Nanhua(SZ:300417) news flash·2025-05-22 06:20Core Viewpoint - The company is required to provide detailed explanations regarding its revenue recognition, cash flow trends, and the impact of recent asset sales on its financial performance, particularly focusing on the sustainability of its operations and compliance with regulatory guidelines. Group 1: Revenue and Profitability - The company must explain the growth prospects of its revenue, considering industry conditions, main business developments, and changes in market share, with a focus on whether there is a realistic possibility of revenue falling below 100 million [2] - The company reported a gross margin of 38.26% for its main business of vehicle inspection equipment, an increase of 0.87 percentage points, with revenue growth of 12.40% and cost growth of 10.84% [3] - The company needs to clarify the reasons for the rapid growth in production and sales of vehicle inspection equipment not aligning with revenue and gross margin increases [3] Group 2: Cash Flow Analysis - The company’s net cash flow from operating activities has decreased for three consecutive years, with figures of 29.39 million, 10.99 million, and 4.97 million respectively [4] - The company is required to explain the reasons for the continuous decline in cash flow and its inconsistency with revenue and net profit trends [5] - The company must assess whether the declining cash flow trend is likely to continue and outline any measures taken or planned to address this issue [5] Group 3: Asset Transactions - The company sold assets to a related party for 52.57 million, and it must detail the internal review process and disclosure obligations related to this transaction [6] - The company is required to explain the rationale and necessity of the asset sale, ensuring it has commercial substance and does not manipulate profits [6] - The company must provide information on the pricing basis and fairness of the transaction, as well as the impact of this sale on the 2024 net profit [7]