JINHUI(603919) 长江商报· Chang Jiang Shang Bao·2025-04-16 00:27Core Viewpoint - The company, Jinhuijiu, has awarded a significant construction contract to a related party, which raises concerns about potential conflicts of interest, despite the company stating that the transaction is part of normal business operations and was conducted through a public bidding process [1][3][5]. Group 1: Investment and Contracts - Jinhuijiu announced plans to invest in the ecological smart industrial park's phase four technical transformation project, with a contract amount of 669 million yuan awarded to Gansu Maoda Construction Engineering Co., Ltd., a related party [1][4]. - The legal representative of Maoda Construction, Li Suoyin, is the nephew of Jinhuijiu's actual controller, Li Ming, indicating a familial connection [2][5]. - The company stated that this related transaction is part of normal business operations and was conducted through a public bidding process, with no objections raised during the public announcement [3][5]. Group 2: Financial Performance - In the 2023 annual report, Jinhuijiu aimed for a revenue target of 3 billion yuan and a net profit of 400 million yuan for 2024, achieving revenues of 3.021 billion yuan (up 18.59%) but falling short of the profit target with 388 million yuan (up 18.03%) [3][8]. - For Q1 2025, Jinhuijiu reported revenues of 1.108 billion yuan (up 3.04%) and a net profit of 234 million yuan (up 5.77%), indicating a slowdown in growth [9]. - The company's gross margin has been declining, with rates of 63.74%, 62.78%, 62.44%, and 60.92% from 2021 to 2024, respectively [9]. Group 3: Product Performance - Jinhuijiu's product sales are categorized by price range, with significant revenue declines in lower-end products (below 100 yuan), which saw a 31.72% decrease in Q1 2025 [10]. - Conversely, sales of products priced above 300 yuan increased by 28.14%, indicating a shift towards higher-end offerings [10][11]. - The company's revenue from dealer channels grew by 2.83%, while direct sales channels experienced a decline of 13.67% in the same period [10].