Summary of Silicon Treasure Technology Conference Call Company Overview - **Company**: Silicon Treasure Technology - **Period**: Q3 2025 Key Financial Performance - Revenue for the first three quarters increased by 24% to 2.2651 billion CNY [2][3] - Net profit rose by 45% to 229 million CNY [2][3] - Sales volume grew by 27% to 210,000 tons [2][3] - Q3 net profit increased by over 30% due to improved gross margins and the consolidation effect from subsidiary Jiahao [2][3] Subsidiary Performance - Jiahao contributed over 10 million CNY in profit in Q3 2025 after consolidation in July 2024 [4][5] - Despite a revenue increase of less than 10%, Jiahao's profit growth was significant due to improved export gross margins [4] Business Segment Performance - **Construction Adhesives**: Stable sales volume but slight revenue decline due to pricing [6][16] - **Industrial Adhesives**: Overall good growth; however, photovoltaic adhesives saw a significant decline [6] - **Electronic Adhesives and Power Industry**: Benefited from demand in the new energy vehicle sector, achieving substantial growth [6][8] Strategic Adjustments - The company plans to adjust its photovoltaic adhesive strategy based on industry cycles, avoiding rapid expansion to mitigate accounts receivable risks [7] - Retaining photovoltaic business to prepare for potential market recovery while increasing market share when margins improve [7] Market Dynamics - The construction adhesive market is shifting towards lower-tier markets, with stable demand for curtain wall adhesives and rapid growth in decoration and renovation sectors [4][14][16] - The market share of curtain wall adhesives is close to 50%, with circulation adhesives expected to reach 20% in 2025 [15] Industry Trends - The organic silicon raw material prices are expected to rise slowly, with gradual price transmission to maintain gross margins [20][21] - Industry consolidation is evident, with leading companies performing well while others face operational difficulties [22][24] Future Outlook - The company is exploring entry into the semiconductor sector, focusing on chip packaging and cooling [12] - Anticipated capital expenditure of approximately 100 million CNY in 2026, primarily for fixed asset investments [28] - Current gross margin is around 22%, with potential for improvement if the proportion of industrial adhesives increases [29] Conclusion Silicon Treasure Technology is experiencing robust growth in revenue and profit, driven by strategic adjustments in its business segments and the consolidation of Jiahao. The company is well-positioned to navigate market fluctuations while exploring new opportunities in high-margin sectors.

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a significant year-on-year increase in net profit attributable to shareholders in Q3, with a completion of the silicon-carbon anode project contributing to fixed assets [4][5] - For the first three quarters of 2025, the company achieved a revenue of 2.651 billion yuan, representing a year-on-year growth of 24.3%, and a net profit of 229 million yuan, up 44.6% year-on-year [4][5] - The company maintains its profit forecast, expecting net profits of 343 million, 435 million, and 504 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.87, 1.11, and 1.28 yuan per share [4][5] Financial Summary - Revenue for 2025 is projected to be 4.306 billion yuan, with a year-on-year growth of 36.3% [7] - The gross margin for 2025 is expected to be 20.9%, with a net margin of 8.0% [10] - The company’s total assets are projected to reach 5.012 billion yuan by 2025, with total liabilities of 2.224 billion yuan [9]