Core Viewpoint - The rapid decline of ATM machines in China is attributed to the rise of mobile payments, with a reduction of approximately 300,000 ATMs over the past five years, representing a 26.87% decrease from a peak of 1,097,700 ATMs in 2019 to 802,700 ATMs by the end of 2024 [4][10][17]. Group 1: ATM Machine Decline - As of the end of 2024, China has 802,700 ATMs, down from 847,000 at the end of 2023, marking a decrease of 42,800 ATMs [10]. - The number of ATMs per 10,000 people has also declined, from 7.87 in 2019 to 5.70 in 2024, indicating a downward trend in ATM availability [9][10]. - The shift in consumer payment habits, with many preferring mobile payments, has led to a significant reduction in ATM usage, resulting in banks reassessing their ATM operations [8][9]. Group 2: Bank Adjustments - Over 50 banks have announced the closure of cardless deposit and withdrawal services, with major banks like China Merchants Bank planning to stop ATM QR code deposit services by April 2025 [5][9]. - Banks are transitioning from cash-based services to digital solutions, reflecting a broader trend towards a cashless society [5][9]. - The operational costs of maintaining ATMs are becoming unsustainable due to their low usage rates, leading to a reevaluation of their role in banking services [9][10]. Group 3: Future of ATMs - Analysts suggest that while ATMs will not completely disappear, their functions will evolve to provide more comprehensive services beyond cash withdrawal, such as integrating government and lifestyle services [6][13]. - There is a focus on deploying ATMs in areas with high cash demand, such as airports and remote communities, to enhance their utility [13]. - The market for ATM manufacturers is shifting, with companies like Yuyin Co. facing declining revenues and seeking to diversify their business models [12][17]. Group 4: Financial Performance of ATM Manufacturers - Yuyin Co. reported a revenue of 66.87 million yuan in 2024, a 4.55% decrease year-on-year, with a net profit of 10.91 million yuan, down 29.40% [16][17]. - The company has shifted its focus from traditional ATM manufacturing to smart financial equipment and operational services, reflecting the changing market dynamics [17]. - The decline in ATM demand has forced manufacturers to adapt and explore new business opportunities, as evidenced by the significant drop in their core revenue from ATM production [17].