Recently, Tuosida released its financial report for the third quarter of 2024. From January to September 2024, the company's total operating revenue was 2.235 billion yuan, a year-on-year decrease of 30.96%, and the net profit attributable to the parent company was 9.0237 million yuan, a year-on-year decrease of 92.99%. Looking at the data on a quarterly basis, the total operating revenue for the third quarter was 512 million yuan, a year-on-year decrease of 54.91%, and the net profit attributable to the parent company for the third quarter was -26.7815 million yuan, a year-on-year decrease of 160.29%, reflecting the company's current severe operational challenges.

The announcement indicates that the main reason for the decline in revenue is the company's continuous and proactive contraction of project-based businesses, among which the revenue scale of intelligent energy and environmental management system business contracted by 42.53%, and the revenue scale of automated application system business contracted by 25.74%. The main reason for the decline in profits is the significant decrease in the scale and profitability of the intelligent energy and environmental management system business. Excluding the intelligent energy and environmental management system business, the company's other businesses had a gross margin of 37.78%, an increase of 3.94 percentage points year-on-year.

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During the reporting period, the scale and gross margin of the company's product-based businesses grew steadily. Specifically, the revenue from industrial robots increased by 8.91% year-on-year, and the revenue from injection molding machines, supporting equipment, and automatic material supply systems increased by 13.96% year-on-year. The revenue from CNC machine tool business decreased by 24.06% year-on-year due to factory relocation in the first half of the year, which limited production and delivery, but the gross margin increased by 2.92 percentage points year-on-year.

Green energy business revenue plummeted.

In the first three quarters of 2024, Tuosida continued to adjust its business structure and deepen its focus on products while contracting project-based transformation strategy.

During the reporting period, the main reason for the decline in revenue was the company's continuous and proactive contraction of project-based businesses, among which the revenue scale of intelligent energy and environmental management system business contracted by 42.53%, and the revenue scale of automated application system business contracted by 25.74%.

During the reporting period, the intelligent energy and environmental management system business achieved a revenue of 1.1505634 billion yuan, a year-on-year decrease of 42.53%, with a gross margin of 3.85%, a decrease of 9.46 percentage points year-on-year. The reason for the revenue decline is based on the company's strategy to focus on product-based businesses and contract project-based businesses, resulting in a gradual decrease in the revenue scale of this business. Especially in the third quarter, the company further intensified the contraction of intelligent energy and environmental management system business, leading to a year-on-year decrease in revenue of 89.93%.

Regarding the reason for the decline in gross margin, Tuosida stated that some projects exceeded expectations in the implementation process and acceptance settlement, resulting in extremely low profits or even losses for some projects, which lowered the overall profitability and led to a decline in the company's overall performance. Excluding the intelligent energy and environmental management system business, the company's other businesses had a gross margin of 38.44%, an increase of 5.54 percentage points year-on-year.

The automated application system business achieved a revenue of 333.398 million yuan, a year-on-year decrease of 25.74%. The announcement stated that the main reason for the decrease is the company's continuous contraction of project-based businesses, focusing more on the research and development and layout of "robot+" applications, reducing the proportion of customized project businesses, and enhancing standardized production capabilities. However, the profitability of this business has improved, with the gross margin increasing by 6.32 percentage points compared to the same period last year.

Tuosida stated that based on the plan for business structure adjustment, the company will further contract the intelligent energy and environmental management system business, and the company's business structure will be further optimized.Anchoring the Transformation and Adjustment in Three Major General Equipment Fields

In terms of products, the industrial robots, CNC machines, and injection molding equipment that Tuasida has laid out are the three major general equipment needed by the manufacturing industry, covering almost all manufacturing industries downstream, and all three belong to long-term and profitable tracks.

During the reporting period, the business of industrial robots and automation application systems achieved a revenue of 532,106,700 yuan, a year-on-year decrease of 15.73%. Among them, industrial robots achieved a revenue of 198,708,700 yuan, a year-on-year increase of 8.91%; the gross margin was 49.55%, an increase of 5.17 percentage points year-on-year. Tuasida stated that, on the one hand, the demand in the injection molding industry has increased, and the revenue of the Cartesian coordinate robots with a strong brand effect increased by 22.18% year-on-year. On the other hand, Tuasida continues to contract the low-profit trade-type robot business, while the self-produced multi-joint robot business maintains rapid development, achieving a year-on-year revenue increase of 67.23%.

During the reporting period, the business of injection molding machines, supporting equipment, and automatic material supply systems achieved a revenue of 349,167,100 yuan, a year-on-year increase of 13.96%; the gross margin was 33.67%, maintaining a relatively stable level.

Among them, the injection molding machine business achieved a revenue of 161,533,500 yuan, a year-on-year increase of 9.23%. The main reason for the growth is the inventory replenishment of the downstream injection molding industry in the first half of the year, coupled with the increase in overseas demand, the demand for injection molding machines has gradually recovered, and the company continues to optimize the resource allocation in the field of injection molding machines, further promoting electric injection molding machines. During the reporting period, the sales and shipment of electric injection molding machines were good, with the order volume increasing by more than 130% year-on-year, and the shipment volume increasing by more than 180% year-on-year. With the maturity of the company's products and core underlying technologies, as well as the increase in market recognition, the company's electric injection molding machines will usher in greater development space.

During the reporting period, the business of CNC machines achieved a revenue of 156,407,100 yuan, a year-on-year decrease of 24.06%. The main reason for the revenue decrease is that the company's CNC machines underwent overall capacity relocation in the first half of this year, and production and delivery were somewhat limited. During the reporting period, the order volume of five-axis CNC machines was about 200 units, and breakthroughs continued to be achieved in major customers in the aviation field; the shipment volume in the first three quarters was about 160 units, affected by the capacity relocation in the first half of the year.

Looking back at the company's development in recent years, starting from the end of 2021, Tuasida faced the "scale trap" of project-based business, actively abandoned low-profit, high-risk projects, controlled the scale of orders, and experienced the first revenue decline in 2023. Tuasida stated that the scale of the company's existing and new projects is not much, and if this contraction continues in the second half of the year, the company can start with a light load from 2025. In the future, as the product lines of industrial robots, injection molding machines, and CNC machines grow and strengthen, the business structure will be further optimized, and the company's profitability will continue to be repaired.