Financial Data and Key Metrics Changes - The company's full-year revenue grew by 10.3% year-on-year, with significant increases in adjusted net profit and EBITDA [1] - The leverage ratio decreased from 4x in 2024 to 3.045x in 2025, indicating improved financial health [1][41] - Adjusted EBITDA margin was reported at 14.3%, while adjusted net profit margin was 4.6%, with net profit growth at 22.7% [8][10] Business Segment Data and Key Metrics Changes - Swisse revenue exceeded HKD 1 billion, achieving number one position in both Mainland China and Australia, with double-digit growth in China [2] - The BNC business segment saw a 20% growth, with super premium infant formula segment growing by 17.12% [3][10] - The PNC business accounted for 15% of total revenue, marking a new milestone, with pet supplements achieving double-digit growth [3][10] Market Data and Key Metrics Changes - China remains the largest market, contributing over 70% of revenue with a growth rate of 17.5% [11] - North America accounted for 12.1% of revenue, growing by 7.5%, while the ANZ market decreased by 20.2% due to strategic adjustments [12][11] - Other markets grew by 14.7% year-on-year, contributing to overall revenue growth [13] Company Strategy and Development Direction - The company plans to continue investing in its three business segments to enhance shareholder value and maintain a strong cash flow [4] - Focus on systematic innovation and consumer insights to drive growth, with new product launches across various segments [5][6] - The strategy includes expanding into high-growth channels and markets, particularly in Southeast Asia [49][26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum for 2026, emphasizing the importance of innovation and market adaptation [25][28] - The company aims to maintain its leadership position in the Chinese market while expanding its presence in international markets [26][27] - Management acknowledged challenges from tariffs and market adjustments but remains optimistic about future profitability [20][21] Other Important Information - The company maintained a dividend payout ratio of 30%, with a total dividend of HKD 0.35 per share [4][9] - Significant improvements in cash flow conversion, with 88% of operating cash flow converted from adjusted EBITDA [9][38] - The company is committed to sustainability and ESG efforts, achieving high rankings in relevant indices [25] Q&A Session Summary Question: What has contributed to the strong growth in IMF? - Management highlighted the strong formula of the product and effective market strategies, with a focus on early-stage education and e-commerce expansion [43][44] Question: What is the expansion plan for the Southeast Asian market? - The company plans to leverage product innovation from the Chinese market and adapt to local consumer demands in Thailand, Indonesia, Singapore, and Vietnam [48][49] Question: How does the company view the profitability of the Douyin channel? - Management sees Douyin as a crucial channel for consumer education and sales, emphasizing a balanced approach to investment in various channels [52][53]

Financial Data and Key Metrics Changes - The company has seen fluctuations in the exchange rate of RMB, impacting exchange rate gains and losses significantly throughout 2025 [82][84] - R&D expenses have increased from CNY 1.6 billion in 2021 to CNY 2.2 billion in 2025, accounting for 4% of total revenue [65] - The input/output ratio for R&D investment improved from RMB 1 to RMB 2.5 in 2021 to RMB 1 to RMB 3.1 in 2025 [67] Business Line Data and Key Metrics Changes - The technology segment accounted for 55% of total revenue and 72% of profit in 2025, indicating a strong contribution to overall performance [71] - The operating profit margin for the technology segment was 16% in 2025, outperforming industry peers despite a slight year-on-year decline [75] - The contribution of the technology segment to overseas revenue increased from 14% in 2021 to 24% in 2025 [73] Market Data and Key Metrics Changes - The company operates in five major continents across 13 countries with 120 operation sites, showcasing a diversified market presence [80] - The company has established long-term agreements in the North Sea region, which helps in managing costs and enhancing efficiency [111] Company Strategy and Development Direction - The company focuses on five key development strategies: technology-driven, cost leadership, integration, internationalization, and regional development [11] - During the 15th Five-Year Plan, the company aims to solidify its established strategies while adapting to changes in the development environment [117] - The company plans to increase investment in equipment while maintaining a stable gearing ratio, indicating a focus on sustainable growth [59] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about oil prices despite geopolitical tensions affecting demand and supply dynamics [31][34] - The company believes that the ongoing conflict in the Middle East will be temporary and does not plan to alter its internationalization strategy [101] - Management emphasized the importance