Xingyuan Zhuomei: Net profit in Q1 decreased by 4.08% YoY

On May 7, the share price of Xingyuan Zhuomei continued to rise, extending the gains from the previous three trading days. By the close of trading on the 7th, Xingyuan Zhuomei's shares rose by 0.94%, closing at 54.8 yuan per share.

Xingyuan Zhuomei recently disclosed its 2025 Q1 report, showing that in the first quarter of this year, the company achieved a total operating revenue of 88.3378 million yuan, up 7.28% YoY; net profit attributable to shareholders of the publicly listed firm was 16.9395 million yuan, down 4.08% YoY.

On April 15, Xingyuan Zhuomei stated on an investor interaction platform that currently, the company's sales business in the US accounts for a relatively small proportion, with a relatively small direct impact on the company.

On the evening of April 10, Xingyuan Zhuomei issued an announcement stating that it had recently received a designated development notice from a domestic parts producer, and would develop and supply magnesium alloy powertrain housing parts for NEVs for this customer. According to the customer's plan, the project is expected to commence mass production in 2026, with total sales over the next four years (2026-2029) estimated at approximately 650 million yuan.

Xingyuan Zhuomei's 2024 annual report, previously released, showed that in 2024, the company achieved an operating revenue of 408.6044 million yuan, up 16.01% from the previous year. Net profit attributable to shareholders of the publicly listed firm was 80.3311 million yuan, up 0.31% from the previous year, and net profit after deducting non-recurring gains and losses attributable to shareholders of the publicly listed firm was 74.0161 million yuan, up 10.35% from the previous year. Major operating indicators reached new highs, laying a solid material foundation for high-quality development. Looking ahead, we will continue to uphold an innovative spirit, continuously enhance our capabilities, contribute more to the development of the global automotive industry, and help elevate the influence of China's automotive industry on the international stage.

In its 2024 annual report, Xingyuan Zhuomei introduced that in 2024, the company was mainly engaged in the R&D, production, and sales of precision die-casting products made of magnesium alloy and aluminum alloy, as well as supporting die-casting molds. The company's existing main die-casting products include automotive die-castings such as automotive display system parts, NEV powertrain parts, automotive center console parts, automotive seat parts, automotive headlamp parts, high-cleanliness autonomous driving module parts, as well as non-automotive die-castings such as functional and structural parts for e-bikes and garden machinery accessories. The company's products are ultimately applied in car models of well-known domestic and overseas brands such as BMW, Audi, Porsche, IM Motors, NIO, Great Wall Motors, Chery, and Zeekr.

Xingyuan Zhuomei's annual report showed that the company's total operating revenue for the full year of 2024 reached 409 million yuan, of which revenue from magnesium alloy die-castings was 284 million yuan, accounting for 69.40%; revenue from aluminum alloy die-castings was 102 million yuan, accounting for 24.91%; molds and other supplementary businesses contributed 19.4855 million yuan and 3.7651 million yuan, respectively.

Combining the historical price trends of magnesium alloy AZ91D in Q1 this year and 2024, it can be seen that:

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The average price of magnesium alloy AZ91D on March 31 was 18,650.00 yuan/mt, an increase of 850 yuan/mt compared to the average price of 17,800 yuan/mt on December 31, 2024, representing a 4.78% increase.

However, magnesium alloy AZ91D experienced a significant decline in 2024. Its average price on December 31, 2024, was 17,800 yuan/mt, a decrease of 4,350 yuan/mt compared to the average price of 22,150 yuan/mt on December 29, 2023, representing a 19.64% decline.

The price trend of magnesium alloy AZ91D is closely related to magnesium ingots. In Q1 2025, due to changes in the supply-demand relationship, the inventory of magnesium ingot producers continued to decline, and magnesium prices rebounded steadily in Q1 2025, which in turn drove up the average price of magnesium alloy AZ91D in Q1. In April, affected by weak supply and demand, magnesium ingot prices fluctuated rangebound overall. However, influenced by stockpiling before the Labour Day holiday, trading in the main magnesium ingot producing areas performed well in late April, with a daily average trading volume of approximately 1,500 mt. The inventory pressure on magnesium ingot smelters was effectively alleviated, and some enterprises even sold small batches of futures for the Labour Day holiday period. Supported by low inventory, magnesium ingot prices rebounded somewhat at the end of April.

After the Labour Day holiday, influenced by factors such as market concerns that environmental protection checks may affect magnesium ingot supply and that dolomite supply may be restricted, the prices of multiple magnesium industry chain products, including magnesium ingots and magnesium alloys, rose on May 7. For the outlook of magnesium, it is necessary to continue to monitor the persistence of supply-side influencing factors. Before major changes occur in the supply-demand relationship, it is expected that magnesium prices will continue to fluctuate rangebound, supported by generally low inventory levels at magnesium enterprises.