BNMC(SH:601011) Zheng Quan Zhi Xing·2025-07-07 10:12Core Viewpoint - The inquiry letter from the Shanghai Stock Exchange regarding Baotailong New Materials Co., Ltd. focuses on the company's financial disclosures, particularly concerning supplier relationships and prepayments, highlighting significant changes in supplier dynamics and the implications for liquidity risk [1][2]. Supplier and Prepayment Analysis - Over the past three years, the top five suppliers accounted for 32.95%, 32.89%, and 40.87% of the total annual procurement, indicating a notable fluctuation in supplier relationships [1]. - The prepayment balances for the company were reported as 0.25 billion, 0.49 billion, and 0.40 billion for the respective years, with a significant portion attributed to Huayu Company, which has a 45% stake in a subsidiary of Baotailong [1][2]. - Huayu Company has been a consistent top supplier from 2021 to 2023, with procurement amounts of 1.85 billion, 1.67 billion, and 1.64 billion, respectively [2]. Transaction and Fund Flow Disclosure - The company is required to disclose detailed information about its top suppliers, including their names, establishment dates, main businesses, actual controllers, procurement content, and any related party transactions [2][3]. - The inquiry also seeks clarification on the rationale for Huayu Company being both a customer and supplier, and whether the prepayments align with the procurement scale and liquidity risk [2][7]. Long-term Asset Expenditure - The company reported a net cash outflow of 4.01 billion from investment activities, with 3.99 billion allocated to the acquisition of long-term assets, which exceeds the net cash flow from operating activities of 3.13 billion [8][10]. - The company is expected to provide details on significant long-term asset expenditures, including transaction parties, amounts, payment methods, and project progress to ensure compliance and transparency [8][9]. Audit and Compliance - The annual audit firm has conducted procedures to verify the authenticity and legality of accounts payable and to ensure there are no duplicate payments or improper fund flows to related parties [8]. - The audit findings indicate that the company's disclosures regarding fund flows and supplier relationships are consistent with the information obtained during the audit process [8].