of enhancing competitiveness through technology and integration strategies, which have accounted for 40%-50% of revenue during the previous Five-Year Plan [99] Other Important Information - The company has completed two M&A projects in 2025, indicating a trend of consolidation in the industry [43] - The company is focusing on optimizing its debt structure, having issued CNY 5 billion in debt at a lower interest rate to reduce financing costs [57] Q&A Session Summary Question: Impact of Middle East conflict on technology and drilling segments - Management confirmed that operations in Iraq, Saudi Arabia, and Kuwait have not been significantly impacted, with ongoing maintenance and operations continuing [24][26] Question: Oil price trend and adjustments to development plans - Management noted that while there is excess capacity and weaker demand, they remain cautiously optimistic about future oil prices and will not change their internationalization strategy [31][34] Question: Reasons behind profitability growth in drilling rigs - Management highlighted the acceleration of internationalization, increased domestic production, and improved utilization of large-scale equipment as key factors [40][41] Question: Changes in pricing mechanisms for marine support segment - Management stated that they are exploring mechanisms to pass on oil price increases to customers, emphasizing the win-win nature of long-term agreements [111] Question: Plans for new semi-submersible rigs and overseas development - Management indicated that they are focusing on self-construction and R&D for new rigs while continuing to diversify their market presence despite geopolitical challenges [94][99]

Financial Data and Key Metrics Changes - The company has seen an increase in profitability, particularly in the drilling segment, with significant contributions from both domestic and overseas operations [20][21] - R&D expenses have risen from CNY 1.6 billion in 2021 to CNY 2.2 billion in 2025, accounting for 4% of total revenue [32][34] - The operating profit margin for the technology segment was 16% in 2025, showing stability despite slight year-on-year declines [40] Business Line Data and Key Metrics Changes - The technology segment accounted for 55% of total revenue and 72% of profit in 2025, indicating a strong performance [36] - The contribution of the technology segment to overseas revenue increased from 14% in 2021 to 24% in 2025 [38] - The company has completed its previous seven-year action plan and is preparing for a new ten-year plan, focusing on domestic supply and expansion [21] Market Data and Key Metrics Changes - The company operates in 13 countries across five continents, with 120 operational sites, reflecting a diversified market presence [42] - The geopolitical situation has led to volatility in oil prices, but the company remains cautiously optimistic about future trends [16][18] Company Strategy and Development Direction - The company focuses on five key development strategies: technology-driven, cost leadership, integration, internationalization, and regional development [7] - During the 15th Five-Year Plan, the company aims to solidify its established strategies while adapting to changes in the development environment [58] - The company plans to increase investment in equipment and maintain a stable gearing ratio, considering operational needs and future cash positions [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of geopolitical conflicts on operations, particularly in the Middle East, but emphasizes the resilience of their internationalization strategy [16][18] - The company is optimistic about its ability to navigate challenges and enhance competitiveness through technology and integration strategies [50][51] Other Important Information - The company has seen fluctuations in exchange rates, impacting financial results, but is focused on optimizing its debt structure and reducing financing costs [28][43] - The company has established long-term agreements in the North Sea region, which help manage costs and enhance operational efficiency [55] Q&A Session Summary Question: Impact of Middle East conflict on technology and drilling segments - Management reported no operational suspensions for rigs in the Middle East, although some maintenance operations in Iraq were affected [12][14] Question: Oil price trend and adjustments to development plans - Management noted that while there is excess capacity and weaker demand, they remain cautiously optimistic about oil prices and will not change their internationalization strategy [15][16] Question: Reasons behind profitability growth in drilling rigs - Management highlighted the acceleration of internationalization and increased domestic production as key factors contributing to profitability [20][21] Question: Plans for new semi-submersible rigs - The company is focusing on low-cost and efficient construction methods for new rigs, leveraging self-developed designs and R&D [46][47] Question: Mechanism for passing on oil price increases - Management indicated that while they have long-term agreements in place, they are exploring mechanisms to manage cost increases effectively [55]

