Summary of Xiangheng International Conference Call Company Overview - **Company**: Xiangheng International - **Industry**: MRO (Maintenance, Repair, and Operations) Key Points Financial Performance - In Q1 2025, Xiangheng International achieved revenue of 640 million yuan, a year-on-year increase of 46% [3] - Gross margin was 21.46%, down by 5.29 percentage points year-on-year, primarily due to a shift in revenue structure from traditional power grid sectors to emerging sectors with lower margins [3] - Net profit reached 22.37 million yuan, a significant increase of 181% year-on-year; the net profit attributable to shareholders was 21.57 million yuan, up 144% [3] Revenue Structure and Growth - Revenue is mainly derived from the petrochemical, e-commerce, and power generation sectors, which are experiencing rapid growth [5] - Emerging business segments began to show strong performance from the second half of 2023, particularly in the central enterprise market, including the power generation industry [5][14] Technological Innovation - Xiangheng International focuses on technological innovation to enhance market competitiveness, including the development of customized hydraulic tools and intelligent diagnostic technologies [2][7] - The company has launched innovative products such as the integrated pole machine and acoustic imaging modules, which have improved market competitiveness [2][6] Industrial Drone Development - Xiangheng International is one of the earliest companies in China to develop and produce industrial drones, collaborating with Beihang University since 2012 [10] - The company transitioned to autonomous inspection services and platform development for drones, becoming a partner with DJI for secondary development to meet customer needs in energy and emergency transportation [10] Robotics Applications - The company established a robotics division in early 2024, focusing on the application of quadruped robots in the energy sector [11][12] - Plans to demonstrate solutions for substation and petrochemical site inspections using quadruped robots within three months [12] Market Strategy and Future Outlook - Xiangheng International maintains a cautious yet optimistic outlook for future growth, particularly in the context of increasing regional procurement efforts by central enterprises [16] - The company aims to leverage its unique business model and deep understanding of industry scenarios to sustain competitive advantages [26] Challenges and Considerations - The gross margin for new business areas is currently low, with expectations for improvement dependent on the scale and profitability of these new sectors [24] - The company emphasizes the importance of customized solutions over standard products, which is crucial for meeting diverse customer needs [18][19] Industry Influence - Xiangheng International's participation in the China Electric Power Research Institute's standard committee for live working has enhanced its industry influence and supported its technological development [9] Conclusion - Xiangheng International is positioned as a leader in the MRO industry, with a strong focus on innovation and customer-centric solutions, which are expected to drive future growth and market competitiveness [26]