LJRB(SH:600853) Zhong Guo Jing Ying Bao·2025-04-16 11:20Core Viewpoint - Longjian Road and Bridge Co., Ltd. (龙建股份) is facing a lawsuit over a contract dispute involving overdue payments exceeding 20 million yuan, despite reporting revenue and profit growth for 2024 [2][5]. Group 1: Lawsuit Details - The lawsuit involves a subcontracting agreement for a road construction project signed in September 2015, with an estimated contract price of approximately 212 million yuan [3]. - Longjian has paid around 231 million yuan to the plaintiff, Zhongtai Lu'an, but still owes 20.01 million yuan [4]. - Zhongtai Lu'an is seeking payment of 7.49 million yuan for overdue project payments and 12.53 million yuan for quality assurance funds, along with overdue interest [5]. Group 2: Financial Performance - In 2024, Longjian reported revenue of 18.29 billion yuan, a year-on-year increase of 4.95%, and a net profit of 413 million yuan, up 23.59% from the previous year [7]. - The company's asset-liability ratio remains high at 82.40%, slightly down from 83.94% in 2023, continuing a trend of over 80% for more than a decade [7]. - Accounts receivable have significantly increased, with figures of 5.86 billion yuan, 9.37 billion yuan, and 9.5 billion yuan for the years 2022 to 2024, respectively, indicating a 59.91% increase in 2023 [7]. Group 3: Industry Context - Longjian primarily engages in road engineering, municipal road and bridge construction, and related infrastructure investment and management [8]. - The construction industry typically involves long project durations and large contract amounts, leading to substantial accounts receivable and slower turnover rates, which pose certain recovery risks [8].