Financial Data and Key Metrics Changes - The group achieved revenue of US$401.5 million, meeting the midpoint of revenue guidance [3][7] - Group bookings totaled US$431.2 million, showing a 2.9% quarter-on-quarter growth and 4.8% year-on-year growth [7] - Group gross margin exceeded 40%, rebounding due to a better product mix [6][8] - Adjusted net profit was HKD83.2 million, up 1.6% quarter-on-quarter but down 53.1% year-on-year [9] Business Line Data and Key Metrics Changes - The semiconductor (semi) segment contributed approximately 64% of the group's revenue, with revenue of US$255.6 million, up 0.6% quarter-on-quarter and 44.7% year-on-year [9][10] - Semi bookings were US$222.9 million, down 19.5% quarter-on-quarter but up 11.4% year-on-year [10][11] - The surface mount technology (SMT) segment delivered revenue of US$145.9 million, a decline of 20.3% quarter-on-quarter and 35.6% year-on-year [12] - SMT bookings were US$208.4 million, up 46.5% quarter-on-quarter, driven by strong seasonal demand [12] Market Data and Key Metrics Changes - The mainstream business continued to be affected by soft demand from automotive and industrial end markets, with growth trajectory difficult to forecast [6][14] - The company noted stabilization in the automotive and industrial end markets, although they remained soft [12][14] Company Strategy and Development Direction - The focus for 2025 is on securing additional orders from both high volume manufacturing (HVM) and logic customers [5][14] - The company remains confident in the demand for advanced packaging (AP) and TCB solutions for AI and high-performance computing applications [14][105] - The global manufacturing footprint provides flexibility to navigate potential tariff impacts [14][105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining AP revenue and expects mainstream business to improve due to seasonality and better-than-expected Q1 bookings [14] - The indirect impact of tariffs makes the growth trajectory difficult to forecast, but management remains optimistic about the overall market growth [14][26] Other Important Information - The company completed the delivery of the bulk of ECB orders to a leading memory maker, with further orders expected [4][5] - The strong progress in DCB solidifies the company's leadership in the market [5] Q&A Session Summary Question: Booking direction in the second quarter and advanced packaging booking momentum - Management remains confident that Q2 bookings will be within a similar range compared to the last few quarters, assuming no unexpected impacts from tariffs [21][22] Question: Impact of tariffs on SMT business and capacity expansion - Management noted that while there hasn't been significant direct impact on operations, some customers are evaluating their investment timing and location due to tariffs [26][27] Question: Magnitude of orders from the second HBM customer - Orders from the second HBM customer are smaller compared to the first but are considered meaningful, with two orders already received [42] Question: Progress on chip on wafer tools and customer decisions - Management indicated significant progress from qualification to pilot production, with expectations for orders in the second half of 2025 [50][52] Question: Confidence in follow-on orders from the leading HBM customer - Management is hopeful for follow-on orders and is actively engaging with multiple HBM players [62] Question: OpEx management and future profitability - Management emphasized a balance between protecting future R&D investments and maintaining sensible cost control measures [99][100]

Financial Data and Key Metrics Changes - HKEX reported record-breaking trading volumes and exceptional financial results for 2024, with a revenue increase of 32% compared to the previous quarter and a profit after tax increase of 37% [12][56]. Business Line Data and Key Metrics Changes - The company highlighted a robust IPO pipeline and strong daily market turnover despite recent market volatility, indicating stability in its business lines [13]. Market Data and Key Metrics Changes - HKEX's market has remained stable with strong daily turnover, reflecting resilience in the face of macroeconomic and geopolitical challenges [12][13]. Company Strategy and Development Direction - The company aims to focus on its strengths in China, drive international connectivity, and foster innovation and sustainability across its markets to position itself for sustained growth [12]. - HKEX has made a strategic investment by purchasing office floors at Exchange Square to establish its permanent headquarters, enhancing stakeholder engagement and providing long-term cost savings [13]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in HKEX's ability to navigate challenges and emphasized the importance of continuous improvement in trading systems to remain competitive [46]. - The CEO noted that despite an increase in profit tax from around 10% to approximately 16%, the company is focused on increasing turnover to offset the impact [51][52]. Other Important Information - HKEX achieved carbon neutrality across its operations by the end of 2024, demonstrating its commitment to sustainability [9]. - The company is considering changes to its auditor for the 2026 financial year, emphasizing the importance of corporate governance [27]. Q&A Session Summary Question: Concerns about PwC's quality of work due to team changes - Management acknowledged the concern and stated that they are evaluating the situation and will consider changing auditors for the 2026 financial year [27][28]. Question: Inquiry about capitalization costs and profit tax impact - The CEO confirmed an investment of approximately HKD 1 billion in system improvements and noted that profit tax is expected to rise to around 16% [48][51]. Question: Suggestion for increasing dividends for family offices - Management reiterated the company's tradition of paying 90% of profit attributable to shareholders and emphasized that dividend increases depend on profit growth [55][56]. Question: Concerns about minority shareholder interests and stock price manipulation - Management acknowledged the issue and stated that they monitor practices related to placements and are open to feedback [60][61]. Question: Inquiry about the recent property purchase price and AGM participation for Mainland investors - Management defended the property purchase as a strategic investment and indicated that they are considering system upgrades to allow Mainland investors to participate in AGMs [64][66].

