Half Suffer Losses! One Turns Profitable! A Preview of 2024 Performance of 38 Publicly Listed Firms in the Lithium Battery Sector

Recently, several publicly listed firms in the lithium battery sector released their 2024 performance forecasts. Based on the performance, the lithium battery industry is still facing structural and temporary capacity surplus and intensified competition.

Among the 38 publicly listed firms in the lithium battery sector included in the statistics by Battery Network, their businesses cover various fields such as lithium batteries, lithium carbonate, lithium ore, cathode materials, anode materials, electrolyte, separators, lithium battery equipment, lithium battery copper foil, aluminum-plastic film, battery structural components, and battery recycling. Using the median of forecasted net profit as the statistical criterion, in 2024, 19 firms are expected to report losses, while 19 are expected to report profits, each accounting for half.

In terms of performance forecast types, compared to the same period in 2023, only seven publicly listed firms are expected to achieve significant growth in 2024, namely NAURA, Ampower Technology, Zhongke Electric, China Power, Kaizhong Precision, Yuanhang Precision, and Huayuan Holdings. Changhong Energy is expected to turn losses into profits. Eleven firms are expected to see significant declines, including Polymatech, Pylon Technologies, Tibet Urban Development, Huakong SEG, Sinoma Technology, Zhongrui Shares, Shidai Wanheng, Yongxing Materials, Keda Industrial, Easpring Technology, and Tinci Materials. Eight firms are expected to report losses, including Zhenhua New Materials, Jiayuan Technology, Saiwu Technology, Huati Technology, Hosen Intelligent, Yicheng New Energy, Hechuan Technology, and Xinyuren. Seven firms are expected to reduce losses, including Jiangxi Special Electric Motor, Lopal, Tianqi Shares, OKE Shares, Huazheng New Materials, Disenli, and Weike Technology. Four firms are expected to see expanded losses, including Huasheng Lithium Battery, Kanglongda, Shenzhen Sunxing, and Crown New Materials.

Details are as follows:

Lithium Batteries

Ampower Technology (603031) The company is expected to achieve a net profit attributable to shareholders of the parent company of 158 million to 178 million yuan in 2024, an increase of 42.17 million to 62.17 million yuan compared to the same period last year, up 36.41% to 53.68% YoY. The main reason for the performance change is the stable growth of operating performance. In the domestic market, in 2024, the company's controlling subsidiary, Fujian Nanping Nanfu Battery Co., Ltd., continued to strengthen marketing, reduce costs, improve efficiency, and actively expand overseas business through multiple measures, achieving good operating results overall. The company's equity ratio in Nanfu Battery further increased.

China Power (600482) The company is expected to achieve a net profit attributable to shareholders of the parent company of 1.17 billion to 1.4 billion yuan in 2024, an increase of 391 million to 621 million yuan compared to the same period last year, up 50.10% to 79.61% YoY. The main reasons for the performance growth are the expansion of the shipbuilding industry, rapid growth in sales scale of subsidiaries in the diesel engine segment, significant increase in orders, rising prices of main products, and improved gross profit margin.

Changhong Energy (836239) The company is expected to achieve a net profit attributable to shareholders of the parent company of 185 million to 205 million yuan in 2024, compared to a loss of 271 million yuan in the same period last year. The company achieved YoY growth in sales revenue and turned losses into profits in net profit attributable to shareholders of the parent company. The main reasons are: 1. The cylindrical alkaline zinc-manganese battery business maintained high operational efficiency through active market expansion, continuous cost reduction, and refined management, achieving steady growth in sales scale and profits YoY. 2. The cylindrical high-C-rate lithium battery business further optimized its organizational structure and operational mechanisms through the continuous promotion of the "Strong Foundation Action," improving operational efficiency while increasing market expansion efforts, resulting in YoY growth in sales scale and significant improvement in profitability, turning losses into profits YoY. 3. The polymer lithium-ion battery business improved management capabilities and operational efficiency through integration in management, systems, and culture, while seizing market opportunities in 3C digital and IoT terminals, achieving significant YoY growth in sales scale and profit levels.

