Eddie Precision(SH:603638)2025-04-29 13:05Financial Performance - The company's operating revenue for 2024 reached ¥2,724,860,243.65, representing a 21.90% increase compared to ¥2,235,396,716.50 in 2023[22]. - Net profit attributable to shareholders was ¥344,134,746.51, up 23.50% from ¥278,649,657.53 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was ¥323,900,946.16, reflecting a 27.76% increase from ¥253,522,602.81 in 2023[22]. - The company's total assets increased by 16.46% to ¥6,859,807,618.48 at the end of 2024, compared to ¥5,890,214,620.87 at the end of 2023[22]. - Basic earnings per share rose to ¥0.41, a 24.24% increase from ¥0.33 in 2023[22]. - The weighted average return on equity increased to 9.97%, up 0.90 percentage points from 9.07% in 2023[22]. - The cash flow from operating activities showed a significant increase to ¥155,498,609.69, compared to ¥11,610,986.84 in 2023, marking a 1,239.24% increase[22]. - The company achieved a revenue of 272,486.02 million RMB in 2024, representing a year-on-year increase of 21.90%[125]. - The net profit attributable to shareholders was 34,413.47 million RMB, up 23.50% year-on-year, while the net profit excluding non-recurring items increased by 27.76% to 32,390.09 million RMB[125]. Dividend Distribution - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares to shareholders, totaling approximately 41.55 million RMB (including tax) based on a total share capital of 831,088,292 shares as of March 31, 2025[6]. - The company has a total share capital of 831,088,292 shares as of the dividend distribution date[6]. - The company has no plans for significant asset restructuring or share repurchase that would affect the total share capital before the dividend distribution[6]. Audit and Compliance - The company has received a standard unqualified audit report from Tianzhi International Accounting Firm, ensuring the authenticity and completeness of the financial report[5]. - The company is committed to maintaining the accuracy and completeness of its financial disclosures, as stated by its management[5]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[8]. - The company has no violations of decision-making procedures for providing guarantees[8]. - There are no significant risks that could materially affect the company's operations during the reporting period[9]. Market and Industry Trends - The domestic market for hydraulic breakers is expected to grow due to increased urbanization and infrastructure development, with a current excavator market of approximately 2.5 million units[31]. - The Chinese construction machinery industry generated operating revenue of 810.1 billion yuan in 2023, reflecting a stable market demand recovery[34]. - The domestic excavator sales in 2024 are projected to reach 100,543 units, representing a year-on-year growth of 11.7%[38]. - The global hydraulic components market size has surpassed $100 billion, with Asia accounting for approximately 41% of the market share[41]. - The Chinese hydraulic components market is projected to reach approximately 106.7 billion yuan in 2024, reflecting a year-on-year growth of over 5.3%[42]. - The demand for hydraulic components in the new energy sector is anticipated to triple by 2030, driven by the growth of wind and solar power installations, which are projected to reach 521 million kW and 887 million kW, respectively, in 2024[46]. Research and Development - The company's R&D investment intensity reached 5.02%, indicating a strong commitment to technological innovation and product development[34]. - The company has established a strong R&D team over more than a decade, achieving advanced production technology and product performance recognized by domestic and international clients[179]. - The company emphasizes independent research and technological innovation as key to enhancing competitiveness, with plans to increase R&D investment and expand product series to meet customer needs[171]. - The company plans to enhance its R&D capabilities by upgrading existing products to improve efficiency and environmental performance, while also strengthening its R&D department[174]. Strategic Initiatives - The company aims to enhance its product offerings with innovations such as adjustable hydraulic breakers and low-noise models to meet growing market demands[31]. - The company plans to enhance its product differentiation strategy, focusing on the development of heavy-duty hydraulic breakers and a full range of hydraulic components[34]. - The company is expanding its market presence by strengthening partnerships with major construction machinery manufacturers and enhancing its sales network[35]. - The company intends to deepen cooperation with domestic excavator manufacturers and expand its international market presence by segmenting global markets and establishing regional responsibilities[177]. - The company aims to launch multiple new products annually while enhancing its after-sales service system to strengthen market influence and expand into surrounding markets[177]. Human Resources - The company has a total of 3,149 employees, with 1,485 in the parent company and 1,664 in major subsidiaries[199]. - The number of R&D personnel is 427, making up 14.25% of the total workforce, with a majority aged between 30 and 40 years[136]. - The educational background of employees shows 57 with postgraduate degrees, 507 with bachelor's degrees, 834 with associate degrees, and 1,751 with other qualifications[200]. - The company plans to implement a talent development plan to build a skilled workforce, focusing on internal training and external talent acquisition to support innovation and growth[175]. Governance and Shareholder Relations - The company has a comprehensive governance structure in place, including a board of directors, supervisory board, and management team, ensuring compliance with regulations and protection of minority shareholders' rights[181]. - The company has held multiple shareholder meetings in 2024, with all resolutions passed, indicating strong shareholder support[182]. - The chairman and general manager holds 158,083,941 shares, with no changes in shareholding during the reporting period, reflecting stability in leadership[183]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 8.1268 million yuan[186]. Challenges and Risks - The company acknowledges the risk of macroeconomic fluctuations affecting product demand, as its performance is closely tied to fixed asset investment levels[178]. - The hydraulic industry is sensitive to macroeconomic conditions, with potential demand declines during economic slowdowns affecting construction and infrastructure investments[169]. - The hydraulic components industry faces significant competition from foreign companies dominating the high-end market, which poses challenges for domestic firms[61]. - Domestic companies are experiencing intense competition in the mid-to-low-end market, leading to potential profit margin pressures due to price competition[61].