Summary of the Conference Call for Xiyeg股份 Company Overview - Xiyeg股份 is a leading player in the tin, indium, copper, and zinc industry, with advanced mining and processing technologies and a significant market share [3][12]. Financial Performance - In the first three quarters of 2025, the net profit reached 1.97 billion yuan, a year-on-year increase of nearly 36% [2][4]. - Return on Equity (ROE) was 8.75%, up approximately 2 percentage points year-on-year [2][4]. - Net asset size increased to 22 billion yuan, growing about 5% from the beginning of the year [2][4]. - Operating cash flow net amount was 3.2 billion yuan, a year-on-year increase of nearly 30% [2][4]. Production and Cost Management - The planned tin production for 2025 is 24,000 tons, with balanced quarterly production [2][5]. - Cost pressures arose from declining ore grades, mining rights transfer income, and resource tax impacts, but cost increases have been somewhat mitigated through reforms [2][5]. - The smelting segment faced profitability pressure due to low processing fees for copper and tin, but high self-sourcing ratios and favorable sulfuric acid prices helped offset some negative impacts [6]. Supply and Demand Dynamics - The supply side remains tight, with reduced imports of Wa State tin into China, leading to a competitive mining environment and declining processing fees [2][8]. - Despite expectations of Wa State's resumption of production, actual metal quantities entering China remain low, with only 500-800 tons per month as of September, indicating no substantial improvement in supply-side issues [8][10]. - Factors supporting rare metal prices include global tin resource scarcity, declining quality, limited new mining projects, and insufficient secondary resource supply elasticity [9][10]. Strategic Planning - The "14th Five-Year Plan" is focused on stabilizing smelting capacity unless raw material guarantees are clear, with limited expansion space due to current profitability challenges in the smelting business [11]. - The company is the only one in the industry with a processing and re-export policy, ensuring full-capacity production [12][13]. Competitive Advantages - Xiyeg股份 has significant competitive advantages, including rich resource endowments, leading technology in mining and processing, and a large market share both domestically and internationally [12][13]. - The company has increased overseas raw material procurement to ensure full-capacity operations, contributing to its strong performance [13]. Industry Outlook - The overall outlook for tin prices is positive due to strong demand driven by AI development and increased electronic product usage, despite potential pressures from traditional consumption [10].

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Rare Earths and NdFeB Magnet Markets - **Region**: China and Southeast Asia Core Insights and Arguments 1. **Policy Changes**: In August 2025, Beijing implemented new interim measures tightening controls on rare earth mining and processing, with production quotas no longer disclosed publicly. The first batch of 2025 quotas showed mining quotas up 2-5% YoY, with light rare earths comprising ~85% and medium/heavy rare earths ~15% [3][3][3] 2. **Feedstock Imports Decline**: China's rare earth feedstock imports fell by ~20% YoY from January to August 2025. Myanmar, a significant source, has mandated a halt to local rare earth mining from December 31, 2025, which could impact global NdPr supply [4][4][4] 3. **Price Trends**: NdPr prices are expected to soften into Q4 2025 from ~US$75/kg, influenced by eased export controls in Southeast Asia. However, there is potential upside risk for Dy and Tb prices due to thin spot markets and increasing European premiums [5][5][5] 4. **Export Recovery**: China's rare earth oxide exports rebounded significantly, with July exports at 6,422 tons (+69% YoY). Magnet exports also surged after a decline in May, indicating a recovery driven by backlogged orders and accelerated export license issuance [6][6][6] 5. **Capacity Utilization**: China's rare earth smelter operating rates decreased from ~40% in February to ~29% in July 2025, with leading enterprises maintaining higher rates due to scale and technology advantages [9][9][9] 6. **Magnet Price Stabilization**: N55 magnet blank prices rose sharply from ~US$23/kg in June to ~US$37–$38.50/kg in September 2025, with expectations for stabilization as order backlogs clear [10][10][10] 7. **Demand Drivers**: Strong demand is supported by electric vehicle sales, renewable energy, and automation/robotics. The introduction of humanoid robots is projected to add ~6,100 tons of NdFeB demand in 2025 [12][12][12] 8. **Supply Constraints**: Mined output remains stable under control quotas, but summer heat/power curbs and tighter governance are expected to lower mined supply in Q4 2025 [13][13][13] Additional Important Information - **Geopolitical Factors**: The geopolitical situation in Myanmar has led to a significant reduction in rare earth flows, which could have broader implications for global supply chains [4][4][4] - **Market Dynamics**: The interplay between domestic production and import reliance is critical, with a sourcing ratio of ~3:1 favoring domestic supply YTD [4][4][4] - **Future Projects**: Limited new mining projects are anticipated in the near term, although downstream expansions continue, such as a 10ktpa separation line under construction [11][11][11] This summary encapsulates the critical insights and trends affecting the rare earths and NdFeB magnet markets, highlighting both opportunities and risks for investors.

