Appo(SH:688007) Sou Hu Cai Jing·2025-05-14 11:47Core Viewpoint - The company, Guangfeng Technology, is experiencing a phenomenon of "increased revenue but decreased profit," with significant declines in net profit and cash flow due to increased operational costs and market competition in the automotive projection sector [2][3][6]. Financial Performance - In 2024, Guangfeng Technology reported an operating revenue of 2.419 billion yuan, a year-on-year increase of 9.27%, while net profit attributable to shareholders fell by 72.91% to 27.9531 million yuan [2]. - For Q1 2025, the company continued to show "increased revenue but decreased profit," with revenue of 461 million yuan, up 3.67%, but a net loss of 21.3596 million yuan, a decline of 147.95% year-on-year [2]. - The operating cost for 2024 was 1.734 billion yuan, an increase of 20.81%, leading to an overall gross margin of 28.31%, down 6.85 percentage points from the previous year [3]. Product Segmentation - The core components and complete machine business generated revenue of 2.24 billion yuan in 2024, up 11.48%, while other products and services saw a revenue decline of 12.46% to 179 million yuan [2][3]. - The automotive optical business accounted for 25% of total revenue, with 638 million yuan generated in 2024 [3]. Cash Flow and Receivables - The net cash flow from operating activities dropped by 76.04% to 87.2206 million yuan in 2024, primarily due to increased working capital needs for the automotive business [6][11]. - Accounts receivable rose to 310 million yuan, a 72.05% increase from the end of 2023, representing 7.29% of total assets [6][10]. Inventory and Liabilities - Inventory decreased to 596 million yuan, down 9.27% from the end of 2023, with inventory accounting for 13.99% of total assets [4]. - Accounts payable increased by 42.23% to 352 million yuan compared to the previous year [10]. Market Dynamics - The automotive projection market is becoming increasingly competitive, with more companies entering the sector as automotive intelligence develops [12][15]. - The overall smart projection market in China saw a revenue decline of 3.5% in 2024, despite a 3% increase in unit sales [13]. - The company has secured 13 automotive project contracts, indicating a strategic shift towards automotive applications [5][9].