Xiangyang Bearing: Anticipates a Net Loss of 35 Million Yuan for FY2024

Recently, Xiangyang Bearing (SZ 000678) released its financial forecast for the fiscal year 2024, predicting a net loss of 35 million yuan attributable to shareholders of the listed company, with basic earnings per share at -0.08 yuan. Although still in deficit, compared to the previous year, the loss has narrowed. In the same period last year, the company reported a net loss of 53.7217 million yuan, with basic earnings per share at -0.12 yuan.

Despite facing challenges due to financial losses during the reporting period, Xiangyang Bearing has shown some positive signs. Domestically, the company's business has significantly improved, achieving profitability. The company made notable progress in expanding both the domestic passenger vehicle market and overseas markets, resulting in an increase in revenue. Especially in overseas markets, continuous growth over recent years has provided new development opportunities. Additionally, improvements in management efficiency through comprehensive cost reduction measures have led to substantial gains in profitability.

However, on the downside, the loss from overseas subsidiaries has increased. Particularly, the factory located in Poland suffered from high costs and declining efficiency due to ongoing geopolitical impacts. To address this unfavorable situation, Xiangyang Bearing has proactively taken measures, including adjusting the leadership team of the Polish factory and implementing a series of reform plans aimed at reversing the adverse conditions.

Looking at the composition of revenue, in the first half of 2024, automotive parts business accounted for as high as 94.36% of Xiangyang Bearing's total revenue, highlighting it as the core business. Other businesses contributed the remaining 5.64%. This data indicates that the company maintains strong market competitiveness in the automotive parts sector.

Notably, the executive team of Xiangyang Bearing also garners attention. Chairman Gao Shaobing, aged 69, holds a bachelor’s degree. General Manager Zhang Lei, aged 62, possesses a master’s degree.

This article provides insights into the company's performance and strategic adjustments amidst various challenges, showcasing both achievements and areas needing improvement.