WZ Group(SH:600704) Zheng Quan Zhi Xing·2025-05-19 11:40Core Viewpoint - The company held an earnings briefing on May 16, 2025, to discuss its performance for the fiscal year 2024 and the first quarter of 2025, emphasizing its strategic focus on supply chain integration and high-end manufacturing [1] Earnings Briefing Details - The earnings briefing was conducted online via the Tonghuashun platform, featuring participation from the company's chairman, executives, independent directors, and financial officers [1] - The company reported an investment income of 2.87 billion, primarily from the disposal of financial assets and derivatives, with approximately 2.3 billion derived from futures and options trading [2][3] Financial Performance - The company anticipates a total revenue of 600 billion for 2025, with total costs controlled at 596.49 billion, indicating a focus on stable growth and operational efficiency [3] - The gross profit margin for 2024 is expected to decline due to weak demand and falling prices in the steel and industrial metals markets, alongside a decrease in chemical product prices [2][5] Client Structure and Market Development - The high-end manufacturing sector contributes significantly to profits, with key products including various types of cables and tires, particularly high-end cables and semi-steel tires [3] - The company’s export revenue accounts for approximately 13% of total revenue, with major markets in ASEAN, the Middle East, and Hong Kong [3] Strategic Initiatives - The company is actively pursuing mergers and acquisitions to strengthen its position in supply chain services and explore opportunities in emerging industries [3][4] - R&D investment for 2024 is projected at 1.254 billion, a year-on-year increase of 17.49%, focusing on high-end manufacturing sectors [4][7] Financial Services and Risk Management - The financial services segment is expected to grow through leasing, futures, and asset management, while maintaining risk control [5] - The company employs hedging strategies using futures and derivatives to mitigate price risks in commodity trading, adhering to a neutral hedging principle [6] Long-term Growth and Innovation - The high-end manufacturing sector has shown strong resilience with double-digit growth rates in revenue and profit over the past three years, driven by technological innovation and refined management practices [7][8] - The company aims to enhance its product competitiveness through increased R&D and by focusing on high-value products, while also exploring new business opportunities in high-tech fields [8]