Core Viewpoint - Duolun Technology (603528.SH) reported a decline in performance for 2024, with net profit turning positive due to non-recurring gains, but the underlying profit remains in the red, continuing into Q1 2025 [1][2] Financial Performance - In 2024, Duolun Technology achieved revenue of 522.6 million yuan, a year-on-year decrease of 1.65% [2] - The company reported a net profit attributable to shareholders of 6.32 million yuan, marking a turnaround from losses, but the net profit after excluding non-recurring items was a loss of 26.16 million yuan [2] - For Q1 2025, revenue fell to 105 million yuan, a significant drop of 37.18%, while net profit attributable to shareholders was 2.9 million yuan, with a continued loss in net profit after excluding non-recurring items [2] Non-Recurring Gains - In 2024, non-recurring gains totaled 32.48 million yuan, primarily from financial asset transactions, contributing significantly to the reported profit [2][3] - The company’s stock investments generated a profit of 12.71 million yuan, highlighting reliance on stock trading for financial support [3] Business Segment Performance - Duolun Technology's core business, focused on traffic safety, has faced significant pressure due to policy changes and declining market demand [4] - Among the four main business segments, only the smart vehicle management segment saw a slight revenue increase of 2.91%, while the other segments experienced declines of 8.27%, 26.17%, and 46.11% respectively [5] - The new energy business, initiated through investment in Anhui Jindian Technology, saw revenue growth of 307.75% to 44.74 million yuan, but its contribution to overall revenue remains limited at 8.56% [5] Investment Projects - Duolun Technology's two major fundraising projects, initially planned for significant investment, have been terminated after over four years of delays due to unclear performance prospects [6][7] - The first project, aimed at building a smart traffic system, was halted due to declining demand for vehicle inspections, while the second project related to integrated smart traffic solutions was terminated to mitigate financial risks [7]