Summary of Baotong Technology Conference Call Company Overview - **Company**: Baotong Technology - **Date**: November 25, 2025 Key Points Financial Performance - **Revenue**: In the first three quarters, revenue reached 1.645 billion CNY, a year-on-year increase of 9.24% [2][3] - **Net Profit**: Net profit decreased by 12% to 209 million CNY [2][3] - **Q3 Performance**: Q3 revenue was 850 million CNY, up 16% year-on-year, with net profit exceeding 69 million CNY, a 47% increase [3] Business Segments - **Industrial Sector**: Revenue was 525 million CNY in Q3, slightly impacted by inventory impairment and initial operational challenges at the Thailand factory [4] - **Mobile Gaming**: Revenue from mobile gaming was 325 million CNY in Q3, with net profit from subsidiaries exceeding 70 million CNY [4][6] - **Game Performance**: The self-developed game "Project Third" generated 175 million CNY in revenue in the first three quarters, performing well in the European and American markets [6] Robotics and Automation - **Inspection Robots**: Rapid expansion in overseas markets, particularly with BHP, where a single robot sells for approximately 200,000 USD, with higher profit margins than domestic sales [4][6] - **Pilot Projects**: Ongoing trials in domestic mines and steel plants to address hazardous environment detection [9] Thailand Factory - **Operational Status**: The Thailand factory has passed inspections from major Australian clients and is expected to significantly contribute to revenue by 2026, offsetting domestic market pressures [5][14] - **Production Capacity**: The factory's annual capacity is 10 million square meters, expanding overall capacity by 25% to 30% [14] Future Developments - **Investment in Technology**: Continued investment in integrated smart hardware and software services to enhance operational efficiency [9] - **New Product Launches**: Upcoming releases include "Fate: The Holy Contract" in Japan and "Saint Seiya" in Europe, with expectations for stable performance [19] Market Strategy - **Game Localization**: Tailored strategies for different cultural markets in Europe, including localized adaptations for various countries [17] - **Sales Expenses**: Sales expenses increased by nearly 50% due to significant promotional investments for the game "Athena" in Europe [20] AI Integration - **AI Applications**: Utilization of AI for cost reduction and efficiency improvements in game development, including content generation for text-based adventure games [21] Challenges and Risks - **Market Competition**: Intense competition in the domestic market affecting profit margins, particularly in the industrial internet sector [13][15] Conclusion - Baotong Technology is focusing on expanding its international presence, particularly in robotics and gaming, while addressing challenges in the domestic market through strategic investments and product innovations. The Thailand factory is poised to play a crucial role in future revenue growth.