Financial Data and Key Metrics Changes - HKEX reported record-breaking trading volumes and exceptional financial results for 2024, with revenue increasing by 32% compared to the previous quarter and profit after tax rising by 37% [13][56] - The company achieved carbon neutrality across its operations by the end of 2024 [9] Business Line Data and Key Metrics Changes - The market remained stable despite recent volatility, with strong daily market turnover and a robust IPO pipeline [14] - HKEX signed an agreement to establish its permanent group headquarters at Exchange Square, which will enhance stakeholder engagement and provide long-term cost savings [14] Market Data and Key Metrics Changes - The company emphasized its focus on China strengths and driving international connectivity to foster innovation and sustainability across its markets [13] Company Strategy and Development Direction - HKEX aims to solidify and elevate Hong Kong's position as an international financial center and a super connector between China and the rest of the world [15] - The company plans to invest approximately HKD 1 billion in improving its trading and transaction systems to remain competitive [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained growth despite challenging macroeconomic and geopolitical conditions [13] - The company acknowledged the need to adapt to changes in profit tax, projecting an increase from around 10% to approximately 16% [51] Other Important Information - HKEX has a tradition of paying out 90% of its profit attributable to shareholders, which is considered high compared to global peers [55] - The company is considering system upgrades to allow Mainland investors to participate in AGMs [66] Q&A Session Summary Question: Concerns about PwC's quality of work due to team changes - Management acknowledged the importance of corporate governance and stated that they would evaluate the need for a new auditor for the 2026 financial year [27][28] Question: Inquiry about capitalization costs and profit tax impact - Management confirmed an investment of about HKD 1 billion for system improvements and projected an increase in profit tax from around 10% to 16% [49][51] Question: Suggestion to increase dividends for family offices - Management reiterated the 90% payout ratio and emphasized that dividends depend on profit levels [55][56] Question: Concerns about minority shareholders' interests during placements - Management acknowledged the issue and stated that they would consider feedback regarding placements and related practices [60][61] Question: Inquiry about the property purchase price and AGM participation for Mainland investors - Management defended the property purchase as a strategic investment and confirmed ongoing discussions to allow Mainland investors to participate in AGMs [64][66]

Financial Data and Key Metrics Changes - The company achieved group revenue of US$401.5 million, meeting the midpoint of revenue guidance [3] - Group bookings totaled US$431.2 million, showing a 2.9% growth quarter on quarter and 4.8% growth year on year [7] - Group gross margin exceeded 40%, rebounding due to a better product mix [6] - Adjusted net profit was HKD83.2 million, up 1.6% quarter on quarter but down 53.1% year on year [9] Business Line Data and Key Metrics Changes - The semiconductor (semi) segment contributed approximately 64% of the group’s revenue, with revenue growing to US$255.6 million, up 0.6% quarter on quarter and 44.7% year on year [9] - Semi bookings were US$222.9 million, down 19.5% quarter on quarter but up 11.4% year on year [10] - The surface mount technology (SMT) segment delivered revenue of US$145.9 million, a decline of 20.3% quarter on quarter and 35.6% year on year [12] - SMT bookings were US$208.4 million, up 46.5% quarter on quarter, driven by strong seasonal system in package (SiP) bookings [12] Market Data and Key Metrics Changes - The mainstream business continued to be affected by soft demand from automotive and industrial end markets, making growth difficult to forecast [6] - The company noted stabilization in the automotive and industrial end markets, although they remained soft [12] Company Strategy and Development Direction - The focus for 2025 is on securing additional orders from both high volume manufacturing (HVM) and logic customers [5] - The company remains confident in the demand for advanced packaging (AP) and TCB solutions for AI and high-performance computing applications [14] - The global manufacturing footprint provides flexibility to navigate potential tariff impacts [14][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining AP revenue and expects mainstream business to improve