Road Environment(SH:688156) Xin Lang Cai Jing·2025-04-23 08:29Core Viewpoint - The company reported a significant decline in revenue and net profit for 2024, with ongoing challenges in its core business and a need for strategic adjustments to improve profitability [1][3]. Financial Performance - In 2024, the company achieved revenue of 278 million yuan, a year-on-year decrease of 20.92%, and a net profit attributable to shareholders of -57 million yuan, down 309.69% year-on-year [1]. - For Q1 2025, revenue was 63 million yuan, a decline of 7.18% year-on-year, with a net profit of 1.25 million yuan, down 77.89% year-on-year [1]. - The company's gross margin for 2024 was 21.9%, a decrease of 14.3 percentage points, with various expense ratios increasing due to expansion and credit impairment losses [3]. Business Segments - The bio-fermentation feed business generated revenue of 220 million yuan in 2024, a year-on-year increase of 10.19%, with sales volume rising by 20.74% to 112,600 tons [2]. - The inorganic waste treatment service business saw revenue drop to 40 million yuan, a decline of 71.52%, as the company opted not to take on new projects with long payment cycles [2]. - In Q1 2025, the bio-fermentation feed business revenue was 50 million yuan, down 7.38% year-on-year, while the inorganic waste treatment service revenue increased by 22.35% to 13 million yuan [2]. Capacity and Strategic Initiatives - The company has established five bio-fermentation feed factories with a total capacity of 470,000 tons per year, with plans to expand to 700,000 tons per year [4]. - Strategic investments from state-owned enterprises have improved the company's capital structure and financial stability, allowing for better market penetration and collaboration with large breeding groups [4]. - Future revenue projections for 2025-2027 are estimated at 390 million, 530 million, and 720 million yuan, respectively, with corresponding EPS of 0.01, 0.27, and 0.60 yuan [4].