Core Viewpoint - Hunan Wuxin Tunnel Intelligent Equipment Co., Ltd. (835174.BJ) reported a decline in both revenue and net profit for 2024 due to market demand pressures in the railway and highway sectors, alongside increased investment in new market development [2][3] Financial Performance - In 2024, Wuxin Tunnel achieved revenue of 799 million yuan, a year-on-year decrease of 16.26% - The net profit attributable to shareholders was 105 million yuan, down 36.07% year-on-year - The net profit after deducting non-recurring items was 104 million yuan, a decline of 33.73% year-on-year [3][4] Market Conditions - The railway market generated revenue of 454 million yuan, a decrease of 20.32%, with a gross margin reduction of 1.48 percentage points to 34.16% - The highway market saw revenue of 240 million yuan, down 25.75%, with a gross margin decrease of 1.18 percentage points to 29.57% [4] Strategic Focus - In response to market challenges, the company prioritized high-quality orders with favorable payment terms to ensure operational quality and cash flow safety [2][3] - Wuxin Tunnel is actively expanding into incremental markets such as water conservancy, hydropower, mining, overseas markets, and aftermarket services, which have shown rapid growth [5] Incremental Market Growth - In 2024, the water conservancy and hydropower market achieved revenue of 50.34 million yuan, a year-on-year increase of 96.06% - The mining market generated revenue of 47.41 million yuan, up 78.36% year-on-year - In Q1 2025, the water conservancy and hydropower market revenue was 12.05 million yuan, a growth of 38.08%, while the mining market revenue surged to 20.19 million yuan, a staggering increase of 695.61% [5][6]