Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased by 9% year-over-year to $2.8 million, compared to $2.6 million in Q3 2024, driven by strong performance in the shelf-stable product portfolio [14][15] - Gross profit totaled approximately $0.3 million, down from $0.7 million in the prior year, due to higher labor, freight, and raw material costs [15] - Net loss for the quarter was $4 million, compared to a net loss of $2.1 million in Q3 2024 [15] Business Line Data and Key Metrics Changes - The shelf-stable product portfolio grew by 54% year-over-year in Q3, with notable performance from brands like KICK Sports Nutrition, Vitamin Way, Pulp, and Pickle Party [14][15] - Core herb portfolio saw growth, with Hydrobasil up 21% and Wheatgrass up 59% year-over-year [15] Market Data and Key Metrics Changes - The functional food and beverage market is projected to grow from approximately $400 billion to $610 billion by 2030, indicating a significant opportunity for the company [10] - In the U.S., sales of natural, organic, and functional products are expected to reach $386 billion by 2028, reinforcing the company's strategic alignment with market trends [10] Company Strategy and Development Direction - The company is evolving towards a consumer packaged goods (CPG) model, focusing on non-perishable product expansion and higher-value branded portfolio [7][8] - Strategic partnerships with major retailers like Kroger and Fresh Market are being leveraged to expand the retail footprint and enhance brand visibility [9][13] - The company is pursuing new categories, including nutraceuticals and sustainable proteins, to align with its commitment to health and environmental responsibility [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for continued growth, emphasizing disciplined execution and product innovation [13][44] - The company is optimistic about the upcoming holiday season, traditionally a strong period for sales, and is focused on expanding its innovative product offerings [25][44] Other Important Information - The company has refinanced its outstanding debt, securing lower interest rates and more favorable terms, which is expected to reduce annual interest expenses [15] - The facility acquired from Natural Shrimp is undergoing a gap analysis for R&D on next-generation products, indicating a focus on innovation and sustainability [21][24] Q&A Session Summary Question: Utilization of the Natural Shrimp facility - Management discussed the facility's impressive capabilities and plans for R&D on nutraceuticals and food products, highlighting strong relationships with major retailers [21][24] Question: Opportunities in grocery stores for 2026 - Management confirmed that grocery chains like ShopRite, Kroger, and Fresh Market represent significant opportunities moving into 2026, driven by demand for clean-label products [27][28] Question: Margin considerations for private label products - Management indicated that while private label products may have lower margins, they provide volume and long-term contracts, which are essential for business stability [31][33]

Financial Data and Key Metrics Changes - T1 Energy generated record net sales of approximately $210 million in Q3 2025, with expectations for significant growth in Q4 as previously booked merchant sales are delivered and inventory is liquidated [20][21] - The company maintained its 2025 EBITDA guidance of $25 million to $50 million, with a projected production of 2.6 to 3 gigawatts [21][23] - Cash position at the end of Q3 was $87 million, with an additional $118 million added in October [23] Business Line Data and Key Metrics Changes - T1 produced over 2.2 gigawatts of modules year-to-date at G1 Dallas, on track to meet the 2025 production plan of 2.6 to 3 gigawatts [19] - Daily production record achieved in October was 14.4 megawatts, equating to an annualized run rate of 5.2 gigawatts [19] Market Data and Key Metrics Changes - U.S. electricity demand is growing rapidly, necessitating a doubling of electricity additions to 100 gigawatts per year to meet AI-driven demand [8][9] - The company is positioning itself to benefit from the onshoring of advanced manufacturing and strengthening U.S. energy security [6][7] Company Strategy and Development Direction - T1 Energy aims to build the first end-to-end domestic polysilicon solar supply chain in the U.S., with G2 Austin as the centerpiece [4][10] - The strategy includes partnerships with Hemlock Corning, Next Power, and Talon PV to enhance the domestic supply chain [12][13] - The company is focused on maximizing shareholder value and optimizing its capital structure while advancing its growth initiatives [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet compliance with domestic and