TELLHOW(SH:600590) Shang Hai Zheng Quan Bao·2025-04-29 14:16Core Viewpoint - The annual report of Taihao Technology Co., Ltd. indicates a challenging financial year with a net profit loss and no profit distribution planned due to negative retained earnings, while highlighting growth opportunities in military and emergency equipment sectors driven by government policies and market demand [4][14]. Company Overview - Taihao Technology focuses on military equipment and emergency response products, with a strategic emphasis on integrating military and civilian applications [11][12]. - The company has a strong presence in military communication systems, navigation equipment, and power supply systems, with a commitment to innovation and technology advancement [7][9][10]. Industry Situation - The military industry is experiencing short-term pressures but is expected to grow long-term, supported by increasing market demand and government policies, particularly in military trade [5]. - The emergency equipment sector is gaining traction due to rising disaster response needs, with government initiatives aiming to enhance the industry significantly by 2025, targeting a market scale exceeding 1 trillion yuan [6]. Financial Performance - In 2024, the company reported a revenue of 4.36 billion yuan, a 1.71% increase from the previous year, but faced a net profit loss of approximately 940 million yuan, a significant decline compared to the prior year [14]. - The company’s retained earnings were negative, leading to the decision not to distribute profits or increase capital reserves [4]. Product and Market Development - The company’s military equipment includes advanced communication systems and navigation devices, which are critical for military operations and are expected to see increased demand due to modernization efforts [8]. - The emergency power supply products are positioned to benefit from the growing data center market, with an estimated 10 billion yuan demand for high-capacity diesel generators driven by AI applications [10]. Strategic Initiatives - The company is exploring opportunities in the energy storage market, leveraging its existing technology and distribution networks to provide integrated solutions [11]. - Government funding initiatives, including a 1 trillion yuan special bond issuance for disaster recovery, are expected to boost procurement budgets for emergency equipment, positively impacting the company’s revenue [7].