Qibu Co.,Ltd.(SH:603557) Shang Hai Zheng Quan Bao·2025-06-02 20:03Core Viewpoint - The company received a regulatory letter from the Shanghai Stock Exchange regarding its 2024 annual report, prompting a detailed response addressing various financial and operational queries [2][4][44]. Financial Performance - In 2024, the company achieved operating revenue of 327 million yuan, a year-on-year increase of 22.25%, with a net profit of -116 million yuan, marking five consecutive years of losses [2][4]. - The revenue from direct sales increased significantly by 87.47% year-on-year, contributing to 127 million yuan, while the distribution model generated 194 million yuan [2][10]. - The fourth quarter of 2024 saw revenue of 149 million yuan, accounting for over 40% of the annual total, indicating a notable quarterly trend shift [2][12]. Customer and Supplier Analysis - The top five customers accounted for 42.53% of total sales, with related party sales making up 22.78% [2][4]. - The company is required to disclose detailed information about its top ten customers and suppliers, including transaction amounts and payment situations [3][4]. Revenue Recognition and Accounting Practices - The company confirmed that its revenue recognition methods align with industry standards and comply with accounting principles [5][9]. - The audit procedures included verifying sales contracts and assessing the appropriateness of revenue recognition policies [7][22]. Inventory and Cost Management - The company has actively managed inventory, with tail goods sales increasing by 266.59% in the fourth quarter, contributing to revenue recognition [12][13]. - Cost management measures led to significant reductions in sales, management, financial, and R&D expenses, with sales expenses down by 33.03% [11][20]. Accounts Receivable and Credit Risk - The company reported accounts receivable of 538 million yuan, with a provision for bad debts of 301 million yuan, raising concerns about the recoverability of these receivables [37][41]. - The audit highlighted the need for adequate evidence to support the credit loss provisions, which have been a concern for three consecutive years [39][43]. Fundraising and Project Progress - The company raised 509 million yuan through convertible bonds for projects that have faced delays, with only 23.31 million yuan utilized for the "Smart Information System Upgrade Project" [43][45]. - The feasibility of the "Baby Products Sales Network Construction Project" has been reassessed due to declining birth rates and increased online shopping trends [46].