Tempering into Sharpness: Q3 Summary and Strategic Advancement Report


Underpinning the front office's relentless drive for progress is the resilient upgrade of the back-office supply chain system.

The wind begins at the tip of a green reed, while the waves emerge from gentle ripples. Looking back on the third quarter, our alloy saw blade business underwent a profound transformation—a quiet yet powerful evolution—amidst the relentless test of the market. This wasn’t merely about surpassing numbers; it was a systematic upgrade that touched every layer, from core operations to the very essence of our brand. It marked a strategic leap—from mere quantitative growth to qualitative excellence. Compared to the past, this quarter’s landscape is now painted vividly with "efficiency," "quality," and "innovation," creating a new chapter of unprecedented possibilities.

If the past quarter was our "critical phase" for solidifying foundations and ensuring delivery, then the third quarter marks our "advancement phase"—the time when we break free from our cocoon and emerge with a revitalized core. Change first emerged on the shop floor. We successfully moved beyond the earlier "pulse-like high-production" fluctuations, thanks to the expert coordination of our Production Command Center and the comprehensive support provided by our proactive maintenance system. As a result, the production line has, for the first time, entered a stable, continuous, and highly efficient "quasi-steady-state" operation. This milestone marks a significant leap in产能—no longer reliant on simply extending operating hours, but instead rooted firmly in systematic optimization. Consequently, our production capacity benchmark has reached a historic high, while the key metric of output per capita has also soared to new heights.

Running parallel to our capacity expansion is the profound transformation we’ve achieved in quality management. We’ve resolutely shifted the quality control focus far upstream—moving away from relying solely on "post-production inspection" as the final checkpoint, and instead embracing a comprehensive approach that integrates "quality excellence" into every stage of the process. A robust quality management system, encompassing "all employees, all processes, and all elements," has instilled a relentless pursuit of perfection into each and every step of production. This strategic shift has already yielded remarkable results: our first-time pass rate for product inspections has soared to an all-time high, while glowing feedback from clients regarding cutting accuracy and stability stands as the strongest testament to our ongoing commitment to quality improvement.

Our vision now turns toward broader markets, and our flagship products have just undergone a fresh round of forging and sharpening. No longer content with competing in the crowded "standard, mass-market" space, we’ve boldly shifted our focus to the untapped "high-value-added customization" blue ocean. We’ve successfully broken new ground by developing cutting-edge, high-end saw blades tailored for challenging materials like titanium alloys and composite materials—marking a remarkable transition from R&D all the way to large-scale production. At the same time, our core product lines have been meticulously upgraded, significantly extending their average service life. These strategic moves have elevated our high-value-added offerings to an unprecedentedly prominent position on our sales map, while also enabling us to strategically refine and reshape our overall product portfolio.

Underpinning the front office's relentless drive for progress is the resilient upgrade of our back-office supply chain system. We’ve moved beyond the old, passive approach of merely reacting to price fluctuations—instead, by forging strategic procurement alliances and implementing a precise inventory management model, we’ve successfully stabilized cost volatility while making inventory turnover faster and more efficient. At the heart of all these transformative changes lies one fundamental truth: "people." We’re thrilled to see our team spirit evolving—from being outstanding "task executors" into empowered "value creators" with a strong sense of ownership. The unwavering enthusiasm and boundless ingenuity demonstrated daily by our frontline employees are not only our most precious asset but also the very force propelling us forward as we embrace continuous change.

Forged into sharpness through quenching, honed through relentless action toward lasting success. The brilliance of the third quarter has already become the prologue—a foundation that sets a new tone of "dual growth in quality and efficiency," instilling in us unwavering confidence and immense momentum as we strive to secure victory for the entire year. Ahead lie exciting opportunities: pioneering the high-end market, crafting a blueprint for intelligent manufacturing, and relentlessly pursuing excellence across the entire value chain—each awaiting our bold and creative touch. With this same fiery determination, we’ll continue writing glorious chapters in the fourth quarter and beyond!


 

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