Core Points - The company will hold its 2024 Annual General Meeting on May 15, 2025, at 14:30 in Hangzhou, Zhejiang Province, with both on-site and online voting options available [4] - The company reported a total revenue of 4.717 billion yuan for the reporting period, representing a year-on-year increase of 12.30%, and a net profit attributable to shareholders of 1.002 billion yuan, up 2.00% [4][5] - The company has made significant progress in its smart distribution and utilization of electricity business, achieving a main business revenue of 4.535 billion yuan, which is a year-on-year increase of 20.61% [5][7] - The company has expanded its overseas operations, establishing new production bases in Europe, Latin America, and Africa [5][7] - The company’s new energy business generated a revenue of 143 million yuan, a decrease of 12.32% year-on-year, while it continues to develop its capabilities in commercial microgrid design and integration [6][8] Meeting Procedures - All attendees must arrive at the venue 10 minutes before the meeting starts to complete registration and present required documents [2] - The meeting will follow a structured agenda, including the announcement of the meeting, reading of proposals, deliberation, and voting [4] - Voting will be conducted by a named ballot for each proposal, and results will be announced immediately after counting [3][4] Board and Supervisory Reports - The board of directors has held six meetings during the reporting period, addressing various proposals including amendments to the company’s articles of association and the annual work report [8][9] - The supervisory board has conducted five meetings, ensuring compliance with legal and regulatory requirements, and has actively participated in the oversight of the company's operations [12][14] - Independent directors have submitted their annual reports, confirming their adherence to independence requirements and their active participation in board meetings [16][25] Future Plans - The company aims to enhance its supply chain partnerships and expand its overseas market presence, particularly in the water industry, which is expected to become a new growth point [11][16] - The company plans to implement a comprehensive risk management strategy across its business lifecycle to ensure high-quality development [11][16]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [5][18]. Core Views - The company is experiencing short-term pressure on profitability, with a focus on deepening its localization strategy in overseas power distribution and utilization businesses [1][2]. - The company is positioned as a leading enterprise in the smart power distribution and utilization sector in China, benefiting from strong first-mover advantages and channel resources in overseas markets [10]. Financial Performance Summary - For 2024, the company is projected to achieve revenue of 47.17 billion yuan, a year-on-year increase of 12.30%, and a net profit of 10.02 billion yuan, reflecting a growth of 2.00% [1]. - The company's revenue is expected to grow from 53.75 billion yuan in 2025 to 69.10 billion yuan by 2027, with corresponding net profits increasing from 12.00 billion yuan to 15.87 billion yuan during the same period [10]. - The company's gross margin for 2024 is projected at 43.95%, a year-on-year increase of 2.05 percentage points, while the net margin is expected to be 21.25%, a decrease of 2.14 percentage points [2]. Business Segment Summary - The overseas power distribution and utilization business achieved revenue of 29.40 billion yuan in 2024, a year-on-year increase of 9.77%, with a focus on localizing operations in Europe, Latin America, and Africa [3]. - The domestic power distribution business reported a revenue of 15.95 billion yuan in 2024, a year-on-year increase of 20.61%, with significant success in winning bids from major state-owned enterprises [9]. - The company's renewable energy business faced challenges, with a revenue of 1.43 billion yuan in 2024, a decrease of 12.32% year-on-year, primarily due to industry supply-demand mismatches [9].

Core Insights - The company reported a total revenue of 4.717 billion yuan in 2024, representing a year-on-year growth of 12.30% [1] - Net profit attributable to shareholders was 1.002 billion yuan, with a growth rate of only 2.00%, indicating a significant slowdown compared to previous years [5] - Revenue from the new energy business declined by 12.32%, highlighting potential issues within the business structure [1][5] Smart Distribution and Utilization Business - The smart distribution and utilization business achieved a revenue of 4.535 billion yuan in 2024, growing by 13.35% year-on-year [4] - Overseas revenue reached 2.940 billion yuan, up by 9.77%, while domestic revenue was 1.595 billion yuan, increasing by 20.61% [4] - The company made significant progress in localizing operations in overseas markets, with new production bases launched in Europe, Latin America, and Africa [4] New Energy Business - The new energy business generated a revenue of 143 million yuan, down 12.32% year-on-year, indicating challenges in market expansion and profitability [4][5] - The company is actively developing commercial microgrid capabilities in overseas markets, but the revenue decline suggests a need for improved strategic execution [5] Financial Performance - The net profit growth rate of 2.00% in 2024 is significantly lower than the previous years' growth rates of 47.89% in 2023 and 111.71% in 2022 [5] - Operating cash flow net amount was 886 million yuan, reflecting a decline of 19.56%, indicating cash flow pressure [5] - Research and development investment was 311 million yuan, up 9.43%, but the proportion of R&D investment to revenue decreased by 0.17 percentage points to 6.59% [5] Overall Assessment - The company maintained steady revenue growth in 2024, but the slowdown in net profit growth, decline in new energy revenue, and cash flow pressure are concerning [5] - There is a need for the company to optimize its business structure, enhance profitability in the new energy sector, and increase R&D investment to sustain long-term competitiveness [5]