Financial Data and Key Metrics Changes - The company's top-line revenue increased by 46.7% to approximately RMB 5.94 billion [4][38] - Gross profit grew by 72.5% year-over-year, reaching slightly below RMB 2.14 billion [4][38] - Adjusted net profit rose by close to 70% year-over-year, reaching around RMB 1.6 billion, with an adjusted net profit margin increasing from 22.6% in 2024 to 26.2% in 2025 [4][39][40] Business Line Data and Key Metrics Changes - The company signed a record 70 new ICMC projects in 2025, a significant increase from previous years [4][12] - Active CMC projects reached 252 by the end of 2025, while total PPQ projects reached 18 [4][12] - The backlog grew to nearly $1.5 billion, representing over 50% year-over-year growth [5][45] Market Data and Key Metrics Changes - The company expanded its market share to over 24% by the end of 2025, up from 21.7% in 2024 [6][16] - Revenue from overseas clients, particularly in the U.S., accounted for 51% of total revenue in 2025 [40] - The company continues to serve 14 of the top 20 pharmaceutical companies, with revenue from pharma clients making up 32% of total revenue [16] Company Strategy and Development Direction - The company is focusing on expanding its commercial manufacturing capabilities, particularly in linker-payloads, with significant investments planned for the Jiangyin site [30][34] - The acquisition of BioDlink is expected to enhance operational synergies and expand the company's capacity [36][37] - The company aims to maintain a compound annual growth rate (CAGR) of 30%-35% over the next few years, driven by innovations in ADC and XDC modalities [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the ADC and XDC industries, anticipating a wave of new product approvals and commercial projects in the coming years [49][55] - The company is optimistic about the integration of BioDlink and the ramp-up of the Singapore facility, which are expected to contribute to revenue growth [60][94] - Management noted that the global supply situation for ADCs remains tight, indicating strong demand for their services [82] Other Important Information - The company achieved mechanical completion of its Singapore site in June 2025, with GMP release expected in the first half of 2026 [9][33] - The company has made significant advancements in innovation, particularly in linker-payload technologies, which are expected to enhance client offerings [22][29] Q&A Session Summary Question: Outlook for 2026 revenue and earnings growth - Management expects consolidated CDMO revenues to maintain a growth rate around 35% for 2026, despite potential margin dilution from the integration of BioDlink and the ramp-up of the Singapore facility [61][62] Question: Expectation of IP income in 2026 - Management indicated that while licensing income is not regularly predictable, ongoing R&D investments may lead to more licensing deals in the future [65][66] Question: Backlog composition and commercial ramp-up - Management acknowledged that most of the backlog consists of early-stage projects, with expectations for a gradual shift towards more commercialized projects in the coming years [70][72] Question: Global ADC supply and competitive landscape - Management believes that the global supply situation remains tight, with demand outpacing new capacity additions from competitors [82] Question: BioDlink's biosimilar business and backlog integration - Management confirmed that BioDlink's biosimilar business is being phased out, and existing contracts will be honored before signing new ones [88] Question: AI applications in early-stage drug discovery - Management noted that AI applications in drug discovery are still in early stages, with ongoing monitoring of developments in this area [89]

Financial Data and Key Metrics Changes - The company's top-line revenue increased by 46.7% to approximately RMB 5.94 billion [4][38] - Gross profit grew by 72.5% year-over-year to slightly below RMB 2.14 billion, with gross profit margin rising from 30.6% to 36% [4][39] - Adjusted net profit increased by 69.9% to around RMB 1.6 billion, with adjusted net profit margin rising from 22.6% to 26.2% [4][40] Business Line Data and Key Metrics Changes - The company signed a record 70 new ICMC projects and 10 new PBQ projects in 2025, with active CMC projects reaching 252 [4][12] - ADCs accounted for approximately 90% of overall revenue, while XDC contributed around 7% [39] - The backlog grew to nearly $1.5 billion, representing over 50% year-over-year growth [5][45] Market Data and Key Metrics Changes - The company expanded its market share to over 24% by the end of 2025, up from 21.7% in 2024 [6][16] - Revenue from overseas markets, particularly the U.S., accounted for 51% of total revenue in 2025, with North America and Europe collectively contributing 85% [40][41] - China’s revenue represented 15% of overall revenue, primarily from early-stage projects [42] Company Strategy and Development Direction - The company aims to maintain a compound annual growth rate (CAGR) of 30%-35% over the next few