Summary of Lepu's 3Q25 Earnings Call Company Overview - **Company**: Lepu (300003.SZ) - **Industry**: Medical devices and pharmaceuticals in China Key Financial Results - **Revenue**: Rmb1,569 million, up 12% year-over-year, but missed Goldman Sachs estimates (GSe) of Rmb1,937 million due to softer pharmaceutical sales growth of 53% year-over-year compared to GSe's expectation of 70% [1][9] - **Net Profit**: Rmb291 million, up 176% year-over-year, in line with GSe's estimate of Rmb277 million [1][9] - **Selling Expense Ratio**: 17.3%, lower than GSe's estimate of 21.6% [1][9] Business Segments - **Medical Aesthetics**: Generated Rmb86 million in revenue from just two months of sales since August, with management reaffirming a full-year guidance of Rmb300 million for this segment [1][9] - **Future Projections**: Expected revenue from medical aesthetics to reach Rmb1 billion by 2026 [1][9] Product Development and Pipeline - **PDRN Product and Thermage**: Anticipated approval in Q1/Q2 of the following year [1][9] - **Innovative Drug Pipeline**: Two new assets added, with existing assets progressing as planned [1][9] Forecast Revisions - **Short-term Revenue Forecast**: Slightly lowered to reflect 3Q25 results [1][9] - **Long-term Revenue and Net Profit Forecast**: Increased due to optimistic R&D progress in innovative drugs [1][9] - **Updated Price Target**: Raised to Rmb19 from Rmb18, maintaining a Buy rating [1][9] Investment Thesis - **Market Position**: Lepu is positioned as a cardiovascular disease treatment and diagnostics solution provider, expanding into consumer medical products [1][9] - **Concerns**: Investors are wary due to the impact of the volume-based procurement (VBP) policy and anti-corruption campaigns affecting revenue growth [1][9] - **Long-term Growth Potential**: Innovative products and the medical aesthetic business are expected to offset revenue losses from VBP, providing long-term growth momentum [1][9] Key Catalysts 1. Successful launch of innovative products in 2025 2. Rapid ramp-up of pulsed sonic balloons and degradable PFO occluders, and TAVR [1][9] Risks - **Price Cuts**: Potential price reductions for innovative medical devices due to VBP [1][10] - **R&D Progress**: Risks associated with slower-than-expected R&D progress [1][10] - **Goodwill Impairment**: Possible losses from lower-than-expected earnings from subsidiaries [1][10]

Summary of Tongwei Co. Ltd. Conference Call Company Overview - **Company**: Tongwei Co. Ltd. - **Ticker**: 600438.SS - **Industry**: China Utilities - **Market Cap**: Rmb99,989.1 million - **Current Share Price**: Rmb22.21 (as of October 24, 2025) - **Price Target**: Rmb21.85 - **52-Week Range**: Rmb32.05 - Rmb14.89 - **Average Daily Trading Value**: Rmb1,517 million Key Financial Highlights - **3Q25 Performance**: - Reported a net loss of Rmb315 million, a significant improvement from losses of Rmb2.4 billion in 2Q25 and Rmb2.6 billion in 1Q25 [3][8] - Revenue remained stable at Rmb24.1 billion, slightly down from Rmb24.6 billion in 2Q25 [3] - Gross margin improved to 7.2%, up from 2.0% in 2Q25 and -2.9% in 1Q25, attributed to the recovery in polysilicon prices [3][8] - EBIT turned to a mild profit of Rmb88 million in 3Q25 after consecutive losses since 1Q24 [8] Industry Context - **Polysilicon Price Recovery**: The recovery in polysilicon prices since early July has positively impacted Tongwei's gross profit margin and reduced asset impairment [8] - **Asset Impairment**: Reduced to Rmb247 million in 3Q25 from -Rmb1.6 billion in 2Q25 and -Rmb796 million in 1Q25, indicating improved inventory management and market conditions [3][8] Investment Thesis - **Market Outlook**: The