Jiangyin Hengrun Heavy Industries (SH:603985)2024-07-10 10:23Financial Performance - The company expects a net profit attributable to shareholders of the parent company for the first half of 2024 to be between -26.50 million and -36.00 million yuan, indicating a loss compared to a profit of 55.31 million yuan in the same period last year[7]. - The expected net profit after deducting non-recurring gains and losses for the first half of 2024 is projected to be between -34.00 million and -46.50 million yuan, compared to 50.33 million yuan in the previous year[8]. - The preliminary financial data provided is subject to final confirmation in the official half-year report, and investors are advised to be aware of investment risks[12]. - The performance forecast is based on preliminary calculations by the company's finance department and has not yet been audited by registered accountants[5]. Operational Challenges - The increase in depreciation expenses is attributed to the conversion of construction in progress to fixed assets at the subsidiary Jiangyin Hengrun Transmission Technology Co., Ltd[10]. - The utilization rate of production capacity at Hengrun Transmission has not met expectations due to insufficient market demand, leading to increased unit production costs[10]. - The company's subsidiary Shanghai Runliuchu Technology Co., Ltd. experienced limited revenue from its computing power leasing business in the first half of 2024, but it is gradually stabilizing as of late June[10]. - The company faces unprecedented competitive pressure in the wind power industry due to fluctuating market conditions and uncertain customer demand[14]. - The bidding prices for wind power equipment and components have continued to decline, tightening the supply-demand relationship within the industry[14]. Strategic Initiatives - The company is committed to optimizing management, improving operational efficiency, and enhancing competitiveness through technological innovation and market expansion[10].