The first three quarters: forging ahead, solidifying the industrial foundation amid structural differentiation

Looking back on the journey of China's intelligent manufacturing in the first three quarters of 2025, we can clearly sense an interweaving of "ice and fire". The cyclical adjustment of the macroeconomy and the local fluctuations in the global supply chain have cast a veil of uncertainty over the entire industry. However, beneath this veil, a profound and positive structural transformation is taking place within the industry.

Firstly, the market driving force is shifting from "scale expansion" to "value deepening". The model that relied on large-scale fixed asset investment to drive the sales of general automation equipment has slowed down, especially in some traditional industries with relatively excessive capacity. However, on the "positive" side, investment is flowing with unprecedented precision to those areas that can directly enhance core competitiveness and solve specific pain points. This precisely creates fertile ground for high-precision and specialized technology providers like Tianxian Digital Intelligence/Magnetic Zheng Intelligent. Our products, such as the FMG3000 absolute value magnetic encoder and the LMD incremental magnetic encoder, no longer merely represent "an industrial part", but have become key enabling components that ensure the "millimeter accuracy" of high-end equipment. When overall capital expenditure becomes cautious, customers are more willing to pay for those core components that can directly enhance their product performance, reliability, and differentiation advantages. Under the extreme requirements of intelligent manufacturing for motion control accuracy, our magnetic sensing technology that "silently guards precision and efficiency" has moved from behind the scenes to the forefront, becoming the "decisive factor" that determines the success or failure of products.

Secondly, technological integration is moving from "concept demonstration" to "scene implementation". In the first three quarters, we observed that the overall architecture of intelligent manufacturing is evolving from "point intelligence" to "line intelligence" and even "surface intelligence". This means that a single device or system is no longer viewed in isolation but is required to seamlessly integrate into a larger data flow and decision-making flow. In high-growth sub-sectors such as new energy lithium battery equipment, photovoltaic slicing machines, and semiconductor post-processing packaging, our displacement measurement systems are no longer merely providing a position signal; they also interact in real time with drive systems, vision systems, and MES systems to jointly achieve online optimization of process parameters and predictive maintenance of production status. This deep integration has enabled Tianxian Digital Intelligence/Magnetic Zheng Intelligent to upgrade from a component supplier to a "customized industrial control solution" partner, jointly defining the performance boundaries of the next generation of intelligent equipment with downstream equipment manufacturers.

Furthermore, the "security and resilience" of the supply chain has been elevated to an unprecedented strategic level. The fluctuations in global geopolitical and economic landscapes have made "self-reliance and controllability" no longer just a slogan but a cornerstone for survival and development. As the industry leader in magnetic sensing technology in China, Tianxian Digital Intelligence/Magnetic Zheng Intelligent has constructed a complete industrial sensing technology matrix, which is a solid link in this cornerstone. In fields such as CNC machine tools and precision injection molding machines that are crucial to the national manufacturing industry, the substitution process of domestic high-end encoders and displacement sensors has significantly accelerated.

In conclusion, in the third quarter of 2025, the intelligent manufacturing sector in China, under the internal transformation amid external pressure, has demonstrated strong resilience. The market is becoming more rational in differentiation, technology is becoming more profound in integration, and the industry is showing more strength in autonomy. For Tianxian Digital Intelligence/Magnetic Zheng Intelligent, this is precisely the best time to "redefine the boundary of precise measurement with innovative magnetic sensing technology", and our products and technologies are precisely on the most urgent rhythm point of industrial upgrading.

Fourth Quarter Outlook: Building momentum gradually, opening a new era in resonance with policies and cycles

Looking forward to the fourth quarter of 2025, we believe that the accumulated potential will enter a concentrated release period. China's intelligent manufacturing is expected to enter a more clear and active closing stage.

Firstly, the warm wind of macro policies will be stronger. It is expected that the special policies and financial support at the national level related to "improving the core competitiveness of manufacturing" and "equipment renewal and technological transformation" will enter the intensive implementation period in the fourth quarter. Those intelligent production lines that were temporarily hesitant or delayed due to the macro environment are expected to be launched in a concentrated manner under the dual drive of policy wind and the annual budget cycle. This will directly stimulate the demand for complete machine equipment such as CNC machines, industrial robots, and intelligent logistics systems. As for the encoder and sensor series products, which are the core components at the upstream level, they will be the first to benefit from this wave of "spring water warming" orders.

Secondly, the industrial technology evolution will encounter a new burst point. After the technical verification and scenario integration in the first three quarters, some products provided to customers for trial use will enter the eve of large-scale deployment in the fourth quarter. For example, the ultra-small and ultra-thin volume absolute value encoder technology represented by the FMG3000 and PCBA board solution precisely meets the core demands of this future massive market. At the same time, under the wave of industrial metaverse and digital twin, the demand for high-precision and real-time data collection of physical entities has sharply increased. Your full series of displacement measurement products, as the "precise coordinate ruler" connecting the physical world and the digital world, will increasingly highlight their strategic value.

Thirdly, the global layout has entered the "new navigation era". With the overall improvement of the competitiveness of China's equipment manufacturing industry, more and more intelligent equipment from China are going global. Tianxian Digital Intelligence/Magnetic Zheng Intelligent's vision of "letting Chinese manufacturing step onto the world stage" is in sync with this trend. Our products "are achieving precise measurement and control in dozens of industrial fields worldwide", and in the fourth quarter, as global customers' reliance on China's supply chain deepens and their pursuit of high-quality and reliable components increases, Tianxian Digital Intelligence/Magnetic Zheng Intelligent's absolute value and incremental magnetic scale encoder series, with their inherent advantages of "resistance to harsh environments" and outstanding "quality standards", are expected to gain wider recognition and breakthroughs in the international market, especially in "Belt and Road" and emerging market countries.

Conclusion

Looking back at the first three quarters of 2025, China's intelligent manufacturing has honed its internal capabilities through overcoming difficulties and has verified its value in complex applications. For Tianxian Digital Intelligence/Magnetic Zheng Intelligent Technology, this has been a journey of deeply integrating the core technologies of the enterprise into the pulse of national industrial upgrading. Looking forward to the fourth quarter, under the triple resonance of policies, markets and technologies, the industry will enter a concluding stage with more vigorous demand, closer technological integration and higher development quality. We firmly believe that with precision measurement and intelligent control as the foundation, and with the vision of "more efficient, more precise, and more sustainable", we will surely be able to join hands with global partners in the new era of intelligent manufacturing, and jointly leave a precise mark of Chinese sensing technology on the world stage.