Financial Data and Key Metrics Changes - In 2025, the company reported total revenue of CNY 2.06 billion, a 6.5% increase compared to the previous year, with commercialized revenue at CNY 540 million [45][46] - Gross margin increased by 16.1% to CNY 1.47 billion, outpacing revenue growth due to a favorable income mix [46][47] - Total loss for the year was CNY 380 million, slightly higher than the previous year, attributed to increased marketing and sales expenses during the first year of commercialization [47][48] Business Line Data and Key Metrics Changes - The company has four launched products with multiple indications, marking the first year of complete commercialization [22][31] - The commercialization team expanded to nearly 600 people, covering over 300 cities and 1,200 medical institutions in China [12][22] - The company has over 30 R&D projects, with 10+ in clinical development stages and one product in NDA [6][8] Market Data and Key Metrics Changes - Three products and four indications were included in the national medical insurance coverage in 2025, enhancing hospital access [27][60] - The company is focusing on building national channels with core distributors accounting for 90% of business [28][29] - The commercialization strategy includes expanding into 400 professional pharmacies, enhancing patient accessibility [29] Company Strategy and Development Direction - The company aims to advance its differentiated pipeline and address unmet clinical needs while optimizing its ADC platform [20][19] - Strategic collaborations are emphasized to enhance the value of the pipeline and expand business footprint globally [10][20] - The focus is on establishing a leading market position in second-line treatments for non-small cell lung cancer and HR-positive breast cancer [62][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in doubling sales in 2026, driven by successful commercialization efforts and product approvals [66] - The company is optimistic about the future, with plans to enhance team capabilities and expand market coverage [66][70] - Management highlighted the importance of data superiority and compliance in driving market access and sales growth [60][63] Other Important Information - The company raised $250 million through H-share placement in 2025 and was included in several global equity indices [13][52] - R&D expenditure was CNY 1.32 billion, a 9.4% increase from the previous year, reflecting stable investment in business expansion [50][51] - The company has a healthy debt-to-asset ratio, with total liabilities at CNY 1.12 billion [53] Q&A Session Questions and Answers Question: What is the expected revenue from licensing and how does it relate to R&D expenses? - Management noted that licensing revenue is accounted for differently and does not correspond directly to R&D expenses, as reimbursement logic varies [67] Question: What are the sales guidance for products other than 264? - Management indicated that 140 has good progress and opportunities due to its unique head-to-head study, while 166 and 167 are also expected to perform well [73][75] Question: When will data for first-line lung cancer be available? - Management anticipates data readouts for first-line lung cancer in Q4 during the ASCO meeting, with ongoing studies expected to yield positive results [57][59]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue reached RMB 314 million, a 123% increase year-over-year, while full year revenue was RMB 685 million, growing 90% year-over-year [16][17] - Product revenue surged 309% to RMB 211 million in Q4 2025, and for the full year, it reached RMB 360 million, reflecting a 310% increase [17] - Service revenue increased by 15% to RMB 103 million in Q4 2025, and for the full year, it was RMB 325 million, a 19% increase [17] - Gross profit for Q4 2025 was RMB 89 million, a 74% increase, with a gross margin of 28%, while for the full year, gross profit was RMB 207 million, an 87% increase, with a gross margin of 30% [20] - Operating expenses for Q4 2025 increased slightly by 2% to RMB 655 million, while for the full year, they decreased by 11% to RMB 2.04 billion [20][21] Business Line Data and Key Metrics Changes - Robotaxi revenue in Q4 2025 increased by 66% to RMB 51 million, and for the full year, it reached RMB 148 million, a 210% growth year-over-year [17][18] - The Robobus business grew by 190% year-over-year in 2025, contributing significantly to the overall revenue [12] - The international business contributed approximately 29% of total revenue for the full year 2025, indicating its growing importance [19] Market Data and Key Metrics Changes - The global Robotaxi fleet size reached 1,125 vehicles, with plans to expand to 2,600 by the end of 2026 [4][11] - The overseas revenue grew by 305% year-over-year for the full year 2025, accounting for roughly 29% of total revenue [68] - In the Middle East, the company operates the