JJE(SH:688280)2024-06-06 08:01Summary of the Earnings Call for Jingjin Electric Company Overview - Company Name: Jingjin Electric - Founded: February 2008 - Stock Code: 688280 (listed on the Sci-Tech Innovation Board in October 2021) - Industry: Electric Drive Systems for New Energy Vehicles (NEVs) Key Points and Arguments Business Performance - 2023 Revenue: 266 million yuan, a decrease of 15.13% compared to 2022, primarily due to a decline in domestic passenger vehicle electric drive system sales [44] - Q1 2024 Revenue: 275 million yuan, a year-on-year increase of 54.42%, with main business revenue of 267 million yuan, up 55.64% [32] - 2023 Net Loss: 577 million yuan, an increase in loss of 48.56% compared to the previous year [46] - 2023 R&D Expenses: 150 million yuan, accounting for 17.32% of total revenue, a decrease from 2022 [54] Market Position and Strategy - Target Market: Focus on high-end markets for both passenger and commercial vehicles, with a commitment to technological innovation and quality management [1][4] - Global Expansion: Significant growth in overseas business, with overseas revenue of 409 million yuan, accounting for 48.63% of main business revenue, a 48.73% increase from 2022 [50] - Partnerships: Established strong relationships with major automotive manufacturers such as Stellantis, Volkswagen, and BYD, and is actively pursuing further collaborations with international companies [40][41] Technological Advancements - Product Development: Successful development of high-performance electric drive systems, including a three-in-one system for various vehicle types, with significant advancements in carbon-silicon controllers and integrated systems [20][31] - R&D Focus: Emphasis on integrated multi-core MCU chips and silicon carbide devices, with products achieving high efficiency (up to 99.6%) and rapid response times [31][33] - Innovative Cooling Technology: Development of advanced oil-water cooling technology applied to multiple products, enhancing performance in extreme conditions [24][25] Challenges and Risks - Revenue Decline: The decrease in revenue is attributed to the termination of older projects and the transitional phase of new projects, leading to lower monthly income [44] - Increased Costs: New projects have led to higher manufacturing costs without achieving economies of scale yet [34] - Asset Impairment: Increased asset impairment due to product upgrades and optimization measures at production bases [48] Future Outlook - 2024 Focus: Plans to enhance sales, maintain R&D investment, and improve product quality and cost efficiency [63] - Market Trends: The company aims to capitalize on the growing demand for electric vehicles, particularly in the B-class and high-end SUV segments [64] - Production Goals: Ensuring smooth implementation of new projects and maintaining supply chain efficiency will be critical for future growth [42][66] Additional Important Information - Patents and Innovations: As of the end of 2023, the company holds numerous patents, including 49 invention patents and 327 utility model patents, indicating a strong focus on innovation [59][60] - Quality Recognition: The company has received multiple awards for its products, including recognition for quality from major automotive manufacturers [17][18] This summary encapsulates the key points from the earnings call, highlighting the company's performance, strategic direction, technological advancements, challenges, and future outlook.