Summary of the Conference Call for Shiyuan Co., Ltd. Company Overview - **Company**: Shiyuan Co., Ltd. (视源股份) - **Industry**: Technology and Electronics Key Financial Metrics - **Q3 Revenue**: 6.292 billion CNY, stable quarter-on-quarter - **Net Profit**: 469 million CNY, up 7.79% year-on-year - **YTD Revenue**: 18.089 billion CNY, up 5.45% year-on-year - **YTD Net Profit**: 867 million CNY, down 6.81% year-on-year, but the decline has narrowed [2][4] Core Business Insights Intelligent Control Components - Significant growth driven by collaboration with major clients - Home appliance motor controllers benefitting from rapid domestic and international order growth - New businesses in automotive electronics continue to show high growth [5] Education AI Business - The "Xihuo Classroom Knowledge Feedback System" covers over 4,000 schools - "Xihuo AI Lesson Preparation Subscription Service" has over 1 million active users - Plans to accelerate nationwide promotion of education AI products, including interactive smart whiteboards [6] Robotics Sector - Continuous investment in robotics, focusing on commercial service and cleaning robots - Pilot applications in inspection, ranching, and power systems - Aiming to become a new growth point in the next 5-10 years [7] Margin and Cost Management - Overall gross margin decreased by 0.9 percentage points year-on-year due to product mix changes - Anticipated challenges in Q4 due to raw material price fluctuations, with plans to stabilize margins through product structure optimization and cost control [8] Overseas ODM Business - Continued decline in overseas ODM business, particularly in the U.S. market - Plans to expand core customer base and introduce new product categories to drive long-term growth [9][11] AI Product Development - Focus on industry solutions with AI functionalities in intelligent control components - Applications in education and enterprise markets based on edge computing for quick user response and data security [12][13] Market Demand and Trends - Domestic education market shows slight growth in classroom numbers but declining unit prices - High growth in recording equipment, teaching PCs, and software, particularly in AI-enhanced education tools [15][16] Inventory and Supply Chain - Inventory levels reached 3.7-3.8 billion CNY to prepare for the education sector's peak delivery season - Increased stock of critical components due to rising raw material prices, especially memory chips [23][24] Future Outlook - Plans for an IPO in Hong Kong, with A1 application submitted and in the regulatory review phase - Targeting a minimum fundraising ratio of 10% and engaging with potential cornerstone investors [25] Conclusion - Shiyuan Co., Ltd. is navigating a complex landscape with growth in intelligent control components and education AI, while facing challenges in overseas markets and raw material costs. The company is strategically positioning itself for future growth through innovation and market expansion.