Core Viewpoint - Fengmao Co., Ltd. is accelerating its expansion by investing up to 1.5 billion yuan to establish an automotive parts production base in Jiaxing, aimed at enhancing its production capacity and competitiveness in the automotive supply chain [1][2]. Investment and Expansion - The company plans to sign an investment cooperation agreement with the Jiaxing High-tech Industrial Development Zone Management Committee to purchase land for the new production base [2]. - The total investment for the project is expected to be no more than 1.5 billion yuan, with an anticipated annual output value of approximately 1.5 billion yuan and annual tax revenue of about 60 million yuan once fully operational [2]. Product Development and Market Strategy - The new facility will focus on producing thermal management systems, air suspension systems, sealing systems, and transmission systems, addressing market demand and enhancing service capabilities [2]. - Fengmao has been actively expanding its overseas market presence, with foreign sales revenue increasing from 31.86% in 2019 to 50.72% in 2024, benefiting from higher gross margins compared to domestic sales [3]. Financial Performance - The company's revenue grew from 555 million yuan in 2021 to 949 million yuan in 2024, with net profit increasing from 70.02 million yuan to 162 million yuan during the same period [1]. - In 2024, the gross margin for overseas sales reached 40.17%, while domestic sales gross margin was 20.66% [3]. R&D and Innovation - Fengmao is recognized as a national-level "little giant" enterprise specializing in precision rubber components, with a focus on R&D and innovation [4]. - The company has seen a steady increase in R&D expenses, from 25.73 million yuan in 2022 to 47.19 million yuan in 2024, reflecting its commitment to maintaining competitive advantages [6]. Product Line Growth - In 2024, the transmission system components contributed 682 million yuan in revenue, accounting for 71.94% of total revenue, with a year-on-year growth of 25.20% [5]. - The company is also diversifying its product applications, with plans to develop lightweight air spring products for new energy vehicles, indicating a strategic move towards a second growth curve [6].

Core Viewpoint - Fengmao Co., Ltd. has achieved significant revenue and profit growth in 2024, driven by product optimization, market expansion, and brand empowerment, indicating a strengthening of its core business competitiveness [1] Financial Performance - The company reported a revenue of 949 million yuan, representing an 18.34% year-on-year increase [1] - Net profit attributable to shareholders reached 162 million yuan, up 17.03% year-on-year [1] - The non-recurring net profit was 145 million yuan, reflecting a 14.73% increase year-on-year [1] - A high dividend plan was announced, proposing a stock bonus of 3 shares for every 10 shares held and a cash dividend of 5 yuan per share, totaling 40 million yuan [1] Business Growth Drivers - The core business, particularly the transmission system segment, saw a revenue increase of 25.20%, amounting to 682.38 million yuan [3] - The company has established itself as a key player in the precision rubber components sector, with products widely used in automotive, industrial machinery, and other fields [2] - Fengmao has successfully replaced imports in the domestic market and expanded its international presence, particularly through partnerships with major automotive brands [2][5] Product Development and Market Expansion - The company is focusing on upgrading its transmission system products, which have shown competitive advantages in the mid-to-high-end market due to their durability and low noise [3] - Significant progress has been made in diversifying into industrial belts, with tailored solutions for various industries, including robotics and agricultural machinery [3][4] - The company has entered the security equipment supply chain with high-reliability industrial belts and has become a designated supplier for several motorcycle brands [4] International Strategy - Fengmao has leveraged its partnership with Michelin to enhance its international market presence, exporting products to Europe, Southeast Asia, and South America [5][6] - The company aims to strengthen its position in the global high-end rubber components market by expanding its customer base and product offerings [5] R&D and Future Plans - R&D investment increased by 30.30% in 2024, with the company actively participating in the development of international and national standards [7] - A clear development plan for 2025 has been established, focusing on expanding applications in high-value sectors like robotics and new energy vehicles [7] - The company has secured a significant order worth 170 million yuan from a well-known automotive manufacturer, ensuring stable future revenue [7][8]