Workflow
东睦新材料集团股份有限公司

Core Viewpoint - The company received a regulatory inquiry from the Shanghai Stock Exchange regarding its 2024 annual report, prompting a detailed response concerning related party transactions and procurement practices [1][2]. Related Party Transactions - The company has been purchasing materials from Ningbo Xinjingguang Investment Management Co., Ltd. (Xinjingguang) from 2022 to 2024, with transaction amounts of 185 million, 328 million, and 439 million RMB, representing 8.20%, 15.66%, and 14.81% of annual procurement respectively [2][3]. - The concentration of procurement from Xinjingguang has increased, with the top five suppliers accounting for 19.64%, 26.73%, and 23.68% of total purchases over the same period [2]. Supplier Information - The company is required to disclose details about its top five suppliers, including names, procurement amounts, and relationships [3]. - Xinjingguang was established in 2013 and has a diverse ownership structure, with no controlling shareholder, and aims to stabilize the company's core team and support its strategic development [5][6]. Financial Data and Procurement Analysis - The procurement amounts from Xinjingguang accounted for 55.86%, 71.01%, and 66.28% of its sales from 2022 to 2024, with gross profit margins of 13.58%, 19.33%, and 17.99% respectively [7][8]. - The company has shifted towards domestic procurement to reduce reliance on foreign suppliers, with a decreasing trend in purchases from foreign suppliers from 2022 to 2024 [15]. Pricing and Payment Arrangements - The pricing for materials purchased from Xinjingguang is determined based on market prices and is generally lower than those from other suppliers, ensuring fair pricing practices [17][23]. - Payment terms involve settling within 30 days after receipt and acceptance of goods, using various payment methods [18]. Internal Controls and Compliance - The company has established a comprehensive internal control mechanism to ensure compliance with procurement processes, with independent directors and auditors reviewing related transactions [25][26]. - No evidence of funds being improperly directed towards related parties has been found, affirming the legitimacy of transactions with Xinjingguang [24][27]. Business Performance - In 2024, the company achieved a main business revenue of 5.104 billion RMB, with a gross margin of 23.59%, showing significant growth across its product lines [29]. - The revenue from the metal injection molding (MIM) segment saw a remarkable increase of 92.19%, driven by new product developments and market expansion [32][39]. Market Trends - The automotive and new energy sectors are experiencing growth, with the company’s products aligning with industry trends, particularly in the context of rising demand for electric vehicles and advanced manufacturing solutions [37][38]. - The company’s strategic focus on high-quality development and market expansion has positioned it favorably within the competitive landscape [41].