Group 1: Company Overview - The company, Yinchuan Weili Transmission Technology Co., Ltd., focuses on precision reducers and gearboxes, with significant advancements in its smart factory for wind power gearboxes [1] - The company has a growth history and emphasizes its core business and products during investor presentations [1] Group 2: Funding for Smart Factory - Funding for the smart factory construction comes from self-owned funds, bank loans, and secondary market refinancing, with a planned credit limit of up to 3 billion CNY [1] - The company aims to raise up to 600 million CNY through a private placement of A-shares to support the smart factory and working capital [2] Group 3: Profitability Expectations - The smart factory is expected to significantly increase gross margins due to product value addition and economies of scale [2] - The wind power gearbox is a high-value component, with anticipated gross margins higher than conventional products, benefiting from improved production efficiency and reduced costs [2] Group 4: Industry Barriers - Key barriers in the wind power gearbox industry include: - **Technical Barriers**: High design complexity and stringent testing requirements [2] - **Financial Barriers**: Capital-intensive nature requiring significant investment in equipment and R&D [2] - **Customer and Certification Barriers**: Long supplier approval cycles and strict certification processes [2] - **Brand and Talent Barriers**: Established brands dominate, and the industry requires multidisciplinary talent [2] Group 5: Workforce Preparation - The company is proactively recruiting for the smart factory to ensure operational readiness, covering roles in technology, production management, and quality control [2] Group 6: Product Advantages - The company's gearboxes feature advantages such as smooth engagement, low noise, good sealing, high efficiency, lightweight, and cost-effectiveness, achieved through advanced materials and processing techniques [2]

Core Viewpoint - The company reported a stable performance in 2024, with revenue of 215.69 billion yuan, a year-on-year increase of 0.8%, and a net profit attributable to shareholders of 11.4 billion yuan, up 26.5% year-on-year, indicating strong profitability and effective cost management [1][3]. Group 1: Financial Performance - The company plans to distribute a cash dividend of 3.47 yuan per share, with a total cash dividend amounting to 6.27 billion yuan, resulting in a high dividend payout ratio of 55% [1]. - The company's gross profit margin improved significantly, with the overall gross margin rising by 1.3 percentage points to 22.4%, driven by product structure optimization and cost control measures [3]. - The operating net profit of the parent company reached 8.27 billion yuan, a substantial increase of 25.7% year-on-year, contributing positively to the overall group performance [3]. Group 2: Business Segment Performance - The engine segment achieved sales of 734,000 units, with heavy-duty truck engines maintaining a market share of 38.7% and natural gas heavy-duty engines leading the market with a 59.6% share [2]. - The company’s heavy-duty truck sales reached 118,000 units, a year-on-year increase of 1.5%, with significant growth in the export market, which saw a 15.2% increase [2]. - The data center product segment experienced a remarkable growth of 148% year-on-year, with nearly 400 units shipped [2]. Group 3: Market Outlook and Policy Impact - The new policy for scrapping and updating old operating trucks is expected to stimulate demand for natural gas heavy-duty trucks, with the market penetration rate anticipated to increase significantly [4]. - The company holds a leading position in the natural gas heavy-duty engine market with nearly 60% market share, positioning it well to benefit from industry growth [4]. - The demand for high-end diesel generator sets is expected to grow rapidly due to accelerated data center construction, providing further market opportunities for the company [4]. Group 4: Future Projections - Revenue projections for the company are estimated at 240.66 billion yuan, 260.94 billion yuan, and 275.17 billion yuan for 2025-2027, with net profits expected to reach 13.06 billion yuan, 14.79 billion yuan, and 15.91 billion yuan respectively [4].