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1. Xingtu Xinke's 2024 annual report shows that the company's operating income was 153 million yuan, an increase of 2.4% year-on-year, but the net profit loss attributable to the parent company expanded to 80.66 million yuan.

2. Despite a number of strategic adjustments, such as market expansion and product development, the deterioration in financial data indicates that these efforts have not yet resulted in a substantial earnings improvement.

3. Due to the failure to meet the 2024 annual performance appraisal target, Xingtu Xinke cancelled some restricted shares in the 2022 restricted stock incentive plan, which had a negative impact on employee morale and the company's image.

4. The company's total assets and net assets attributable to shareholders of listed companies decreased by 5.6% and 17.2% respectively, with serious asset shrinkage and continuous deterioration of financial condition.

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On March 28, Xingtu Xinke (688081) released its 2024 annual report, with the company's operating income of 153 million yuan, an increase of 2.4% year-on-year; The net profit attributable to the parent company changed from a loss of 67.94 million yuan in the same period last year to a loss of 80.66 million yuan, and the loss further expanded; The net profit after deducting non-attributable to the parent company changed from a loss of 69.8 million yuan in the same period last year to a loss of 83.55 million yuan, and the loss further expanded. Although the company has made some progress in market expansion and product development, the overall financial situation is still not optimistic.

Losses widened and financial pressures intensified

Xingtu Xinke's financial data for 2024 shows that the company's losses have further expanded. The net profit attributable to the parent company will decrease from -67.94 million yuan in 2023 to -80.66 million yuan, and the net profit after deduction will also decrease from -69.8 million yuan to -83.55 million yuan. Although operating income increased by 2.4% year-on-year, the continued decline in net profit indicates that the company has serious problems in cost control and profitability.

The company's total assets decreased from 631 million yuan in 2023 to 595 million yuan, a decrease of 5.6%; Net assets attributable to shareholders of listed companies decreased by 17.2% from RMB526 million to RMB436 million. This series of data reflects the company's assets have shrunk significantly and its financial situation has continued to deteriorate. Although the company's annual report highlights the progress of market expansion and product development, the deterioration in financial data indicates that these efforts have not yet translated into actual earnings growth.

Strategic adjustment: market expansion and product development

In 2024, Xingtu Xinke has made a number of strategic adjustments in an attempt to reverse the decline through market expansion and product development. The company has optimized the internal management structure, integrated the business into four major sectors: defense, civil, urban operation and international trade, and established a strategic market center, which is responsible for market research and brand promotion. In addition, the company has also reconstructed the R&D system and established "one hospital and four centers" to focus on the research and development of cutting-edge technologies such as artificial intelligence and digital twins.

In terms of market expansion, the company actively participated in domestic and foreign industry exhibitions, and displayed a variety of innovative products, such as "video governance and visual command system" and "AI video command system", and won the recognition of many users. The company has also developed channel agents in North China, Southwest China, South China and other places, and signed strategic cooperation agreements with a number of enterprises. However, despite the company's significant investments in market expansion and product development, the deterioration in financial data suggests that these efforts have not yet led to substantial earnings improvements.

Restricted stock was forfeited and the incentive plan was frustrated

Xingtu Xinke will also face the problem of setbacks in the incentive plan in 2024. The company announced the cancellation of some restricted shares in the 2022 restricted stock incentive plan due to the failure to meet the 2024 annual performance appraisal target. Specifically, the net profit growth rate in 2024 did not reach the trigger value of 120% or 96%, resulting in the non-vesting of restricted stock in the third vesting period.

This decision reflects the company's problems in setting performance targets and implementing incentive plans. Although the company said that the voiding of restricted stock would not have a material impact on its financial condition and results of operations, the incident undoubtedly had a negative impact on employee morale and the company's image. The setback of the incentive plan also indicates that the company faces great challenges in achieving its performance targets, and the future business prospects are not optimistic.

Although Xingtu Xinke has made a number of strategic adjustments in 2024 in an attempt to reverse the decline through market expansion and product development, the continuous deterioration of financial data and the setback of incentive plans indicate that the company still faces serious challenges. How to achieve profitable growth in the fierce market competition will be the key problem that Xingtu Xinke needs to solve in the future.