largest Robotaxi fleet at the city level in Abu Dhabi and has launched services in Dubai and Riyadh [40][43] Company Strategy and Development Direction - The company aims to diversify its portfolio beyond Robotaxi services, including Robobuses and Robovans, to generate additional revenue streams [11][12] - The strategy focuses on markets with supportive regulatory environments and favorable economic conditions for sustainable operations [11] - The company plans to enhance its technological capabilities through continuous R&D investment, particularly in L2+ and L4 autonomous driving technologies [21][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the autonomous driving market, emphasizing the competitive moat established by their technology and operational experience [8][11] - The company is closely monitoring geopolitical tensions in the Middle East but has not seen any material impact on operations [43] - Future plans include scaling operations in China and expanding into new international markets, with a focus on regulatory approvals and partnerships [40][41] Other Important Information - The company authorized a share repurchase program of up to $100 million to reflect its commitment to shareholders and confidence in long-term value [23][24] - The total capital reserves as of December 31, 2025, were RMB 7.13 billion, providing a solid operating buffer for continued growth [23] Q&A Session Summary Question: Competitors in L4 Robotaxi space - Management welcomed competition, emphasizing the significant technological barriers between L2++ and L4 systems, and highlighted their unique capabilities in both ADAS and driverless operations [28][32] Question: Robotaxi expansion plans - The company plans to gradually scale operations in China and expand into major tier one cities, with a goal of reaching 2,600 Robotaxis globally by the end of 2026 [39][40] Question: Future plans for the Middle East - The company aims to deploy 1,200 vehicles with Uber by 2027, maintaining a strong operational presence in the region despite geopolitical tensions [42][43] Question: Addressing Robotaxi homogenization - Management highlighted their advanced computational platform and unique simulation capabilities as key differentiators in the competitive landscape [45][48] Question: Ensuring long-term share of ride-hailing orders - The company emphasized its role as a key operator and infrastructure partner, not just a supplier to Uber, with plans to enhance brand recognition and operational scale [56][58]

Financial Data and Key Metrics Changes - In 2025, the company reported total revenue of CNY 2.06 billion, a 6.5% increase compared to the previous year, with commercialized revenue at CNY 540 million [45][46] - Gross margin increased by 16.1% to CNY 1.47 billion, benefiting from a favorable income mix [46][47] - Total loss for the year was CNY 380 million, slightly higher than the previous year, attributed to increased marketing and sales expenses due to the first year of commercialization [47][48] Business Line Data and Key Metrics Changes - The company has four products launched with multiple indications, marking the first year of complete commercialization [22][31] - The commercialization team has expanded to nearly 600 people, covering over 300 cities and 1,200 medical institutions in China [12][22] - The company has successfully included three products in the national reimbursement catalog (NRDL) [27][28] Market Data and Key Metrics Changes - The company has established partnerships with major distributors, accounting for 90% of its business, and expanded its presence in over 400 professional pharmacies [28][29] - The commercialization strategy focuses on brand building and expanding access to hospitals and pharmacies, with a goal to double sales in 2026 [22][67] Company Strategy and Development Direction - The company aims to advance its differentiated pipeline and address unmet clinical needs while optimizing its ADC platform [20][64] - Strategic collaborations are emphasized to enhance the value of the pipeline and expand commercial partnerships globally [10][20] - The focus is on developing new targets and integrating ADC with immunotherapy for enhanced efficacy [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant growth in commercialization, particularly after successful NRDL negotiations [68] - The company anticipates that NRDL revenue will account for over 80% of total revenue in the coming year [67] - The management highlighted the importance of building a strong commercial team to navigate the competitive landscape [22][68] Other Important Information - The company has a robust pipeline with over 30 R&D projects, including several in clinical development stages [6][10] - The company raised $250 million through H-share placement in 2025, enhancing its cash reserves to CNY 4.6 billion [13][52] Q&A Session Questions and Answers Question: What is the timeline for data availability on first-line lung cancer trials? - Management indicated that data for the first-line trials may be available by Q4 this year during the ASCO meeting [55][59] Question: What is the expected revenue from licensing and how does it relate to R&D expenses? - Management clarified that licensing revenue is accounted for differently and does not correspond directly to R&D expenses [70] Question: How will the staffing for breast cancer and lung cancer teams be adjusted? - The company plans to increase staffing for the lung cancer team due to its larger patient population, while maintaining a separate focus for breast cancer [72]

