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Xiangxin Technology is a typical model of transformation for traditional component enterprises.
By partnering with Huawei’s humanoid robot, Xiangxin Technology has successfully doubled its market value while attracting more institutional attention.
On May 6, a total of 173 institutions conducted research on it, undoubtedly making it a favorite among institutions.
Some valuable information can be derived from the research:
1.Mexico’s production capacity is planned at 250 million yuan with expansion based on demand; the Thailand factory targets the Southeast Asian markets for new energy vehicles, energy storage, and computing servers; plans to establish factories in Europe/North Africa by 2025 to serve international car manufacturers such as Stellantis, Renault, and Volkswagen, while simultaneously supporting domestic clients like CATL and BYD in their overseas ventures.Future overseas revenue will increase, reducing risks from a single market.
2. Intelligent Robots: Establishing Xiangxin (Dongguan) Intelligent Robot subsidiary, jointly building a “Joint Technology Innovation Center” with the Guangdong Academy of Sciences to develop core components such as dexterous hands and lightweight robotic arms, leveraging automotive customer resources to enter the field of robotic structural components, creating a full-chain capability from “molds-structural components-body OEM”.
It is reported that future humanoid robot business will be integrated into this wholly-owned subsidiary, with automotive clients gradually entering the humanoid robot field. It is rumored that they are a major partner of Huawei robots.
3. Low-altitude Economy: Strategic cooperation with leading clients to layout structural components for low-altitude aircraft and direct cooling solutions for refrigerants, which can solve battery thermal runaway issues, covering eVTOL, energy storage, and other fields, aiming to secure bulk orders by 2025.
4.Direct cooling technology for refrigerants: Breaking through the limitations of traditional water cooling, heat transfer efficiency improves by 1-2 orders of magnitude, meeting GB38031 high safety standards, applicable in high heat flow density scenarios such as new energy vehicles, energy storage, and computing servers, with significant technical barriers.
5. Automotive Components: Responding to annual decline pressure by optimizing product structure (increasing the proportion of new energy), expanding small and medium clients, and reducing costs and increasing efficiency; expanding global market share for energy storage equipment relying on quality clients like Enphase.
Despite the positive development across various business sectors, Xiangxin Technology still shows a phenomenon of “increased revenue without increased profit” in terms of performance.
Financial reports indicate that in 2024, Xiangxin Technology’s total operating revenue was 6.744 billion yuan, a year-on-year increase of 18.25%; net profit attributable to the parent company was 359 million yuan, a year-on-year decrease of 11.63%.
During the reporting period, Xiangxin Technology’s gross profit margin was 14.12%, a significant year-on-year decrease of 20.17%; net profit margin was 5.34%, a year-on-year decrease of 25.34%; return on equity (weighted) was 9.5%, a year-on-year decrease of 32.09%; the decline is quite noticeable, with a significant drop in profitability.
Entering the first quarter, Xiangxin Technology achieved total operating revenue of 1.636 billion yuan, a year-on-year increase of 4.13%; net profit attributable to the parent company was 85.9029 million yuan, a year-on-year decrease of 29.15%, with a significant decline. The company explained that the first quarter is traditionally a slow season for the automotive industry.
Looking at the data for 2024:
1. Automotive Components: Revenue of 5.002 billion yuan (accounting for 74.18%), a year-on-year increase of 12.86%, with clients covering mainstream car manufacturers such as GAC, BYD, Xiaopeng, NIO, and Li Auto (Tier 2 seat frames) and T clients (Tesla), with seat frame business experiencing rapid short-term growth due to the release of fuel vehicle projects, and new energy vehicle business expected to accelerate with the launch of new projects.
2. Energy Storage Equipment: Revenue of 1.217 billion yuan (accounting for 18.04%), a year-on-year surge of 123%, becoming the second growth engine, with clients including Enphase Energy, Jinlang Technology, and Xinneng An among domestic and international leaders.
3. Overseas Market: Revenue of 629 million yuan, a year-on-year increase of 12.89%, with the Mexican subsidiary contributing incremental growth, and the global layout beginning to show results.
Xiangxin Technology’s “second entrepreneurship” seems to cover mainstream concepts, taking steady steps, but in reality, each step still has a long way to go.Opening its official website, the goal still displayed is to “strive to become a globally renowned, domestically leading manufacturer of metal molds and components”.
To turn things around, it seems they still need to hold tightly to the “Huawei humanoid robot” opportunity.
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