non-FIAC supply chain plans, emphasizing a solid compliance strategy [32] - The company anticipates a significant ramp in production and sales in Q4 2025, driven by higher production levels and inventory liquidation [21][20] - Management highlighted the importance of solar energy in meeting the increasing power demands driven by AI and data centers [53][54] Other Important Information - T1 Energy is advancing its de-fiancing process to maintain eligibility for Section 45X tax credits [12][25] - The company is preparing for the construction of G2 Austin, with a two-phased approach to reach over 5 gigawatts of solar cell manufacturing capacity [15][18] Q&A Session Summary Question: Update on de-fiancing process - Management confirmed progress on compliance plans and expressed confidence in meeting requirements [32] Question: Context on Q3 contract dispute - The contract's financial impact was already included in guidance, and discussions with the contract party are ongoing [34][35] Question: Integration of partnerships with Next Power and Talon - Next Power will provide domestic content frames, with initial modules expected in 2026 or 2027; Talon is expected to supply cells for G1 [36][40] Question: Claiming 45X credits with production at different sites - Provisions in the act allow for unrelated party transactions, maintaining eligibility for credits [43][44] Question: Event path for G2 and production expectations - Construction is on track to start in Q4 2025, with a focus on securing long lead items and executing contracts [50][51] Question: Demand and pricing outlook for 2026 and 2027 - Demand for domestic cells is strong, with expectations for higher pricing in 2026; discussions for multi-year off-take contracts are ongoing [61][62] Question: COGS expectations and normalization - COGS is expected to decrease as production scales up, with improvements anticipated in the second year of operation [66][69] Question: Monetization of 45X tax credits - A more regular cadence for monetization is expected, with plans for quarterly cash settlements moving forward [70][72]

Financial Data and Key Metrics Changes - The company reported a record revenue of $99 million for Q4 2025, representing a 17% year-over-year increase and marking the 11th consecutive quarter of growth [5][21] - For the full fiscal year 2025, total revenue reached $376.6 million, a growth of 20% compared to fiscal 2024 [5][21] - Gross margin for Q4 was 51.3%, while the full-year gross margin was 50.7%, an increase from 42.6% in fiscal 2024 [5][21] Business Line Data and Key Metrics Changes - Synbio revenue for Q4 was $39.5 million, up 17% year-over-year, and for the full year, it increased to $145 million from $123.5 million in fiscal 2024 [6][21] - NGS revenue for Q4 grew to approximately $53 million, a 16% increase year-over-year, with full-year revenue reaching $208.1 million, a growth of 23% [10][22] - Biopharma revenue was $6.4 million for Q4, reflecting a 22% increase year-over-year, with full-year revenue at $23.5 million, a growth of 15% [12][22] Market Data and Key Metrics Changes - Revenue from the Americas increased to approximately $57.3 million in Q4, a 9% year-over-year growth, while EMEA revenue rose to $34.6 million, a 35% increase [23] - APAC revenue increased to $7.2 million in Q4, a 9% year-over-year growth, with China accounting for approximately 1% of total revenue for fiscal 2025 [23] Company Strategy and Development Direction - The company plans to combine Synbio and Biopharma revenue reporting under the term "DNA synthesis and protein solutions" to better reflect its customer base and operational synergies [14] - A focus on AI-driven drug discovery is expected to drive future growth, with significant orders from customers in this area [8][22] - The introduction of the MRD Express product is aimed at enhancing cancer diagnostics and treatment, with a planned commercial launch in early 2026 [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, expecting total revenues for fiscal 2026 to be between $425 million and $435 million, reflecting a year-over-year growth of approximately 13% to 15.5% [27] - The company anticipates achieving adjusted EBITDA breakeven by the end of fiscal 2026, with gross margins expected to remain above 52% [28][29] Other Important Information - The company ended fiscal 2025 with cash, cash equivalents, and short-term investments of approximately $232.4 million [25] - Adjusted EBITDA for Q4 was a loss of approximately $7.8 million, an improvement of $9.2 million compared to Q4 of fiscal 2024 [24] Q&A Session Summary Question: On gross margins and pricing dynamics - Management noted that while they expect to maintain strong gross margins, specific customer mix and tough comparisons from previous quarters may impact short-term results [33][34] Question: Guidance for NGS growth - Management clarified that the NGS guidance reflects a temporary air pocket due to customer transitions, with expectations of returning to 20% growth by Q4 2026 [35][36] Question: Insights on Synbio and biopharma orders - Management highlighted the strategic importance of biopharma and the positive momentum driven by AI, indicating strong future growth potential [37] Question: Market opportunity and revenue per assay - Management acknowledged the need for clearer metrics on market size and penetration, indicating that they are working on providing better insights for investors [55][58]

