Financial Performance - The company's revenue for the first three quarters of 2025 reached 837 million CNY, a year-on-year increase of 2.59% [1] - Net profit attributable to shareholders was 192 million CNY, up 21.31% year-on-year [1] - The gross profit margin for the first three quarters was 47.73%, an increase of 1.49 percentage points compared to the previous year [1] - The net profit margin improved to 22.96%, up 3.55 percentage points year-on-year [1] - Operating expenses for Q3 2025 were 224 million CNY, a decrease of 10.26 million CNY compared to the same period last year [1] Business Structure and Growth - EMS 2.0 and 3.0, along with virtual power plant platforms, are the core growth drivers, while traditional EMS 1.0 products have seen a decline [1] - Domestic business focuses on sectors like rail transportation and petrochemicals, showing clear growth; overseas business has also increased, particularly in Southeast Asia, Europe, and Brazil [1][2] - The company provides services in the data center sector, including power monitoring and energy management, with typical project sizes often exceeding one million CNY [2] Market Demand and Challenges - There is strong market demand for zero-carbon industrial parks, supported by national and local government policies [2] - The company is experiencing a transitional phase, with significant growth in targeted sectors, but traditional business declines are affecting overall revenue growth [2] - Some new business projects have longer cycles, which delays revenue recognition [2] Client Engagement and Strategy - Large client business, centered around EMS 3.0, is a significant focus, although the overall proportion of large clients has not been disclosed [2] - High repurchase rates from large clients can drive sales of hardware and systems, enhancing customer loyalty and enabling standardized solutions to be replicated across more clients [2]

Summary of Conference Call for Anke Rui (2025) Industry and Company Focus - The company is focusing on the new energy and new power system market in 2025, with 80% of orders related to new energy [2][5] - Key products include EMS 2.0 and 3.0, which are crucial for order acquisition and market share enhancement [2][7] Core Insights and Arguments - The company aims to expand in sectors such as rail transit, petrochemicals, and data centers, achieving breakthroughs in the rail transit industry [2][7] - The integration of R&D and sales has improved market understanding and competitiveness, allowing access to central state-owned enterprise clients [9] - The zero-carbon park policy aligns with EMS 3.0 target customers, providing energy-saving and carbon reduction projects for large clients, schools, and hospitals [2][9] - The new energy industry is experiencing increased demand for photovoltaic installations, necessitating solutions for photovoltaic consumption, power quality, and safety [2][13] - The company expects significant revenue growth from recent breakthroughs to manifest in the next two years, with an accelerating trend anticipated [11] Financial Performance - For the first three quarters of 2025, revenue grew by 2.59% to 837 million yuan, with a net profit of 192 million yuan, up 21.31% year-on-year [4] - The overall gross margin is approximately 48%, with EMS 3.0 gross margin exceeding 60% and EMS 2.0 above 50% [3][18] Market Development and Strategy - The company is actively pursuing market opportunities in new energy and new power systems, with 80% of orders related to new energy projects [5] - The overseas market has shown promising growth, with a target revenue of 100 million yuan, representing a 30%-50% increase [6][21] - The company is focusing on upgrading solutions for new energy products, including virtual power plants and digital energy platforms [6][23] Product and Technology Development - EMS 2.0 and 3.0 products are crucial for meeting market demand and increasing market share [7][16] - AI technology is being integrated into product offerings for equipment monitoring and predictive functions, with plans to launch a 4.0 version in the future [24][25] Customer and Market Insights - Significant demand exists in downstream sectors such as petrochemicals, rail transit, and parks, with tailored solutions for private enterprises based on their electricity consumption [12] - The zero-carbon park policy presents substantial growth opportunities, with major clients exploring partnerships [10][29] Future Outlook - The company anticipates a positive revenue trajectory in the fourth quarter and aims to restore previous growth targets in 2026 [28] - The national energy policy is expected to favor the company, particularly with the development of microgrid policies and the potential for green electricity usage to increase significantly [29]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 32.76 [1][5]. Core Views - The company has shown a steady revenue growth of 1.54% year-on-year in H1 2025, achieving revenue of RMB 539 million and a net profit of RMB 126 million, which is a 24.83% increase year-on-year [1][2]. - The increase in profitability is attributed to a higher proportion of software revenue, leading to improved gross margins and better expense management [1][3]. - The demand for the company's overseas expansion and EMS 3.0 business is expected to grow, supported by favorable industry trends in energy efficiency management [1][4]. Summary by Sections Revenue and Profitability - In H1 2025, the company achieved revenue of RMB 539 million, with a net profit of RMB 126 million, reflecting a year-on-year increase of 24.83% [1][2]. - The gross profit margin improved to 47.82%, up by 0.75 percentage points year-on-year, driven by efficiency optimization in production lines [3]. Product Performance - Revenue from various product segments in H1 2025 includes RMB 226 million from power monitoring systems, RMB 175 million from energy management products, and RMB 41 million from fire safety products, with overall revenue growth supported by the accelerated rollout of EMS 3.0 products [2][3]. Domestic and International Growth - Domestic revenue reached RMB 512 million, growing by 1.21% year-on-year, while international revenue was RMB 27 million, up by 8.40% year-on-year, indicating a dual growth strategy [4]. - The company is focusing on expanding its sales presence in Southeast Asia, Europe, the Middle East, and Africa, which is expected to enhance future business growth [4]. Earnings Forecast and Valuation - The revenue forecast for 2025 is adjusted to RMB 1.252 billion, with a compound annual growth rate (CAGR) of 22.71%, and net profit forecasted at RMB 294 million, with a CAGR of 40.65% [5]. - The target price is set at RMB 32.76, based on a price-to-earnings (PE) ratio of 28x for 2025, reflecting the company's software product advantages [5].

Group 1: Data Center Industry Insights - The company has established numerous successful cases in the data center sector, providing comprehensive product solutions to meet the demands of power distribution monitoring and management [1] - The rapid development of AI technology significantly boosts investment in data centers, with major tech companies increasing their capital expenditures in this area for 2025 [1] - Traditional data centers face substantial renovation needs to meet the requirements of AI data centers, indicating a growing market demand [1] Group 2: Impact of New Energy Policy - The recent notice from the National Development and Reform Commission emphasizes the acceleration of a new power system and the establishment of a green, low-carbon development mechanism [2] - Microgrids can sell excess renewable energy during high electricity prices and store energy or purchase from the main grid during low prices, enhancing economic returns [2] - The cost of renewable energy generation is subject to market fluctuations, posing challenges for cost control in microgrids [2] Group 3: Technological and Operational Challenges - Microgrids require precise forecasting of renewable energy generation and load demands, necessitating the use of smart energy management systems [2] - The development of power electronics technology is crucial for the flexible connection of microgrids to the main grid, enhancing performance and reliability [2] - The intermittency and volatility of renewable energy generation increase the difficulty of power balance in microgrids, highlighting the importance of energy storage systems [2] Group 4: Market Competition and Development - Microgrids must improve operational efficiency and service quality to compete as independent market entities in the electricity market [2] - The policy encourages technological innovation and industry upgrades in microgrids, attracting more enterprises to participate in their construction and operation [2] - The company's EMS 3.0 core functions align with electricity reform policies, becoming essential for commercial users looking to engage in market transactions [2]