ConST responds to tariff impact: Overall gross profit of US business remains stable

Regarding the calibration and testing business, ConST stated at the performance briefing on October 24 that as of the end of the third quarter, the tariff rate for products exported to the United States was 55%. The company is handling non-U.S. business through its Singapore subsidiary to reduce the impact of tariffs. In the third quarter, tariffs and freight costs decreased by 30% year-on-year, positively affecting gross profit. The U.S. business has maintained overall gross profit stability by raising prices and sharing costs with partners. ConST also mentioned that the Singapore subsidiary currently handles about 40% of non-U.S. business, and shipments from Singapore are not subject to tariffs. The company will continue to enhance its value proportion in international channels. This year, the gross profit in the U.S. region is lower than the same period last year, mainly due to high-margin project orders in the petrochemical industry last year. Excluding this special factor, the long-term gross profit margin remains basically stable. At the same time, the company is adjusting its product sales strategy in the U.S. region, introducing more high-margin products to this area. Even with the imposition of tariffs, the high margins can offset tariff costs, ensuring that the overall gross profit level in the U.S. region is not significantly affected