Industrial Securities(SH:601377) Zheng Quan Zhi Xing·2025-05-19 10:23Core Viewpoint - The report highlights the significant decline in Shenzhen Yuchen Intelligent Equipment Co., Ltd.'s financial performance, with a net profit of -127.99 million yuan, a year-on-year decrease of 327.99%, and a net profit attributable to shareholders after deducting non-recurring gains and losses of -135.71 million yuan, down 422.93% [6][15]. Group 1: Continuous Supervision Work - The sponsor, Industrial Securities, has established a work plan for continuous supervision and signed an agreement with the company to clarify rights and obligations during the supervision period [1][2]. - Continuous supervision includes regular communication, site inspections, and understanding the operational status of Yuchen Intelligent [1][2]. Group 2: Financial Performance - The company's operating income for 2024 was 506.41 million yuan, a decrease of 54.73% compared to 2023 [14]. - The decline in operating income is attributed to reduced equipment delivery due to a temporary slowdown in downstream industry demand and limited contributions from newly developed customers and products [6][15]. - The company's net profit decline is primarily due to decreased operating income, increased credit impairment losses, and asset impairment losses [6][15]. Group 3: Risk Factors - The company faces risks of further operational performance decline or continued losses if downstream market capacity remains excessive or if the pace of acquiring new customers and products does not meet expectations [7][8]. - There is a risk related to core competitiveness, as the company must continuously improve production processes to meet increasing demands from battery manufacturers [8][10]. Group 4: Management and Governance - The company has been urged to enhance its corporate governance structure and strictly adhere to relevant regulations [2][3]. - The internal control systems, including financial management and auditing, have been verified to comply with regulatory requirements [4][5]. Group 5: Research and Development - The company has maintained a high level of R&D investment, with R&D expenses accounting for 10.69% of operating income, an increase of 5.63 percentage points compared to the previous year [20]. - As of December 31, 2024, the company has obtained 305 authorized patents, including 72 invention patents [20]. Group 6: Use of Raised Funds - The company raised 839 million yuan through its IPO, with net proceeds of approximately 754.51 million yuan after deducting issuance costs [21]. - As of December 31, 2024, the company has invested 434.76 million yuan in projects funded by the raised capital, complying with relevant regulations [21].