due to seasonality and better than expected Q1 bookings [14] - The indirect impact of tariffs makes the growth trajectory difficult to forecast, but management is monitoring the situation closely [25][100] Other Important Information - The company completed the delivery of the bulk of ECB orders to a leading memory maker, with further orders expected [4] - The strong progress in DCB solidifies the company's leadership in the market [5] Q&A Session Summary Question: Booking direction in the second quarter and advanced packaging booking momentum - Management remains confident that Q2 bookings will be within a similar range compared to the last few quarters, assuming no unexpected impacts from tariffs [21] Question: Impact of tariffs on SMT business and capacity expansion - Management noted no significant direct impact on operations but acknowledged that some customers are evaluating their investment timing and location due to tariffs [25] Question: Magnitude of orders from the second HBM customer - Orders from the second HBM customer are smaller compared to the first but meaningful, with two orders received [46] Question: Progress on chip on wafer tools and customer decisions - Significant progress has been made from qualification to pilot production, with expectations for orders in the second half of 2025 [58] Question: Confidence in follow-on orders from the leading HBM customer - Management is hopeful for follow-on orders and is working hard to secure them [70] Question: Shareholder returns and potential buyback policies - The company is evaluating options for returning capital to shareholders but does not believe it is the right time for a share buyback due to macro uncertainties [107] Question: OpEx management and future profitability - The company is mindful of cost levels and has conducted restructuring programs, balancing R&D investments with cost control [110]

Financial Data and Key Metrics Changes - Revenue from continuing operations grew 23.1% year over year to RMB9.39 billion, while total revenue achieved RMB9.65 billion, representing a 21% year over year growth [9] - Adjusted non-IFRS net profit grew 40% year over year to RMB2.68 billion, with a record backlog for continuing operations of RMB52.33 billion, growing 47.1% year over year [9][10] - Adjusted IFRS gross profit margin reached 41.9%, with net profit attributable to the owners of the company increasing by 89.1% year over year [26][27] Business Line Data and Key Metrics Changes - Wuxi Chemistry's CRDMO business revenue grew 32.9% year over year to RMB7.39 billion, with adjusted non-IFRS gross profit margin improving 4.2 percentage points year over year to 47.5% [11][12] - Small molecule DNM business revenue grew 13.8% year over year to RMB3.85 billion, with both Changzhou and Taishin API manufacturing sites passing FDA inspections [13] - Tides business achieved RMB2.24 billion revenue in the first quarter, representing a strong growth of 187.6% year over year [14] Market Data and Key Metrics Changes - Revenue from the U.S. market grew 28.4% year over year, while revenue from Europe grew 26.2% year over year; however, China showed a slight decline [10] - Revenue generated from clinical CRO and SMO business was down 2.2% year over year to RMB0.61 billion, attributed to market price impact [21][22] Company Strategy and Development Direction - The company will continue to focus on the CRDMO business model with an emphasis on operational efficiency and exceptional services [29] - Full year guidance is maintained, expecting revenue from continuing operations to resume double-digit growth of 10% to 15% year over year, targeting total revenue of RMB41.5 billion to RMB43 billion [30] - The company plans to accelerate global D and M capacity expansion, with CapEx expected to reach RMB7 billion to RMB8 billion [30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full year guidance despite external uncertainties, emphasizing the importance of operational resilience [30][31] - The company is committed to rewarding shareholders with a proposed 30% annual cash dividend payout ratio and additional one-time special cash dividend [31][32] Other Important Information - The company has successfully supported about 40% of successful out-licensing deals from Chinese biotech since 2022 [20] - The total amount of cash dividends and share repurchases is expected to exceed RMB6 billion, accounting for more than 60% of the company's net profit attributable to owners in 2024 [32] Q&A Session Summary Question: What are the key drivers behind the robust growth in Tides? - The growth is attributed to both strong demand and capacity ramping up from a low base last year [37] Question: How