Core Viewpoint - *ST Jinshi has successfully transformed its business focus from cigarette label printing to the renewable energy and energy storage sectors, achieving significant revenue growth and operational improvements in 2024 [1][2][4]. Financial Performance - In 2024, the company reported a revenue of 376 million yuan, a year-on-year increase of approximately 10 times, and a net profit attributable to shareholders of -4.397 million yuan, indicating a significant reduction in losses [1]. - For Q1 2025, the company achieved a revenue of 39.52 million yuan, representing a year-on-year growth of 560.65%, while the non-recurring net profit was -12.735 million yuan [1]. Business Transformation - The company has shifted its core business to focus on energy storage and new materials, establishing a diversified business model centered around energy applications, including energy storage device manufacturing and safety solutions [2]. - As of the end of 2024, the energy storage system business generated revenue of 258.18 million yuan, accounting for 68.70% of total annual revenue, while the energy storage safety and firefighting business contributed 113.66 million yuan, or 30.24% of total revenue [2]. Product Development - The company has launched various products, including distributed liquid-cooled and air-cooled energy storage systems, which are applicable in renewable energy generation, grid frequency regulation, and commercial energy storage [3]. - In the supercapacitor segment, the company is developing superactive carbon materials and supercapacitor products for applications in new energy vehicles, rail transit, and power systems [3]. Regulatory Actions - The company has submitted an application to the Shenzhen Stock Exchange to revoke its delisting risk warning, citing improved operational conditions and compliance with the standards for revocation [4]. - The approval of this application is pending review by the exchange, and the company emphasizes the importance of monitoring the review process and potential investment risks [4].

Core Insights - Despite external challenges such as global economic fluctuations and weak market demand, the company reported a total revenue of 916 million yuan and a net profit of 73.588 million yuan for the year 2024, indicating a year-on-year decline in both revenue and profit [1] - The company has established a technical cooperation with Weichai Lovol in the diesel engine sector, successfully completing product adaptation development for the M4000 and P4000 platforms, and has expanded its customer base in agricultural machinery exports [1] - The company has made significant progress in cash flow management, with net cash flow from operating activities improving from -55.2982 million yuan in 2023 to 264 million yuan, attributed to enhanced sales collection efficiency and optimized bill discounting strategies [2] Business Development - The company is focusing on overseas markets for its intelligent generator business, having completed design upgrades and deliveries for silent generator sets for communication stations in Congo and the Philippines, while actively participating in bids for backup power sources in data centers and mining sectors [1] - A joint research and development center with the Shanghai Institute of Ceramics, Chinese Academy of Sciences, has achieved milestones in the field of composite polymer solid-state electrolytes, with patent applications submitted and positive progress in battery performance metrics [2] - The company has initiated a project for intelligent manufacturing of core engine components, enhancing production line flexibility and precision, with its subsidiary in Jiangsu starting mass production [1][2] Quality and Innovation - The company adheres to a "quality first" development philosophy, integrating management systems such as IATF16949 and ISO9001 to ensure efficient operation of quality systems and continuous improvement in customer satisfaction [3] - The company has established a joint R&D center with Xiamen University focusing on optimizing cooling liquid systems, aiming to develop replicable solutions for new functional materials [2] - The company plans to distribute 2 yuan per 10 shares to all shareholders, while emphasizing diversification of customers, process upgrades, and expansion into overseas markets to mitigate risks associated with macroeconomic fluctuations and high customer concentration [3]

Core Points - Kelu Electronics has reported a continuous loss for the eighth consecutive year, with a net profit of -4.64 billion yuan in 2024, despite a revenue increase of 5.50% to 44.31 billion yuan [1][3][5] - The company's debt ratio has reached a historical high of 93% following the acquisition by Midea Group, which invested 830 million yuan to become the controlling shareholder [1][5][7] - Management inefficiencies are directly linked to Kelu Electronics' long-term poor performance, with management expenses rising to 17%, significantly higher than most peers [2][9][10] Financial Performance - Kelu Electronics has experienced six years of losses out of the last seven, with a notable recovery in 2020 due to asset sales [1][4] - The company has been forced to sell subsidiary equity to mitigate losses, generating approximately 22 million yuan from recent transactions [6][7] - Despite the financial struggles, executive salaries have increased, with an average salary of 275,600 yuan in 2024, reflecting a 27.8% year-on-year growth [9][10] Operational Challenges - The planned investment in the Foshan energy storage industrial park was terminated after nearly 70 million yuan was spent, with over 11 million yuan written off as impairment [2][8] - Kelu Electronics has faced significant operational setbacks, including being blacklisted by a major client, Southern Power Grid, which restricts participation in bidding activities for 18 months [8][9] - The company’s core business includes smart grid equipment and electrochemical energy storage, yet it continues to struggle despite the industry's growth potential [4][5]