Core Viewpoint - The company reported a significant decline in revenue from its new energy battery manufacturing business, with a revenue of 395 million yuan in 2024, a year-on-year decrease of 38.70%, while the gross profit margin increased by 4.54 percentage points to 29.57% [2][3]. Financial Performance - The company's 2024 financial statements were audited, and a clean audit report was issued [1]. - The year-end inventory balance was 120 million yuan, an increase of 13% year-on-year, with work-in-progress and finished goods rising by 43% [2]. Customer Analysis - The top five customers for the lithium battery business in 2024 included STIHL, Baoshide, Guangdong Xinbao, Shanghai Qiwei, and Guangdong Dongling, with significant changes in sales amounts and customer rankings compared to 2023 [4]. - Baoshide's sales decreased by 59.72%, while STIHL's sales were 3,957.20 million yuan, showing a 12.78% increase in sales quantity [4]. Revenue and Margin Analysis - The lithium battery business revenue for 2024 was 258 million yuan, a decrease of 48.6%, but the gross profit margin increased to 28.44%, up by 3.50 percentage points [12]. - The average sales price for lithium batteries decreased by 21% to 5.71 yuan per unit, while the average cost dropped by 26% to 3.99 yuan per unit [13]. Market and Competitive Landscape - The global market for lithium batteries in electric tools is expected to grow, with a projected 25.4% increase in shipments, reaching 2.63 billion units in 2024 [9]. - The competition in the lithium battery market is intensifying, leading to price reductions and margin pressures [9]. Inventory Management - The company shifted from a "pure order production" model to a "production plus proactive inventory" model to meet domestic customer demands, resulting in increased inventory levels [16]. - The year-end inventory for the lithium battery business was 94.76 million yuan, with a significant portion locked in orders, indicating no immediate risk of obsolescence [21]. Credit Policy and Receivables - The company has a credit policy that includes prepayment and credit sales, with a credit period ranging from 30 to 120 days [21]. - As of December 31, 2024, accounts receivable from Baoshide amounted to 54.62 million yuan, with 43.24 million yuan exceeding the normal credit period [21].