years, driven by commercial opportunities and manufacturing capabilities [55] - Significant investments are planned for linker payload commercial supply capacity, particularly at the Jiangyin site [30][34] - The company is focusing on expanding its global footprint, including acquisitions and new facilities in China and Singapore [31][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong growth momentum in the ADC and XDC industries, with expectations for multiple BLA submissions in the coming years [55][56] - The integration of BioDlink is anticipated to bring operational synergies and enhance capacity [56] - The company is optimistic about the commercial opportunities arising from innovations in linker-payload technology [57] Other Important Information - The company received two prestigious awards at the World ADC Awards, including Best CDMO and Best CRO [10] - The total client number increased to over 640, with 14 of the top 20 pharmaceutical companies as clients [16] Q&A Session Summary Question: Outlook for 2026 revenue and earnings growth - Management expects consolidated revenue growth around 35% for 2026, despite potential margin dilution from BioDlink integration and Singapore ramp-up [61][62] Question: Expectation of IP income in 2026 - Licensing income is not factored into guidance due to its irregular nature, but ongoing R&D investments may lead to more licensing deals in the future [65][66] Question: Backlog composition and commercial ramp-up - Most contracts are still in preclinical or clinical stages, with expectations for a gradual shift towards more commercialized projects in the coming years [70][72] Question: Global ADC supply and competitive landscape - The company believes that demand for ADCs will outpace new capacity from competitors, maintaining a tight supply situation [82] Question: BioDlink's biosimilar business and backlog integration - The biosimilar business is being terminated, and existing contracts will be honored before signing new ones [88] Question: AI applications in early-stage drug discovery - The company is monitoring AI developments in drug discovery but considers it still in early stages [90] Question: Update on Singapore site and revenue contribution - The Singapore site is expected to contribute minimally in 2026, focusing on building backlog rather than immediate execution [95]

Financial Data and Key Metrics Changes - The company's top-line revenue increased by 46.7% to approximately RMB 5.94 billion [4][38] - Gross profit grew by 72.5% year-over-year to slightly below RMB 2.14 billion, with gross profit margin rising from 30.6% to 36% [39][40] - Adjusted net profit saw a growth rate of 69.9%, reaching around RMB 1.6 billion, with adjusted net profit margin increasing from 22.6% to 26.2% [39][40][45] - The backlog reached close to $1.5 billion, representing over 50% year-over-year growth [5][45] Business Line Data and Key Metrics Changes - The company signed a record 70 new ICMC projects and 10 new PBQ projects in 2025, with active CMC projects totaling 252 [4][11] - ADCs accounted for approximately 90% of overall revenue, while XDCs contributed around 7% [39] - The number of clients increased to over 640, including 14 of the top 20 pharmaceutical companies [15] Market Data and Key Metrics Changes - The company's market share expanded to over 24% by the end of 2025, up from 21.7% in 2024 [15] - Revenue from overseas clients, particularly in the U.S., accounted for 51% of total revenue, with North America and Europe collectively representing 85% [40][41] Company Strategy and Development Direction - The company is focusing on expanding its commercial manufacturing capabilities, particularly in linker-payloads, with significant investments planned for the Jiangyin site [30][34] - The acquisition of BioDlink is expected to enhance operational synergies and expand the client base [36][37] - The company aims to maintain a compound annual growth rate (CAGR) of 30%-35% over the next few years, driven by innovations in ADC and XDC modalities [54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a growth rate of around 35% for 2026, despite potential margin dilution from the integration of BioDlink and ramp-up of the Singapore facility [60][62] - The company anticipates a significant increase in commercial projects and BLA submissions in the coming years, particularly for bispecific ADCs and dual-payload ADCs [51][52] Other Important Information - The company has made significant advancements in innovation, particularly in linker-payload technologies, which are expected to drive future growth [21][29] - The company has a strong cash position of RMB 7.5 billion, supporting its capital investment plans [48] Q&A Session Summary Question: Outlook for 2026 revenue and earnings growth - Management expects consolidated CDMO revenues to maintain a growth rate around 35% for 2026, despite potential margin impacts from BioDlink integration [60][62] Question: Expectation of IP income in 2026 - Management indicated that while licensing income is not regularly predictable, ongoing R&D investments may lead to more licensing deals in