Investment Rating - The investment rating for Linyang Energy (601222) is not explicitly stated in the report [1]. Core Views - The company experienced a decline in total operating revenue and net profit in 2024, with total revenue at 6.742 billion yuan, down 1.89% year-on-year, and net profit at 753 million yuan, down 27% year-on-year [2]. - The first quarter of 2025 showed a significant decrease in revenue and net profit, with total revenue at 1.124 billion yuan, down 27.69% year-on-year, and net profit at 124 million yuan, down 43.26% year-on-year [2]. - The company is actively expanding its overseas market presence, particularly in the smart meter sector, with successful bids totaling approximately 6.31 billion yuan in the State Grid and 6.01 billion yuan in the Southern Grid [4]. - The company has a strong foothold in the smart meter export market, covering over 50 countries, and is focusing on increasing market share in Western Europe and the Asia-Pacific region [4]. - The renewable energy sector is progressing steadily, with over 1,245 MW of projects under construction and a signed operation and maintenance capacity exceeding 18 GW, reflecting a 50% year-on-year growth [4]. - The energy storage segment has seen a robust increase in delivery scale, with cumulative deliveries exceeding 4.5 GWh and a project reserve of over 10 GWh [5]. Summary by Relevant Sections Financial Performance - In 2024, the company achieved total operating revenue of 6.742 billion yuan, a decrease of 1.89% year-on-year, and a net profit of 753 million yuan, down 27% year-on-year [2][6]. - The projected revenues for 2025-2027 are 7.601 billion yuan, 8.656 billion yuan, and 9.546 billion yuan, with growth rates of 12.7%, 13.9%, and 10.3% respectively [7]. Market Position and Strategy - The company is the largest smart meter exporter in China and is expanding its market share in Europe and Asia through partnerships and local strategies [4]. - The smart meter segment is expected to benefit from increasing demand in emerging markets, with a projected revenue of 28.3 billion yuan in 2024, up 14.28% year-on-year [4]. Operational Highlights - The company has made significant progress in renewable energy projects, with a total installed capacity of 1.36 GW and a generation of 1.45 billion kWh in 2024 [4]. - The energy storage segment is actively developing overseas markets, with a focus on Europe, the Middle East, and Southeast Asia, and has completed multiple projects in China [5].

Core Viewpoint - ST Tianlong's 2024 annual report reveals significant financial distress, with a sharp decline in revenue and an increase in losses, raising concerns about its operational viability and future prospects [1][4][5]. Financial Performance - The company reported a total revenue of 161 million yuan in 2024, a substantial decrease of 56.26% compared to 368 million yuan in 2023 [4]. - The net profit attributable to shareholders was -27 million yuan, representing an increase in losses by 218.14% year-on-year [4]. - The non-recurring net profit also showed a loss of -27.07 million yuan, down 80.32% from the previous year [4]. - Gross profit for 2024 was 23.17 million yuan, a decline of 20.7% from 29.23 million yuan in 2023, indicating issues in cost control and project profitability [4]. Operational Challenges - Despite adding three new performance projects and renewing seven operation projects, the overall performance remains concerning, suggesting difficulties in business expansion and project execution [1][4]. - The company has faced challenges in converting its investments in the renewable energy sector into revenue growth [4]. Audit and Compliance Issues - The audited net assets for 2024 were reported as negative, and the company has recorded negative net profits for the last three accounting years, leading to a "delisting risk warning" from the Shenzhen Stock Exchange [5]. - The audit report from Zhongxinghua Accounting Firm included a paragraph highlighting significant uncertainty regarding the company's ability to continue as a going concern [5]. Asset Impairment - ST Tianlong recognized asset impairment provisions totaling 16.45 million yuan in 2024, which further pressured its financial performance [6]. - The reasons for asset impairment may relate to underperformance in expected returns from renewable energy projects, despite some projects meeting operational targets [6]. - The frequent occurrence of asset impairment indicates deficiencies in project selection and risk management [6].