JINGU(SZ:002488) Zheng Quan Shi Bao Wang·2025-04-27 13:43Core Viewpoint - JinGu Co., Ltd. reported its 2024 annual results and Q1 2025 performance, highlighting revenue growth but impacted net profits due to financial expenses related to strategic investments in its subsidiary, Hangzhou Avatar [1][2]. Financial Performance - In 2024, JinGu achieved a revenue of 3.358 billion yuan and a net profit attributable to shareholders of 23 million yuan, with a non-recurring net profit of 16 million yuan [1]. - For Q1 2025, the company reported a revenue of 888.7 million yuan, an increase of 8.48% year-on-year, with a net profit of 7.74 million yuan and a non-recurring net profit of 6.24 million yuan [1]. - The net profit for Q1 2025 would exceed 30 million yuan, representing a year-on-year growth of approximately 210% if excluding certain financial expenses [1]. Strategic Investments - Hangzhou Avatar raised 1.185 billion yuan through strategic investments at a pre-investment valuation of 2 billion yuan, which will enhance its low-carbon wheel production capacity and support international market expansion [2]. - The investment will facilitate the establishment of overseas production bases to provide competitive low-carbon products and services to global clients [2]. Research and Development - JinGu's R&D investment in 2024 was 86.75 million yuan, reflecting a year-on-year increase of 34.38%, emphasizing the company's commitment to innovation and product development [2]. - The company has developed a new niobium micro-alloy material that offers high strength, good toughness, low cost, and reduced carbon emissions, with potential applications in various industries [3]. Product Performance - The automotive parts manufacturing segment generated 2.278 billion yuan in revenue in 2024, with a year-on-year sales increase of 14.83% and a gross margin of 16.17%, up by 3.28% [3]. - The Avatar low-carbon wheels are recognized for their innovative design, lightweight, high strength, and durability, catering to various vehicle types and meeting customer demands [3]. Market Impact - JinGu's exposure to U.S. tariffs is minimal, as its U.S. business has been significantly reduced since facing anti-dumping and countervailing duties in 2018 [4]. - The company plans to continue expanding its Avatar low-carbon wheel production capacity and leverage new materials for applications in related industries such as robotics and low-altitude aircraft [4].