Victory Precision: Currently Has No Business Cooperation with Unitree Robotics; Composite Current Collector Project Is Still in the R&D, Trial Production, and Sample Delivery Stages

On February 20, Shengli Precision hit the daily limit during trading. As of 9:59 AM on February 20, Shengli Precision's stock price reached the daily limit, closing at 3.61 yuan per share.

News: In response to the question, "Dear Secretary, some analyses suggest that your company is involved in the stamping and surface treatment of lightweight metal components for Unitree Robotics' robot bodies. Could you please clarify the status of your cooperation orders with Unitree Robotics?" Shengli Precision replied on the interactive platform on February 19, stating that the company currently has no business cooperation with Unitree Robotics.

When asked, "Has the company officially taken orders for mass production of composite copper foil and aluminum foil? Which battery producers are you mainly cooperating with?" Shengli Precision responded on the interactive platform on February 19, stating: The company's composite current collector project is still in the R&D, trial production, and sample delivery stages, and the project is progressing in an orderly manner.

On the evening of January 24, Shengli Precision released its performance forecast, estimating a net loss attributable to shareholders of publicly listed firms in 2024 to be between 350 million and 660 million yuan. Basic earnings per share are expected to show a loss of 0.1035 to 0.1951 yuan. In the same period last year, the net loss attributable to shareholders was approximately 928 million yuan, with basic earnings per share showing a loss of 0.2746 yuan.

Regarding the main reasons for the performance changes, Shengli Precision announced: In 2024, the company will focus on consumer electronics and automotive parts businesses, optimize its product structure, continuously improve internal management, and actively implement cost reduction and efficiency enhancement measures, resulting in a YoY reduction in net loss. 1. During the reporting period, the main reasons for the company's net loss were: (1) The company's overall operating revenue slightly increased compared to last year. Among this, the operating revenue from automotive parts grew significantly YoY, while revenue from consumer electronics slightly declined. Due to intense competition in the consumer electronics industry and its significant proportion of the company's overall business, the company's overall gross profit margin remained low. In the future, as the consumer electronics business gradually recovers and the automotive parts business grows, the company's profitability is expected to improve.

(2) According to the relevant provisions of the "Accounting Standards for Business Enterprises—Asset Impairment," and based on the principle of prudence, considering the company's current operational management, market changes in relevant assets, and other factors, the company plans to make provisions for asset impairment losses on certain inventories and related assets showing signs of impairment.

(3) Shenzhen Yifang Digital Technology Co., Ltd., an associate company, is expected to cease operations due to the transfer of major client business. Based on the principle of prudence, the company has made impairment provisions for its long-term equity investments and debts.

(4) For the final installment of debt from Nanjing Dele, as the non-monetary assets proposed for offset by the counterparty have not yet reached a deliverable state, the company has made bad debt provisions for the aforementioned amount based on the principle of prudence. 2. Based on preliminary calculations, non-recurring gains and losses are expected to impact the company's net profit attributable to shareholders of publicly listed firms in 2024 by approximately 50 million to 80 million yuan. This is mainly due to performance compensation received during the reporting period, as well as changes in the fair value of investment properties and other non-current financial assets.

Previously, when asked whether the company has any involvement in the robotics industry, Shengli Precision stated on the investor interaction platform on January 17 that its main businesses are consumer electronics and automotive parts. The company provides precision structural components and modules for 3C consumer electronics industry clients, as well as in-car central control screens and structural components for NEV manufacturers and traditional automakers.

On January 17, Shengli Precision also stated on the investor interaction platform that the company's 2024 annual report is scheduled to be disclosed on April 24, 2025. Please refer to the announcement for specific performance details.

Previously, when asked, "The company has increased its investment in the NEV sector. Will the revenue from automotive parts further increase in the future? Will the company's composite copper foil, composite aluminum foil, composite current collector, magnesium alloy components, and in-car central control screen projects become the company's development center in the coming years? Will these form a dual-core business model with the consumer electronics segment to promote high-quality development and better reward shareholders?" Shengli Precision responded on the investor interaction platform on January 10: The company will continue to focus on its main businesses, maintaining stable development in the consumer electronics segment while prioritizing the development of automotive parts (such as in-car central control screens and lightweight magnesium alloy structural components). New projects like composite current collectors are also progressing in an orderly manner. The company will continuously enhance its operational capabilities and quality to reward investors.

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