Core Viewpoint - The dry reed relay industry in China is experiencing significant growth driven by increasing demand in automation control, industrial equipment, and information transmission, with a projected market size increase from 1.899 billion yuan in 2021 to 2.519 billion yuan in 2024, representing a compound annual growth rate (CAGR) of 9.87% [1][18]. Industry Overview - Dry reed relays are electromagnetic switches composed of reed switches and coils, known for their compact size, rapid response, and high reliability, making them essential in modern electrical control systems [1][18]. - The industry has seen a shift from initial applications in telephone communication and household appliances to widespread use in automation control and industrial applications [9]. Market Demand and Growth - The acceleration of industrial automation, particularly in the new energy sector, smart grid construction, and the rapid development of IoT technologies, has created substantial market demand for dry reed relays [1][18]. - The market size for dry reed relays in China is expected to reach 3.036 billion yuan by 2025, driven by technological innovation and expanding application areas [1][18]. Key Companies in the Industry - Major companies in the dry reed relay sector include Guokai Electronics, Shenzhen Magtech Electronics, Shanghai Meigaole Electronics, and others, reflecting a diverse competitive landscape [20][21]. - Guokai Electronics is noted for its high-performance vacuum relays and dry reed relays, with projected revenue of 778 million yuan in 2024, a 15.43% increase year-on-year [22]. Industry Chain Structure - The dry reed relay industry chain includes upstream raw material suppliers (iron-nickel alloys, glass tubes, precious metals), midstream R&D and manufacturing, and downstream applications in various sectors such as safety systems, automation control, and automotive electronics [12][18]. Development Trends - The industry is expected to focus on high performance, miniaturization, and low power consumption in response to market demands, particularly in automotive electronics and IoT applications [26][28][29]. - Innovations in materials and manufacturing processes are anticipated to enhance the reliability and lifespan of dry reed relays, with mechanical lifespans reaching billions of operations [26][29].

Group 1: Financial Performance - The company achieved total operating revenue of CNY 2,168,197,862.18 in 2024, an increase of 18.07% compared to the previous year [5] - The net profit attributable to shareholders was CNY 63,320,550.32, reflecting a growth of 36.48% year-on-year [5] - In Q1 2025, the company reported operating revenue of CNY 533,829,430.03, up 14.35% from the same period last year, with net profit of CNY 10,447,843.49, a 48.03% increase [5] Group 2: Project Development - The Qingxian Zeming electronic component production project has a total construction area of 129,000 square meters and is expected to complete relocation and gradually start production in 2025 [2] - The Dongguan Tangxia intelligent manufacturing headquarters project, covering approximately 116,000 square meters, is in the main construction phase and is expected to be operational by the end of 2026 [2] Group 3: Market Strategy and Expansion - The company has a proactive overseas market strategy, with significant progress in India, Europe, Central Asia, and Southeast Asia, minimizing risks from tariff conflicts [1] - In 2024, overseas revenue reached CNY 514 million, a year-on-year increase of 29%, with overseas sales accounting for 23.7% of total revenue [8] - The company plans to enhance its overseas market presence by establishing sales companies or production bases in key regions, aiming to significantly increase overseas sales and market share [12] Group 4: Product Development and Innovation - The company is focusing on R&D in general power relays, magnetic latching relays, and other key areas, with a significant portion of R&D investment directed towards new energy vehicle relays [15] - The company has developed a high-load magnetic latching relay that meets national standards, enhancing its market share in smart meter applications [5] - Future product lines will emphasize lightweight, energy-saving, intelligent, low-cost, and compact designs [8] Group 5: Risk Management and Cost Control - The company faces significant raw material cost fluctuations, primarily in silver, copper, iron, and plastics, which constitute a large portion of its main business costs [3] - To mitigate these risks, the company implements cost-sharing through scale effects, optimizes supply chain management, and engages in futures hedging [3] Group 6: Industry Outlook - The global electromagnetic relay market is projected to reach CNY 534.3 billion in 2024, with a year-on-year growth of 3.2% [13] - The domestic relay industry is expected to grow, driven by stable demand from traditional markets and emerging industries such as new energy and AI [14]