Shuanglin Stock's net profit last year saw a slight year-on-year increase, with industry pressures compounded by rising expenses | Financial Report Analysis

Ask AI · Shuanglin Shares’ Transformation into Intelligent Transmission Drive Solutions: Can High R&D Investment Strengthen Future Competitive Advantage?

China Economic Information Services (CI) · March 25 News (Reporter Wang Bin) Under an environment of price cuts and promotions in the automotive industry, downstream auto parts companies face pressure. Shuanglin Shares (300100.SZ), a leading enterprise in the intelligent drive and transmission parts sector, saw a slight year-on-year increase in 2025 net profit.

Last night, Shuanglin Shares released an announcement. In 2024, the company achieved operating revenue of 5.484 billion yuan, up 11.67%; net profit attributable to shareholders of listed companies was 503 million yuan, up 1.25%; and net profit after deducting non-recurring items was 446 million yuan, up 36.63%.

By quarter, in 2024 the company’s four quarters recorded revenue of 1.286 billion yuan, 1.239 billion yuan, 1.330 billion yuan, and 1.628 billion yuan, respectively, and net profit of 159 million yuan, 128 million yuan, 115 million yuan, and 101 million yuan, respectively. The fourth quarter was the peak revenue quarter for the year, but its net profit was the lowest for the year in the same period.

According to the annual report, the company’s performance growth last year mainly benefited from improvements in revenue and gross margin across two core business segment areas: intelligent transmission drive business revenue of 3.270 billion yuan, up 14.83%, with a gross margin of 23.88%, up 1.53 percentage points year over year; and interior and exterior trim parts business revenue of 1.946 billion yuan, up 10.36%, with a gross margin of 14.32%, up 1.08 percentage points year over year.

In its annual report, the company said that with intensifying competition in the automotive industry, both new energy and traditional auto brands generally adopt price-cut promotional strategies. Because auto parts prices are highly correlated with vehicle prices, and vehicle manufacturers at the end of the industrial chain have strong bargaining power, they often pass the pressure from price cuts upstream to auto parts suppliers. Against the backdrop of deepening integration in the vehicle industry and accelerating industrial transformation, this price-transmission effect may be further amplified, creating ongoing pressure on parts makers’ cost control and profit margins.

In the letter to shareholders in the annual report, the company’s Chairman Wu Jianbin said that the company is accelerating its transformation from a traditional auto parts manufacturer into a “global leading provider of intelligent transmission drive solutions,” and is committed to becoming an inward-to-outward, fully intelligent technology enterprise. Against this backdrop, the company’s R&D expenses, administrative expenses, and selling expenses last year increased year over year by 30.71%, 17.50%, and 31.25%, respectively. Cash outflows from investing activities were 603 million yuan, mainly due to the acquisition payment for Kezhixin Payment and purchases/building of assets such as the Thailand plant.

In January of last year, the company entered the upstream segment of the planetary roller screw industrial chain by acquiring 100% equity interest in Wuxi Kezhixin Mechanical Technology Co., Ltd. According to the annual report, the new plant for planetary roller screws in June 2026 is expected to begin production, and the capacity for second-generation machine tools will reach 40 units/month.

It is worth noting that last year, the company’s core product—auto seat horizontal drive units (HDM)—exceeded 30 million units in production and sales. Auto seat long-stroke slide rails with brush-driven motors have already achieved small-batch order processing, and are expected to go into mass production in 2026. The company’s reverse planetary roller screw products had an actual production volume of 1,500 sets. The newly built Phase I 100,000-unit line has already achieved production capacity, and the company plans to begin production in June 2026.

However, in its annual report, Shuanglin Shares explicitly stated that related robotic component products “as of now have not yet received official designation.”

Meanwhile, the company also achieved phased breakthroughs in new businesses such as new-energy power systems and intelligent angle modules. Among them, the 800V oil-cooled products on the 220 and 270 platforms are expected to achieve mass production this year; the 230kW integrated electric propulsion system has already been delivered, and the 100kW product is planned to complete delivery in Q1 this year; the “240-ton-class pure-electric angle-module unmanned mining trucks” are currently under trial operation, and the complete-vehicle product is planned to be officially released in the first half of this year; and the unmanned heavy-load AGV products developed based on angle-module technology are expected to be listed in mid-2026.

China Economic Information Services (CI) Reporter Wang Bin