the future [64][66] Question: Backlog composition and commercial ramp-up - Management noted that most contracts are still in preclinical or clinical stages, with expectations for a gradual shift towards more commercialized projects in the coming years [70][72] Question: Global ADC supply and capacity expansion - Management believes that the global supply situation remains tight, with demand outpacing new capacity additions from competitors [81] Question: BioDlink's biosimilar business and backlog integration - Management confirmed that BioDlink's biosimilar business is being phased out, and existing contracts will be honored before signing new ones [89] Question: AI applications in drug discovery - Management acknowledged that AI applications in drug discovery are still in early stages, with ongoing monitoring of developments in this area [90]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenue of $365 million, reflecting a year-over-year growth of 4.7% driven by international expansion, particularly in APAC, which grew by 26.9% [5][14] - North America revenue decreased by 19.2% year-over-year to $111 million due to macroeconomic challenges and weaker consumer demand [14][15] - Gross profit for 2025 was $215.1 million, with a gross margin of 58.9%, down from 62.1% in 2024, attributed to shifts in geographic and product mix [16] - Adjusted net profit for 2025 was $31 million, up 7.9% year-over-year, with an adjusted net profit margin of 8.5% [17] Business Line Data and Key Metrics Changes - Energy-based devices (EBD) revenue was $310.4 million, representing 85% of total revenue, remaining essentially flat year-over-year [15] - Injectable revenues reached $28 million, up 185.6% year-over-year, driven by the strong performance of Profhilo and broader adoption by practitioners [15][8] Market Data and Key Metrics Changes - International markets, excluding North America, grew by 20.1%, with APAC as the primary growth engine [14] - The company achieved significant milestones in China, including the launch of Soprano ICE Platinum and the upcoming commercialization of DAXXIFY [7][9] Company Strategy and Development Direction - The company is focused on building a broader ecosystem that integrates technologies, diagnostics, injectables, and digital capabilities to enhance operational efficiency and long-term engagement [3][4] - Plans for 2026 include strengthening the flagship device portfolio, expanding the global energy-based device offering, and introducing additional EBD solutions in Thailand [7][10] - The company aims to capture long-term growth opportunities in the global medical aesthetics market while maintaining operational discipline in challenging markets like North America [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the new executive team and their ability to lead the company through its next growth phase, emphasizing operational discipline and long-term value creation [4] - The company anticipates a recovery in the U.S. market as macroeconomic conditions improve, with a focus on optimizing cost structures and enhancing strategic capabilities [49][51] Other Important Information - The company is committed to balancing reinvestment for sustainable growth with returning value to shareholders, proposing a final dividend of HKD 0.095 per share for 2025 [17] - The company is exploring localized manufacturing in China to improve cost efficiency and enhance supply chain resilience [13][14] Q&A Session Summary Question: Marketing expense ratio trends and future expectations - Management acknowledged a downward trend in sales and marketing expenses and confirmed ongoing investments in strategic projects like DAXXIFY to balance efficiency and growth [20][21] Question: Update on R&D pipeline and clinical progress - The company plans several product launches in 2026, particularly in the hair growth segment, and is assessing additional products for future opportunities [23][24][26] Question: Sales strategy for energy-based devices in China - The company aims to maintain its dominant position in China and leverage synergies across different business segments to drive growth [28][30] Question: Commercialization plans for DAXXIFY - The company has a capacity of 100,000 units for DAXXIFY in 2026, focusing on high-value clinics and planning to expand its injectable portfolio by the end of 2027 [35][36][37] Question: Strategic roadmap for 2026 and beyond - The company is implementing the Alma Universe ecosystem to enhance value for practitioners and consumers, with a focus on EBD and AI integration [39][41][42] Question: Underlying reasons for U.S. market softness and recovery potential - Management attributed the decline to macroeconomic factors and expressed optimism for recovery in 2026, supported by operational optimizations and new product introductions [45][49][51] Question: Progress on AI-enabled products and geopolitical impacts - The company is leveraging partnerships for AI integration in its products and is managing operational impacts from geopolitical issues with resilience [57][60][61]

