Core Insights - The Chinese hydraulic industry is experiencing a growth trend in revenue, with an average revenue of 2.677 billion in 2024, and a notable growth rate of 22.3% in 2021, stabilizing around 5% in recent years [1][3] Revenue Changes - From 2019 to 2024, the average revenue of listed companies in the Chinese hydraulic industry is projected to grow, reaching 2.677 billion in 2024 [1] - The industry saw a significant growth rate of 22.3% in 2021, with more recent growth rates stabilizing around 5% [1] Profitability - The average sales gross margin for the hydraulic industry is on a downward trend, decreasing from 32.3% in 2020 to 25.4% in 2024, with a slight recovery to 25.7% in the first half of 2025 [3] - Challenges such as intensified market competition and fluctuations in raw material prices are contributing to the pressure on cost control, impacting gross margins [3] - The advancement of domestic high-end hydraulic product replacements is helping some companies enhance their technical advantages and product value, providing support for margin stabilization [3] Inventory Turnover - The average inventory turnover rate for the hydraulic industry showed a gradual decline from 3.39 times in 2020 to 3.00 times in 2022, stabilizing at 3.00 times in 2023, with a slight recovery to 3.13 times in 2024 [4] - A significant drop to 1.47 times is expected in the first half of 2025, indicating potential challenges in inventory management [4] Accounts Receivable Turnover - The average accounts receivable turnover rate increased slightly from 4.97 times in 2020 to 5.07 times in 2021, but then declined to 4.14 times in 2022 and further to 3.69 times in 2023, with a projected decrease to 3.41 times in 2024 [8] - This trend reflects initial success in market expansion and accounts receivable management, but increased competition may lead to relaxed credit policies and slower collection speeds [8] Debt Management - The average asset-liability ratio for the hydraulic industry has been on a downward trend, decreasing from 39.9% in 2020 to 37.5% in 2023, with a slight increase to 37.8% in 2024, and a return to 37.3% in the first half of 2025 [10] - This trend indicates ongoing efforts to optimize capital structure and reduce debt levels, despite temporary increases due to business expansion and financing needs [10]