DGKG(SZ:000828) Jin Rong Jie·2025-04-07 14:49Core Insights - Dongguan Holdings reported a significant decline in revenue for 2024, with total operating income of 1.692 billion yuan, a year-on-year decrease of 63.91%, while net profit increased by 43.26% to 955 million yuan, highlighting challenges in business transformation and market competition [1] Highway Business - The highway business remains the core revenue source, generating toll income of 1.323 billion yuan, accounting for 78.19% of total revenue, but this represents a 3.06% year-on-year decrease due to increased rainfall and the opening of the third phase of the Dongguan-Fan Highway, which diverted traffic [4] - The operational period for the Dongguan-Shenzhen Highway will expire on June 30, 2027, prompting the company to initiate expansion projects with an expected investment of 17.584 billion yuan, of which only 2.673 billion yuan has been completed, posing financial pressure and potential policy risks regarding toll extension [4] New Energy Business - The new energy vehicle charging and swapping business performed poorly, with total revenue of 86 million yuan, representing 5.10% of total revenue, while losses from the subsidiaries amounted to 24.66 million yuan and 3.71 million yuan respectively, primarily due to reduced bus operations, intensified market competition, and revenue recognition issues [5] - Despite launching the "Super Easy Charge" brand and accelerating the development of an integrated charging model, the company still faces fierce competition and weak market share and profitability in the new energy sector [5] Financial Investment Business - The financial investment segment, which includes financing leasing and commercial factoring, reported mixed results, with revenue from leasing at 71.942 million yuan and net profit of 51.976 million yuan, while factoring incurred a loss of 27.8847 million yuan due to impairment provisions [6] - The company’s reliance on investment income is significant, with total investment income from joint ventures and associates rising by 35.21% to 228 million yuan, and Dongguan Securities achieving a net profit of 923 million yuan, up 45.40%, indicating vulnerability to fluctuations in investment performance [6] Overall Challenges - Dongguan Holdings faces multiple challenges in 2024, including a substantial revenue decline, expanding losses in the new energy sector, and increased risks in financial investments, necessitating a search for new opportunities in business transformation, risk management, and market competition to achieve sustainable development [6]