Financial Data and Key Metrics Changes - Contribution profit for the quarter ended September 30, 2025, was $1.20 million, marking the eighth consecutive positive quarter, with per-booking contribution profit improving by 5% year-on-year to $12.07 [2][3] - Adjusted EBITDA improved by 14% year-over-year, and net loss narrowed to $0.8 million, down from $3.4 million a year ago, representing a significant 76% improvement [3][12] - Revenue for the quarter stood at $2.3 million, reflecting a 2% improvement year-over-year, with contribution margins remaining strong at 52% of reported GAAP revenue [5][10] Business Line Data and Key Metrics Changes - High-quality hosts increased by 46% year-over-year, and repeat users remained consistent at 57%, indicating strong platform stickiness [3] - Booking numbers declined marginally by 6%, but gross booking value improved to $6.23 million due to a 22% increase in average booking duration [5] Market Data and Key Metrics Changes - The total addressable market for self-drive car-sharing is expected to expand from 18.5 million guests in 2025 to 65 million by 2031, with car ownership in India remaining low at 0.1 cars per household compared to 2.1 in the U.S. [3][4] Company Strategy and Development Direction - The company aims to consolidate its market leadership as the preferred peer-to-peer car-sharing platform, focusing on flexibility over ownership [4] - Plans to raise additional capital to fund growth and aim for uplisting by the end of the fiscal year ending March 31, 2026 [8][9] Management's Comments on Operating Environment and Future Outlook - Management highlighted the structural and long-term opportunity in India's mobility market, emphasizing the importance of maintaining contribution profitability while scaling [4][12] - The company is on track towards operating break-even, with a focus on sustainable and responsible growth [11][12] Other Important Information - The company has managed to keep total liabilities stable, strengthening its balance sheet and improving liquidity [9] - Non-GAAP measures provide a clearer view of operational performance, with consistent margins above 50% and narrowing losses [10] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating a conclusion to the earnings presentation without a Q&A segment [13]

Financial Data and Key Metrics Changes - Capitated revenue increased by approximately 6% year-over-year, with total capitated revenue for the quarter at $341.6 million, or about $982 per member per month [5][14] - Adjusted EBITDA loss for the quarter was $45.9 million, with a year-to-date adjusted EBITDA loss of $85.2 million [7][17] - Normalized adjusted EBITDA year-to-date was a loss of approximately $70 million, reflecting the underlying performance of the business [7][17] - Medical margin for the quarter was $4.4 million, or $13 per member per month, compared to $500,000, or $1 per member per month in the prior period [15] Business Line Data and Key Metrics Changes - Membership was approximately 116,000 members, in line with expectations [7] - The operational improvement plan achieved over $100 million in EBITDA improvement year-over-year [6] - The company is moving forward with a strategic joint venture that will add approximately 13,000 fully accredited ACO members [6] Market Data and Key Metrics Changes - The normalized medical cost trend has remained flat year-over-year, despite rising cost trends across the industry [5][8] - Tier one providers performed 17.4% higher in STARS HEDIS gap closures compared to non-tier one providers in the first half of the year [9] Company Strategy and Development Direction - The company is focused on improving stability, strengthening operating discipline, and maturing the clinical foundation [5] - There is an intentional rationalization of the provider network to improve margin performance, including exiting groups that do not align clinically or economically [6] - The company aims to achieve meaningful profitability in 2026, supported by a stable operating model and favorable macro tailwinds [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core operating model, highlighting stable medical cost trends and improved provider alignment [20] - The company anticipates favorable macroeconomic conditions heading into 2026, with payers shifting towards more sustainable benefit designs [21] - Management revised full-year adjusted EBITDA guidance to a range of minus $110 million to minus $95 million, reflecting current expectations [8][18] Other Important Information - The company ended the quarter with $37.7 million in cash, maintaining a disciplined approach to working capital management [17][18] - There are $120 million to $170 million of EBITDA opportunities identified for the next five quarters [7][10] Q&A Session Summary Question: What convinces the plans to cede margin in their MA books? - Management indicated that payers are motivated by the investment made into their membership, particularly concerning high-risk patients and quality metrics [25][30] Question: Was the guidance reduction driven by a single payer or market? - The guidance reduction was more broad-based, primarily due to mid-year settlements coming in less than expected and structural controls being put in place [34] Question: How are non-core assets performing? - There are still headwinds associated with one market, but part of the EBITDA expansion opportunities for 2026 relates to contractual adjustments in that market [36] Question: What was the unfavorable impact in Q3 related to prior periods? - The total unfavorable impact in Q3 was $24 million, with a $21 million impact from mid-year true-ups [40] Question: What are the PMPM revenue growth expectations in 2026? - The aggregate expected improvement in premium is about 5%, with further guidance on coding improvements to be provided in the next quarter [45]

Financial Data and Key Metrics Changes - The company ended Q3 2025 with $369.6 million in cash and cash equivalents, reporting $103 million in operating expenses, which includes $18.3 million in non-cash stock-based compensation [21][22] - Operating expenses, excluding stock-based compensation, were $85.3 million, reflecting ongoing investments in infrastructure to support regulatory approval and commercial readiness [21][22] - The company strengthened its balance sheet by adding $141.7 million during the quarter, which included net proceeds of $91.7 million from the sale of approximately 2.8 million shares and a $50 million drawdown from an existing debt facility [22][23] Business Line Data and Key Metrics Changes - The company is focused on advancing apitegromab for spinal muscular atrophy (SMA) and has initiated dosing in a phase two OPAL trial evaluating apitegromab in infants and toddlers under the age of two [14][15] - The company is also progressing SRK-439 into clinical development, with plans to initiate a phase one study in healthy volunteers before the end of the year [15][16] Market Data and Key Metrics Changes - The global annual revenue for current SMA treatments is trending to approximately $5 billion, indicating a growing demand for treatments in this market [17] - There are an estimated 35,000 people with SMA who have received an SMN-targeted therapy and could be eligible for treatment with apitegromab [20] Company Strategy and Development Direction - The company aims to bring apitegromab to market as the world's first muscle-targeted therapy for SMA, with a focus on regulatory approval and commercial readiness [17][20] - The company is strategically investing in a second fill-finish facility to ensure redundancy in its supply chain and to support the anticipated launch of apitegromab [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that apitegromab will eventually be approved in the U.S. for patients with SMA, emphasizing the commitment to the SMA community [6][10] - The regulatory challenges faced are viewed as temporary, with significant opportunities ahead to serve patients [10][21] Other Important Information - The company is working closely with Novo Nordisk to ensure the Bloomington facility is ready for reinspection by the end of the year, which is critical for the resubmission of the BLA [7][13] - The company has adjusted its operating plan to defer investments in certain areas while prioritizing key initiatives [22][23] Q&A Session Summary Question: How does the company view further financing opportunities? - The company aims to extend its loan facility as the first option for financing, with royalty financing as a secondary option, and equity financing as a last resort [29][30] Question: What operational risks are associated with transitioning between facilities? - The company believes that the transition should be seamless, focusing on maintaining consistency in vial configuration and analytical