Polymatech (002324) The company is expected to achieve a net profit attributable to shareholders of the listed company of 130 million to 195 million yuan in 2024, down 58.37% to 72.24% YoY; basic earnings per share are expected to be 0.1183 yuan to 0.1775 yuan. The main reasons for the performance change are the impact of the new energy industry cycle in 2024, intense competition in the new energy battery cell market, a YoY decline in product unit prices and gross profit margins of the company's lithium battery business, and increased impairment losses such as inventory write-downs. In addition, the new capacities at the Qidong and Zhuhai bases have not been fully released, and the significant pre-expenses for personnel, R&D, and depreciation of new capacities further affected performance, leading to losses in the company's new energy segment.

Shidai Wanheng (600241) The company is expected to achieve a net profit attributable to shareholders of the parent company of 13 million to 20 million yuan in 2024, down 67% to 79% YoY; non-recurring net profit is expected to be 12 million to 19 million yuan, down 68% to 80% YoY. The company stated that the reasons for the performance decline include: 1. The impact of economic cycle fluctuations, temporary downturns in downstream consumer markets, adjustments in customer inventory cycles, and industry competition led to cautious customer orders and reduced orders. 2. To mitigate accounts receivable risks, the company proactively reduced supply to some customers, resulting in a partial decline in lithium battery business revenue. 3. Exchange rate fluctuations led to a significant YoY decline in exchange rate conversion gains and losses. 4. The decline in raw material prices caused a drop in battery unit prices, leading to a decrease in operating revenue.

Weike Technology (600152) The company is expected to achieve a net profit attributable to shareholders of the parent company of approximately -31 million yuan in 2024, reducing losses by 89.3 million yuan YoY. In 2024, the company increased R&D investment, with R&D expenses up 38 million yuan YoY. The Nanchang base's sodium-ion battery business was in the investment stage and early industrialisation phase, with high product costs. Significant investments were made in sodium-ion battery technology R&D, process improvement, and product upgrades.

Pylon Technologies (688063) The company is expected to achieve a net profit attributable to shareholders of the parent company of 33 million to 45 million yuan in 2024, down 91.27% to 93.6% YoY. In 2024, the global economic situation was complex and volatile, with a slowdown in growth. Downstream enterprises continued destocking, and the competitive landscape in the industry intensified. The selling prices of the company's ESS products were under pressure, leading to a decline in operating revenue. However, with the continuous optimization and upgrading of the company's internal cost control system and the downward trend in raw material market prices, the company's gross profit margin remained stable YoY.

Lithium Carbonate and Lithium Ore

Yongxing Materials (002756) The company is expected to achieve a net profit attributable to shareholders of the parent company of 1.03 billion to 1.23 billion yuan in 2024, down 63.9% to 69.77% YoY; non-recurring net profit is expected to be 880 million to 1.08 billion yuan, down 66.66% to 72.83% YoY; basic earnings per share are expected to be 1.93 yuan to 2.26 yuan. In 2024, the company's special steel new materials business increased market expansion efforts, continued to adjust and optimize its product structure, and maintained stable profitability. The company's lithium battery new energy business operated normally, and operating profit in Q4 improved QoQ as lithium carbonate prices stabilized. However, the annual lithium carbonate prices declined significantly YoY, coupled with asset impairments from technological transformation projects, leading to a YoY decline in net profit attributable to shareholders of the listed company.

Keda Industrial (600499) The company is expected to achieve a net profit attributable to shareholders of the listed company of 900 million to 1.1 billion yuan in 2024, a decrease of 992 million to 1.192 billion yuan compared to the same period last year, down 47.42% to 56.98% YoY. In recent years, with price fluctuations in the lithium carbonate market and the release of lithium carbonate capacity by the company's associate Qinghai Salt Lake Lanke Lithium Co., Ltd., Lanke Lithium's operations have had a significant impact on the company's performance. In 2023, its impact on the company's net profit attributable to shareholders of the listed company accounted for over 60%. In 2024, Lanke Lithium achieved good YoY growth in production and sales volumes. However, due to the sluggish lithium carbonate market prices, Lanke Lithium's performance declined by over 80% YoY, reducing its contribution to the company's net profit attributable to shareholders of the listed company by approximately 1 billion yuan.

Jiangxi Special Electric Motor (002176) The company is expected to report a loss of 236 million to 285 million yuan in 2024, marking two consecutive years of losses but with reduced losses YoY. The company stated that by timely engaging in lithium carbonate futures hedging, it effectively mitigated the adverse impact of falling lithium carbonate prices.