overall industry view is considered attractive, with expectations of meaningful upside in the next 12 months [2][5] - **Consensus EPS Direction**: Financial results are seen as aligning with or exceeding consensus expectations, leading to a revision of earnings forecasts higher [2] Risks and Considerations - **Upside Risks**: - Higher-than-expected photovoltaic (PV) installations globally - Less-than-expected new polysilicon capacity from new entrants - Higher-than-expected polysilicon prices - Faster development in next-generation solar cell technologies [11] - **Downside Risks**: - Lower-than-expected PV installations worldwide - Intensified competition and pricing pressures across the supply chain - Slower overseas market exploration for its module business - Intensified trade tensions [11] Valuation Methodology - **Valuation Approach**: Price target derived from discounted cash flow (DCF) methodology, capturing long-term cash flows for 2026-2036 with a WACC of 9.5% [9] Conclusion - **Investment Rating**: Equal-weight, indicating a neutral stance on the stock with potential for moderate returns in line with industry performance [5][29]

Summary of Ningbo Orient Wires & Cables Conference Call Company Overview - **Company**: Ningbo Orient Wires & Cables Co Ltd (603606.SS) - **Industry**: China Utilities - **Market Cap**: Rmb45,527 million - **Current Stock Price**: Rmb66.20 (as of October 24, 2025) - **Price Target**: Rmb69.63, indicating a 5% upside potential Key Financial Highlights - **9M25 Net Profit**: Rmb914 million, down 1.9% YoY - **9M25 Revenue**: Rmb7.5 billion, up 11.9% YoY - **3Q25 Net Profit**: Rmb441 million, up 53.1% YoY and 129.6% QoQ - **Gross Profit Margin (GPM)**: - 3Q25: 22.6%, up 0.9 percentage points YoY and 6.3 percentage points QoQ - Estimated GPM for submarine and high-voltage cables: 34-35% vs. 25% in 1H25 - **Order Backlog**: Rmb19.6 billion as of October 23, 2025, including: - Rmb11.7 billion in submarine and high-voltage cables - Rmb3.9 billion in marine engineering - Rmb3.9 billion in medium- and low-voltage land cables Revenue Breakdown - **Submarine and High-Voltage Cables**: - Revenue: Rmb1,592 million in 3Q25, up 109.4% QoQ - Key projects contributing to revenue: Qingzhou 5 and 7, Fanshi 1 and 2 in Guangdong - **Marine Equipment and Engineering**: Revenue decreased to Rmb78 million, down 63.2% QoQ - **Medium/Low Voltage Land Cables**: Revenue: Rmb1,343 million, up 0.5% QoQ with ~10% GPM Strategic Insights - The significant increase in net profit for 3Q25 is attributed to accelerated revenue recognition from high-margin offshore projects in Guangdong - The company has achieved 86% of the full-year earnings forecast for FY25, indicating potential upside risk to the forecast Valuation and Risks - **Valuation Methodology**: Discounted cash flow analysis with a WACC of 7.4% - **Risks to Upside**: - Increased offshore wind power installations in China - Higher average selling prices (ASPs) for submarine cables - Improved gross profit margins for both submarine and land cables - **Risks to Downside**: - Decrease in offshore wind power installations - Decline in ASPs for submarine cables - Unexpected increases in raw material costs Analyst Ratings - **Stock Rating**: Overweight - **Industry View**: Attractive Conclusion Ningbo Orient Wires & Cables has demonstrated strong financial performance in 3Q25, driven by key offshore projects and a substantial order backlog. The company is well-positioned for future growth, although it faces potential risks related to market conditions and raw material costs. The current stock rating reflects a positive outlook for the company within the utilities sector in China.

