Zheng Quan Zhi Xing·2025-06-25 16:47Core Viewpoint - The company, Guangdong Zhaoqing Xinghuo Biotechnology Co., Ltd., has responded to regulatory inquiries regarding its 2024 annual report, highlighting its financial status, including cash reserves, debt levels, and operational funding needs. Financial Performance - As of December 31, 2024, the company's cash balance was CNY 1.759 billion, representing a year-on-year increase of 23.97% [1] - The company reported long-term borrowings of CNY 1.721 billion and short-term borrowings of CNY 1.008 billion, with interest expenses totaling CNY 110 million [1] - The average cash balance for 2024 was CNY 1.588 billion, with interest income of CNY 13.39 million, resulting in an interest income rate of 0.84% [3] Debt Management - The company has seen a reduction in bank borrowings, with a decrease from CNY 1.201 billion at the beginning of the year to CNY 1.339 billion by year-end [4] - The interest coverage ratio improved significantly to 12.24 in 2024, indicating enhanced ability to meet interest obligations [5] - The company has a credit line of CNY 12.6 billion, with only CNY 3.6 billion utilized, reflecting strong creditworthiness [5] Operational Needs - The company requires substantial cash reserves for its operations, particularly for purchasing corn, which exceeds CNY 8 billion annually [3] - Seasonal purchasing patterns necessitate maintaining adequate liquidity, with projected funding needs of approximately CNY 2.483 billion for the first quarter of 2025 [3] Risk Management - The company has confirmed that there are no co-managed accounts with controlling shareholders, ensuring no financial conflicts of interest [7] - The financial arrangements are deemed reasonable, with cash reserves aligned with operational scale and industry standards [7]