Core Viewpoint - The company, Zhenhai Co., Ltd. (603637), reported a decline in both revenue and net profit for the second consecutive year in 2024, indicating increased competitive pressure and market challenges in the petrochemical industry [1][4]. Revenue and Profit Decline - In 2024, the company's total revenue was 518 million yuan, a decrease of 11.60% from 585 million yuan in 2023 [4]. - The net profit attributable to shareholders fell to 97 million yuan, down 3.97% from 101 million yuan in 2023, while the non-recurring net profit dropped to 80.06 million yuan, a decline of 6.68% [1][4]. Industry Competition - The company faces intensified competition from major players like Sinopec Engineering and China National Chemical Engineering, which dominate large-scale projects and strategic engineering, further constraining Zhenhai's market space [4]. Cost Control and Operational Efficiency - The company's gross profit for 2024 was 142 million yuan, down from 159 million yuan in 2023, indicating challenges in cost control and operational efficiency [5]. - The rolling quarter-on-quarter revenue growth rate was -6.77%, and the net profit growth rate was -3.10%, suggesting issues in project management and operational efficiency [6]. Technological Innovation and Differentiation Strategy - Zhenhai Co. has made progress in technological innovation and differentiation strategies, focusing on areas such as environmental protection and intelligent storage systems [7]. - Despite advancements, the company still lags behind top-tier domestic engineering firms in terms of technological innovation and engineering capabilities [7]. - The company has increased R&D investment and mastered several core technologies, but further development in high-end, intelligent, and green technologies is necessary to enhance market competitiveness [7].