Zhejiang Shuanghuan Driveline (002472) Q4 2024 earnings summary

Executive summary

• Achieved revenue of ¥8.78 billion in 2024, up 8.76% year-over-year; net profit attributable to shareholders rose 25.42% to ¥1.02 billion.

• Main business segments include automotive gears, industrial robot reducers, and smart actuators, with significant growth in new energy vehicle (NEV) gears and smart actuator businesses.

• NEV gear revenue grew 51.21% year-over-year, now 38.38% of total revenue; traditional fuel vehicle gear revenue declined 1.99%.

• R&D investment increased 18.84% to ¥456 million, representing 5.19% of revenue; R&D staff grew 25.32%.

Financial highlights

• Operating income: ¥8.78 billion (+8.76% YoY); net profit attributable to shareholders: ¥1.02 billion (+25.42% YoY).

• Gross margin for core manufacturing: 26.03% (+2.43pp YoY); basic/diluted EPS: ¥1.22 (+25.77% YoY).

• Operating cash flow: ¥1.68 billion (+6.97% YoY); total assets: ¥15.87 billion (+20.46% YoY).

• Net assets attributable to shareholders: ¥8.81 billion (+10.69% YoY).

• Dividend: ¥2.26 per 10 shares (cash), no bonus shares or capital increase.

Outlook and guidance

• Focus on expanding NEV and smart actuator product lines, with continued investment in R&D and digital manufacturing.

• Accelerating overseas expansion, especially in Europe, with new capacity in Hungary to support global customers.

• Plans to deepen digitalization, automation, and green manufacturing initiatives.