does the company view the impact of tariffs on business segments? - Tariffs are seen as a systemic challenge, with less than 10% of total revenue coming from exports to the U.S. [45][46] Question: What is the projected CapEx for 2025 and its allocation? - Projected CapEx is RMB7 billion to RMB8 billion, primarily for expanding D and M manufacturing capacity in various locations [50][54] Question: How does the company plan to address pricing pressures in testing and biology segments? - The company aims to focus on contracts with higher margins and differentiate its services to improve margins gradually [68] Question: What is the expected contribution from late-stage D and M projects in the next few years? - Specific numbers are difficult to provide, but the CRDMO business model is expected to sustain growth through a strong pipeline [71]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue reached $6.554 billion, a 6% increase year over year [3] - EBITDA was $786 million, reflecting a 16.6% increase compared to the previous year [3] - Operating profit stood at $598 million, up 19.4% year over year [3] - Profit attributable to owners was $364 million, a 20.9% increase from last year [3] - Basic earnings per share were $2.84, also a 20.9% increase year over year [3] Business Line Data and Key Metrics Changes - Packaged meats accounted for 49.5% of total revenue and 83.8% of operating profit in Q1 2025 [4] - The pork business contributed 42.9% of revenue and 21.9% of operating profit [4] - Other businesses contributed 7.6% of revenue but incurred a loss of $34 million [4] - In North America, operating profits increased by 72.8% to $330 million [9] - In China, operating profit was $250 million, down 14.3% year over year [8] Market Data and Key Metrics Changes - In China, the average hog price was RMB 15.99 per kilogram, up 7.3% year over year [6] - In the U.S., the average hog price was $1.44 per kilogram, up 14.1% year over year [6] - In Europe, the average hog price was $1.40 per kilogram, down 11.8% year over year [7] - The number of slaughter hogs in China increased by 0.1% year over year to 195 million heads [6] Company Strategy and Development Direction - The company aims to consolidate global resources, improve product mix, adjust pricing, and control costs [10] - Key business priorities include improving the pork business, expanding market networks, and optimizing the business portfolio [11] - The focus remains on industrialization, diversification, internalization, and digitalization to enhance market position [10] Management Comments on Operating Environment and Future Outlook - Management noted that consumer demand remains soft, impacting the packaged meat business [12] - The company is implementing eight measures to return the packaged meat business to growth, including specialized sales forces and enhanced marketing efforts [14][16] - Management expects the second quarter to show recovery in packaged meat volume and profit [16] Other Important Information - The hog production business is seen as a supporting business rather than a core focus, with strategies tailored to local market conditions [42][43] - The company plans to maintain a vertical integration level of 20% to 30% in hog production, focusing on fresh pork and packaged meat as core businesses [65] Q&A Session Summary Question: Reasons for decline in China packaged meat business - Management cited soft consumer demand, destocking by distributors, and slow adaptation to market channel changes as key reasons [12][13] Question: Outlook for packaged meat business in Q2 2025 - Management expects the packaged meat business to stop declining and gradually recover in Q2, with full-year growth anticipated [16] Question: Impact of tariffs on hog prices - Management believes tariffs will have limited short-term impact on hog prices, with supply and demand balance being the primary driver [34][35] Question: Hog production improvement drivers - The improvement in hog production is driven by reduced raising costs and improved KPIs rather than hog prices [21] Question: U.S. pork business outlook - Management expects profitability in the U.S. pork business to improve in Q2 and Q3, aligning with seasonal trends [67]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue was $6.554 billion, a 6% increase year-over-year [3] - EBITDA reached $786 million, up 16.6% from the previous year [3] - Operating profit was $598 million, reflecting a 19.4% increase year-over-year [3] - Profit attributable to owners was $364 million, a 20.9% increase compared to last year [3] - Basic earnings per share rose to $2.84, marking a 20.9% increase year-over-year [3] Business Line Data and Key Metrics