Summary of Yawey Co., Ltd. Conference Call Company Overview - **Company**: Yawey Co., Ltd. - **Industry**: Metal forming machine tools and laser processing equipment Key Financial Performance - **2024 Performance**: - Revenue reached 2.07 billion yuan, a year-on-year increase of 6.7% - Operating profit approximately 75 million yuan, a decline due to investment impairment [2][3] - **Q1 2025 Performance**: - Revenue of 467 million yuan, net profit attributable to shareholders of 35.9 million yuan, a year-on-year decrease - Stable order volume with a gross margin improvement of 2 percentage points [2][4] Business Segment Highlights - **Metal Forming Machine Tools**: - Revenue of 1.325 billion yuan, up 11.8% year-on-year - Order volume increased over 20%, with bending machines and sheet metal automation lines growing over 60% [2][3][5] - **Laser Processing Equipment**: - Revenue of 576 million yuan, an 8.12% increase - Order volume for flat laser cutting machines grew over 30% [2][5] - **New Jinlu Pressure Machines**: - New contracts close to 200 million yuan, with order volume growth exceeding 80% [2][3] Market Dynamics - **Industry Trends**: - Increased demand in new energy and energy storage sectors, while demand in elevator and related industries has declined [3][8] - **Delivery Cycles**: - Short delivery cycles for standard machines domestically, while customized production lines have longer cycles [9] Strategic Goals and Future Outlook - **2025 Contract Goals**: - Aim to increase contracts by over 10% - Focus on strengthening mature businesses like bending machines and laser cutting machines while investing in emerging businesses like pressure machines [2][6] - **Global Market Development**: - Plans to enhance cooperation with international agents and provide personalized strategies to improve market share [6][7] Shareholder Changes - **Major Shareholder Update**: - Yangzhou State-owned Assets Supervision and Administration Commission is set to become the major shareholder, expected to complete by mid-2026, with no immediate impact on operating profit [12][14] Investment and Impairment Issues - **Asset Impairment**: - Continuous challenges with asset impairments, with 50 million yuan impairment reported in 2024 [16][17] - **Future Impairment Outlook**: - Expected gradual resolution of impairments, with a focus on core business performance in 2025 [18] Product and Market Strategy - **Product Development**: - Emphasis on optimizing production efficiency and cost management to maintain stable gross margins [20][24] - **Market Positioning**: - Targeting high-end markets while also considering the needs of small and medium-sized clients [7][8] International Sales and Revenue Structure - **Export Markets**: - Major overseas sales concentrated in Southeast Asia and Europe, contributing approximately 30% of total export revenue [25] Overall Strategic Direction - **Long-term Strategy**: - Commitment to core business in metal forming machine tools while expanding into laser processing and pressure machine sectors to enhance market position [26]

Financial Data and Indicators - The basic earnings per share for Q1 2025 is 0.0183 yuan, a decrease of 11.59% compared to Q1 2024, which was 0.0207 yuan [1] - The net asset per share increased by 2.38% to 0.43 yuan in Q1 2025 from 0.42 yuan in Q1 2024 [1] - The operating revenue for Q1 2025 is 0.59 billion yuan, down 16.9% from 0.71 billion yuan in Q1 2024 [1] - The net profit for Q1 2025 remains at 0.03 billion yuan, unchanged from Q1 2024 [1] - The return on equity decreased to 4.38% in Q1 2025 from 5.09% in Q1 2024, a decline of 13.95% [1] Shareholder Structure - The top ten unrestricted shareholders hold a total of 75.86 million shares, accounting for 50.23% of the circulating shares, with a decrease of 440,800 shares compared to the previous period [1] - Liang Wei remains the largest shareholder with 54.21 million shares, representing 35.89% of the total share capital, unchanged from the previous report [2] - New entrants to the top ten shareholders include Haikun Holdings Group Co., Ltd. with 9.6 million shares (0.64%) and Zhang Wenjing with 6.77 million shares (0.45%) [2] - J.P. Morgan Securities PLC and Morgan Stanley & Co. International PLC exited the top ten shareholders [2] Dividend Distribution - The company will not distribute dividends or transfer shares this time [3]

Investment Rating - The investment rating for the company is "Accumulate" and maintained [8] Core Views - The company reported a revenue of 14.771 billion yuan for 2024, a year-on-year increase of 4.83%, and a net profit attributable to shareholders of 1.694 billion yuan, a significant year-on-year increase of 106.52%. However, the net profit after deducting non-recurring items decreased by 4.39% to 445 million yuan [2][6] - In the first quarter of 2025, the company achieved a revenue of 2.944 billion yuan, a year-on-year increase of 10.84%, but the net profit attributable to shareholders dropped by 83.47% to 163 million yuan. The net profit after deducting non-recurring items turned around to a profit of 72 million yuan [2][6] - The recovery in the PCB sector is expected to drive demand for high-end PCB drilling equipment and precision processing for ultra-thin and foldable screens, which will support the company's fundamentals returning to a prosperous year [2][6] Summary by Sections Financial Performance - For 2024, the company’s revenue was 14.771 billion yuan, with a net profit of 1.694 billion yuan, and a net profit after deducting non-recurring items of 445 million yuan. The first quarter of 2025 saw revenues of 2.944 billion yuan and a net profit of 163 million yuan [2][6] - The company’s revenue from PCB equipment reached 3.343 billion yuan in 2024, a year-on-year increase of 104.56%, driven by the demand from AI servers for HDI and multi-layer board expansion [12] - The company expects 2025-2026 to be a breakout year for its core business, with AI capital expenditures and innovations in the fruit supply chain likely to resonate positively [12] Business Segments - The company’s revenue from consumer electronics remained flat at 2.143 billion yuan, while revenue from semiconductor equipment decreased by 16.55% to 1.775 billion yuan. The general laser equipment segment saw a revenue increase of 7.64% to 5.971 billion yuan [12] - The first quarter of 2025 showed a strong performance in the PCB business, with a revenue of 960 million yuan, a year-on-year increase of 27.89%, and a net profit of 117 million yuan, a year-on-year increase of 83.60% [12] Market Outlook - The company is well-positioned in the laser processing equipment industry, with a strong customer base and brand advantages. The outlook for 2025-2026 is optimistic, with expectations of a recovery in the downstream industry [12] - The company’s EPS is projected to be 1.23, 1.73, and 1.84 for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 18.93, 13.49, and 12.69 [12]