New stock announcement | Intelligent in-house logistics and warehouse automation solutions provider Zhongding Intelligent is expected to see its overall gross profit margin decline to 12.2% by 2024 on the Hong Kong Stock Exchange.

According to the disclosure on May 9th by the Hong Kong Stock Exchange, Zhongding Intelligent (Wuxi) Technology Co., Ltd (hereinafter referred to as Zhongding Intelligent) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Guotai Junan International as its exclusive sponsor. The prospectus disclosed that Zhongding Intelligent is a leading provider of intelligent intralogistics and warehouse automation solutions in China. Its core product is intelligent intralogistics solutions, which coordinate the handling and storage of goods in warehouses, factories, and production lines across a wide range of industries by integrating intelligent intralogistics management software with equipment such as stackers, shuttles, conveyors, sorters, and Siasun Robot&Automation. According to data from Frost & Sullivan, in terms of revenue in 2024, Zhongding Intelligent ranks fourth in the Chinese intelligent intralogistics solutions industry with a market share of 1.7%. It ranks second in the Chinese industrial sector and first in the field of intelligent intralogistics solutions for lithium-ion batteries. During the historical period, Zhongding Intelligent provided intelligent intralogistics solutions to clients in the new energy industry, accounting for over 75% of the company's revenue from intelligent intralogistics solutions. In terms of finances, the revenue of Zhongding Intelligent was approximately 1.643 billion yuan, 1.695 billion yuan, and 1.798 billion yuan in 2022, 2023, and 2024 respectively. The net profits for the same period were 70.577 million yuan, 78.182 million yuan, and 88.626 million yuan respectively. Zhongding Intelligent mentioned that the overall gross profit margin of the company decreased from 13.4% in 2022 to 12.8% in 2023, and further to 12.2% in 2024, due to various factors in different industry solutions. The gross profit margin of the new energy solutions decreased in 2023 due to the strategic reduction of prices to enhance competitiveness in bidding for large new energy clients. However, due to the company's more stable market position in securing high-profit contracts, the profit margin increased to 16.2% in 2024. Moreover, during the historical period, the gross profit margin of the automotive components and healthcare industry solutions of the company fluctuated significantly due to the relatively low number of solutions delivered and accepted, making the profit margin more susceptible to fluctuations in the profitability of individual solutions. In 2024, the industry experienced a negative gross profit margin due to the impact of several loss-making contracts.