WRD Latest Report

Performance Review

Wingrun Intelligent (WRD) recorded an operating revenue of US$141 million as of December 31, 2024, a 2.57% YoY decrease from US$145 million in 2023. This change reflects the challenges faced by the company in terms of revenue generation, which may negatively impact its overall profitability. The increase in sales costs (US$89.46 million in 2024 vs. US$68.14 million in 2023) and the increase in research and development expenses (US$31.99 million in 2024 vs. US$24.19 million in 2023) may also be factors affecting revenue. Overall, Wingrun Intelligent faces double pressure from the market environment and product sales strategy.

Key Financial Data

1. Operating Revenue: US$141 million in 2024, US$145 million in 2023, a YoY decrease of 2.57%.

2. Sales Costs: US$89.46 million in 2024, US$68.14 million in 2023, a significant increase in sales costs.

3. Research and Development Expenses: US$31.99 million in 2024, US$24.19 million in 2023, an increase in R&D investment.

4. Decline in Gross Margin: The gross margin in the first three quarters of 2024 was 26.9%, a significant decrease from 45.7% in 2023.

5. Decline in Service Revenue: Service revenue in the first half of 2024 decreased by 21% YoY, and in the third quarter by 25.8%.

Peer Comparison

1. Industry-wide Analysis: The overall industry faces demand fluctuations, leading to a general decline in operating revenue. Wingrun Intelligent's performance needs to be compared with its peers to assess its relative performance.

2. Peer Evaluation Analysis: The decline in Wingrun Intelligent's operating revenue needs to be compared with the industry average. If the industry is generally declining, it indicates a significant impact from the market environment. If the industry is stable, the company's competitiveness needs to be re-evaluated.

Summary

Wingrun Intelligent's decline in operating revenue in 2024 is mainly due to changes in the market environment, the increase in sales costs, and the increase in R&D investment. Although the company has competitive advantages in the autonomous driving field, the short-term revenue restructuring and uncertainty in market demand will continue to affect its performance.

Opportunities

1. The rapid development of the autonomous driving industry provides Wingrun Intelligent with new market space, especially in the optimization of L2 assisted driving technology.

2. The company is shifting to a light asset model and service provision, which may lead to higher profit margins in the future.

3. Cooperation with large enterprises may bring new sources of revenue, especially in technical support and customized R&D services.

Risks

1. Continued weakening of market demand may lead to further declines in Wingrun Intelligent's operating revenue.

2. The continuous increase in sales costs may erode the company's profit margin, affecting overall profitability.

3. Changes in revenue structure during the transformation process may put pressure on cash flow in the short term, affecting the company's operational stability.