Financial Performance and Key Metrics - In Q4 2025, total revenue reached RMB 314 million, a 123% increase year-over-year, while full year revenue was RMB 685 million, growing 90% [16][17] - Product revenue surged 309% to RMB 211 million in Q4, and for the full year, it reached RMB 360 million, reflecting a 310% increase [17] - Service revenue increased by 15% to RMB 103 million in Q4, and for the full year, it was RMB 325 million, a 19% increase [17] - Gross profit for Q4 2025 was RMB 89 million, a 74% increase, with a gross margin of 28%, while for the full year, gross profit was RMB 207 million, an 87% increase, with a gross margin of 30% [20] - The net loss narrowed by 6% to RMB 5,565 million in Q4 and by 34% to RMB 1.65 billion for the full year [22] Business Line Performance - Robotaxi revenue in Q4 2025 increased by 66% to RMB 51 million, and for the full year, it reached RMB 148 million, a 210% growth [17][18] - The Robobus business grew by 190% year-over-year in 2025, indicating strong demand in public transit systems [12] - The L2+ advanced driver assistance system, WePilot 3.0, is being adopted by leading OEMs and tier-one suppliers, contributing to revenue diversification [12] Market Performance - International markets contributed approximately 29% of total revenue for the full year 2025, with significant growth in the Middle East, Europe, and Asia Pacific [19] - The overseas revenue grew by 305% year-over-year, accounting for 31% of total revenue in Q4 2025 [68] - The company has deployed autonomous vehicles in 12 countries, with permits granted in 8 markets, showcasing its ability to navigate complex regulatory environments [9] Company Strategy and Industry Competition - The company aims to expand its global robotaxi fleet to 2,600 by the end of 2026, with a long-term vision to deploy tens of thousands of robotaxis by 2030 [11][24] - The strategy focuses on markets with supportive regulatory environments and favorable economic conditions, enhancing sustainable operations [11] - The company welcomes competition in the autonomous driving space but emphasizes its first-mover advantage and technological barriers to entry [28][32] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, supported by a strong balance sheet and disciplined cash management [24] - The company is monitoring geopolitical tensions in the Middle East but has not seen material impacts on operations [43] - Future plans include expanding operations in tier one cities in China and further penetration into European markets [40][41] Other Important Information - The company authorized a share repurchase program of up to $100 million, reflecting confidence in long-term value [23][76] - The total capital reserves as of December 31, 2025, were RMB 7.13 billion, providing a solid operating buffer [23] Q&A Session Summary Question: Competitors in L4 robotaxi space - Management welcomes competition but emphasizes the significant technological barriers and operational experience required to succeed in the L4 robotaxi market [28][32] Question: Robotaxi expansion plans - The company plans to gradually scale operations in China and expand into major tier one cities, with a focus on supportive policies [39][40] Question: Addressing robotaxi homogenization - The company differentiates itself through its proprietary technology and advanced computational platforms, which are not easily replicated [45][49] Question: Long-term partnership with Uber - The partnership with Uber is strategic, with plans to deploy 1,200 vehicles by 2027, ensuring a strong position in the ride-hailing market [55][56] Question: Fleet utilization and overseas business metrics - Fleet utilization is expected to grow significantly in China, with a target of 25 trips per vehicle per day, while overseas revenue is projected to continue growing at a healthy pace [66][68]

