Core Insights - The automotive storage market is undergoing significant transformation driven by the growth of smart and connected electric vehicles, with Jiangbolong emerging as a key player in this sector [1][6]. Group 1: Automotive Storage Solutions - Jiangbolong has showcased its strength in automotive storage by presenting four star products at the recent Smart Expo, highlighting its comprehensive range of automotive storage solutions that cater to various critical applications such as smart cockpits and advanced driver-assistance systems (ADAS) [3]. - The company offers a full suite of automotive storage solutions, including eMMC, UFS, LPDDR, and SPI NAND Flash, which are designed to perform reliably in extreme conditions while maintaining low power consumption [3][5]. Group 2: Competitive Advantage - Jiangbolong's leading position in the automotive storage market is attributed to its unique PTM (Product Technology Manufacturing) model, which allows for comprehensive control over the entire production chain, ensuring product quality and effective cost management [5]. - The company has developed proprietary main control chips and firmware algorithms, enabling rapid market response and customized solutions, while its high-reliability production lines ensure consistency and reliability in its products [5]. Group 3: Technological Innovation - Jiangbolong continues to drive innovation in automotive storage technology, with its automotive-grade eMMC, UFS, LPDDR4x, and SPI NAND Flash products achieving industry-leading performance in terms of speed, capacity, and power consumption [5]. - The automotive-grade UFS offers over six times the read/write performance compared to eMMC, significantly reducing transmission latency for applications such as ADAS domain controllers and cockpit HMI systems [5]. - The automotive-grade LPDDR4x balances high speed and low power consumption, providing robust support for interactive experiences like AI voice assistants in smart cockpits [5]. Group 4: Future Outlook - As the market for smart connected electric vehicles continues to expand, Jiangbolong is committed to deepening its focus on the storage sector, aiming to support the global automotive industry in transitioning towards a smarter and greener era of mobility [6][7].

Core Viewpoint - Jiangbolong experienced a quarterly loss in Q1 2024 after achieving profitability in the previous year, with total revenue of 4.256 billion yuan, a slight decline of 4.41% year-on-year, and a net profit of -152 million yuan, a dramatic drop of 139.52% year-on-year [1][2]. Group 1: Financial Performance - In Q1 2024, Jiangbolong's sales gross margin further decreased to 10.35%, down 8.7 percentage points quarter-on-quarter and down 14.04 percentage points year-on-year [4]. - The company reported a significant increase in revenue for 2024, reaching 17.464 billion yuan, a year-on-year growth of 72.48%, and a net profit of 499 million yuan, a year-on-year increase of 160.24% [2]. - The gross margin for Jiangbolong's sales declined sequentially throughout 2024, with figures of 24.39%, 23.51%, 21.54%, and 19.05% for Q1 to Q4 respectively [4]. Group 2: Business Segments - Jiangbolong's consumer storage segment, which includes the Lexar brand, accounted for 58% of revenue in 2024, despite a 5.3 percentage point decline in gross margin to 15.6% due to weak demand in consumer electronics [3]. - The automotive-grade storage segment is identified as a growth area, with revenue share increasing from 7% in 2023 to 12% in 2024, and expected to exceed 15% by 2025 [5]. - The enterprise storage segment saw explosive growth, with revenue reaching 922 million yuan in 2024, a staggering year-on-year increase of 666.30%, driven by the demand for AI computing [6][7]. Group 3: Market Conditions and Challenges - The global storage chip market is facing a downturn, with significant price declines in DRAM and NAND Flash products, impacting Jiangbolong's profitability [7][8]. - Jiangbolong's inventory reached 7.814 billion yuan, with a substantial increase in inventory impairment provisions, indicating significant inventory pressure [8]. - The company is investing heavily in R&D, with expenditures of 910 million yuan in 2024, a year-on-year increase of 53.34%, which is expected to enhance technological capabilities but also increases cash flow pressure [9]. Group 4: Strategic Outlook - Jiangbolong is focusing on establishing a foothold in the automotive-grade storage market, with collaborations with over 20 major automotive manufacturers [5]. - The company has made significant advancements in self-developed high-end products, including the successful mass production of the UFS 4.1 controller chip, which is expected to support its entry into the mid-to-high-end market [8][9]. - Despite short-term losses, Jiangbolong's breakthroughs in automotive and enterprise storage markets, along with its commitment to self-research, lay the groundwork for long-term growth [10].