testing [31][33] Question: How confident is the company in the remediation efforts at the Bloomington facility? - Management expressed confidence in Novo Nordisk's commitment to quality and compliance, highlighting the collaborative efforts to ensure the facility is ready for reinspection [39][40] Question: What is the timeline for the reinspection and potential approval? - The company expects the reinspection to occur by the end of the year, with plans to resubmit the BLA following a successful inspection [52][55] Question: Will the company disclose information regarding the reinspection? - The company plans to maintain open communication and disclose important information as it becomes available, particularly regarding the reinspection timeline and outcomes [75][78]

Financial Data and Key Metrics Changes - For Q3 2025, revenue was $6.3 million, a decrease from $23.7 million in the prior year period, primarily due to customer-requested capability upgrades that delayed shipments [17] - Gross profit for the quarter was $2.8 million, with a gross margin of 44%, down from $16.3 million and 68.7% in the prior year [17] - Year-to-date gross margin was 58.1%, driven by a lower proportion of drone revenue in the mix [18] - EBITDA loss was $5.7 million, an improvement from a $23.1 million loss in the prior year quarter [18] - Net loss was $8 million compared to a net loss of $30.3 million in Q3 2024 [18] Business Line Data and Key Metrics Changes - The drone business launched an AI-capable full-stack version of the RQ-35 Hedron, enhancing its capabilities in GPS-denied operations [12] - The training division executed over $1.7 million in task orders for military training, indicating solid performance [14] - The avionics segment experienced lower revenue due to a focus on drone production, but secured a multi-year OEM purchase order [16] Market Data and Key Metrics Changes - AIRO has a $200 million-plus booking pipeline, indicating strong demand across defense and advanced air mobility markets [11] - The company opened a sales hub in Singapore to enhance its presence in the Asia-Pacific region [13] Company Strategy and Development Direction - AIRO is focused on expanding its unmanned systems portfolio through joint ventures with Nord-Drone and Bullitt, aiming to enhance production capacity and technological capabilities [9][10] - The company is investing in R&D for drones and air mobility, with a commitment to innovation and adapting to evolving mission needs [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting customer demands despite timing-related challenges in Q3, emphasizing strong underlying demand [19] - The company expects full-year 2025 revenue to exceed 2024 revenue of $86.9 million, reflecting organic growth and not including potential contributions from joint ventures [22] Other Important Information - AIRO completed a follow-on offering, raising $89.4 million in gross proceeds, significantly strengthening its balance sheet [21] - The company is actively working to source additional supply and implement multiple sources for key components to mitigate supply chain issues [21] Q&A Session Summary Question: Discussion on $200 million orders in progress and expected backlog materialization - Management confirmed solid visibility for orders and indicated that these orders are expected to be delivered in the next 18 months [24][26] Question: R&D spend in air mobility and progress with government officials - Management outlined that approximately 17% of funding will come from internal funds, with 30%-40% from customer advances and the remainder from government funding [29][31] Question: Status of Blue UAS certification and production expansion - Management noted that production rates will grow, with initial prototypes running this year, but emphasized that inbound orders from the DoD are contingent upon Blue UAS certification [38][40] Question: Economics of the Nord-Drone Group joint venture - The joint venture is structured as a 50/50 partnership, with AIRO contributing manufacturing and R&D expertise while sharing in revenues and profits [40]

