Core Viewpoint - The company, Shangong Shenbei, has faced a decline in stock price and performance despite initial excitement surrounding its entry into the low-altitude economy sector, with significant losses reported in its overseas operations [1][3][5]. Group 1: Company Overview - Shangong Shenbei's stock price peaked at 19.28 yuan per share but has since fallen, with a current price of 10.54 yuan and a market capitalization of 7.517 billion yuan [1]. - The company has been involved in overseas business primarily in sewing equipment and smart manufacturing, as well as general aviation aircraft manufacturing, which is a new venture for 2024 [1][3]. Group 2: Financial Performance - In 2024, the company reported overseas revenue of 1.333 billion yuan, accounting for over 30% of total revenue, with a gross margin of 24.79%, down 10.58 percentage points from the previous year [3]. - The subsidiary Dürkopp Adler GmbH (DA Company) experienced a revenue decline of 15.95% in 2024, resulting in a net loss of 178 million yuan, marking a shift from profit to loss [3]. Group 3: Strategic Moves and Challenges - The company announced plans to invest in DA Company and acquire assets from the bankrupt ICON Company in the U.S., raising concerns from the Shanghai Stock Exchange regarding the relevance of these investments to its core business [2][3]. - Despite a history of international acquisitions since 2004, the company lacks experience in managing U.S. aircraft manufacturing, which poses a challenge for its new business direction [3]. Group 4: Ownership and Control - The company is currently without a controlling shareholder, as both the largest shareholder and the second-largest shareholder hold less than 30% of the shares, leading to a lack of control over the company [4]. - The recent change in indirect ownership involving the "King of Rare Metals," Zhu Shihui, adds complexity to the company's governance structure [4].

Group 1 - The company plans not to distribute profits for the year 2024, including no cash dividends or stock bonuses, due to a negative net profit [2][35][38] - The company's consolidated net profit for 2024 is -24,423,133.43 yuan, while the parent company's net profit is 21,570,680.93 yuan [5][36] - The company aims to reserve operating funds to ensure stable operations and liquidity needs for sustainable development [2][38] Group 2 - The company operates in the manufacturing sector, specifically in the specialized equipment manufacturing industry, focusing on sewing machinery [2] - The sewing machinery industry in China has shown recovery, with 275 large enterprises achieving a revenue of 31.611 billion yuan, a year-on-year increase of 19.04% [3] - The garment industry has seen a stable recovery, with a 0.8% increase in industrial added value and a 4.22% increase in garment production in 2024 [3] Group 3 - The automotive industry, a key customer for the company's medium-thick material sewing equipment, has shown positive growth, with production and sales increasing by 3.7% and 4.5% respectively [4] - The company's overseas subsidiary in Germany faced a sluggish market, with the automotive sector's production remaining stable and machinery output declining by approximately 8% [5] - The company has implemented cost control measures and improved cash flow management to mitigate short-term operational losses [6] Group 4 - The company reported a revenue of 4.411 billion yuan for the reporting period, a year-on-year increase of 16.39%, primarily due to the acquisition of an 80% stake in a subsidiary [8] - The net profit attributable to shareholders decreased by 369.16% to -24.423 million yuan, influenced by reduced sales of high-margin products and lower asset disposal gains [8] - The company has maintained its core business of developing, producing, and selling sewing and intelligent manufacturing equipment, with no significant changes in its business model [5]