Kanglongda (603665) The company is expected to report a net loss attributable to shareholders of the parent company of approximately 350 million to 500 million yuan in 2024, continuing its losses from the previous year. In the same period last year, the company's net loss attributable to shareholders of the parent company was 220 million yuan. The company stated that the main reasons for the performance loss include lower-than-expected industry demand, leading to sluggish market prices for lithium chemical products from its controlling subsidiary, which impacted net profit attributable to shareholders of the parent company. Additionally, the company's project in Vietnam was nearly completed, resulting in increased fixed assets and depreciation expenses, while capacity was still in the ramp-up stage, leading to significant losses in its main business. Exchange rate fluctuations also caused losses, particularly due to the depreciation of the yuan, which affected foreign exchange derivative transactions. The company also expects to make goodwill impairment provisions for its controlling subsidiary, amounting to 250 million to 310 million yuan.

Tibet Urban Development (600773) The company is expected to achieve a net profit attributable to shareholders of the parent company of 11 million to 16 million yuan in 2024, down 74.19% to 82.26% YoY; non-recurring net profit is expected to be a loss of 270 million to 300 million yuan, compared to a profit of 62.2276 million yuan in the same period last year. The announcement stated that the performance decline was mainly due to fluctuations in the real estate market, a significant decline in property sales revenue, and increased rigid expense expenditures.

Huati Technology (603679) The company is expected to report a net loss attributable to shareholders of the parent company of 52 million to 78 million yuan in 2024, compared to a profit in the same period last year. The company stated that the main reasons for the loss include the impact of the market environment, overall sluggish market conditions, and a reduction and delay in market projects, leading to decreased revenue and a significant decline in operating performance.

Cathode Materials

Easpring Technology (300073) The company is expected to achieve a net profit attributable to shareholders of the parent company of 450 million to 520 million yuan in 2024, down 72.98% to 76.61% YoY. The company stated that in recent years, the growth rate of the overseas NEV industry has been below expectations, and competition in the domestic and overseas markets has intensified. Factors such as a decline in the proportion of international customer sales and product iteration and replacement have led to a significant YoY decline in the company's operating performance in 2024. In the future, the company will leverage its comprehensive advantages to navigate through cycles and achieve long-term healthy development.

Zhenhua New Materials (688707) The company is expected to report a net loss attributable to shareholders of the parent company of 500 million to 600 million yuan in 2024, compared to a profit of 103 million yuan in the same period last year; non-recurring net profit is expected to be a loss of 507 million to 607 million yuan, compared to a profit of 9.771 billion yuan in the same period last year. The announcement stated that the performance decline was mainly due to the impact of the macro environment, market structure, and demand changes. Intense competition in the automotive industry and continued price reductions in NEVs led to a significant decline in the company's product sales, low capacity utilisation rate, and delayed introduction of the company's 6-series ternary cathode materials to major customers, further affecting sales. Additionally, the lag in raw material procurement caused fluctuations in the gross profit margin of the main business.

Lopal (603906) The company is expected to report a net loss attributable to shareholders of the listed company of 595 million to 697 million yuan in 2024, compared to a loss of 1.233 billion yuan in the same period last year. In 2024, due to changes in the supply-demand relationship in the NEV industry chain, the lithium battery materials industry chain continued to operate at the bottom of the industry cycle. The price of LFP products adjusted significantly compared to 2023, coupled with inventory write-down losses, asset impairments, goodwill impairments, and other factors. Additionally, the company incurred significant non-recurring losses due to expenses related to its Hong Kong stock listing and financial liabilities of minority shareholders. Despite the company's efforts to adhere to a product differentiation strategy, actively seek global opportunities, and implement cost reduction and efficiency improvement measures, it remains challenging to reverse the situation in the short term, resulting in expected losses for 2024.

Anode Materials

Zhongke Electric (300035) is expected to achieve a net profit attributable to shareholders of publicly listed firms of approximately 288 million to 325 million yuan for the full year of 2024, up 590% to 680% YoY. The net profit after deducting non-recurring gains and losses is expected to be approximately 327 million to 374 million yuan, up 250% to 300% YoY. Zhongke Electric stated that the significant growth in production and sales of its lithium-ion battery anode materials compared to the previous year was driven by increased demand due to the rising penetration rate of NEVs, especially fast-charging models, and the rapid development of the ESS market. Additionally, the company implemented a series of cost-reduction and efficiency-enhancing measures in 2024, continuously improving profitability.