Financial Data and Key Metrics Changes - In 2025, the company reported total revenue of CNY 2.06 billion, a 6.5% increase compared to the previous year, with commercialized revenue at CNY 540 million [42][43] - Gross margin increased by 16.1% to CNY 1.47 billion, outpacing revenue growth due to a favorable income mix [43][44] - Total loss for the year was CNY 380 million, slightly higher than the previous year, attributed to increased marketing and sales expenses during the first year of commercialization [44][45] Business Line Data and Key Metrics Changes - The company has four launched products with multiple indications, including TROP-2 ADC and HER2 ADC, which have been successfully included in the national reimbursement catalog [4][10] - The commercialization team has expanded to nearly 600 people, covering over 300 cities and 1,200 medical institutions in China [11][19] - The company has over 30 R&D projects, with 10+ in clinical development stages and one in NDA [4][5] Market Data and Key Metrics Changes - The company has established partnerships for global phase III clinical trials, covering various cancers, including lung and breast cancer [8][9] - The commercialization efforts have led to positive prescriptions and recognition from international and domestic experts, with over 1,200 academic meetings held in 2025 [20][21] - The company is focusing on expanding its market access through national channels and professional pharmacies, with a significant increase in pharmacy coverage [25][26] Company Strategy and Development Direction - The company aims to advance its differentiated pipeline and address unmet clinical needs, focusing on innovative drug development and commercialization strategies [18][59] - There is a strong emphasis on international collaboration and partnerships to maximize the value of the pipeline and expand business footprints outside China [8][18] - The strategy includes a focus on combination therapies and expanding ADC technology to non-oncology diseases [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercialization efforts, anticipating a doubling of sales in 2026 compared to 2025 [62] - The company is optimistic about the inclusion of more products in the NRDL, which is expected to significantly boost revenue [60][61] - Management highlighted the importance of building a strong commercial team to navigate the competitive landscape and ensure successful market access [19][21] Other Important Information - The company raised $250 million through H-share placement in 2025, contributing to a significant increase in cash reserves [49] - The total assets reached close to CNY 6 billion, a 40% increase from the previous year, with cash and financial assets amounting to CNY 4.6 billion [48][49] - The company has made significant progress in clinical trials, with multiple studies showing promising results for various cancer treatments [28][29] Q&A Session Summary Question: What is the expected timeline for data readouts from ongoing clinical trials? - Management indicated that data for first-line lung cancer trials is expected to be available by Q4 this year, with ongoing studies showing promising results [51][52] Question: How does the company view the impact of NRDL price adjustments on revenue? - The CFO clarified that the revenue reported includes adjustments related to NRDL pricing, and the actual revenue before adjustments would be higher [51][52] Question: What are the sales expectations for products not yet included in NRDL? - Management expressed optimism for A140, anticipating rapid ramp-up post-hospital listing, while A166 will require a differentiated pricing strategy due to market competition [67][70]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue reached RMB 314 million, a 123% increase year-over-year, while full year revenue was RMB 685 million, growing 90% [17][18] - Product revenue surged 309% to RMB 211 million in Q4 2025, and for the full year, it reached RMB 360 million, reflecting a 310% increase [18] - Service revenue increased by 15% to RMB 103 million in Q4 2025, and for the full year, it was RMB 325 million, a 19% increase [18] - Gross profit for Q4 2025 was RMB 89 million, a 74% increase, with a gross margin of 28%, while for the full year, gross profit was RMB 207 million, an 87% increase, with a gross margin of 30% [20] - The net loss narrowed by 6% to RMB 5,565 million in Q4 2025 and by 34% to RMB 1.65 billion for the full year [23] Business Line Data and Key Metrics Changes - Robotaxi revenue in Q4 2025 increased by 66% to RMB 51 million, and for the full year, it reached RMB 148 million, a 210% growth [18][19] - The Robobus business grew by 190% year-over-year in 2025, contributing significantly to the overall revenue [12] - The L2++ advanced driver assistance system, WePilot 3.0, is being adopted by leading OEMs, indicating strong demand for this technology [12] Market Data and Key Metrics Changes - International markets contributed approximately 29% of total revenue for the full year 2025, with significant growth in the Middle East, Europe, and Asia Pacific [19][20] - Overseas revenue grew by 305% year-over-year, accounting for 31% of total revenue in Q4 2025 [69] - The company has deployed autonomous vehicles in 12 countries, with permits granted in 8 markets, showcasing its global expansion