Core Points - The company is preparing for its 2024 Annual General Meeting (AGM) to ensure the rights of all shareholders and maintain order during the meeting [2][3] - The company reported a significant decrease in net profit for the year 2024, with a net profit of 37.83 million yuan, down 26% year-on-year, and a net profit excluding non-recurring gains and losses of 29.77 million yuan, down 32.67% year-on-year [9] - The company plans to focus on industrial automation and new energy sectors, enhancing its core competitiveness through market penetration and strategic partnerships [24][27] Meeting Procedures - The AGM will take place on May 20, 2025, at 14:30, in Shenzhen, with both on-site and online voting options available [6][7] - Attendees must sign in 30 minutes before the meeting and present identification for verification [3][4] - The meeting will follow a structured agenda, including the election of representatives for vote counting and monitoring [10][11] Financial Performance - The company experienced a decline in revenue due to reduced income from logistics and construction machinery sectors, despite some growth from new industries and clients [9] - Increased expenses from expanding the sales team and acquiring new management personnel contributed to the profit decline [9][10] Board and Governance - The company held nine board meetings in 2024, reviewing 53 proposals, including annual reports and profit distribution [10][11] - The board is focused on improving corporate governance and maintaining shareholder interests [22][23] Strategic Development - The company aims to enhance its product lines and invest in digital operations and smart manufacturing to improve quality control [28][29] - Plans include establishing a new headquarters in Shenzhen to support future strategic expansion and attract high-quality talent [30][31]

Core Viewpoint - The company reported a revenue increase of 13.5% year-on-year for 2024, reaching 1.71 billion yuan, with a net profit growth of 14.8% to 229 million yuan, indicating strong financial performance despite rising expenses [1] Financial Performance - 2024 revenue: 1.71 billion yuan, up 13.5% year-on-year [1] - 2024 net profit: 229 million yuan, up 14.8% year-on-year [1] - 2024 net profit excluding non-recurring items: 203 million yuan, up 25.8% year-on-year [1] - Q1 2025 revenue: 390 million yuan, up 14.3% year-on-year [1] - Q1 2025 net profit: 46 million yuan, up 3.5% year-on-year [1] - Q1 2025 net profit excluding non-recurring items: 40 million yuan, up 8.2% year-on-year [1] Strategic Initiatives - The company is advancing its major client strategy, with a focus on expanding its marketing network, leading to an increase in period expense ratios [2] - 2024 comprehensive gross margin: 37.7%, up 1.91 percentage points year-on-year, driven by higher gross margin PLC contributions [2] - Sales expense ratio for 2024: 11.4%, up 2.05 percentage points year-on-year [2] - Management expense ratio for 2024: 4.78%, up 0.19 percentage points year-on-year [2] - R&D expense ratio for 2024: 9.81%, up 0.05 percentage points year-on-year [2] - The company has initiated projects with over 80 S-level clients across emerging industries such as new energy vehicles, semiconductors, and smart logistics [2] Market Position and Product Development - The company achieved a 9.5% market share in the domestic small PLC market, with revenue growth of 21% to 648 million yuan in 2024 [3] - The domestic small PLC market size for 2024 is projected at 6.81 billion yuan, down 7.6% year-on-year [3] - The company is developing a large PLC product, expected to launch in 2025 [3] - The drive business generated 806 million yuan in revenue in 2024, with a gross margin of 24.5% [4] - The company is actively developing components for humanoid robots and plans to launch new high-performance servo drive systems [4] Investment Outlook - Revenue forecasts for 2025-2027 have been adjusted to 2.13 billion yuan, 2.64 billion yuan, and 3.21 billion yuan respectively [5] - Net profit forecasts for 2025-2027 have been adjusted to 288 million yuan, 361 million yuan, and 437 million yuan respectively [5] - The target price is adjusted to 71.7 yuan based on a 35 times PE ratio for 2025, maintaining a "strong buy" rating [5]