Core Viewpoint - The company reported lower-than-expected financial performance for 2024 and Q1 2025, primarily due to declining gross margins and changes in expenses and profits [1][2]. Financial Performance Summary - For 2024, the company achieved revenue of 8.172 billion yuan, a year-on-year increase of 21%, but the net profit attributable to shareholders was 436 million yuan, a decrease of 31% [1]. - In Q1 2025, revenue reached 2.316 billion yuan, reflecting a year-on-year growth of 27% and a quarter-on-quarter increase of 2%. However, the net profit attributable to shareholders was 107 million yuan, down 23% year-on-year but up 329% quarter-on-quarter [1]. - The gross margin for Q4 2024 and Q1 2025 was 23.90% and 22.95%, respectively, showing a decline of 0.65 and 2.95 percentage points year-on-year [2]. Business Segment Performance - In 2024, the smart home appliance control business generated revenue of 3.74 billion yuan, up 43% year-on-year, while the power supply business brought in 2.35 billion yuan, an 11% increase [3]. - For Q1 2025, the smart home appliance control business revenue was 1.23 billion yuan, a 32% increase year-on-year, and the power supply business revenue was 490 million yuan, up 1% [3]. - The company is expected to continue steady revenue growth as it expands its focus on key product areas and overseas markets [3]. Strategic Outlook - The company is diversifying its business and expects improved profitability as various segments scale up [2]. - The data center business is progressing steadily, with expectations for significant deliveries starting in the second half of 2025 [3]. - The company aims to leverage customer partnerships for product updates and market opportunities, building a competitive moat [4]. Profit Forecast and Valuation - The company has adjusted its gross margin assumptions and forecasts net profits of 622 million yuan, 789 million yuan, and 1.013 billion yuan for 2025, 2026, and 2027, respectively [5]. - The estimated price-to-earnings ratio for 2025 is set at 46.4 times, reflecting a 40% premium over comparable companies, with a target price of 52.91 yuan [5].

Financial Performance - In 2024, the company achieved operating revenue of 8.172 billion CNY, a year-on-year increase of 21.00% [4] - Operating profit for 2024 was 456.35 million CNY, a decrease of 27.87% compared to the previous year [4] - Net profit attributable to shareholders was 436.12 million CNY, down 30.70% year-on-year [4] - For Q1 2025, operating revenue reached 2.316 billion CNY, up 26.51% year-on-year [4] - Net profit attributable to shareholders in Q1 2025 was 107.26 million CNY, a decrease of 22.57% compared to the same period last year [4] Profitability Analysis - The decline in net profit is attributed to rising expenses, asset impairment, increased tax expenses, and a decrease in non-recurring gains [4] - The company's gross margin has been pressured due to the rapid growth of its new energy vehicle (NEV) business, which has lower margins [4][5] - Non-recurring gains were significantly lower in 2024 compared to 2023, impacting net profit figures [4] Business Development - The company has transitioned from a single product focus to a comprehensive supplier of electrical components for NEVs, collaborating with major automotive manufacturers [5] - The server power supply business is progressing well, with several products launched and positive engagement with clients [7] - The company anticipates significant sales growth in the NEV sector starting in 2025 [5][6] Market Strategy - The company plans to expand its manufacturing capacity in Thailand to mitigate the impact of U.S. tariffs, as most exports are directed to non-U.S. markets [8] - The company maintains a positive outlook for its server power supply business despite fluctuating U.S. trade policies [9] - The company aims to achieve a revenue target of over 10 billion CNY by 2025, supported by strong growth in various business segments [11] Product Innovation - The company is focusing on developing smart home appliances and has invested in a comprehensive R&D platform to support the industry's transition to smart technology [12] - The company is committed to continuous technological innovation to maintain a competitive edge in the market [9][12] Taxation and Compliance - The company will adhere to local tax regulations in overseas markets, with tax rates varying by country (e.g., zero tax rate in Thailand, approximately 25% in India) [13]