Summary of the Conference Call for Siwei Liekong Company Overview - Siwei Liekong was founded in May 1992 and is one of the earliest companies engaged in train operation control system research in China. The company was listed on the Shanghai Stock Exchange on December 24, 2015, becoming the first A-share listed company in the train control field in China. The current registered capital is 381 million yuan, with over 1,000 employees [2][3]. Financial Performance - In 2024, Siwei Liekong achieved a revenue of 1.515 billion yuan, representing a year-on-year growth of 28.38%. The net profit attributable to shareholders was 548 million yuan, up 33.08%, while the net profit after deducting non-recurring gains and losses reached 549 million yuan, increasing by 35.02%, indicating strong growth momentum [1][5]. - All three major business segments experienced significant growth: - Train control systems revenue was 886 million yuan, up 25.89% - Railway safety business revenue was 238 million yuan, up 25.64% - High-speed rail operation monitoring revenue was 355.8 million yuan, up 39.79% [1][5]. - The company's profitability improved significantly, with both net profit and net profit after deducting non-recurring gains and losses growing by over 30%. The net cash inflow from operating activities was 439 million yuan, a year-on-year increase of 52%. By the end of 2024, cash and cash equivalents reached 1.665 billion yuan, indicating a solid financial position [1][5]. - The gross profit margin for 2024 was 67.57%, and the net profit margin was 36.17%, both showing a continuous growth trend for three consecutive years, reflecting enhanced cost control and profitability [1][5]. Market Position - The market share of the XG system in the train control business exceeded 49%, applied to over 20,000 locomotives and more than 1,500 EMUs. The market share of the 6A CMD system in railway safety exceeded 30%. The DMS US GRU module in high-speed rail achieved a market share of 100%, consolidating its market leadership [1][6][7]. Strategic Developments - The company plans to implement quality improvement and efficiency enhancement measures in 2025, develop new productive forces, strengthen market value management, and improve investor returns. Strategic reserve projects such as the intelligent driving system (STO) and smart stations will be promoted to ensure sustainable development [3][8]. - The acquisition of Nanxin Technology has enabled the strategic establishment in the high-speed rail comprehensive monitoring field, forming a business structure that includes train operation control, railway safety protection, and high-speed rail operation monitoring [3][4]. Conclusion - Siwei Liekong demonstrates robust financial performance and market leadership in its core business segments. The company's strategic initiatives and focus on innovation position it well for future growth and sustainability in the railway industry.