Huakong SEG (000068) is expected to achieve a net profit attributable to shareholders of publicly listed firms of 10 million to 14.8 million yuan in 2024, down 97.74% to 98.47% YoY, with basic earnings per share of 0.0099 yuan to 0.0147 yuan. The company's profitability in 2024 is mainly due to the inclusion of a 1.16 billion yuan valuation of a 20.25% equity stake in Tongfang Environment, which increased total profit by 1.16 billion yuan.

Yicheng New Energy (300080) is expected to report a net loss attributable to shareholders of publicly listed firms of 600 million to 700 million yuan in 2024, turning from profit to loss YoY. In 2024, due to technological updates and iterations in solar cells, the Pingmei LONGi solar cell business incurred significant losses, with a total profit of -571 million yuan and a net profit attributable to shareholders of approximately -440 million yuan for January-September 2024. As of September 30, 2024, the company had sold its equity in Pingmei LONGi, and future performance will no longer be affected by fluctuations in the Pingmei LONGi solar cell business. Additionally, the continuous decline in graphite electrode prices in 2024 led to a decrease in profitability. The company also plans to make an asset impairment provision of approximately 190 million yuan based on the principle of prudence, with the final amount to be determined after an audit by the appointed auditing firm.

Electrolyte

Huasheng Lithium Battery (688353) is expected to report a net loss attributable to the parent company of 152 million to 180 million yuan in 2024, with the loss increasing by approximately 128 million to 156 million yuan YoY, representing a YoY increase in loss of 535.67% to 652.77%. The performance change is mainly due to the rapid expansion of capacity in recent years, driven by the surge in demand for lithium battery materials from the rapid development of the NEV market, which attracted numerous investors to the field. In 2024, the company faced dual challenges of overcapacity and intensified market competition. Although the sales volume of its main products achieved significant growth, the decline in selling prices exceeded the growth in sales volume. Additionally, the commissioning of new capacity increased depreciation expenses, leading to higher unit costs. Combined with factors such as inventory write-downs, the company's performance in 2024 experienced a significant decline.

Aoke Co., Ltd. (300082) is expected to report a net loss attributable to shareholders of publicly listed firms of 130 million to 170 million yuan in 2024, compared to a loss of 309 million yuan in the previous year. Facing insufficient effective demand in the main product market and intense market competition, the company elevated its subsidiaries to operating entities, adopted a customer-centric overall marketing strategy, combined market orientation with industry focus, and implemented a series of operational reforms and innovations in high-end differentiated products. These measures have essentially achieved the goal of reducing operating losses by more than half compared to 2023.

Tinci Materials (002709) is expected to achieve a net profit attributable to shareholders of publicly listed firms of 440 million to 520 million yuan in 2024, down 76.73% to 72.50% YoY. The main reasons include the slowdown in downstream demand growth in recent years, changes in the supply-demand relationship within the NEV industry chain, and the lithium battery materials industry chain operating at the bottom of the industry cycle in 2024. Despite the company's efforts to adjust its product and customer structures, enhance sales strategies, increase sales of new products such as structural adhesives, reduce losses in cathode material businesses, and stabilize raw material prices through prudent hedging strategies, the significant price adjustments of electrolyte products compared to 2023, reduced unit profitability, inventory write-downs, and asset and credit impairments led to a YoY decline in profits.

Shenzhen Sunxing (603978) is expected to report a net loss attributable to the parent company of 330 million to 250 million yuan in 2024, with the loss increasing by 109 million to 189 million yuan YoY. Shenzhen Sunxing stated that the company's loss in 2024 was mainly due to the continuous decline in LiPF6 prices and lower-than-expected downstream customer demand, resulting in an operating loss of approximately 120 million yuan. Additionally, the company made impairment provisions of approximately 136 million yuan for related production equipment, construction in progress, and inventory of LiPF6 during the period.

Separator

Sinoma Science & Technology (002080) is expected to achieve a net profit attributable to shareholders of publicly listed firms of approximately 634 million to 950 million yuan in 2024, down 57.26% to 71.48% YoY, with basic earnings per share of 0.3778 yuan to 0.5662 yuan. The performance change is mainly due to a YoY decline in the prices of the company's main products in 2024, resulting in a decrease in net profit attributable to shareholders of publicly listed firms, net profit after deducting non-recurring gains and losses, and basic earnings per share compared to the previous year.

