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.