Core Viewpoint - In 2024, the company experienced a decline in both revenue and net profit, attributed to intensified competition in the elevator parts industry and challenges in the military simulation sector [2][3] Financial Performance - The company reported total revenue of 469 million yuan in 2024, a year-on-year decrease of 6.80% - The net profit attributable to shareholders was 9.96 million yuan, down 87.80% year-on-year - In Q1 2025, revenue fell by 25.86% to 54.24 million yuan, with a net profit of -15.13 million yuan, indicating a shift from profit to loss [2][3] Business Segments - The company has established a dual business model focusing on elevator control systems and military simulation products, with the latter contributing significantly to profits in 2024 - Excluding the military simulation segment, the elevator control systems reported a net loss of 6.96 million yuan [2][3] Industry Challenges - The elevator parts industry is facing unprecedented challenges, including fierce competition and seasonal downturns, impacting overall revenue and profit [2][3] - The military simulation business is characterized by a unique industry nature, leading to fewer contract verifications and revenue generation [3] Strategic Developments - The company acquired a controlling stake in Beijing Lingwei Junrong Technology Co., Ltd., enhancing its dual business structure [2] - The military simulation segment focuses on developing products for aviation combat training, with a key product being the portable general digital air combat simulation system [3] Integration and Collaboration - The company is working on integrating resources between its existing operations and the newly acquired military simulation business, aiming for efficient resource allocation [3][4] - A new facility for the military simulation segment has been established, facilitating collaborative R&D efforts in various technical areas [3] Future Focus - The company plans to enhance its elevator control systems by developing new products and exploring IoT-based intelligent monitoring solutions - The military simulation segment aims to upgrade its product platform by incorporating large language models to improve performance and usability [5]

Core Viewpoint - The company, Zhangpeng Technology, is focusing on two main business segments: elevator control systems and military simulation systems, with a significant decline in revenue and net profit in 2024 compared to the previous year [15][24]. Company Overview - Zhangpeng Technology primarily engages in the research, production, and sales of elevator control systems and military simulation systems, with elevator-related products accounting for over 69.42% of revenue [1][4]. - The company has established a dual business model with elevator control systems managed by the listed company and military simulation systems handled by its subsidiary, Lingwei Junrong [4][24]. Elevator Industry - The elevator industry in China has seen a rise in domestic brands due to improved manufacturing technology, although the market is currently facing a slowdown due to a downturn in the real estate sector [2]. - Despite the challenges, the demand for elevator upgrades and installations remains due to urbanization and government initiatives promoting urban renewal [2]. Military Simulation Industry - The global military simulation training market is projected to grow significantly, with China's defense budget expected to increase to 1.81 trillion yuan in 2025, reflecting a 9.3% growth from 2024 [3][24]. - The military simulation sector in China is anticipated to exceed 20 billion yuan by 2027, driven by advancements in defense information technology [3]. Financial Performance - In 2024, the company reported a revenue of 469.14 million yuan, a decrease of 6.80% year-on-year, and a net profit of 9.96 million yuan, down 87.80% from the previous year [15][24]. - The company plans to distribute a cash dividend of 0.30 yuan per share, totaling approximately 8.76 million yuan, reflecting a cash dividend payout ratio of 87.91% [27][28]. Acquisition and Performance Commitment - The company completed the acquisition of a 30.79% stake in Lingwei Junrong for 250.83 million yuan, gaining control with a total voting power of 69.83% [16][17]. - Lingwei Junrong's performance commitment includes achieving a cumulative net profit of at least 287 million yuan from 2024 to 2027, with a shortfall in 2024 resulting in a compensation obligation of approximately 16.95 million yuan [19][24].