MEI YAN(SH:600868) Zheng Quan Zhi Xing·2025-03-25 11:24Core Viewpoint - The audit firm Xin Yong Zhong He has provided opinions regarding the revenue recognition and performance forecast of Guangdong Mei Yan Ji Xiang Water Power Co., Ltd, emphasizing the need for accurate disclosure of revenue after deducting non-core business income and income lacking commercial substance [1][2]. Revenue Recognition - The company reported a total revenue of approximately 360 million yuan, with 28.43 million yuan identified as income unrelated to core business activities, resulting in a net revenue of 337.85 million yuan after deductions [2][3]. - The deducted income accounted for 7.76% of the total revenue, indicating a significant portion of revenue was derived from non-core activities [3]. Business Segments - The company’s revenue from hydropower generation for 2024 was 224.15 million yuan, while geographic information services generated 91.67 million yuan [5]. - The newly developed business of coating anode plates contributed 7.24 million yuan in revenue, which was subsequently deducted due to its lack of a stable business model [15]. Compliance with Regulations - The company conducted a thorough review of its revenue recognition practices in accordance with the Shanghai Stock Exchange's guidelines, confirming that all deductions were appropriate and compliant with regulatory standards [2][16]. - The audit firm is currently executing audit procedures to ensure the accuracy of revenue recognition and compliance with accounting standards [16][17]. Business Model and Strategy - The company’s natural gas blending business, which involves mixing biomass natural gas with high-calorific natural gas, has been established as a stable revenue-generating model, aligning with national policies supporting renewable energy [14][19]. - The blending business is characterized by a production process that includes procurement, processing, and sales, distinguishing it from mere trading activities [11][12].