SCS(SH:601555) Zheng Quan Zhi Xing·2025-03-25 11:24Core Viewpoint - Dongwu Securities Co., Ltd. has issued a continuous supervision tracking report for Jinhong Gas Co., Ltd. for the year 2024, detailing the ongoing supervisory activities and compliance with relevant regulations [1][2]. Continuous Supervision Work - The sponsor has established and effectively implemented a continuous supervision work system, including specific work plans [2][3]. - A continuous supervision agreement has been signed between the sponsor and Jinhong Gas, outlining the rights and obligations during the supervision period [2]. - The sponsor conducts regular communication, site inspections, and due diligence to understand the business situation of Jinhong Gas [2][3]. Compliance and Governance - The sponsor supervises Jinhong Gas to ensure compliance with laws, regulations, and business rules set by the Shanghai Stock Exchange [2][3]. - The company is required to establish and effectively execute internal control systems, including financial management and major operational decision-making processes [5][6]. - The sponsor reviews information disclosure documents to ensure there are no false records or misleading statements [5][6]. Financial Performance - In 2024, Jinhong Gas reported total assets of 676,722.74 million yuan, an increase of 8.46% from the previous year [14]. - The company's operating income for 2024 was 252,527.77 million yuan, reflecting a growth of 4.03% compared to 2023 [14]. - The net profit attributable to shareholders decreased by 36.12% to 20,122.51 million yuan, primarily due to increased market competition and impairment of goodwill [15]. Market Position and Competition - Jinhong Gas operates primarily in the East China region, facing intense competition from foreign gas giants like Linde Group and Air Liquide [8][14]. - The company holds a market share of approximately 4.19% in the domestic electronic specialty gas market, which is projected to reach 23 billion yuan in 2024 [14]. - The company must enhance its customer base and product variety to improve its competitive position [8][14]. Research and Development - Jinhong Gas has established a comprehensive gas supply and service network, providing over 100 types of gases for various industries [21][22]. - The company has made significant investments in R&D, with a focus on electronic gases and has obtained 366 patents [16][21]. - Ongoing R&D projects are progressing well, with technology levels reaching domestic advanced standards [21][22]. Risk Factors - The company faces risks related to core competitiveness, operational challenges, and financial management, particularly concerning raw material price fluctuations and market competition [8][12][13]. - Potential quality issues with gas products could lead to customer losses and damage to the company's reputation [10][12]. - Regulatory compliance and safety management are critical, as any lapses could result in operational disruptions [11][12].