Weichuang Electric (stock code: 688698) is an enterprise focusing on industrial automation and intelligent solutions. It is committed to promoting digital, intelligent and flexible production in industrial manufacturing. The company responds positively to the national “dual carbon” strategy and promotes high-quality sustainable development of green energy and green industry. By increasing key core technology research and product iteration, Weichuang Electric continuously enhances independent innovation capabilities and product performance, expands high-performance, high-quality and high-reliability application fields, implements alternative import strategies, and leverages the competitive advantage of local brands. The company can provide customers with customized system solutions in terms of industrial control automation product layout, from single products to manufacturing processes. Weichuang Electric is also actively expanding overseas markets, increasing investment in overseas exhibitions and product certification, and enhancing the brand's influence in the international market. The company's inverter product line has formed a comprehensive product system covering high, medium and low voltage, single transmission, and multiple transmission in accordance with the strategy of “full category attack, full field coverage”, and plans to continue to further cultivate the industry, expand the inverter category, and enter the project market.

Weichuang Electric's total assets in the first quarter of 2024 were 2.723 billion yuan, up 7.03% from 2.544 billion yuan at the beginning of the period. The total debt was $0.718 billion, up about 18% from $0.609 billion at the beginning of the period. The balance ratio rose to 26.38% from 23.94% at the beginning of the period, indicating that the company's liabilities have increased as it expands its business and market, but it is still within a manageable range. Goodwill increased from 0.9483 million yuan at the beginning of the period to 1.44 million yuan, indicating that the company may have carried out mergers and acquisitions, enhancing brand value and market competitiveness.

In terms of profit, Weichuang Electric performed well. Revenue increased from 0.284 billion yuan in the same period last year to 0.328 billion yuan, an increase of 15.21%. Operating profit was $56.29 million, up about 17.75% from 47.8 million yuan in the same period last year. Net profit also increased to $53.72 million from 42.1 million yuan in the same period last year, an increase of 25.29%. Gross margin rose to 40.1% from 38.24% in the same period last year, and net margin rose from 14.8% to 16.4%, showing the company's improvement in cost control and profitability. Notably, net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss increased by 33.33%, mainly due to increased operating income and a decrease in non-recurring profit and loss.

In terms of cash flow, Weichuang Electric's operating cash inflow subtotal was 0.216 billion yuan, a significant increase from 0.14 billion yuan in the same period last year, but the operating cash outflow subtotal also increased from 0.164 billion yuan to 0.237 billion yuan in the same period last year, resulting in a net cash flow from operating activities of -21.58 million yuan. This indicates that the company is in high demand for capital to expand its business and invest in R&D. Despite increased revenue and profits, cash flow pressure still exists.

In summary, Weichuang Electric performed well in the first quarter of 2024. Both operating income and net profit increased significantly, and gross margin and net margin also increased. However, as the business expands and investment in R&D increases, the pressure on the company's debt and cash flow is also increasing. In the future, Weichuang Electric will need to further optimize capital management and cost control while maintaining growth to meet the challenges brought about by market competition and business expansion.