Xinpeng Co.,Ltd.(SZ:002328) Sou Hu Cai Jing·2025-04-29 00:58Core Viewpoint - The company reported a decline in both revenue and net profit for 2024, primarily due to the impact of capital market fluctuations on its investment business, despite stable performance in its automotive and metal communication components sectors [1][7]. Automotive Components Business - The automotive components business, managed by subsidiaries, has sufficient production capacity to meet existing customer demands, but customer expansion is slow, with core clients being SAIC Volkswagen and some regional electric vehicle manufacturers [4]. - The business model of "sales determine production" and "production determine procurement" effectively controls costs but may lead to decreased capacity utilization during market demand fluctuations, impacting profitability [4]. - The company plans to leverage the new energy vehicle and battery shell industry chain for technological upgrades and business development, but the current lack of customer diversity limits growth [4]. Metal and Communication Components Business - This segment is primarily export-oriented, serving major clients like Jabil, Schneider Electric, and Makita, and has shown stable operations due to scale production capabilities and a robust quality control system [4]. - However, uncertainties in the international trade environment, particularly U.S.-China trade tensions, pose risks to export operations [5]. - The use of ExWorks (EXW) settlement may increase financial risks due to significant exchange rate fluctuations [6]. Investment Business - The investment business, conducted through a wholly-owned subsidiary, has seen reduced returns due to capital market volatility, which has negatively affected overall company performance [7]. - Despite aligning investments with national development priorities, the unpredictable nature of the capital market creates significant uncertainty in investment returns [7]. - The company needs to enhance industry analysis and post-investment management to ensure stable exits and sustainable development while optimizing investment strategies to mitigate market volatility impacts [7]. Overall Performance Outlook - The company faces challenges with declining revenue and profit in 2024, with stable performance in automotive and metal communication components overshadowed by the volatility in the investment business [7]. - Future strategies should focus on customer expansion, production model optimization, and investment strategy adjustments to adapt to market changes and achieve steady growth [7].