Core Viewpoint - In 2024, Huaxi Technology's revenue increased, but its gross margin faced pressure due to intensified competition in the agricultural machinery sector, leading to a significant decline in net profit [2][3][4]. Financial Performance - Huaxi Technology reported a revenue of 82.19 million yuan, a year-on-year increase of 4.72%, while net profit attributable to shareholders dropped by 53.53% to 1.56 million yuan, and non-recurring net profit showed a loss of 286,900 yuan [3]. - The overall gross margin decreased to 23.99%, down 5.08 percentage points from the previous year [3]. Product Performance - Revenue from the picking-type baler was 45.39 million yuan, up 14.75%, but its gross margin fell by 15.80 percentage points to 24.47% [3]. - Revenue from the crushing-type baler was 18.49 million yuan, down 39.52%, with a gross margin of 24.67%, an increase of 2.39 percentage points [3]. - The corn header achieved revenue of 15.27 million yuan, a significant increase of 140.61%, but its gross margin decreased by 0.86 percentage points to 15.60% [3]. Market Conditions - The decline in gross margin is attributed to severe product homogeneity in the agricultural machinery market, leading to price competition and shrinking profit margins [2][4]. - The company indicated that the overall revenue growth was primarily due to winning a project for selling self-manufactured balers; excluding this project, the main business revenue actually declined by 7.49% year-on-year [4]. Inventory and Risk Management - As of the end of 2024, Huaxi Technology's inventory balance was 30.25 million yuan, a decrease of 20.54% year-on-year, while the provision for inventory impairment rose by 97.10% to 1.19 million yuan [5]. - The company explained that the changes in customer structure were reasonable due to the nature of its durable goods and market saturation in certain regions [5]. - The company has a financing lease business with Jiangsu Jinzu, providing a maximum repurchase guarantee of 20 million yuan, with an actual guarantee balance of 4.14 million yuan at year-end [6]. Future Strategies - Huaxi Technology plans to implement several strategies to address ongoing performance risks, including upgrading products, expanding foreign trade sales, and increasing research and development investments [4].
去年毛利率下滑，花溪科技回复问询函：农机产品同质化较为严重，引发低价竞争