ULS Latest Report

Performance of the Financial Report

As of December 31, 2024, UL Solutions' total operating revenue was RMB739,000,000, up 8.06% from RMB684,000,000 as of December 31, 2023. This growth reflects the company's business expansion and sales capacity in the market.

Key Financial Data

1. Growth in Operating Revenue: The operating revenue in 2024 was RMB739,000,000, up 8.06% YoY, indicating significant success in meeting market demand and sales strategies.

2. Growth in Market Demand: The increase in demand for the company's products and services is a crucial factor in revenue growth, reflecting the enhanced market recognition of UL Solutions.

3. Optimization of Product Portfolio: Through optimizing the product portfolio and strengthening marketing, UL Solutions successfully attracted more customers and boosted sales.

4. Effective Cost Control: Despite the rise in sales costs, the improvement in gross profit demonstrates the company's ability in cost control, supporting revenue growth.

5. Improved Industry Environment: The overall industry recovery and the rise in demand in the technology and service sectors accelerated the company's revenue growth.

Peer Comparison

1. Overall Industry Analysis: The overall industry experienced recovery in 2024, with increased demand for technical services, driving overall revenue growth. Many companies reported similar revenue growth, reflecting the improvement in the industry environment.

2. Peer Evaluation Analysis: UL Solutions' operating revenue growth rate is higher than the industry average, indicating strong competitiveness in the market, especially when compared to major competitors.

Summary

UL Solutions performed well in 2024, with revenue growth mainly benefiting from the rise in market demand, optimized product portfolio, and effective cost control. The improvement in the overall industry environment also provided a good backdrop for the company's growth. These factors collectively contributed to UL Solutions' success in a competitive market.

Opportunities

1. Continued Growth in Market Demand: UL Solutions is expected to achieve mid-to-high single-digit organic revenue growth in 2024, with the recovery in market demand continuing to support the company's performance.

2. R&D and Innovation: The company's continuous investment in AI technology and product development will enhance market competitiveness and further drive revenue growth.

3. Industry Recovery Opportunities: With the overall industry recovery, UL Solutions can seize market opportunities and expand its market share.

Risks

1. Intensified Industry Competition: Although UL Solutions performed well, the decline in revenue from competitors indicates overall industry pressure, which may affect the company's market position.

2. Economic Environment Uncertainty: The challenging overall economic environment and the challenges faced by some enterprises in declining industry demand may have an impact on UL Solutions' long-term growth.

3. Exchange Rate Volatility Risk: The expected depreciation of the US dollar against the Chinese yuan may negatively impact the company's US dollar-denominated revenue and assets.