Summary of Huaxin Cement Co. 3Q25 Earnings Call Company Overview - **Company**: Huaxin Cement Co - **Industry**: Greater China Cement - **Market Cap**: US$5,440 million - **Ticker**: 600801.SS (A-share), 6655.HK (H-share) Key Financial Highlights - **3Q25 Performance**: - Net profit reached Rmb900 million, representing a **121% YoY** increase and a **3.5% QoQ** increase, exceeding market expectations [2][4] - **9M25 Net Profit**: Grew **76% YoY** to Rmb2 billion [2] - **Revenue Growth**: Driven by increased overseas cement shipment volumes and improved gross profit per ton [2] - **SG&A Expenses**: Controlled with a mild increase of Rmb104 million YoY to approximately Rmb1 billion in 3Q25, resulting in an SG&A ratio of **11.3%**, up **0.6ppt YoY** [3] Strategic Developments - **Acquisition of Lafarge Africa**: - Huaxin acquired an **83.81% stake** in Lafarge Africa for approximately **US$774 million** on August 29, 2025 [4] - The Nigerian business contributed an estimated Rmb100 million to Huaxin's earnings in 3Q25, with full consolidation expected in 4Q25, likely enhancing earnings further [4] Dividend Announcement - **9M Dividend**: First-time announcement of Rmb0.34 per share, implying a **35% payout ratio** of 9M25 earnings, compared to Rmb0.46 per share and **40% payout** for FY24 [5] - **Dividend Yield**: Implies a **1.6% yield** for A-shares and **2.3% yield** for H-shares [5] Analyst Ratings and Price Target - **Rating**: Overweight (OW) on both A and H shares due to high earnings growth visibility from overseas expansion and attractive valuation [5][7] - **Price Target**: Rmb22.90, indicating an **11% upside** from the closing price of Rmb20.66 on October 24, 2025 [7] Risks and Considerations - **Upside Risks**: - Better-than-expected demand in Hubei and Yunnan could mitigate supply/demand impacts [10][12] - Stricter production suspension and environmental regulations may enhance pricing power [10][12] - **Downside Risks**: - Weak fundamentals in Guizhou could negatively affect pricing in southwestern and central China [11][13] - Slower-than-expected growth in overseas markets may hinder overall performance [11][13] Conclusion - Huaxin Cement Co's strong financial performance in 3Q25, driven by overseas expansion and strategic acquisitions, positions the company favorably in the cement industry. The positive market reaction to earnings and the initiation of dividends reflect confidence in future growth prospects. However, potential risks related to market conditions and operational challenges should be monitored closely.

Summary of WuXi AppTec Co. (2359.HK) Earnings Call Company Overview - **Company**: WuXi AppTec Co. (2359.HK) - **Industry**: Healthcare Services, specifically focusing on clinical research and contract development manufacturing Key Financial Highlights - **3Q25 Revenue**: Rmb12.1 billion, representing a **15.3% year-over-year increase** (vs. guidance of Rmb11.5 billion) and **19.7% growth** for continuing operations [1] - **TIDES Business Growth**: Grew **91% year-over-year**, contributing **23%** of total revenue [1] - **Adjusted Non-IFRS Net Profit**: Rmb4.2 billion, up **42% year-over-year**, exceeding guidance of Rmb3.4 billion [1] - **Gross Margin**: Improved to **49.8%**, compared to guidance of **45.0%**, driven by operational efficiency and higher-margin projects [1] - **FY25 Revenue Guidance**: Raised to Rmb43.5-44.0 billion from Rmb42.5-43.5 billion, with expected revenue growth for continuing operations adjusted to **17-18% year-over-year** [1] Order Dynamics and Backlog - **New Order Growth**: Continued strong momentum with a **37% year-over-year increase** in new orders for continuing operations [2] - **Backlog**: Increased to Rmb59.9 billion, up **41.2% year-over-year** [2] - **TIDES Backlog Growth**: Grew by **17.1% year-over-year** in the first nine months, moderating from **48.8%** in the first half of the year [2] - **Future Insights Expected**: Management to provide insights on order growth drivers beyond peptides/GLP-1, trends in US/EU demand, and developments in small molecule CDMO pipelines [2] Capital Expenditure and Free Cash Flow - **3Q25 Capex**: Rmb1.47 billion, with a total of Rmb3.57 billion for the first nine months [3] - **Full Year Capex Budget**: Lowered to Rmb5.5-6 billion from Rmb7-8 billion due to longer settlement cycles [3] - **Free Cash Flow Guidance**: Raised to Rmb8-8.5 billion from Rmb5-6 billion [3] Strategic Moves - **Disposal of Clinical CRO Business**: Agreement signed to divest 100% of the China-based clinical research services business for Rmb2.8 billion, which accounted for **3.5%** of total revenue and **0.7%** of net profit in 9M25 [4] - **Focus on Core Operations**: This divestiture follows previous disposals, indicating a strategic shift towards core operations [4] Market Valuation and Risks - **12-Month Target Price**: HK$109.6 based on a forward P/E of 18x [9] - **A-Share Target Price**: Rmb105.6, derived from the H-share target price [10] - **Downside Risks**: Include potential legislative changes, pricing pressures, regulatory risks, and slower-than-expected business ramp-up [9] Additional Insights - **Investor Focus Areas**: Anticipated discussions on early-stage project recovery, geopolitical risks, and further asset disposal plans during the upcoming earnings call [8] This summary encapsulates the key financial metrics, strategic decisions, and market outlook for WuXi AppTec Co., providing a comprehensive overview for potential investors and stakeholders.