efforts [8][9] Company Strategy and Development Direction - The company aims to scale its global robotaxi fleet to 2,600 vehicles by the end of 2026, with a long-term vision of deploying tens of thousands of robotaxis worldwide by 2030 [11][25] - The strategy focuses on markets with supportive regulatory environments and favorable economic conditions, emphasizing sustainable operations [11] - The company is diversifying its portfolio beyond robotaxis to include Robobuses, Robovans, and Robosweepers, enhancing revenue streams [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's technological leadership and operational efficiency, which are expected to drive future growth [20][25] - The company is closely monitoring geopolitical tensions in the Middle East but has not seen material impacts on its business [44] - Management highlighted the importance of maintaining a strong capital position to support continued growth and expansion [24][25] Other Important Information - The company authorized a share repurchase program of up to $100 million, reflecting its commitment to shareholders and confidence in long-term value [24][25] - The total capital reserves as of December 31, 2025, were RMB 7.13 billion, providing a solid operating buffer [24] Q&A Session Summary Question: Competitors in L4 Robotaxi - Management welcomed competition in the autonomous driving space, emphasizing the significant technological barriers between L2++ and L4 systems [28][33] - The company highlighted its unique capabilities and achievements in competitions, reinforcing its leadership position [31][35] Question: Robotaxi Expansion Plans - Management detailed plans for expanding Robotaxi operations in both China and international markets, with a focus on tier one cities [40][41] - The timeline for deploying 1,200 vehicles with Uber was discussed, with expectations to reach this scale by 2027 [43] Question: Addressing Robotaxi Homogenization - Management emphasized the challenges of creating reliable autonomous systems and the unique technological advancements of the company [46][50] - The collaboration with NVIDIA was highlighted as a key factor in maintaining a competitive edge [48][50] Question: Future Cash Deployment Plans - Management outlined a disciplined approach to cash deployment, with a focus on maintaining liquidity while investing in growth [82]

Financial Data and Key Metrics Changes - In Q4 2025, the company sold just under 93,000 oz of gold at a realized price of $4,025/oz, resulting in $378 million in revenue for the quarter [15] - Consolidated cash costs and all-in sustaining costs for Q4 totaled $1,093 and $1,536/oz of gold sold, respectively [16] - The company recorded a net income of $79 million or $0.23 per share, with adjusted earnings of $143 million or $0.42 per share [16] Business Line Data and Key Metrics Changes - Musselwhite Mine produced nearly 76,000 oz of gold in Q4, with a mill grade of 6.77 g/t Au and a gold recovery of 95.65% [6] - Camino Rojo oxide mine produced 19,587 oz of gold in Q4, with a strip ratio of 1.52 due to a pit wall event [7][8] - The company achieved six consecutive months of consistent ore production at Musselwhite, averaging approximately 3,800 tpd [9] Market Data and Key Metrics Changes - The company anticipates annual production to exceed 220,000 oz over the first 10 years, effectively doubling current output [10] - The South Railroad Project is expected to deliver an average output of 103,000 oz of gold annually over the first five years at an all-in sustaining cost of approximately $1,485/oz [11] Company Strategy and Development Direction - The company is focused on diversifying its operations and advancing growth opportunities in Canada, the United States, and Mexico [3] - Plans include construction at South Carlin, continued exploration at Musselwhite, and advancing the Camino Rojo underground project [30] - The company aims to balance strategic growth initiatives, exploration for new discoveries, deleveraging, and returning capital to shareholders [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational momentum and a clear path to continued production expansion, forecasting 340,000-360,000 oz for 2026 [30] - The approval of the environmental impact statement at Camino Rojo is seen as a significant milestone for future operations [10] Other Important Information - The company announced its first quarterly dividend in December 2025, reflecting a disciplined approach to capital allocation [18] - Exploration and project development costs for Q4 were $43.9 million, with a cash balance of $421 million at the end of December 2025 [17] Q&A Session Summary Question: Changes to the mine plan at Camino Rojo in response to the latest permit - Management clarified that the mine plan for 2026 will not change due to the permit, as guidance had already assumed its receipt [33][34] Question: Key development milestones for South Railroad - Management indicated that detailed engineering and procurement are underway, with updates expected throughout the year [35][36] Question: Capital expenditure budget for 2026 and its contingencies - The $200 million budget for South Railroad is contingent on the receipt of the Record of Decision, with potential adjustments based on timing [41] Question: Cost of mining in deeper areas at Musselwhite and lateral drilling - Management acknowledged that costs increase with depth but are planning improvements to material handling systems to mitigate this [42][43]

