Group 1 - The company, Zhejiang Wan'an Technology Co., Ltd., has entered into an investment agreement with Huawai Technology Co., Ltd. to establish a joint venture in Mexico with a total investment of $30 million [1][2] - The company will contribute $10.5 million, representing 35% of the total investment, through its wholly-owned subsidiary, Wan'an Technology (Hong Kong) North America Investment Co., Ltd. [1][2] - The joint venture has been registered and is named JINSHENG MEXICO INDUSTRIAL S. de R.L. de C.V., with a registered capital of 50,000 Mexican Pesos [2] Group 2 - The ownership structure of the joint venture consists of 65% held by Jinsheng Industrial Investment Co., Ltd. and 35% held by Wan'an Technology (Hong Kong) North America Investment Co., Ltd. [2] - The operational scope of the joint venture includes research, manufacturing, and sales of springs, automotive parts, motorcycle parts, metal processing machinery, and spring steel wire [2]

Summary of Da Ye Co., Ltd. Conference Call Industry and Company Overview - The conference call pertains to Da Ye Co., Ltd., which is actively expanding into the green energy sector and robotics industry, focusing on innovative materials and technologies. Key Points and Arguments Green Energy Projects - Da Ye Co., Ltd. is developing green energy projects, including a 200 MW wind power project and a 70 MW biomass cogeneration project, aiming for 80% green energy supply by 2027, which will significantly reduce energy costs and carbon emissions. The wind project is expected to generate 550 million kWh annually, increasing tax revenue by approximately 30 million [2][4][5]. International Expansion - The company plans to invest in a factory in Morocco with a capacity of 200,000 tons, transferring domestic equipment in two phases. The first phase includes 40,000 tons of spring steel wire and 40,000 tons of steel cord, targeting the European and American markets. The factory is expected to be operational by the end of 2026, enhancing profitability through local logistics advantages [2][7]. Robotics Development - Da Ye Robotics Technology Co., Ltd. focuses on specialized rope products for humanoid robots, collaborating with various manufacturers to develop small batch orders. The company is exploring material advantages for future technology reserves and aims for market recognition and larger orders [2][8][9]. Key Shaft Transmission Technology - The company is expanding into key shaft transmission technology to address challenges in automation manufacturing, such as flexible knotting and welding. Initial products have been developed, and there is an increasing demand from downstream customers, which could significantly reduce labor costs [2][10][11]. Financial Performance and Market Conditions - In 2024, Da Ye Co., Ltd. faced revenue losses due to industry competition. The first quarter of 2025 still showed losses, but demand recovery is expected to improve performance in the second quarter. The company is focusing on market competition and overseas expansion to enhance profitability [6][26]. Market Share and Technical Advantages - Da Ye Co., Ltd. holds a significant market share in rubber skeleton materials, with Tai Steel wire being the largest producer globally, accounting for approximately 20% of the market and over 40% domestically. The company has established a national technology center and is recognized as a national manufacturing champion [3]. Challenges and Future Outlook - The steel industry is currently experiencing a downturn, with recovery dependent on domestic economic conditions. The company is implementing green transformation and overseas factory construction to lower production costs and increase high-margin overseas revenue, which is growing at about 20% annually [6][26][27]. Product Development and Market Potential - The company is actively working on product performance improvements and technical iterations, focusing on metal materials for current small batch orders. Future revenue targets depend on the industrialization progress of downstream customers, with aspirations for large-scale orders in the coming years [12][24][25]. Competitive Landscape - The competitive landscape in the robotics sector is unclear, with various companies pursuing different technological paths. Investors are advised to monitor technological advancements and specific company progress to make informed decisions [27][28]. Additional Important Content - The company is exploring the use of both metal and polymer materials in its products, recognizing the distinct advantages of each in different applications. The potential for convergence in material technology exists, but complete unification is unlikely due to varying requirements across different environments [15][30].

