The company released the 2024Q3 quarterly report

The company's 24Q3 revenue of 0.75 billion yuan decreased by 28%; net profit due to mother of 0.014 billion yuan increased by 543%; net profit of 24Q1-3 was 2.66 billion yuan, a decrease of 26%; net profit to mother of 0.04 billion yuan decreased by 69%; net profit to mother of 0.04 billion yuan decreased by 69%, and net profit not to mother of 0.034 billion yuan, same increase of 29%.

24Q1-3's gross profit margin of 15.5% increased by 0.1 pct; net profit margin of 1.2% decreased by 2.3 pcts.

2024 Employee Stock Ownership Plan Announced

The source of the shares in the employee stock ownership plan is the company's share repurchase, totaling no more than 12.0856 million shares, accounting for about 2.18% of the current company's total share capital of 0.556 billion shares; the total number of holders when the employee stock ownership plan was initially established did not exceed 135 (excluding reserved shares);

When the employee's shareholding plan was initially established, the share repurchase price of the transferee company was 2.63 yuan/share.

The time of unlocking is 14 months, 26 months, and 38 months from the date of the company's last stock transfer to the employee's shareholding plan, respectively, with 40%, 30%, and 30% of the shares unlocked in each period; the performance assessment target: (2025 assessment year) is based on 2024 revenue, with a revenue growth rate of not less than 10% in 2025;

(Assessment year 2026) Based on 2024 revenue, the 2026 revenue growth rate is not less than 21%, or based on 2024 revenue, and the cumulative revenue growth rate for 2025 and 2026 is not less than 131.0%;

(Assessment year 2027) Based on 2024 revenue, the 2027 revenue growth rate is not less than 33.10%, or based on 2024 revenue, the cumulative revenue growth rate for 2025, 2026, and 2027 is not less than 264.10%, and the net profit for 2027 is not less than 0.3 billion yuan.

Maintain profit forecasts and maintain “increase holdings” ratings

Maintaining the profit forecast, the company's EPS for 24-26 is 0.1 yuan, 0.12 yuan, and 0.15 yuan, respectively, and PE is 58X, 48X, and 37X, respectively.

Risk warning: Market operation risks, sales falling short of expectations, loss of core executives.