Changes - Packaged meats accounted for 49.5% of total revenue and 83.8% of operating profit [4] - Pork business contributed 42.9% of revenue and 21.9% of operating profit [4] - Other businesses contributed 7.6% of revenue but incurred a loss of $34 million [4] - In North America, operating profits increased by 72.8% to $330 million [8] - In China, operating profit was $250 million, down 14.3% year-over-year [8] Market Data and Key Metrics Changes - In China, the average hog price was RMB 15.99 per kilogram, up 7.3% year-over-year [6] - In the U.S., the average hog price was $1.44 per kilogram, up 14.1% year-over-year [6] - In Europe, the average hog price was $1.40 per kilogram, down 11.8% year-over-year [7] - The number of slaughter hogs in China increased by 0.1% year-over-year to 195 million heads [6] Company Strategy and Development Direction - The company aims to consolidate global resources, enhance market competitiveness, and focus on industrialization, diversification, internalization, and digitalization [10] - Priorities include improving the pork business, expanding the market network, and optimizing the business portfolio [10][11] - The company plans to adapt to market changes and strengthen competitive edges to drive steady improvements in sales volume and results [10] Management Comments on Operating Environment and Future Outlook - Management noted that consumer demand remains soft, impacting the packaged meat business [12] - The company is implementing eight measures to return the packaged meat business to growth, including specialized sales forces and increased marketing investments [14][16] - Management expects the packaged meat business to stabilize in the second quarter and grow in the second half of 2025 [16] - The hog production business is expected to improve significantly in 2025, driven by reduced raising costs and improved KPIs [21] Other Important Information - The company anticipates that the profit per ton for packaged meats will be lower than last year but will remain at a relatively high level [17] - The hog production business in China is expected to see significant improvements, with a projected profit increase of around RMB 500 million year-over-year [21] - The company is focusing on maintaining a strong position in the global pork industry while tailoring strategies based on local market conditions [43][44] Q&A Session Summary Question: What are the reasons for the decline in the packaged meat business in Q1? - Management cited soft consumer demand, destocking by distributors, and slow adaptation to market channel changes as key reasons [12][13] Question: What measures are being taken to return the packaged meat business to growth? - Eight measures were outlined, including specialized sales forces, expanding the point of sales, and increased marketing investments [14][16] Question: What is the outlook for hog prices and production in China? - Management expects hog prices to be lower than last year, but improvements in hog production are anticipated due to reduced raising costs [20][21] Question: How will tariffs impact the hog production business? - Tariffs are expected to have limited short-term impact on hog prices, but may affect raising costs in the long term [35][56] Question: What is the expected contribution of different product categories in the packaged meat business? - Frozen and snack products are expected to grow faster, with contributions increasing from around 5% to 8% by the end of the year [62]

Financial Data and Key Metrics Changes - In Q1 2025, revenue from continuing operations grew 23.1% year over year to RMB 9.39 billion, while total revenue reached RMB 9.65 billion, representing a 21% year over year growth [9] - Adjusted non-IFRS net profit increased 40% year over year to RMB 2.68 billion, with a record backlog for continuing operations of RMB 52.33 billion, growing 47.1% year over year [9][10] - Adjusted IFRS gross profit margin reached 41.9%, with net profit attributable to owners increasing by 89.1% year over year [25][26] Business Line Data and Key Metrics Changes - Wuxi Chemistry's CRDMO business revenue grew 32.9% year over year to RMB 7.39 billion, with adjusted non-IFRS gross profit margin improving by 4.2 percentage points to 47.5% [11][12] - Small molecule DNM business revenue grew 13.8% year over year to RMB 3.85 billion, with both Changzhou and Taishin API manufacturing sites passing FDA inspections [13] - Tides business achieved revenue of RMB 2.24 billion in Q1, representing a strong growth of 187.6% year over year [14] Market Data and Key Metrics Changes - Revenue from the U.S. market grew 28.4% year over year, while revenue from Europe grew 26.2% year over