Investment Rating - The report maintains a "Buy" rating for the company, citing its leading position in the special steel industry and improving capacity integration capabilities [4][6]. Core Views - The company reported a limited decline in performance, with a revenue of CNY 109.2 billion in 2024, down 4.22% year-on-year, and a net profit of CNY 5.126 billion, down 10.41% year-on-year [1][2]. - The company's sales gross margin showed improvement expectations, with quarterly gross margins increasing from 12.31% in Q1 to 14.39% in Q4 of 2024 [2]. - The long-term demand for special steel in downstream industries is expected to grow, supported by favorable manufacturing policies [2]. Financial Performance - In 2024, the company achieved a net profit of CNY 5.126 billion, with a decrease of 10.41% year-on-year, while the non-recurring net profit was CNY 4.975 billion, down 5.48% year-on-year [2]. - The company’s sales volume of steel remained stable at 18.89 million tons in 2024, with an export volume of 2.02 million tons, and a target of 2.65 million tons for 2025, representing a 20.3% increase [3]. - The company’s earnings per share (EPS) for 2024 was CNY 1.02, with projections of CNY 1.08, CNY 1.18, and CNY 1.25 for 2025, 2026, and 2027 respectively [5]. Market Outlook - The report highlights a positive outlook for high-end product sales, with significant growth in automotive and energy steel products, indicating a robust demand in the special steel sector [3]. - The company is expected to benefit from the ongoing upgrades in the manufacturing sector, which will support its profit recovery trend [4].

Investment Rating - The report maintains a "Buy" rating for the company, citing its leading position in the special steel industry and improving production capacity integration [4][6]. Core Views - The company reported a limited decline in performance, with a revenue of 109.2 billion yuan in 2024, down 4.22% year-on-year, and a net profit of 5.126 billion yuan, down 10.41% year-on-year. The basic earnings per share (EPS) was 1.02 yuan, with a proposed dividend of 5.07 yuan per 10 shares [1][2]. - The company's resilience is highlighted as its profit decline is less severe compared to the overall industry, where the average profit drop for major steel enterprises was 50.3% [2]. - The long-term demand for special steel is expected to grow due to favorable manufacturing policies and the maturation of the steel industry, leading to a potential recovery in sales gross margins [2]. Financial Performance Summary - In 2024, the company achieved a net profit of 5.126 billion yuan, a decrease of 10.41% year-on-year, while the non-recurring net profit was 4.975 billion yuan, down 5.48% year-on-year [2]. - The quarterly sales gross margins for 2024 were 12.31%, 12.30%, 12.51%, and 14.39%, with net profit margins of 5.00%, 4.98%, 4.46%, and 5.19% respectively [2]. - The company aims for a steel production target of 18.6 million tons in 2025, with an export volume target of 2.65 million tons, representing a year-on-year growth of 20.3% [3]. Product and Market Outlook - The sales volume of high-end products, such as bearing steel, increased by 6%, and the sales of automotive steel for domestic projects rose by 38% [3]. - The company’s focus on high-end special steel manufacturing is expected to support a trend of profit recovery, with projected net profits of 5.45 billion yuan, 5.97 billion yuan, and 6.30 billion yuan for 2025 to 2027, corresponding to P/E ratios of 11.6, 10.6, and 10.1 respectively [4][5].

华纬科技股份有限公司 审计报告及财务报表 2020 年１月１日至 2022 年 12 月 31 日止 您可使用手机"扫一点"或进入"注册会计师行业统一监管平台（bttp://ac.nof.gov.or） 您可使用手机"扫一点"或进入"注册会计师行业统一监管平台（bttp://ace.nof.gov.or】 【 华纬科技股份有限公司 审计报告及财务报表 (2020 年 1 月 1 日 至 2022 年 12 月 31 日止) | 目录 | 页次 | | --- | --- | | 审计报告 | 1-4 | | 财务报表 | | | 合并资产负债表和母公司资产负债表 | 1-4 | | 合并利润表和母公司利润表 | 5-6 | | 合并现金流量表和母公司现金流量表 | 7-8 | | 合并所有者权益变动表和母公司所有者权益变动 | 9-14 | | 表 | | | 财务报表附注 | 1-164 | 立信会计师事务所(特殊普通合伙) DO CHINA SHU LUN PAN CERTIFIED PUBLIC ACCOUNTANT 审计报告 信会师报字[2023]第 ZF10289 号 华纬科技股份有限公司全体股东: ...