Lithium Battery Equipment

North Huachuang (002371) is expected to achieve operating revenue of 27.6 billion to 31.78 billion yuan in 2024, up 25% to 43.93% YoY, and a net profit attributable to shareholders of publicly listed firms of 5.17 billion to 5.95 billion yuan, up 32.6% to 52.6% YoY. The company has made breakthroughs with several new products, including capacitively coupled plasma etching equipment (CCP), plasma-enhanced chemical vapor deposition equipment (PECVD), atomic layer deposition vertical furnaces, and stacked cleaning machines, which have entered customer production lines and achieved mass sales, enriching the company's product portfolio and enhancing its product layout.

Housen Intelligent (688529) is expected to report a net loss attributable to shareholders of publicly listed firms of 65 million to 90 million yuan in 2024, compared to a profit of 86.656 million yuan in the previous year. The company stated that the loss was mainly due to extended acceptance cycles for some projects caused by long international transportation and cross-border on-site implementation cycles for overseas projects, as well as generally low capacity utilization rates among domestic downstream car manufacturers and parts suppliers. These factors led to a slight decline in operating revenue in 2024. Additionally, intensified competition in the automotive market and extended project acceptance cycles increased project implementation costs. The rapid growth in employee numbers to match the fast growth in new orders and orders on hand since 2023 significantly increased labour costs, resulting in a decline in gross profit margin in 2024.

Hechuan Technology (688320) announced a preliminary estimate of its 2024 annual performance, expecting operating revenue of 800 million to 850 million yuan, down 28.35% to 23.87% YoY. The company is expected to report a net loss attributable to the parent company of 142 million to 178 million yuan in 2024. The company's major customers and end-users are primarily concentrated in the new energy sector. In 2024, due to saturated capacity in the PV industry and reduced expansion demand, the company's product sales to PV industry customers declined, while period expenses increased. To penetrate various niche markets and enhance innovation capabilities, the company added projects such as inverters, PV ESS, precision guide rails and screws, and industrial motors, optimized controllers and inverters, and developed application control systems for niche market solutions, continuing to increase market and R&D investments. The conversion of its digital factory and Hangzhou Research Institute projects into fixed assets increased depreciation, leading to a YoY decline in net profit.

Xinyuren (688573) is expected to achieve operating revenue of 610 million to 680 million yuan in 2024, up 2.76% to 14.55% YoY, but is expected to report a net loss attributable to shareholders of publicly listed firms of 55 million to 75 million yuan, compared to a profit in the previous year. The company stated that the loss was mainly due to changes in product structure leading to a decline in overall gross profit and gross profit margin, intensified market competition causing price reductions for some products, and a sluggish downstream industry leading to difficulties in customer payments, which increased bad debt provisions for accounts receivable.

Lithium Battery Copper Foil and Aluminum Plastic Film

Jiayuan Technology (688388) is expected to achieve operating revenue of 6 billion to 7 billion yuan in 2024, an increase of 1.031 billion to 2.031 billion yuan YoY, up 20.76% to 40.88%. However, the company is expected to report a net loss attributable to shareholders of publicly listed firms of approximately 265 million to 195 million yuan, with a net loss after deducting non-recurring gains and losses of 330 million to 245 million yuan. The performance change is mainly due to intensified competition in the new energy industry, a decline in copper foil processing fees, and fluctuations in raw material prices. Additionally, the company sold approximately 67,500 mt of various copper foil products in 2024, up 17.19% YoY. The intense competition in the lithium battery copper foil industry led to a significant decline in copper foil processing fees, reducing product gross profit margins and putting pressure on profits. The company also increased credit impairment provisions for accounts receivable, and higher loan amounts led to increased interest expenses. In the future, the company plans to strengthen R&D innovation and market expansion to enhance competitiveness.

Huazheng New Materials (603186) is expected to report a net loss attributable to shareholders of publicly listed firms of 80 million to 110 million yuan in 2024, compared to a loss of 121 million yuan in the previous year. The net loss after deducting non-recurring gains and losses is expected to be 104 million to 134 million yuan, compared to a loss of 130 million yuan in the previous year. The performance change is mainly due to the significantly low capacity utilization rate of the company's wholly-owned subsidiary Zhejiang Huazheng Energy Materials Co., Ltd. over the past two years, with a gross profit margin consistently below -50%. The subsidiary's equipment, construction in progress, and inventory showed significant impairment signs, leading to impairment provisions. Additionally, the company terminated the recognition of deferred tax assets for the subsidiary.