Financial Data and Key Metrics Changes - In Q4 2025, the company sold just under 93,000 ounces of gold at a realized price of $4,025 per ounce, resulting in $378 million in revenue for the quarter [15] - Consolidated cash costs and all-in sustaining costs for Q4 totaled $1,093 and $1,536 per ounce of gold sold, respectively [16] - The company recorded net income of $79 million or $0.23 per share, with adjusted earnings of $143 million or $0.42 per share [16] - Cash flow from operating activities before changes in non-cash working capital was $165 million, with free cash flow for the quarter of $133 million [16] Business Line Data and Key Metrics Changes - Musselwhite mine produced nearly 76,000 ounces of gold in Q4, with a mill grade of 6.77 grams per ton and gold recovery of 95.65% [6] - Camino Rojo oxide mine produced 19,587 ounces of gold in Q4, with a higher strip ratio of 1.52 due to a pit wall event [7] Market Data and Key Metrics Changes - The company expects annual production to exceed 220,000 ounces over the first 10 years, effectively doubling current output [10] - The average output for the South Railroad project is projected at 103,000 ounces of gold annually over the first five years at an all-in sustaining cost of approximately $1,485 per ounce [11] Company Strategy and Development Direction - The company is focused on expanding production capacity and diversifying its operations, with significant investments in the South Railroad and Camino Rojo projects [5][12] - The approval of the environmental impact statement at Camino Rojo allows for further development, including underground exploration [10][11] - The company aims to maintain a disciplined capital allocation approach, balancing growth initiatives and returning capital to shareholders [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record-breaking year in 2026, forecasting production of 340,000-360,000 ounces at an all-in sustaining cost of $1,550-$1,750 per ounce [30] - The company highlighted operational resilience and advancements in growing the business throughout 2025 [30] Other Important Information - The company has a strong cash position of $421 million at the end of December 2025, positioning it well to fund development projects [17] - A $6.6 million partnership with Newmont and First Nations LP was announced to support local workforce development [26] Q&A Session Summary Question: Changes to the mine plan at Camino Rojo in response to the latest permit - Management clarified that the mine plan for 2026 will not change due to the permit, as guidance already accounted for its receipt [33][34] Question: Key development milestones for South Railroad - Management discussed ongoing engineering procurement and preparations for field mobilization, with updates expected throughout the year [35][36] Question: Capital expenditure budget for 2026 and its contingencies - Management indicated that the $200 million budget for South Railroad is contingent on the receipt of the Record of Decision, with potential adjustments based on timing [41] Question: Cost of mining in deeper areas at Musselwhite and horizontal drilling - Management acknowledged increased costs for deeper mining but emphasized plans to improve material handling systems to mitigate these costs [42][43]

Financial Data and Key Metrics Changes - Recurring EBITDA for 2025 was BRL 7.3 billion, with total EBITDA reaching BRL 8.3 billion, reflecting a significant cash generation to support a record investment program [4][15] - The company reported a recurring net profit of BRL 4.2 billion and a non-recurring net profit of BRL 4.9 billion, influenced by adjustments in post-employment liabilities and increased financial expenses due to higher leverage [17][19] - The company achieved a credit rating upgrade to triple A from Moody's, marking a significant improvement in credit quality [6] Business Line Data and Key Metrics Changes - Investments in distribution amounted to BRL 6.6 billion in 2025, with 23 new substations and over 12,000 km of low and medium voltage networks added [13] - In generation, BRL 199 million was invested in the GSF auction, with a total of BRL 411 million allocated for expansion and maintenance [13] - Transmission investments totaled BRL 410 million, focusing on reinforcements and improvements [14] Market Data and Key Metrics Changes - The