Financial Performance - In 2024, the company achieved operating revenue of 1,470.73 million CNY, a year-on-year increase of 6.45% [2] - The net profit attributable to shareholders was 101.32 million CNY, a decrease of 33.89% compared to the previous year [2][7] - In Q1 2025, the operating revenue was 378.97 million CNY, with a year-on-year growth of 3.42%, while net profit dropped by 70.47% to 11.88 million CNY [2] Reasons for Performance Decline - Increased competition in the lighting industry led to a reduction in product prices, impacting gross margins [3][7] - The new production base in Zhongshan incurred significant fixed asset investments, resulting in higher depreciation costs due to underutilization [3][7] - Rising management expenses due to investments in R&D and talent acquisition contributed to the profit decline [3][7] Strategic Responses - The company plans to focus on expansion, quality improvement, and cost reduction in 2025 [4] - Increased investment in market research and resource allocation for new markets in Europe and Asia [4] - Commitment to innovation and smart manufacturing to enhance product offerings and operational efficiency [4] R&D and Innovation - R&D investments from 2022 to 2024 were 55.28 million CNY, 74.60 million CNY, and 88.98 million CNY, representing 5.07%, 5.40%, and 6.05% of operating revenue respectively [9] - The company aims to enhance product features in smart control and energy efficiency, targeting special lighting markets [9][10] Market Expansion and Challenges - 95.62% of revenue came from overseas markets, with strategies in place to mitigate impacts from international trade tensions [5][8] - The company has established overseas production bases in Mexico and Vietnam to support U.S. clients [5][8] Future Outlook - The company anticipates steady progress in business operations and a positive order acquisition situation [10] - The market for plant lighting is expected to grow, with special lighting revenue reaching approximately 111 million CNY, accounting for 7.52% of total revenue in 2024 [10]

Core Viewpoint - The company reported a decline in revenue and net profit for 2024 and Q1 2025, primarily due to a decrease in overseas income and the impact of geopolitical tensions on the global LED lighting market [1][2]. Financial Performance - In 2024, the company achieved operating revenue of 16.91 billion yuan, a year-on-year decrease of 3.57%, and a net profit attributable to shareholders of 374 million yuan, down 13.06% [1]. - For Q1 2025, the company reported operating revenue of 3.886 billion yuan, a decline of 2.82% year-on-year, with a net profit of 143 million yuan, down 21.30% [1]. Market Analysis - The decline in 2024 was mainly attributed to a 9.04% drop in revenue from the brand Langdawans, which generated 9.647 billion yuan compared to 10.606 billion yuan in 2023. In contrast, the brand Mulinsen saw a slight increase in revenue to 6.768 billion yuan from 6.580 billion yuan, driven by its influence in smart lighting and other sectors [2]. - The global LED lighting market is expected to recover in 2025, with a projected market size of 56.626 billion USD, driven by economic recovery and increasing demand for high-quality and healthy lighting [2]. Future Outlook - The traditional lighting market is anticipated to remain the dominant force in global lighting market growth, particularly in emerging markets and renovation projects for old buildings [3]. - The company has adjusted its net profit forecasts for 2025 and 2026 to 681 million yuan (down 25.41%) and 1.037 billion yuan (down 9.75%), respectively, while introducing a new forecast of 1.149 billion yuan for 2027 [3]. - The company is recognized as a leading provider of LED packaging and lighting application solutions in China, with a positive long-term development outlook and a maintained "buy" rating [3].