JOEONE(SH:601566) Zheng Quan Zhi Xing·2025-06-25 19:00Core Viewpoint - The company, Jiumuwang Co., Ltd., is under scrutiny regarding its financial disclosures, particularly concerning its cash management, debt situation, and investment strategies, as highlighted in the inquiry from the Shanghai Stock Exchange [1]. Group 1: Financial Situation - The company's cash balance at the end of 2022, 2023, and 2024 was RMB 672 million, RMB 1,066 million, and RMB 766 million respectively, while total short-term and long-term borrowings were RMB 612 million, RMB 407 million, and RMB 224 million for the same years [1]. - Financial assets and equity investments accounted for 44%, 39%, and 40% of total assets from 2022 to 2024, indicating a significant portion of the company's asset base is tied up in these investments [1]. Group 2: Cash Management - The company has implemented strict cash management policies, ensuring that cash funds are accurately recorded and that there are no instances of fund misappropriation or unauthorized use [2]. - The cash management report for 2024 shows a total cash balance of RMB 3.32 million in cash, with significant amounts held in various banks, including RMB 1,424.17 million in Industrial and Commercial Bank of China and RMB 743.36 million in China Minsheng Bank [2][3]. Group 3: Investment Strategy - The company has engaged in substantial financial and equity investments, with a total investment of RMB 1.86 billion in primary equity investments from 2014 to 2024, achieving a profit of RMB 490 million from exited projects [6]. - The company aims to leverage its own funds to invest in related industries and new technologies, aligning with its vision of becoming a leading fashion industry group [6][8]. - The company has decided to stop increasing its primary equity investment projects and is focusing on exiting existing investments to streamline its financial strategy [9]. Group 4: Investment Performance - The company reported investment income of RMB 469.7 million in 2024, with significant losses in fair value changes, particularly in secondary market investments, amounting to RMB 585.55 million [10]. - The fair value changes in investments have primarily been influenced by market fluctuations, with notable losses in 2022 and 2023 due to secondary market volatility [10][11]. Group 5: Risk Management - The company maintains that its investments in bonds and certificates of deposit are of high credit quality and liquidity, mitigating the risk of non-redeemability or significant losses [10][11]. - The company has reduced its secondary market investment scale from RMB 481 million at the end of 2022 to RMB 221 million at the end of 2024, reflecting a cautious approach to investment risk [10].