Domestic Market Performance - In Q3 2025, domestic market sales rebounded due to the delivery of some inquiry orders, indicating a return to normalcy [2] - The instrument and sensor industry experienced rapid growth driven by new pressure controller products, while measurement and testing, as well as the power industry, remain core strengths [2] International Market Dynamics - Despite high tariffs, the international market saw growth due to proactive expansion into European markets and the fulfillment of delayed orders from U.S. clients [3] - Tariffs were adjusted from a peak of 170% to 55%, which, while still high, allowed for some recovery in order placements [3] Order Fulfillment and Cash Flow - As of January 1, 2025, the company shifted to using its Singapore subsidiary for nearly 40% of international orders, while U.S. orders continue to be managed by the U.S. subsidiary [4] Growth Sustainability in Non-U.S. Regions - The company is committed to expanding overseas markets despite tariff impacts, with all regions showing slight growth [5] - If tariff policies stabilize, the overall demand growth trend is expected to become clearer [5] Product Performance and Market Share - The company maintains a cautiously optimistic outlook for 2026 sales, particularly for pressure controllers, which have high acceptance and demand in the domestic market [6] - The temperature and humidity product line, while important, has lower margins and is expected to see limited growth due to high tariffs affecting U.S. sales [7] Revenue Breakdown and Profitability - In Q3 2025, revenue from the U.S. and Americas accounted for 53%, while Europe, the Middle East, and Africa contributed over 32%, maintaining good overall profit margins [8] Sensor Development and Future Plans - The self-developed sensor project is expected to conclude by the end of 2025, with production plans for 10,000 units, though initial costs are higher than outsourced sensors [9] - The pressure transmitter is in the prototype stage, with a launch planned for 2026 and sales expected to begin in 2027 [10] Market Application Potential - The company’s high-precision sensors are focused on high-end industrial applications, with plans to gradually expand into high-value scenarios based on existing customer validation [12]

Company and Industry Summary Company Overview - Company reported total revenue of 586 million yuan for the first three quarters of 2025, representing a year-on-year increase of 7.6% [2][3] - Domestic market revenue reached 200 million yuan, up 11.3% year-on-year, while international market revenue was 193 million yuan, growing by 8.7% [2][3] Core Financial Performance - Main detection products generated revenue of 375 million yuan, a 9.4% increase year-on-year, with a 21% growth in the third quarter alone [2][4] - Digital platform revenue was 14 million yuan, reflecting a 36% year-on-year increase [2][4] - Overall gross margin stood at 65.4%, with a slight year-on-year fluctuation of 0.8% [5] Expense Analysis - Total operating expenses accounted for 41.7% of revenue, up from 40.9% the previous year [6] - R&D expenses were 57.68 million yuan, an 18% increase year-on-year; management expenses were 45.15 million yuan, up 18.4%; and sales expenses were 61.63 million yuan, a 3.7% increase [6] Market Dynamics - Domestic demand in the instrumentation and calibration sectors is growing rapidly, with significant orders confirmed in the third quarter [7] - The U.S. market has shown recovery, with growth rebounding from -11% to 2% by September, while the Europe, Middle East, and Africa (EMEA) market improved from -7% to 14% [3][7] Export Strategy - The company has reduced U.S. tariff costs by exporting through its Singapore subsidiary, which now accounts for nearly 40% of its international sales [2][8] - Sales are still managed by the U.S. subsidiary, while the Singapore subsidiary handles operations and exports [8] Product Performance - Pressure controllers are significantly impacted by high tariffs but maintain a competitive advantage, with plans for bulk shipments to enhance market share and profitability [2][9] - The company is optimistic about the sales of pressure controllers in 2026, as customer acceptance leads to increased demand [10] Future Product Development - Self-developed sensors are expected to complete R&D by the end of 2025, with a planned production of 10,000 units, primarily for new product development [12][17] - The pressure transmitter is under development, with samples expected by the end of 2026 [13] Digital Platform Development - The digital business platform is progressing, integrating resources and iterating products, with a focus on reducing project acceptance time and income recognition fluctuations [18] Conclusion - The company is well-positioned to navigate current market challenges, leveraging its competitive advantages in product offerings and strategic export operations to sustain growth in both domestic and international markets.

Summary of the Conference Call for 康斯特 (Kangst) Company Overview - 康斯特 is a company operating in the calibration and sensor industry, focusing on both domestic and international markets. Key Financial Performance - Total revenue for 2024 reached 575 million RMB, a year-on-year increase of 15.5% [3] - Net profit attributable to shareholders was 125 million RMB, up 23.1% year-on-year [3] - Non-recurring net profit attributable to shareholders was 115 million RMB, reflecting an 18.5% increase [3] Revenue Breakdown - Domestic market revenue was 287.9 million RMB, a 1.5% increase [5] - International market revenue was 287.5 million RMB, a 34% increase [5] - Calibration testing products generated 544.2 million RMB, accounting for 94.6% of total revenue, with a 16.3% increase [5] - Digital platform revenue was 26.55 million RMB, a 5.5% increase, representing 9.2% of domestic market revenue [5] Strategic Adjustments - The company is shifting its overseas sales strategy from the U.S. to Singapore to avoid tariffs and reduce costs, with expectations that the Singapore subsidiary will handle at least 40% of international sales by the end of 2025 [4][7] - The Singapore laboratory has received certification from the U.S. technical authority, allowing it to issue certificates traceable to U.S. standards [4][24] Product Development and Market Focus - The first phase of the sensor project has been completed, with in-house medium-range sensors now used in digital pressure calibration products [6] - The company plans to produce over 8,000 sensors for internal use and external sales, targeting industries such as meteorology, marine, and process industries [4][8] - The digital platform is expected to see significant growth in 2025, following an upgrade in architecture aimed at meeting the needs of various manufacturing and quality assurance sectors [4][8] Profitability and Cost Management - Gross margin improvement in 2024 was driven by increased sales of high-margin pressure testing products [4][14] - The company maintains a cash flow of approximately 350 million RMB, sufficient to support capital expenditures for the next three to five years without additional financing [17][18] - R&D expense ratio is around 13%, with a decision made to cease capitalizing R&D expenses to enhance financial transparency [20] Inventory and Supply Chain Management - Finished goods inventory reached a historical high of 73 million RMB, primarily due to inventory buildup from the transition of the European shipping center from the U.S. to Singapore [22] - The company has implemented detailed inventory management strategies to ensure timely delivery of new products [23] Market Outlook and Challenges - The domestic market shows positive demand changes, particularly in sectors like metrology, electricity, petrochemicals, and metallurgy [12] - The company anticipates stable growth in the oil and gas sector, despite challenges posed by the increasing use of electric vehicles affecting gasoline demand [33] Tariff Impact - U.S. tariffs have significantly impacted the company, with U.S. customers accounting for about 50% of total revenue [34] - The company has adjusted its strategy to mitigate tariff impacts by shifting non-U.S. sales to Singapore [34] Future Plans - The company is open to acquisition opportunities that align with its strategic goals, particularly in enhancing its product lines and digital platform capabilities [27] - The sensor business aims to target high-precision markets, with products designed for various demanding applications [28][29] This summary encapsulates the key points from the conference call, highlighting the company's financial performance, strategic adjustments, product development, and market outlook.