Gifore(SZ:300022) Jin Rong Jie·2025-04-09 15:52Core Viewpoint - Jifeng Technology's 2024 annual report reveals a slight increase in revenue but a significant decline in net profit, indicating serious issues in high-end agricultural machinery business and cost control [1][4][5][6] Group 1: Financial Performance - The company achieved total revenue of 2.709 billion yuan in 2024, a year-on-year increase of 2.24%, but the net profit attributable to shareholders was -31 million yuan, a dramatic decline of 283.36% [1] - The non-recurring net profit also showed poor performance, amounting to -20.79 million yuan, a year-on-year decrease of 260.48% [1] - Gross profit for the year was 368 million yuan, down 12.44% year-on-year, highlighting inadequate cost control [5] Group 2: High-end Agricultural Machinery Business - The high-end agricultural machinery segment, primarily managed by the subsidiary Jilin Kangda, has shown concerning performance, with significant declines in sales due to falling corn prices and changes in agricultural machinery purchase subsidy policies [4] - Despite the company's emphasis on the technological advantages of its products in protective tillage, actual sales have not met expectations, particularly in Northeast China [4] - The reliance on a dealer sales model has not resulted in significant market share growth, indicating shortcomings in product innovation and market expansion [4] Group 3: Cost Control Issues - Cost control has emerged as a critical issue, with financial pressure exacerbated despite a decrease in financial expenses by 13.23 million yuan due to targeted fundraising efforts [5] - The implementation of a stock incentive plan in 2023 led to a share-based payment expense of 14.11 million yuan in 2024, further intensifying financial strain [5] - Efforts to optimize management and reduce costs have not yielded significant improvements in profitability, as rising other costs have led to overall performance decline [5] Group 4: Industry Outlook and Company Position - The agricultural machinery industry is experiencing a trend towards high-end, intelligent, and green transformation, supported by government initiatives [6] - However, Jifeng Technology's pace in adapting to industry changes is notably slow, with its operational performance not reflecting the benefits of market adjustments [6] - Without accelerating technological innovation and market expansion, the company's competitive disadvantages in the industry are likely to widen [6]