Financial Data and Key Metrics Changes - The company reported revenue of $365 million for 2025, reflecting a year-over-year growth of 4.7% driven by international expansion, particularly in APAC, which grew by 26.9% [5][14] - North America revenue decreased by 19.2% year-over-year to $111 million due to macroeconomic challenges and weaker consumer sentiment [14][15] - Gross profit for 2025 was $215.1 million, with a gross margin of 58.9%, down from 62.1% in 2024, attributed to shifts in geographic and product mix [16] - Adjusted net profit increased by 7.9% year-over-year to $31 million, with an adjusted net profit margin of 8.5% [17] Business Line Data and Key Metrics Changes - Energy-based devices (EBD) revenue was $310.4 million, representing 85% of total revenue and remained flat year-over-year [15] - The injectable business saw significant growth, with revenues reaching $28 million, up 185.6% year-over-year, driven by the success of Profhilo [15][18] Market Data and Key Metrics Changes - International markets, excluding North America, grew by 20.1%, with APAC as the primary growth engine [14] - The company achieved record growth in China and Thailand, contributing significantly to the overall revenue increase [5][14] Company Strategy and Development Direction - The company is focused on building a broader ecosystem that integrates technologies, diagnostics, injectables, and digital capabilities to enhance operational efficiency and long-term engagement [3][4] - Plans for 2026 include strengthening the flagship device portfolio and expanding the global energy-based device offering, alongside the introduction of new platforms and applicators [7][10] - The company aims to capture long-term growth opportunities in the global medical aesthetics market while maintaining a disciplined approach to operational execution [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and highlighted the importance of operational discipline and strategic investments [11][49] - The company anticipates a recovery in the U.S. market, contingent on improvements in macroeconomic conditions and geopolitical stability [49][51] Other Important Information - The company is advancing its AI-enabled diagnostics and skincare initiatives, which are expected to enhance patient retention and treatment outcomes [10][18] - A final dividend of HKD 0.095 per share has been proposed for 2025, reflecting the company's commitment to balancing reinvestment and shareholder value [17] Q&A Session Summary Question: Marketing expense ratio trends and future expectations - Management noted proactive measures to reduce sales and marketing expenses while continuing to invest in strategic projects like DAXXIFY in China, aiming for efficiency and profitability [20][21] Question: R&D pipeline and clinical progress - The company plans several product launches in 2026, focusing on hair growth and leveraging existing platforms for new technologies [23][24] Question: Sales strategy for energy-based devices in China - The company aims to maintain its dominant position in China and grow its energy-based devices segment, integrating efforts across different business units [28][30] Question: Commercialization plans for DAXXIFY - The company has a capacity of 100,000 units for DAXXIFY in 2026, targeting high-value clinics and planning to expand its injectable portfolio in China [35][36] Question: Strategic roadmap for 2026 and beyond - The company is focused on creating an ecosystem to enhance value for practitioners and consumers, with a strong emphasis on energy-based devices and hair growth solutions [39][41] Question: Impact of geopolitical issues on business - The company has demonstrated resilience in handling geopolitical challenges, maintaining operational capacity while facing increased shipping costs [60][61]

Financial Data and Key Metrics Changes - Total revenue reached nearly $4.6 billion, increasing 7.2% compared to 2024, marking record revenue for the third consecutive year [4][22] - Adjusted revenue growth, excluding foreign exchange and commodity impacts, was 6.9% year-over-year, outperforming the market by approximately 320 basis points [22][25] - EBITDA grew 11.2% year-over-year, with margins expanding by 40 basis points to 10.3% [22][29] - Net profit attributable to equity holders was $102 million, up from $62 million in 2024, reflecting a significant increase in profitability [24][22] Business Line Data and Key Metrics Changes - Successfully launched 57 customer programs, with 42 being new or conquest wins, and 36 for electric vehicle platforms [5][7] - New business bookings totaled $4.9 billion, including significant wins in Steer-by-Wire technology [10][14] - APAC revenue reached approximately $1.5 billion, representing a 9.8% increase year-over-year, marking the fourth consecutive year of record revenue in this region [5][6] Market Data and Key Metrics Changes - North America revenue increased by 4.4% year-over-year, while APAC led with 10.2% growth, and EMEA/SA saw an 8.5% increase [26][27] - North America remains the largest region, contributing 50% of total revenue, followed by APAC at 32% and EMEA/SA at 17% [27] Company Strategy and Development Direction - The company focuses on long-term profitable growth, emphasizing technology leadership and alignment with industry megatrends such as electrification and autonomy [16][36] - Expansion of manufacturing and technical footprint across Asia-Pacific to support growth and localization [17][36] - Strategic targeting of customer diversification, serving over 60 OEMs globally, including both established and emerging players [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of record revenue in 2026, despite expectations for modestly lower global OEM production [34][36] - Continued margin expansion is anticipated, driven by operational efficiency and execution improvements [35][36] - Geopolitical risks, including ongoing conflicts, are acknowledged, with a commitment to managing these risks through close engagement with stakeholders [35][36] Other Important Information - The board approved a $46 million dividend, representing a 45% payout ratio, up from 35% in 2024 [6][23] - The company is developing a modular, high-precision Electromechanical Braking (EMB) system, marking a significant step in Motion-by-Wire technology [18][19] Q&A Session Summary Question: Long-term focus on Steer-by-Wire and integrated solutions - Management confirmed a focus on becoming a chassis Motion-by-Wire supplier, leveraging commonalities between Steer-by-Wire and EMB technologies for competitive advantage [41][42] Question: Impairments and compensation expectations - Management indicated expectations for further recoveries related to program cancellations in 2026, with ongoing negotiations with customers [46][47] Question: Revenue growth estimates for 2026 - Management anticipates revenue growth above market by 200-300 basis points, primarily driven by the Asia-Pacific region, with continued margin expansion expected [50][51]

Financial Data and Key Metrics Changes - Total revenue reached nearly $4.6 billion, increasing 7.2% compared to 2024, marking record revenue for the third consecutive year [4][22] - Adjusted revenue growth, excluding foreign exchange and commodity impacts, was 6.9% year-over-year, outperforming the market by approximately 320 basis points [22][25] - EBITDA grew 11.2% year-over-year, with margins expanding by 40 basis points to 10.3% [22][29] - Net profit attributable to equity holders was $102 million, compared to $62 million in 2024, reflecting a significant increase [24][22] - Free cash flow was $124 million in 2025, down from $166 million in 2024 due to increased working capital investments [24][33] Business Line Data and Key Metrics Changes - Successfully launched 57 customer programs, with 42 being new or conquest wins, and 36 for electric vehicle platforms [5][7] - New business bookings totaled $4.9 billion, including significant steer-by-wire wins with leading Chinese NEV OEMs [10][14] - APAC revenue reached approximately $1.5 billion, representing a 9.8% increase year-over-year, marking the fourth consecutive year of record revenue in this region [5][6] Market Data and Key Metrics Changes - North America revenue increased by 4.4% year-over-year, while APAC led with 10.2% growth [26][27] - EMEA SA revenue increased by 8.5% year-over-year, supported by program ramp-ups [26][27] - North America remains the largest region, contributing 50% of total revenue, followed by APAC at 32% and EMEA/SA at 17% [27] Company Strategy and Development Direction - The company focuses on long-term profitable growth, emphasizing technology leadership and alignment with industry megatrends such as electrification and connectivity [36][37] - Expansion of manufacturing and technical footprint across Asia-Pacific to support long-term growth and localization [16][17] - Development of integrated solutions, including steer-by-wire and electromechanical braking systems, to enhance competitiveness [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record revenue in 2026 despite expectations for modestly lower global OEM production [34][35] - Continued margin expansion is anticipated, driven by performance improvements and increased volume leverage [35] - Geopolitical risks, including ongoing conflicts and trade tensions, are acknowledged, with active management strategies in place [35][36] Other Important Information - The board approved a $46 million dividend, representing a 45% payout ratio, up from 35% in 2024 [6][22] - The company opened new manufacturing facilities in China and Thailand to support growing demand [17][18] Q&A Session Summary Question: Long-term focus on steer-by-wire and integrated solutions - Management confirmed a focus on becoming a chassis motion-by-wire supplier, leveraging experience in safety-critical vehicle systems to enhance competitiveness [41][42] Question: Impairments and compensation expectations - Management indicated that further recoveries related to program cancellations are expected in 2026, with ongoing negotiations with customers [46][47] Question: Revenue growth estimates for 2026 - Management anticipates revenue growth above market by 200-300 basis points, primarily in the Asia-Pacific region, with continued margin expansion expected [50][51]