WZJT(SH:600368) Zheng Quan Zhi Xing·2025-06-06 10:37Core Viewpoint - Guangxi Wuzhou Transportation Co., Ltd. reported a significant increase in operating revenue for 2024, driven primarily by growth in its commercial logistics business, despite a decline in net profit due to rising costs and lower profit margins in this segment [2][14]. Financial Performance - The company achieved operating revenue of 1.823 billion yuan, a year-on-year increase of 11.61%, mainly attributed to a rise in commercial logistics revenue [2]. - The quarterly operating revenues were 405 million yuan, 385 million yuan, 426 million yuan, and 607 million yuan, with the fourth quarter showing a substantial year-on-year increase of 33.40% [2]. - The net profit attributable to shareholders for the quarters was 213 million yuan, 140 million yuan, 213 million yuan, and 132 million yuan, indicating a significant decline of 38.03% in the fourth quarter [2]. Business Segments - The commercial logistics business is divided into logistics and trade operations, with logistics services including facility leasing, cold chain storage, vehicle management, and customs clearance [3][4]. - The revenue breakdown for the commercial logistics business shows logistics contributing 37.01% of revenue with a gross margin of 51.40%, while trade operations accounted for 62.99% of revenue with a gross margin of only 3.19% [4]. Client and Supplier Relationships - The company provided details on its top ten clients and suppliers, indicating no significant changes in core relationships compared to the previous year, although new clients and suppliers emerged due to the expansion into new product categories [5][16]. - The company confirmed that there are no overlapping relationships between its suppliers and clients, ensuring independence in its commercial operations [9][16]. Accounting Practices - The company utilizes both gross and net methods for revenue recognition, with the gross method applied to most agricultural products, while the net method is used for specific products like live pigs due to their unique trading characteristics [11][12]. - The accounting practices align with the relevant accounting standards, confirming the appropriateness of the revenue recognition methods used [16]. Seasonal Impact - The fourth quarter's revenue growth was significantly influenced by seasonal factors, with increased demand for agricultural products post-harvest and pre-festival preparations contributing to higher sales [13][16]. - The company noted that the increase in revenue did not translate into profit due to the lower margins in the newly introduced product categories and increased financial costs [14][16].