Financial Data and Key Metrics Changes - For Q3 2025, revenue was $2.2 million, reflecting a 13% sequential increase and a 74% year-over-year increase, driven by stronger average Bitcoin pricing of $114,000 and contributions from the newly operational Mississippi facility [11] - Mining margins improved to 49%, attributed to a shift from hosting fees to self-mining and higher fleet efficiency [11] - The company reported a net loss of $3.7 million and a core EBITDA loss of $1.4 million, primarily due to increased staff costs and payroll expenses [11] - As of quarter-end, the company held cash and cash equivalents of $300,000 and 304 Bitcoin valued at $34.7 million, nearly double its market cap [12] Business Line Data and Key Metrics Changes - The acquisition of the Mississippi facility added approximately 7.5 megawatts of energized capacity and around 230 petahash of installed hash rate, contributing to a 28% increase in Bitcoin production from September to October [5][9] - The company exited October with approximately 0.71 exahash energized, representing a 50% hash rate expansion in one build cycle [8] Market Data and Key Metrics Changes - By the end of September, the company had approximately 304.5 Bitcoin in treasury, valued at nearly $35 million, highlighting a disconnect between treasury value and equity valuation [5] - The Bitcoin production increased from 5.9 Bitcoin in September to 7.6 Bitcoin in October, reflecting operational improvements and increased capacity [6][9] Company Strategy and Development Direction - The company aims to increase Bitcoin per share and grow intrinsic value over time, focusing on disciplined capital allocation and operational control [4][14] - Future strategies include balancing Bitcoin accumulation, strategic investments, and opportunistic share repurchases to enhance per-share value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of Bitcoin and the company's strategy to leverage its operational control and cost efficiency [15] - The company is entering a phase where scale, efficiency, and productivity converge, with plans to enhance production and efficiency [14] Other Important Information - The company executed a substantial balance sheet enhancement initiative, completing an $8 million private repurchase of around 3.3 million shares and 7.3 million warrants [11] - The company has secured Bitmain's S21 immersion-cooled machines, expected to come online in December, which will significantly improve efficiency [10] Q&A Session Summary Question: Thoughts on the path for Bitcoin mining infrastructure in 2026 - Management noted that the Mississippi acquisition has been successful and there is potential for further growth, with plans to add immersion machines in Oklahoma [19] Question: Are there plans for additional site acquisitions? - Management confirmed ongoing exploration for site acquisitions based on energy tariffs but indicated no immediate plans for new acquisitions [21] Question: How to allocate between mining business and acquiring additional Bitcoin? - Management emphasized a long-term strategy, balancing mining growth with treasury strategy based on future Bitcoin pricing [23] Question: Management of old machines in storage - Management stated that old machines are kept in reserve for quick deployment when power becomes available, aligning with their strategy [26] Question: Current cost of mining one Bitcoin - The current mining cost per Bitcoin was reported at $66,000, down from $70,000 in the previous quarter, indicating improved efficiency [27]

Financial Data and Key Metrics Changes - The company's net revenues surged 49% year-over-year to RMB 1,129 million, with non-GAAP operating profits reaching RMB 188 million [5][11] - Gross profit margin expanded by 4 percentage points year-over-year and 3.7 percentage points quarter-over-quarter [12] - Cash flow from operating activities increased to RMB 358 million from RMB 157 million in the same period last year [14] - Total financial assets stood at RMB 15.4 billion, approximately $2.2 billion [14][15] Business Line Data and Key Metrics Changes - Revenue from Mainland China was RMB 320 million, approximately 13% of Q2 2021's level, indicating ongoing challenges in the market [7] - International markets now account for 70-80% of total revenues, reflecting the success of the globalization strategy [7][9] - The Asia-Pacific franchise retail model has driven significant same-store sales growth by uniting independent vape stores under a cohesive brand [8] Market Data and Key Metrics Changes - The Mainland China market is experiencing a modest recovery, but an unregulated latent e-vapor market remains a significant headwind [7] - The U.K. market has faced regulatory challenges, including a ban on disposable e-vapor products, yet the company has adapted by migrating consumers to reusable products [9][20] Company Strategy and Development Direction - The company is focused on expanding its brand footprint selectively across international markets, contingent on regulatory clarity [19] - R&D initiatives emphasize enhancing core user experiences, particularly in flavor authenticity and device ergonomics [20] - The strategic equity investment in a leading European e-vapor firm aims to enhance market intelligence and capitalize on future opportunities [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to shape the smokeless industry and deliver lasting value