company experienced a 1.4% reduction in market performance, attributed to clients migrating to the base network [28] - The hydrological risk management led to increased energy purchases at higher prices, impacting overall costs [27][29] Company Strategy and Development Direction - The company aims to extend all concessions, successfully securing extensions for Irapé, Queimado, and Pai Joaquim [10] - A significant focus on regulated sectors with guaranteed profitability is evident, with nearly BRL 10 billion accumulated in the distribution area awaiting tariff review [5] - The investment strategy is designed to support the development of Minas Gerais, with a clear objective to enhance service quality and operational efficiency [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to navigate future challenges, emphasizing the importance of sustainable healthcare plans for retirees [18] - The company anticipates no impact from healthcare plan liabilities starting in 2026, which will improve financial balance [19] - Future energy prices are expected to rise, presenting opportunities for selling energy starting in 2029 [40] Other Important Information - The company maintained a dividend policy of distributing 50% of net profit, resulting in BRL 3.5 billion paid in dividends [9] - Cemig received multiple sustainability awards, including recognition in the Dow Jones Sustainability Index for 25 consecutive years [34][35] Q&A Session Summary Question: Trading result in Q4 and energy balance perspective - The trading result was positive at BRL 97 million, with cautious management of positions for 2026 and 2027, aiming to close open positions by 2029 [38][40] Question: Ideal leverage level and annual interest percentage - Current leverage is at 2.3, expected to increase during the investment cycle, with a nominal cost of 13% corresponding to 87% of the CDI [42][43] Question: Plans for shareholder bonuses in 2026 - Bonuses will be considered if profit reserves exceed capital stock, with updates to be provided as necessary [45]

Financial Data and Key Metrics Changes - Recurring EBITDA for 2025 was BRL 7.3 billion, while total EBITDA including non-recurring items reached BRL 8.3 billion, indicating a strong cash generation to support a record investment program [4][14] - The company reported a recurring net profit of BRL 4.2 billion and a non-recurring net profit of BRL 4.9 billion, with a notable impact from adjustments related to post-employment liabilities [15][24] - The company achieved a dividend payment of BRL 3.5 billion, reflecting a dividend yield of 14.9% [8][23] Business Line Data and Key Metrics Changes - In 2025, the company invested BRL 6.6 billion, with significant contributions in distribution, generation, and transmission sectors [4][12] - Distribution investments included 23 new substations and over 12,000 km of low and medium voltage networks, enhancing service capacity [12] - Generation investments involved BRL 199 million in the GSF auction and BRL 411 million for expansion and maintenance [12] Market Data and Key Metrics Changes - The company faced a 1.4% reduction in market share due to some clients migrating to the basic network [25][30] - The hydrological risk management led to increased energy purchases at higher prices, impacting financial results [24][26] Company Strategy and Development Direction - The company is focused on a significant investment program aimed at enhancing regulated sectors, with a clear objective to extend concessions [5][9] - The strategy includes a commitment to sustainable practices, as evidenced by multiple awards for sustainability and a focus on renewable energy [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to generate stable cash flows, supported by a strong credit rating upgrade to triple A by Moody's [6][9] - The company anticipates no actuarial risk from post-employment liabilities moving forward, transitioning to a financial debt model [7][17] Other Important Information - The company has a robust operational efficiency, with total losses at 0.63% of energy supply revenue, and a high receivables collection index of 99.51% [20] - The average tenure of the company's debt is 6.9 years, with a nominal cost of 13%, which is favorable for a utilities company [22][41] Q&A Session Summary Question: About the trading result in the fourth quarter - The trading result was positive at BRL 97 million, with plans to close positions for 2026 and 2027, aiming for future price increases starting in 2029 [36][37] Question: What is the ideal level of leverage for the company? - The current leverage is at 2.3, expected to increase during the investment cycle, with a target to remain within a range that supports a triple A rating [38][39][40] Question: Any plans to pay bonuses to shareholders in 2026? - Bonuses will be considered if profit reserves exceed capital stock, with evaluations ongoing throughout the year [42][43]