Summary of Shenzhen Kstar Science & Tech (002518.SZ) Earnings Call Company Overview - **Company**: Shenzhen Kstar Science & Tech (002518.SZ) - **Industry**: Electric power conversion technology, focusing on data centers and energy storage systems (ESS) Key Financial Highlights - **3Q25 Results**: - Revenue: Rmb1,446 million (+42% YoY) - Gross Profit: Rmb404 million (+27% YoY) - EBIT: Rmb207 million (+62% YoY) - Net Income: Rmb190 million (+38% YoY) - Gross Profit Margin (GPM): 28% (-3pp YoY) - Operating Profit Margin (OPM): 14% (+2pp YoY) - Net Profit Margin (NPM): 13% (0pp YoY) - Results exceeded guidance estimates (GSe) by 13% for revenue and 5% for net income [1][2][21] Growth Projections - **2026 Sales Growth**: Management anticipates a 35% YoY growth in data center product sales, up from a 19% growth expected in 2025, driven by new domestic and overseas customers [1][2] - **Energy Storage System (ESS)**: - Sales in 3Q25: Rmb335 million (+179% YoY) - Management targets to double ESS sales growth in 2025, with a positive outlook for 2026 [16][18] - **Solar Inverter Sales**: - Sales in 3Q25: Rmb150 million (+5% YoY), primarily driven by overseas markets [17] Customer Acquisition and Market Expansion - **Domestic Customers**: Significant orders expected from Alibaba, Bytedance, Kuaishou, and JD.com, with a focus on UPS systems [1][19] - **Overseas Markets**: Contributed over 50% of segment sales in 3Q25, with strong growth compared to domestic sales [2] - **New Product Development**: Ongoing R&D for high-voltage direct current (HVDC) products and solid-state transformers, with potential shipments to Europe by 2026 [19] Financial Forecasts and Valuation - **Revised EPS Forecasts**: 2025E-2030E EPS forecasts increased by an average of 8% [1][18] - **Target Price**: Revised to Rmb48.5 (+5% from previous Rmb46.2), based on a 28x P/E for 2026E [20][23] - **Valuation Ratios**: - P/E for 2025E: 34.4 - P/B for 2025E: 4.7 - Dividend Yield: 1.0% for 2025E [10][22] Risks and Considerations - **Downside Risks**: - Lower-than-expected growth in data center revenue - Weaker outlook for new energy revenue - Margin pressures in new energy segments [23] Conclusion - **Investment Rating**: Reiterated Buy rating based on strong growth prospects, solid customer acquisition, and positive market dynamics in the data center and energy storage sectors [1][20][22]

Summary of GoerTek 3Q25 Earnings Call Company Overview - **Company**: GoerTek (002241.SZ) - **Industry**: Consumer Electronics, specifically focusing on acoustic components and smart hardware Key Financial Highlights - **Revenue**: Rmb30.6 billion, up 4% YoY and 44% QoQ, exceeding CitiE and BBGe estimates by 17% and 11% respectively [2][7] - **Gross Margin**: Improved by 1.5 percentage points YoY to 12.8%, slightly below CitiE but above BBGe [2][7] - **Operating Profit (OP)**: Rmb1.4 billion, a 10% increase YoY, in line with CitiE and beating BBGe by 12% [2][7] - **Net Profit (NP)**: Rmb1.2 billion, up 5% YoY, exceeding CitiE by 6% but missing BBGe by 5% [2][3] Earnings Forecast and Target Price - **Revised Target Price**: Increased to Rmb38.0 from Rmb34.0, reflecting a 1-6% upward revision on 2025-27E EPS due to improved smart hardware assumptions [3][4] - **Expected Share Price Return**: 14.2% with a total expected return of 15.4% [4] Growth Drivers - **Smart Hardware**: Anticipated growth from AI smart glasses and the upgrade of iPhone MEMS microphones in 2025-2026 [3][27] - **Market Position**: GoerTek is expected to gain market share from US AI glasses customers and ramp up from Chinese smart glass customers [3] Industry Context - **AR/VR Market**: The AR/VR industry is projected to see a rebound in 2026/27, with GoerTek positioned to benefit