Crown Advanced Materials (688560) is expected to report a net loss attributable to the parent company of 80 million to 60 million yuan in 2024, down 151.3% to 235.07% YoY. The decline in operating revenue was mainly due to weak demand for solar cell backplanes caused by technological iterations in solar cells, intensified market competition, and a significant decline in revenue from the solar cell backplane business. The net profit attributable to shareholders of publicly listed firms and the net profit after deducting non-recurring gains and losses both showed significant losses, mainly due to changes in the supply-demand relationship in the PV industry, pricing pressure throughout the industry chain, and intensified market competition, leading to simultaneous declines in volume and price for the solar cell backplane business, further exacerbating losses.

Battery Structural Components and Battery Recycling

Zhongrui Co., Ltd. (301587) is expected to achieve a net profit attributable to shareholders of publicly listed firms of 64 million to 80 million yuan in 2024, down 41.16% to 52.93% YoY. The net profit after deducting non-recurring gains and losses is expected to be 55 million to 67 million yuan, down 46.84% to 56.36% YoY. The performance change is mainly due to reduced procurement demand from some major customers and lower sales prices for certain mature product models, combined with rising labour costs, which lowered gross profit margins and profitability.

Kaizhong Precision (002823) is expected to achieve a net profit attributable to shareholders of publicly listed firms of 136 million to 172 million yuan in 2024, up 77.27% to 124.20% YoY. In 2024, the company expects sales growth in new energy precision connectors and other products, with continuous improvement in operational efficiency. The company's integrated R&D, production, and sales platform for domestic and overseas markets demonstrates significant advantages, enabling synchronized R&D and deep strategic cooperation with customers. It has secured numerous domestic and international top-tier automakers and renowned Tier 1 quality customers.

Huayuan Holdings (002787) expects net profit attributable to shareholders of publicly listed firms in 2024 to be 70–80 million yuan, up 730.26%–848.87% YoY. Facing intensified industry competition, the company has actively explored domestic and overseas markets, identified customer needs, and continuously promoted lean management. Through process optimization and improvement measures, it has enhanced production efficiency. Compared to the same period last year, the company's revenue, gross profit margin, and profit have all increased.

Saiwu Technology (603212) expects net profit attributable to the parent company in 2024 to be a loss of 250–200 million yuan, compared to a profit of 104 million yuan in the same period last year. In 2024, the company is impacted by changes in the PV industry's supply-demand relationship, the transmission of price reduction pressure across the industry chain, and intensified market competition. These factors have led to a decline in demand and unit price for PV backsheet products, while PV film sales remained basically flat but with a decrease in unit price, resulting in a YoY decline in revenue and reduced profitability.

Yuanhang Precision (833914) expects net profit attributable to the parent company in 2024 to be 66–68 million yuan, up 108.81%–115.14% YoY. The company attributes its performance growth to two main factors. First, the increased penetration of NEVs and the rapid development of the ESS market have significantly boosted product demand. Additionally, the company has intensified business expansion efforts, further scaling up cooperation with strategic customers, broadening product application scenarios, and achieving significant growth in sales of nickel strip and foil products as well as precision structural components. Second, in 2024, the price volatility of refined nickel, a key raw material, is expected to be more stable compared to 2023, leading to a rebound in the company's product gross profit margin.

Tianqi Shares (002009) expects net profit attributable to shareholders of publicly listed firms in 2024 to be a loss of 230–260 million yuan, compared to a loss of 415 million yuan in the same period last year. In 2024, the lithium battery recycling business continues to incur losses, but the loss is significantly narrowed YoY. However, a sharp decline in orders for recycling equipment has resulted in operational losses and inventory impairment provisions.

Disenli (603335) expects net profit attributable to the parent company in 2024 to be a loss of 103–133 million yuan, compared to a loss of 149 million yuan in the same period last year. Excluding non-recurring items, net profit is expected to be a loss of 127–157 million yuan, compared to a loss of 149 million yuan in the same period last year. The company's overall revenue in 2024 fell short of expectations primarily due to severe inflation, a weakening consumer market, and increased operating costs. Meanwhile, the company has been advancing the planned implementation and production of four physical business segments, requiring significant investment in funds, manpower, and resources, which has led to operational losses in 2024.