Core Viewpoint - Xinyin Electronics held its 2024 annual shareholders' meeting to review the company's annual report and related proposals, amidst concerns regarding potential competition issues with its indirect controlling shareholder [1][2]. Financial Performance - In 2024, Xinyin Electronics achieved operating revenue of 787 million yuan, a year-on-year increase of 1.67%, while net profit attributable to shareholders was 69.76 million yuan, a decline of 3.85% [2]. - The company has faced a continuous decline in net profit since 2022, despite its successful listing in 2023 [6]. Product Performance - Revenue from notebook computer connectors was 426 million yuan, down 4.56% year-on-year, with a gross margin of 29.2%, a decrease of 2.38 percentage points [8]. - Revenue from automotive and other connectors was 143 million yuan, up 11.41% year-on-year, with a gross margin of 18.86%, down 7.68 percentage points [8]. - Revenue from consumer electronics connectors was 204 million yuan, an increase of 10.78% year-on-year, with a gross margin of 20.46%, down 3.96 percentage points [8]. Challenges and Strategies - The company reported an increase in operating costs by 7.13% due to global inflation, currency fluctuations, raw material price volatility, and weak industry demand, leading to revenue growth without profit growth [8]. - The company plans to enhance its market presence by investing in new technologies and products, leveraging its established channels, brand, scale, and customer base to improve performance [8]. Competition Issues - Two directors previously abstained from voting on the half-year report due to uncertainties regarding potential competition issues with the indirect controlling shareholder, Xinyin Holdings [2][9]. - The board later unanimously approved the annual report, suggesting that the competition issue may have been resolved [13]. - Xinyin Holdings has committed to taking preventive measures to avoid potential conflicts of interest arising from its investment in Taiwan's Taisuo Electronics, which operates in a related sector [14].
直击股东大会 | 信音电子2024年增收不增利 称将督促间接控股股东落实避免同业竞争相关措施