*ST元成: 关于元成环境股份有限公司2024年年度报告的信息披露监管工作函中的有关问题的专项说明

Core Viewpoint - The financial report of Yuan Cheng Environment Co., Ltd. for 2024 shows significant declines in revenue and net profit, primarily due to industry cyclicality and increased impairment losses, raising concerns about the company's financial health and potential delisting risks [1][6][7]. Financial Performance - The company reported a revenue of 146 million yuan for 2024, a year-on-year decrease of 46.79% [1][6]. - The net profit attributable to shareholders was a loss of 325 million yuan, with a similar loss of 323 million yuan after excluding non-recurring items, indicating a worsening financial situation [1][6]. - The gross profit margins for major business segments, such as engineering construction and green maintenance, were -27.94% and -14.27%, respectively, reflecting a significant decline compared to previous years [1][5]. Revenue Breakdown - The revenue composition for 2024 was as follows: engineering construction and maintenance (53.32%), electronic devices and components (38.65%), with other segments contributing minimally [5]. - The fourth quarter revenue was reported at 101 million yuan, accounting for nearly 70% of the annual revenue, which deviates from historical trends [1][3]. Client and Supplier Information - The top five clients contributed 66.48 million yuan, representing 45.59% of total sales, with related party transactions accounting for 11.98% [1]. - The company plans to disclose detailed information about its top ten clients and suppliers, including transaction amounts and payment conditions, to address regulatory inquiries [1][3]. Impairment and Receivables - The company reported accounts receivable of 236 million yuan, with a provision for bad debts of 54.65 million yuan related to a subsidiary [8][9]. - The audit raised concerns about the recoverability of receivables and the adequacy of impairment provisions, leading to a qualified opinion from the auditors [8][9]. Industry Context - The overall industry is experiencing a downturn, with tightening funding from government and developers, leading to reduced investment in municipal construction and infrastructure projects [5][7]. - The company's gross margin decline aligns with the broader industry trend, where many companies are facing similar challenges [5][6].