year; however, China showed a slight decline [10] - Revenue from Wuxi Testing decreased by 4% year over year to RMB 1.29 billion, with lab testing revenue down 4.9% due to market pricing impacts [18][19] Company Strategy and Development Direction - The company will continue to focus on the CRDMO business model with an emphasis on operational efficiency and exceptional services [29] - Full year guidance remains at 10% to 15% revenue growth, targeting total revenue of RMB 41.5 billion to RMB 43 billion [30] - The company plans to accelerate global D and M capacity expansion, with CapEx expected to reach RMB 7 billion to RMB 8 billion [30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full year guidance despite external uncertainties, emphasizing the resilience of the management team [29][30] - The company is closely monitoring changes in the global macro environment and will communicate any changes in guidance promptly [30][31] Other Important Information - The Board of Directors proposed maintaining a 30% annual cash dividend payout ratio, totaling approximately RMB 2.8 billion, along with a one-time special cash dividend of RMB 1 billion [31] - The company announced plans to repurchase and cancel RMB 1 billion worth of A shares in 2025 [32] Q&A Session Summary Question: What are the key drivers behind the robust growth in Tides? - Management indicated that the strong growth in Tides was due to both capacity ramp-up and a relatively low base from the previous year [37] Question: How does the company view the impact of tariffs on business segments? - Management acknowledged that tariffs are a systemic challenge affecting global operations, but emphasized efforts to optimize and diversify the supply chain to mitigate impacts [44][46] Question: What is the projected CapEx for 2025 and its allocation? - The projected CapEx is RMB 7 billion to RMB 8 billion, primarily focused on expanding D and M manufacturing capacity in various geographies [50][54] Question: How does the company plan to improve profit margins? - Management stated that continuous focus on operational efficiency and process development excellence will help improve margins, despite potential pressures from new capacity ramp-up [78][81]

Financial Data and Key Metrics Changes - Revenue from continuing operations grew 23.1% year over year to RMB9.39 billion, while total revenue achieved RMB9.65 billion, representing a 21% year over year growth [9] - Adjusted non-IFRS net profit grew 40% year over year to RMB2.68 billion, with a record backlog for continuing operations of RMB52.33 billion, growing 47.1% year over year [9][10] - Adjusted IFRS gross profit margin reached 41.9%, with net profit attributable to the owners of the company increasing by 89.1% year over year [26][27] Business Line Data and Key Metrics Changes - Wuxi Chemistry's CRDMO business revenue grew 32.9% year over year to RMB7.39 billion, with adjusted non-IFRS gross profit margin improving 4.2 percentage points year over year to 47.5% [11][12] - Small molecule DNM business revenue grew 13.8% year over year to RMB3.85 billion, with both Changzhou and Taishin API manufacturing sites passing FDA inspections [13] - Tides business achieved RMB2.24 billion revenue in the first quarter, representing a strong growth of 187.6% year over year [14] Market Data and Key Metrics Changes - Revenue from the U.S. market grew 28.4% year over year, while revenue from Europe grew 26.2% year over year; however, China showed a slight decline [10] - Revenue generated from clinical CRO and SMO business was down 2.2% year over year to RMB0.61 billion, attributed to market price impact [21][22] Company Strategy and Development Direction - The company will continue to focus on the CRDMO business model with an emphasis on operational efficiency and exceptional services [29] - Full year guidance is maintained, expecting revenue from continuing operations to resume double-digit growth of 10% to 15% year over year, targeting total revenue of RMB41.5 billion to RMB43 billion [30] - The company plans to accelerate global D and M capacity expansion, with CapEx expected to reach RMB7 billion to RMB8 billion [30] Management Comments on Operating Environment and Future Outlook - Management acknowledges the dynamic and complex global environment, emphasizing the need for operational resilience [29] - Despite external uncertainties, the company maintains confidence in its business model and operational capabilities [30] - The management team is committed to enhancing shareholder value through dividends and share repurchase plans [31][32] Other Important Information - The company plans to maintain a 30% annual cash dividend payout ratio of