2025-04-21-深交所-深中华B_2024年年度报告（英文版）_230页_3mb

Summary of Shenzhen China Bicycle Company (Holdings) Co., Ltd. Annual Report 2024

Core Content Overview

This document is the Annual Report 2024 of Shenzhen China Bicycle Company (Holdings) Co., Ltd. (CBC), published in April 2025. It includes important notices, company profile, financial data, management discussion, and corporate governance information. The report confirms the authenticity and accuracy of the financial statements and outlines the company's operations, financial performance, and strategic direction for the reporting period.

Key Information and Main Points

Important Notice

• The Board of Directors and Supervisory Committee confirm the report contains no false or misleading information.
• The Principal, accounting person in charge, and accounting organ have verified the financial report.
• The company did not distribute cash dividends, bonus shares, or reserve capitalizing in 2024.
• The audit report indicates uncertainty about the company's ability to continue as a going concern, as the net profit after non-recurring gains and losses for the last three years was negative.

Company Profile

• Stock Code: 000017, 200017
• Stock Exchange: Shenzhen Stock Exchange
• Company Name (Chinese): 深圳中华自行车（集团）股份有限公司
• Short Form (Chinese): 深中华
• Foreign Name: Shenzhen China Bicycle Company (Holdings) Co., Ltd.
• Short Form (Foreign): CBC
• Legal Representative: Wang Shenghong
• Registered Address: No. 3008, Buxin Rd., Luohu District, Shenzhen
• Postal Code: 518019
• Registered Office Address: 8/F Shuibei Jinzuo Building, No.89 Beili North Road, Cuizhu Street, Luohu District, Shenzhen
• Postal Code for Office: 518020
• Website: www.szcbc.com
• Email: dmc@szcbc.com

Financial Performance (2024 vs. 2023 vs. 2022)

Main Businesses

• Gold Jewelry Business: The company connects with downstream gold jewelry brands, purchases gold and diamonds, and entrusts processing plants to manufacture products.
• Bicycle and New-Energy Lithium Battery Material Business: Involves production, assembly, procurement, and sales of bicycles and electric bicycles, and procurement, sales, and consigned processing of lithium battery materials.
• Jewelry-related business accounts for more than 30% of the total operation revenue.

Key Financial Highlights

• The company's net profit decreased significantly in 2024 compared to 2023.
• Net cash flow from operations turned negative in 2024, down sharply from 2023.
• The Company has no non-recurring profit or loss in the current year, but the net profit after non-recurring items was negative.
• The company's core competitiveness lies in:
  • High-quality upstream supplier system with stable cooperation with diamond suppliers.
  • Diversified downstream market channels and customer resources.
  • Integration of supply chain to improve efficiency and reduce costs.
  • Innovation in design and craftsmanship.
  • IP protection and commercialization.
  • Strengthened brand operation and multi-channel marketing.

Shareholder Changes

• On November 7, 2022, the company issued a non-public offering, with Wansheng Industrial acquiring 137,836,986 shares, or 20% of the total share capital.
• This change made Wansheng Industrial the controlling shareholder, and Wang Shenghong the actual controller.

Accounting and Regulatory Compliance

• The company did not make any retroactive adjustments or re-statements to its financial data.
• It complies with the Shenzhen Stock Exchange's industry disclosure guidelines for the jewelry sector.
• There are no significant differences between the financial indices in the annual report and those in the quarterly and semi-annual reports.
• The company did not report any extraordinary profit or loss items that meet the definition of non-recurring profit or loss.

Industry Analysis

• Market Segmentation and Consumption Tiering: The jewelry market is becoming more segmented, with high-end jewelry seeing sustained growth and mass market competition focusing on cost-performance and personalization.
• Digitalization and AI: AI and digital technologies are reshaping the jewelry industry, improving design, supply chain efficiency, and consumer engagement through social commerce and AR/VR experiences.
• Design and Craftsmanship Innovation: Innovation in design and craftsmanship is a key driver, with brands combining traditional techniques with modern aesthetics.
• Channel Strength: Controlling high-quality physical channels is essential for brand promotion and retail performance.
• E-commerce Growth: Online sales are growing, with the company utilizing third-party platforms to realize less than 1% of total sales revenue.
• Supply Chain Management: The company has optimized its supply chain to reduce costs and improve operational efficiency, with a focus on raw material sourcing, processing, and quality control.

Conclusion

The Annual Report 2024 of Shenzhen China Bicycle Company (Holdings) Co., Ltd. highlights the company's core business in gold jewelry, its financial performance, and its strategic focus on innovation and supply chain efficiency. Despite challenges in profitability and uncertainty about continued operations, the company has taken steps to strengthen its market position and core competitiveness through supplier relationships, product development, and digital transformation. The ownership structure has also shifted, with Wansheng Industrial becoming the controlling shareholder.