Core Viewpoint - The company reported a decline in revenue and net profit for the third quarter of 2025, primarily due to external factors affecting exports and a significant drop in equity disposal gains from the previous year [3][4]. Financial Performance - Revenue decreased by 11.20% compared to the same period last year, attributed to delays in the shipment of exported boiler equipment due to tariff barriers and uncertain external operating conditions [3]. - Net profit attributable to shareholders fell by 58.31%, largely due to a substantial reduction in equity disposal gains from the previous year [3]. - The company achieved a net operating cash flow of 348 million yuan, showing significant improvement compared to the same period last year [3]. Shareholder Information - The company’s major shareholders and their holdings remained stable, with no significant changes reported in the top ten shareholders [5]. Important Events - The company received a compensation of 274.1 million yuan for land and property relocation due to a local government project, with 60% of this amount already received [5]. - The company’s board approved the early redemption of convertible bonds, with a total redemption amount of 1.22 million yuan [6]. - The chairman of the company announced a plan to increase his shareholding by investing between 30 million and 50 million yuan, having already purchased 2.9 million shares [7]. Asset Impairment and Write-offs - The company recognized an asset impairment provision of 47.94 million yuan for the first three quarters of 2025, which is 10.90% of the previous year's net profit [33]. - The company wrote off losses amounting to 30.05 million yuan, primarily due to uncollectible receivables and asset disposals [40][42]. Related Party Transactions - The company plans to enter into a technical development contract with a related party, involving software services with a total estimated amount not exceeding 10.14 million yuan [12][17]. - The independent directors approved the related party transactions, confirming they are necessary for the company's operations and do not harm the interests of non-related shareholders [30].

Core Viewpoint - The mechanical industry is experiencing varied growth rates across different segments, with nuclear power and service robots showing high growth, while other sectors like lithium battery and boiler equipment are stabilizing after declines [1][2]. Revenue and Profit Growth - In Q1 and Q2 of 2025, the mechanical sector's revenue growth was +9.1% and +6.9% year-on-year, while net profit growth was +18.2% and +14.3% respectively [2]. - High growth segments include nuclear equipment (+67.8%/+18.1%) and service robots (+58.2%/+56.2%) [2]. - Other segments like machine tools (+0.9%/+10.8%), laser processing (+12.2%/+21.5%), and shipbuilding (+9.8%/+35.4%) are accelerating [2]. - Lithium battery equipment showed a decline in Q1 (-9.7%) but rebounded in Q2 (+15.9%), while boiler equipment also saw a significant recovery from a decline of -12.4% in Q1 to +36.6% in Q2 [2]. Gross Margin Analysis - The overall gross margin in the mechanical sector remains stable, with notable increases in plastic processing (+3.5 percentage points) and forklifts (+1.3 percentage points) [3]. - Significant declines in gross margin were observed in sectors like photovoltaic equipment (-3.5 percentage points) and lithium battery equipment (-3.2 percentage points) [3]. - On a quarter-on-quarter basis, most sectors maintained or improved their gross margins, with instruments and mining metallurgy showing notable increases [3]. Valuation Insights - Among 24 sub-sectors in the mechanical industry, five are valued below the 50th percentile, including railway transportation equipment (15.0%) and 3C equipment (18.7%) [4]. - Several sectors are valued between the 50th and 90th percentiles, such as engineering machinery (54.9%) and oil and gas equipment (63.3%) [4]. - The remaining sectors are valued above the 90th percentile, indicating a diverse valuation landscape within the industry [4]. Investment Recommendations - The mechanical sector's specialized equipment segments are recommended for investment, focusing on areas such as lithium battery equipment recovery, 3C equipment demand driven by innovation, humanoid robots in application, and the growth of export demand in domestic manufacturing [4].