Core Viewpoint - The financial performance of Zhaofeng Co., Ltd. in 2024 showed significant declines in both revenue and profit, but the company achieved remarkable growth in its main engine supporting business, which is a key highlight of the report [1][4][5]. Financial Performance - The total operating revenue for 2024 was 665 million yuan, a decrease of 17.46% from 806 million yuan in 2023 [4]. - The net profit attributable to shareholders was 140 million yuan, down 23.94% from 184 million yuan [4]. - The non-recurring net profit fell by 32.69%, from 182 million yuan to 122 million yuan [4]. Business Challenges - The decline in performance was influenced by macroeconomic conditions and internal strategic adjustments, including the dissolution of a subsidiary and cessation of certain production lines, which significantly impacted sales [4]. - The company's performance in the international aftermarket was disappointing, with weak growth in traditional markets and insufficient scale in emerging markets [4]. Main Engine Business Growth - Despite overall performance pressure, Zhaofeng Co., Ltd. saw over 40% growth in the sales of its main engine products, establishing stable partnerships with major domestic automotive manufacturers [5][6]. - The company has a competitive advantage in the automotive hub bearing unit sector due to its strong technical foundation and manufacturing capabilities [6]. New Business Initiatives - Zhaofeng Co., Ltd. is diversifying its business by entering new sectors, including the robotics key components industry, through the establishment of a subsidiary focused on the development and manufacturing of ball screws [7]. - The company has partnered with Zhejiang University to establish an intelligent innovation research institute, focusing on emerging industry research, with initial projects underway [7]. - Although progress has been made in new business areas, the scale effects have yet to materialize, and the automotive electronic control business has only achieved small-scale supply [7].