SDGI(SZ:000070) Zheng Quan Zhi Xing·2025-07-07 12:13Core Viewpoint - Shenzhen TeFa Information Co., Ltd. is responding to inquiries from the Shenzhen Stock Exchange regarding its 2024 annual report, focusing on the company's financial corrections, revenue decline, and net loss expansion due to industry competition and internal factors [1][2][11]. Financial Corrections and Risk Warning - The company has corrected accounting errors for the years 2015-2019 and disclosed this in April 2022, which is a prerequisite for applying to lift the risk warning on its stock [1]. - The company has made provisions for investor compensation amounting to 10,071,270.9 yuan, indicating that the factors leading to the risk warning have been addressed [2]. Revenue and Profit Analysis - The company reported a revenue of 440,940.49 million yuan in 2024, a decrease of 10.69% compared to 493,728.97 million yuan in 2023 [10]. - The net profit attributable to shareholders was -40,256.61 million yuan, an increase in loss of 47.74% year-on-year [10][11]. - The decline in revenue was primarily due to a significant drop in the smart services segment, which saw a revenue decrease of 44.83% [10][11]. Segment Performance - The cable segment experienced a revenue increase of 6.25%, while the smart services segment's revenue fell sharply due to intensified competition and reduced demand [10][11]. - The company’s smart services segment is facing challenges from price wars and reduced orders, with some products seeing price drops of nearly 50% compared to the previous year [11][12]. Debt and Liquidity Analysis - As of the end of 2024, the company had a cash balance of 507 million yuan against short-term borrowings of 996 million yuan, indicating a short-term debt coverage ratio of approximately 51% [20][21]. - The company plans to repay all due debts as per its 2025 funding strategy, indicating no significant debt repayment risks [21][22]. Inventory and Impairment - The company reported a reversal of inventory impairment of 8.3 million yuan, with a total impairment provision of 6.9 million yuan, reflecting a proactive approach to inventory management [24][25]. - The inventory management system is robust, ensuring accurate impairment provisions based on market conditions and inventory aging [25][26]. Industry Context - The smart services segment's performance aligns with broader industry trends, where competitors are also experiencing revenue declines due to market saturation and competitive pricing pressures [11][15]. - The overall market for network communication and data center services is under pressure, but there is potential for recovery as demand stabilizes in the long term [15][16].