Xingyuan Zhuomei: 2024 Net Profit Up 0.31% YoY, Magnesium Alloy Die-Casting Revenue Accounted for 69.4%

SMM April 7 News: On April 7, as the market experienced a significant decline, the stock price of Xingyuan Zhuomai also saw a sharp drop. As of 14:19 on the 7th, Xingyuan Zhuomai fell by 19.23%, reporting 42.17 yuan per share. The 2024 annual report released by Xingyuan Zhuomai recently shows that the company has continuously increased R&D investment around its core products and technologies, optimized production processes, and comprehensively enhanced its competitiveness. The company has achieved steady and rapid development momentum in its production and operations, building a continuously improving development situation. The company achieved annual operating revenue of 408.6044 million yuan, an increase of 16.01% over the previous year, and net profit attributable to shareholders of the listed company of 80.3311 million yuan, an increase of 0.31% over the previous year. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 74.0161 million yuan, an increase of 10.35% over the previous year. The main operating indicators reached new highs, laying a solid material foundation for high-quality development. Looking to the future, we will continue to uphold the spirit of innovation, continuously improve our own strength, contribute more to the development of the global automotive industry, and help the influence of China's automotive industry continue to rise on the international stage. Xingyuan Zhuomai introduced in its 2024 annual report that in 2024, the company was mainly engaged in the R&D, production, and sales of magnesium alloy and aluminum alloy precision die-casting products and supporting die-casting molds. The company's existing main die-casting products include automotive display system components, NEV powertrain components, automotive center console components, automotive seat components, automotive lamp components, high-cleanliness autonomous driving module components, and other automotive die-casting parts, as well as e-bike functional parts and structural parts, garden machinery parts, and other non-automotive die-casting parts. The company's products are ultimately applied to well-known domestic and overseas car models such as BMW, Audi, Porsche, Zhiji, NIO, Great Wall, Chery, and Zeekr. Xingyuan Zhuomai's annual report shows that the company's total operating revenue in 2024 reached 409 million yuan, of which magnesium alloy die-casting parts revenue was 284 million yuan, accounting for 69.40%; aluminum alloy die-casting parts revenue was 102 million yuan, accounting for 24.91%; molds and other supplementary businesses contributed 19.4855 million yuan and 3.7651 million yuan, respectively. For the company's development strategy, Xingyuan Zhuomai stated that the company is committed to the corporate vision of "becoming a leader in the field of magnesium alloy lightweighting," focusing on the innovative application of magnesium alloy precision casting technology, and building a competitive advantage in the entire industry chain in the field of automotive lightweighting. Through the dual drive of "material innovation + process breakthrough," the company continues to expand the industrial application of magnesium alloy in key components such as NEV powertrain housings, intelligent cockpit systems (in-car display backplanes, seat armrest frames, and sub-instrument panel frames), and body structural parts (door inner panels). Relying on nearly 20 years of technical accumulation, the company has formed a full business chain technical accumulation of "mold design - high pressure/semi-solid casting - post-processing - precision machining - surface treatment," and has formed a complete core technology system, successfully breaking through the large-tonnage magnesium alloy semi-solid injection molding technology, and achieving mass production of medium and large integrated components. The product matrix covers from tens of yuan-level lamp brackets to nearly thousand yuan-level powertrain housings, and the single vehicle supporting value continues to increase. Currently, the company is accelerating its integration into the lightweighting strategies of leading and new force automakers such as SAIC, GAC, Geely, BYD, Changan, Tesla, Xiaomi, NIO, Seres, and XPeng. Through the construction of the Ningbo Fenghua production base with an annual output of 3 million sets of high-strength large magnesium alloy forming parts for automobiles and the layout of its Thai subsidiary, the company is accelerating the global expansion of its production capacity. Xingyuan Zhuomai's 2025 business plan shows: 1. Anchor the direction of the lightweighting industry and strengthen the barriers of core products: As a lightweighting solution provider, the company has now built a diversified product matrix covering the core systems of automobiles, including NEV powertrain components, automotive display system components, automotive center console components, automotive seat armrest structural parts, high-cleanliness autonomous driving module components, and automotive lamp heat dissipation brackets. Based on the successful experience in the R&D, production, and application of existing magnesium and aluminum alloy products, the company will deeply explore the potential needs of domestic and overseas customers, rely on the low density and high specific strength of magnesium alloy materials, fully apply key technologies such as thin-wall die-casting and precision heat dissipation structures, strengthen the technical barriers of NEV three electric systems structural parts and display system components, further develop corresponding products for different customers and car models, and enhance the company's competitive advantages in magnesium alloy NEV powertrain components, display backplane brackets, magnesium alloy seat armrest components, and lamp structural parts, helping the company to continuously innovate and develop. 