to stakeholders [9] - The company is committed to driving further profitability improvement while maintaining a lean organizational structure [13] - Management highlighted the importance of regulatory enforcement in achieving true market order in Mainland China [7] Other Important Information - The company has returned nearly all non-GAAP net profits to shareholders through strategic share repurchases and dividends over the past four years, totaling over $500 million [15] - A cash dividend of $0.1 per ordinary share or ADS was declared for this quarter [15] Q&A Session Summary Question: Revenue outlook for 2026 and organic growth in international business - Management indicated a commitment to expanding brand footprint selectively and shared that international revenue grew steadily, outpacing industry averages [19] Question: Channel innovation in Asian markets - Management elaborated on transforming Wavestar experiences through a franchise model, engaging over 450 partners in East Asia [22] Question: Update on U.K. operations and further expansion strategy - Management is in early stages of integration, focusing on preserving brand equity and transforming U.K. operations into a multi-brand retail distribution platform [24] Question: Expansion status of modern oral business - Management noted that modern oral is the fastest-growing segment, with plans to roll out this category in phases starting this quarter [27]

Financial Data and Key Metrics Changes - The company's net revenues surged 49% year-over-year to RMB 1,129 million, with non-GAAP operating profits reaching RMB 188 million [5][11] - Gross profit margin expanded by 4 percentage points year-over-year and 3.7 percentage points quarter-over-quarter [12] - Cash flow from operating activities increased to RMB 358 million from RMB 157 million in the same period last year [14] - Total financial assets stood at RMB 15.4 billion, approximately $2.2 billion [14][15] Business Line Data and Key Metrics Changes - Revenue from Mainland China was RMB 320 million, approximately 13% of Q2 2021's level, indicating ongoing challenges in the market [7] - International markets now account for 70-80% of total revenues, reflecting the success of the globalization strategy [7][9] - The Asia-Pacific franchise retail model has driven significant same-store sales growth [8] Market Data and Key Metrics Changes - The Mainland China market is experiencing a modest recovery, but an unregulated latent e-vapor market remains a significant headwind [7] - The U.K. market faced challenges due to a ban on disposable e-vapor products, but the company adapted by migrating consumers to reusable formats [9] Company Strategy and Development Direction - The company is focused on expanding its brand footprint selectively across international markets, contingent on regulatory clarity [19] - R&D initiatives emphasize enhancing core user experiences, particularly in flavor authenticity and device ergonomics [20] - The company aims to transform U.K. operations into a multi-brand retail distribution platform to enhance efficiency [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to shape the smokeless industry and deliver lasting value to stakeholders [9] - The company is optimistic about synergies from its European investment and anticipates scaling this business amid regulatory challenges [19][20] Other Important Information - The company has returned nearly all non-GAAP net profits to shareholders through strategic share repurchases and dividends over the past four years, totaling over $500 million [15] Q&A Session Summary Question: Revenue outlook for 2026 and organic growth in international business - Management committed to expanding selectively across international markets and noted steady international revenue growth driven by robust organic growth in the Asia-Pacific region [19] Question: Areas prioritized in R&D for growth and differentiation - R&D initiatives focus on meaningful product evolution, enhancing user experiences, and optimizing product performance through technological refinements [20] Question: Channel innovation in Asian markets - The company is transforming Wavestar experiences through a franchise model, engaging over 450 partners in East Asia, driving revenue growth and enhancing brand presence [22] Question: Update on U.K. company integration and expansion strategy - The company is in early stages of integration, prioritizing brand equity and operational strength, while leveraging local expertise for channel development [24] Question: Expansion status of modern oral business and promotional strategies - The modern oral segment is the fastest-growing, with plans for phased rollout and prudent near-term revenue expectations as market data is built [27]