net profit, totaling approximately RMB2.8 billion, along with a one-time special cash dividend of RMB1 billion [31] - The company will repurchase and cancel RMB1 billion worth of A shares when appropriate in 2025 [32] Q&A Session Summary Question: What are the key drivers behind the robust growth in Tides? - The growth is attributed to both strong demand and capacity ramping up from a low base last year [37] Question: How does the company view the impact of tariffs on business segments? - Tariffs are seen as a systemic challenge, with less than 10% of total revenue coming from exports to the U.S. [45][46] Question: What is the expected CapEx distribution for 2025? - CapEx will focus on expanding new modality and small molecule capacities in China, Singapore, and the U.S., with over 70% allocated to D and M manufacturing capacity expansion [54] Question: How does the company plan to address pricing pressures in testing and biology segments? - The company aims to focus on contracts with higher margins and differentiation strategies to improve margins gradually [68] Question: What is the expected revenue contribution from late-stage D and M projects? - Specific numbers are difficult to provide, but the company expects sustained growth from its CRDMO business model [71]

Financial Data and Key Indicators Changes - In Q1 2025, the company recorded operating revenue of RMB 6.2 billion, down 15.4% year on year [7] - Total profit decreased by 28.4% year on year [7] - Net attributable profit was RMB 4 billion, down 20% year on year [7] - Basic earnings per share fell to RMB 3, down 18.9% [7] - Weighted average return on equity (ROE) was 2.58% and debt to asset ratio stood at 44.8% [7] Business Line Data and Key Indicators Changes - Commercial coal production reached 33.35 million tonnes, up 1.9% year on year [3] - Commercial coal sales volume was 64.14 million tonnes, up 0.4% year on year [4] - Self-produced commercial coal sales increased to 32.68 million tonnes, up 1.1% year on year [4] - Polyolefins production decreased by 3.6% to 378,000 tonnes, while sales fell by 4.8% to 55,000 tonnes [5] - Urea production increased by 11.2% to 28,000 tonnes, with sales up 8.9% to 600,000 tonnes [5] - Methanol production rose by 24.8% to 514,000 tonnes, with sales up 33.6% to 529,000 tonnes [5] Market Data and Key Indicators Changes - The average selling price (ASP) of self-produced commercial coal was RMB 4.92 per tonne, down RMB 160 [4] - ASP for proprietary coal trading was RMB 4.86 per tonne, down RMB 125 [4] - Coking coal prices decreased by 6% while thermal coal prices fell by 2% from the end of the previous year [22] Company Strategy and Development Direction - The company aims to strengthen marketing efforts, ensure safe production, and enhance production-sales coordination [9] - Focus on cost reduction and efficiency improvement while managing business risks [9] - Plans to explore asset injection or mergers and acquisitions in the future, although no clear plans are currently in place [24] Management Comments on Operating Environment and Future Outlook - The macroeconomic landscape shows signs of improvement, with favorable factors gradually emerging [9] - The company is committed to maintaining a clear-headed approach to address challenges in the coal market [9] - Management expressed confidence in coal remaining a primary energy source in China for the foreseeable future [54] Other Important Information - The company reported a net profit decrease due to declining prices of self-produced commercial coal and reduced profits from coal chemical enterprises [8] - The fulfillment rate of long-term contracts was reported to be no less than 90% for Q1 [28] Q&A Session Summary Question: What factors contributed to the reduction in the cost of self-produced commercial coal? - Management indicated that coordinated use of funds and improved production efficiency contributed to cost reduction [11][12] Question: What are the reasons behind the reduction of net operational cash in Q1? - The decrease was attributed to lower net profit, settlement of accounts payables, and depreciation and amortization impacts [13][14] Question: What is the outlook for the GP margin of the coal chemical business? - Management expects the GP margin to remain stable due to the integration of coal and coal chemical operations [35] Question: What is the current status of projects under construction? - The Yulin Coal Chemical Phase II project is on track, with no updates on the timetable [38] Question: What is the company's view on the outlook of the industry? - Management believes coal will continue to be a mainstay energy source in China, with stable demand expected [54][55]