SJY.(SH:600676) Zheng Quan Zhi Xing·2025-06-23 16:21Core Viewpoint - The Shanghai Securities Exchange has raised specific inquiries regarding the annual report of Shanghai Jiaoyun Group Co., Ltd, particularly focusing on inventory valuation, contract fulfillment costs, and the implications of these figures on the company's financial health [2][3][6]. Inventory - The year-end inventory value of the company is 639 million yuan, reflecting a 2.73% increase from the previous year, with a provision for inventory impairment of 84.22 million yuan, representing an 11.64% provision rate [2]. - The value of dispatched goods is 68.08 million yuan, showing a significant year-on-year increase of 154%, while the contract fulfillment cost stands at 55.76 million yuan, up 24% year-on-year [2][5]. - The inventory turnover rates for the past three years are 8.46, 7.51, and 6.84 times, indicating a downward trend [2][10]. Contract Fulfillment Costs - As of December 31, 2024, the original value of contract fulfillment costs is 55.80 million yuan, with a minimal impairment provision of 40,600 yuan, resulting in a net value of 55.76 million yuan [6]. - The main components of contract fulfillment costs are related to the manufacturing of automotive parts, including various purchased and self-made tools, with ongoing projects still in the testing or acceptance phase [6][7]. Business Model and Revenue Recognition - The company confirms that the increase in dispatched goods is reasonable and aligns with its business model and revenue recognition policies, with timely post-settlement and no long-term acceptance or return risks [5][6]. - The sales settlement cycle for dispatched goods typically ranges from 1 to 2 months, with a significant portion of the 2025 settlements already accounted for in January and February [5]. Inventory Impairment and Comparison with Peers - The company has conducted a thorough inventory impairment test, ensuring that provisions are made for items that are expected to be unsellable or unusable, with a cautious approach reflected in the higher impairment provision rate compared to industry peers [8][9]. - The average impairment provision rates for comparable companies in the automotive parts sector are lower than that of the company, indicating a more conservative stance on inventory valuation [9]. Inventory Turnover Rate - The declining inventory turnover rate is attributed to a combination of factors, including overstocking based on previous demand forecasts and a decrease in sales, leading to longer production and sales cycles [12]. - The company is actively working to optimize inventory management by enhancing supply chain agility and adjusting inventory targets based on customer demand [12].