]