ZONGSHEN POWER(001696)2025-04-09 10:59Business Overview - The company focuses on becoming a leading provider of small and medium-sized aviation power systems in China, emphasizing independent innovation in domestic aviation power technology [1][4] - The company aims to strengthen its technology and product iteration in the aviation engine sector to support the development of China's low-altitude economy [1][4] New Energy Sector - The new energy industry is experiencing historic growth opportunities, with the electric vehicle market projected to reach a trillion-level market [2] - The company is advancing its research and development in new energy power systems, including electric drive systems and hydrogen fuel cells, while also developing comprehensive energy storage solutions [2][6] Motorcycle Engine Business - The company plans to expand its high-displacement product matrix and has 11 new product projects scheduled for 2024, focusing on breakthroughs in hydrogen fuel engines and hybrid technologies [3] - The company is enhancing its overseas market presence, particularly in the "Belt and Road" initiative, while digitalizing its supply chain and brand channels [3] Financial Performance - In 2024, the company achieved total revenue of CNY 10.506 billion, a year-on-year increase of 28.89%, and a net profit of CNY 461 million, up 27.45% from the previous year [10][14] - The company is implementing strategies to optimize its existing fuel power business while rapidly scaling its new energy business to create a second growth curve [13] Challenges and Strategies - The company faces challenges from raw material price fluctuations, which have impacted its gross margin; it plans to enhance cost control and product mix to maintain competitiveness [17] - The company exports approximately 10% of its revenue directly to the U.S., and it is actively monitoring tariff changes to adjust its production and operational strategies accordingly [18][21] Investor Relations and Market Confidence - The company emphasizes regular communication with investors through various channels to enhance understanding and confidence in its business and development strategies [22] - The management is committed to maintaining a high cash dividend ratio to enhance shareholder returns and is considering share buyback plans based on market conditions [26][28]