XTAD(SH:600359) Zheng Quan Shi Bao Wang·2025-03-13 09:01Core Viewpoint - The company reported a significant decline in profitability despite a slight increase in revenue, indicating financial distress and challenges in its core business operations [1][2]. Financial Performance - The company achieved an operating revenue of 572 million yuan, a year-on-year increase of 4.26% [1]. - Net profit fell to 33.31 million yuan, a decrease of 51.45% year-on-year, marking the highest decline in net profit for the same period in six years [1]. - The attributable net profit was 31.83 million yuan, down 53.81% year-on-year [1]. - The company experienced consecutive quarterly losses in the third and fourth quarters, indicating significant financial pressure [1]. Business Segments - The cotton business, which is the largest revenue contributor, saw a decline in both revenue and gross margin, with 2024 revenue at 195 million yuan, accounting for 34.09% of total revenue [1]. - The gross profit for the cotton business was only 7.56 million yuan, a drop of 40.13% compared to 2023, with the gross margin decreasing from 7.2% to 3.88% [1]. Profit Distribution - The company has reported negative distributable profits since 2010, with a total of -953 million yuan by the end of 2024, and has not issued cash dividends for 15 consecutive years [2]. - The last cash dividend was in 2009, and the company has faced investor concerns regarding the lack of returns [2]. Strategic Actions - The company has been engaged in asset sales and acquisitions to optimize resource allocation, including a significant equity investment in Xin Nong Dairy and subsequent divestment [2]. - A recent acquisition announcement involved purchasing assets and a 100% stake in a loss-making company, which could further strain the company's financials if performance does not improve [3].