2. Innovative magnesium alloy design solutions, "medium and large" parts moving towards a better future: The large-scale application of large and complex magnesium alloy castings in the field of automotive components is becoming an important development trend in the automotive industry's magnesium application. The company has been deeply involved in the field of magnesium alloy die-casting for nearly 20 years, and has successfully designed and developed a number of medium and large magnesium alloy automotive components such as magnesium alloy NEV powertrain housings, magnesium alloy display backplanes, and magnesium alloy automotive center console frames, which have been successfully applied. The company has won high recognition from end-user brand manufacturers with its excellent performance. The development of medium and large components adheres to the integrated design concept, applying lightweight materials and upgraded design methods, reducing the number of body structural parts, and greatly simplifying the body structure. With the continuous maturity of the company's magnesium alloy die-casting technology and the commissioning of large die-casting equipment, the company is actively extending to the R&D and production direction of large automotive components such as NEV powertrain housings, magnesium alloy automotive instrument panel crossbeams (CCB), and magnesium alloy automotive seat frames. To date, the company has successfully developed and mass-produced a number of medium and large magnesium alloy automotive components. In the future, the company will further focus on the core advantages of mold design, rely on excellent mold design and development capabilities, and use large integrated precision die-casting molds as a strong support to develop magnesium alloy automotive components that better meet customer needs. Create larger, lighter, and more environmentally friendly products, contribute more to the sustainable development of the automotive industry, let magnesium alloy materials shine more brilliantly, and move towards a "magnesium" future together. 3. Deeply research NEV powertrain components, lead the new era of cutting-edge applications: After nearly a decade of research and development and demonstration operation, China's NEV industry has initially taken shape, and a rich and diversified range of NEV products has appeared on the market. Magnesium alloy, as a "green basic engineering material of the 21st century," is being increasingly widely used in the automotive manufacturing fields of various countries around the world. Its application can effectively reduce the weight of similar components and vehicles, increase the driving range of vehicles, and is an ideal structural material for automotive lightweighting. In terms of driving methods, the driving methods of NEV models are different from traditional internal combustion engine vehicles, and "battery + motor + electronic control" has become a new power output mode. The motor systems of NEVs are also continuously upgrading, from simple independent systems to two-in-one, and then evolving to three-in-one and even multi-in-one stages. The continuous iteration has also driven the design of motor housings from independent to integrated designs. Facing the development trend of motor systems and the lightweighting needs of NEVs, the company has adopted the concept of "new materials + new design + new platform" and achieved a series of results. It has successfully developed and mass-produced a variety of products such as magnesium alloy automotive integrated housing assemblies and reducers, which have been applied to many well-known domestic automakers. In the future, the company will continue to increase the pace of technological R&D, deeply research high-power motor system products, and horizontally promote to other traditional OEMs, global automotive component suppliers, and new force automakers, leading the new era of cutting-edge applications of magnesium alloy. 4. Multi-point forward-looking layout, paving the way for the company's long-term development: The company will give full play to its first-mover advantage in the field of magnesium alloy precision castings, and build a full-chain global operation system covering R&D, production, and sales with the "technology-capital-manufacturing" three-core drive model. Relying on the advantages of the "dual-core drive strategy at home and abroad" of the Fenghua factory and the Thai factory, the company will expand its global production capacity scale, improve the international market sales network, and keep the company always in a leading position in the industry. 5. Strengthen talent team and corporate culture construction: The company will strengthen the construction of the talent team according to the development plan and the existing organizational structure, especially combining industry development and market demand, establish a technical R&D talent echelon that conforms to the market development direction, and enhance the technical攻坚 strength in specific fields. Continuously strengthen the training and learning of the management team, adjust and cultivate employees in a planned manner through evaluation and assessment, promote corporate culture, values, and business philosophy, continuously optimize the construction of the talent echelon, and improve the talent structure. On March 18, Xingyuan Zhuomai stated on the interactive platform in response to investor questions that magnesium alloy semi-solid forming is a new and advanced process method. Compared with traditional liquid forming, it has the advantages of low forming temperature, long mold life, improved production conditions and environment, refined grains, reduced porosity, shrinkage porosity, and improved organizational density. As of now, the Xiaomi SU7 model has not applied the company's lightweight magnesium alloy products.