NXGF(SZ:002757) Xin Lang Cai Jing·2025-04-18 17:23Core Insights - Naxing Equipment Co., Ltd. reported a significant decline in key financial metrics for the 2024 annual report, with net profit dropping by 201.08% and operating cash flow decreasing by 37.12%, raising market concerns [1] Revenue Decline and Market Competition - In 2024, Naxing achieved revenue of 3.332 billion yuan, an 8.18% decrease from 3.629 billion yuan in the previous year [2] - The specialized equipment segment saw revenue of 1.817 billion yuan, down 16.91%, primarily due to a downturn in the downstream furniture market [2] - IDC business revenue increased by 5.06% to 1.515 billion yuan, but gross margin slightly declined due to intensified market competition [2] - Revenue from automatic edge banding machines fell by 27.59% to 833 million yuan, while CNC drilling and multi-row drilling revenue decreased by 9.18% to 394 million yuan [2] - The company needs to strengthen its core products while increasing investment and market promotion for growth-oriented products [2] Profitability Concerns - The net profit attributable to shareholders was -175 million yuan, a decline of 201.08% compared to 173 million yuan in the previous year [3] - The net profit excluding non-recurring gains and losses was -186 million yuan, down 222.86% [3] - Major factors for the profit decline include reduced revenue, rising costs, and asset impairment, with goodwill impairment provision of 364 million yuan significantly impacting net profit [3] - Basic earnings per share fell to -0.5928 yuan, a decrease of 201.09% [3] Cost Control and R&D Investment - Total expenses for 2024 were 3.665 billion yuan, a 1.49% increase from 3.611 billion yuan in the previous year, indicating stable overall expense control [4] - Sales expenses rose by 2.66% to 59.016 million yuan, primarily for market promotion and sales channel expansion [4] - R&D expenses were 139 million yuan, a slight increase of 0.33%, with a total of 534 patents granted, including 129 invention patents [4] - The company needs to evaluate R&D direction and effectiveness to ensure that R&D outcomes translate into market competitiveness [4] Cash Flow Deterioration - The net cash flow from operating activities was 365 million yuan, a 37.12% decrease due to reduced revenue and declining net profit [5] - The net cash flow from investing activities was -334 million yuan, a 4.62% decrease, while financing activities generated -173 million yuan, an increase of 32.31% due to reduced cash dividends [5] - Overall cash flow conditions have worsened, necessitating optimization of operational strategies to ensure financial stability [5] Market Risks and Challenges - Naxing faces market risks, particularly in the furniture industry, which is influenced by macroeconomic conditions, policies, and real estate regulations, potentially affecting the specialized equipment business [6] - Inventory impairment risks are significant, as market or downstream customer changes could lead to unsold inventory [6] - The IDC business is also challenged by intensified competition, limited bandwidth resource procurement, and rising costs [6] - The company must actively respond to market changes, optimize business structure, control costs, and enhance R&D innovation to improve financial health and profitability [6]