from Meta's recovery and new product launches [8][13] - **Competition**: The company faces risks from lower-than-expected VR/AR penetration rates and increased competition [29] Investment Strategy - **Rating**: GoerTek shares are rated as "Buy" due to stabilizing AirPods shipments and expected benefits from new product developments [27][28] - **Dividend Yield**: Expected dividend yield of 1.3% [4] Risks and Considerations - **Downside Risks**: Include potential lower penetration rates in VR/AR and intensified competition leading to price pressures [29] Conclusion - GoerTek's 3Q25 results indicate a stable performance with positive growth prospects driven by advancements in smart hardware and strategic market positioning. The revised target price reflects confidence in the company's ability to capitalize on emerging technologies and market trends.

Summary of Shenzhen Inovance Technology Co. (300124.SZ) Earnings Call Company Overview - **Company**: Shenzhen Inovance Technology Co. - **Industry**: Industrial Automation and Electric Vehicle (EV) Components Key Financial Results - **3Q25 Results**: - Revenue: Rmb11,153 million (+21% YoY) - Gross Profit: Rmb3,068 million (+12% YoY) - EBIT: Rmb1,061 million (+7% YoY) - Net Profit: Rmb1,286 million (+4% YoY) - Gross Profit Margin (GPM): 28% (-2pp YoY) - Operating Profit Margin (OPM): 10% (-1pp YoY) - Net Profit Margin (NPM): 12% (-2pp YoY) - Slight miss compared to expectations due to EV segment performance and a one-off subsidy of Rmb136 million in the previous year [1][2][3] Industry Performance - **Industrial Automation (IA)**: - Revenue growth of 27% YoY in 3Q25, reaching Rmb4.3 billion - Supported by recovery in end-markets such as textiles, logistics, and shipbuilding - Indirect export revenue contribution increased by over 50% YoY, accounting for approximately 7% of the IA segment [2][3] - **EV Components**: - Revenue growth of 22% YoY in 3Q25, with a full-year growth target of 30% YoY despite a slowdown in top customer Li Auto's sales [2][12][14] Strategic Developments - **New Business Groups**: - Inovance has established new groups for Smart Robotics and Smart Energy Management, indicating a strategic shift towards advanced technologies [16][18] - **Smart Robotics**: - Launched humanoid robot products and received positive feedback from initial customers, focusing on lightweight and precise components [16][17] - **Smart Energy Management**: - Acknowledges competitive challenges in the domestic energy storage space but aims to leverage strengths in power electronics and grid-forming systems [18][19] Financial Outlook - **Growth Projections**: - Management expects growth to moderate in 4Q25 and 2026, forecasting around 20% YoY growth for IA segment in 2025E [10][24] - **Expense Management**: - SG&A and R&D expenses are guided to be around 15-16% of sales, focusing on long-term growth through strategic investments [22] Risks and Challenges - **Key Risks**: - Slower-than-expected market share gains in industrial automation - Weaker margin trends - Slower ramp-up in the EV component segment - General slowdown in manufacturing capex and automation demand [23][26] Valuation and Investment Rating - **Price Target**: Rmb82.1, based on a 35X 2026E PE - **Investment Rating**: Buy, with shares viewed as attractive given solid long-term growth prospects [26][27] Conclusion - Inovance is positioned well within the industrial automation sector, with strong growth in both IA and EV components, despite facing challenges in the EV market. The establishment of new business groups and a focus on digitalization and robotics indicate a forward-looking strategy aimed at maintaining competitive advantages and exploring new market opportunities [24][26]