WINGTECH(SH:600745) Zheng Quan Zhi Xing·2025-07-09 11:13Core Viewpoint - The company received a regulatory inquiry regarding its 2024 annual report, prompting a detailed response about its financial situation, including cash holdings, debt levels, and the rationale behind its financial strategies [1]. Financial Overview - As of December 31, 2024, the company's cash and cash equivalents amounted to 78.34 billion yuan and 17.63 billion yuan in restricted cash, totaling 95.97 billion yuan, representing a year-on-year increase of 30.50% [1]. - The total balance of short-term and long-term borrowings, along with bonds payable, reached 181.29 billion yuan, with interest expenses for the period amounting to 6.93 billion yuan [1]. - The company reported a significant increase in cash held overseas, which rose by 146.41% to 27.13 billion yuan [1]. Debt Structure - The company’s interest-bearing liabilities included 795.34 million yuan in bonds payable and 966.25 million yuan in bank loans, with an average interest rate of 3.75% [4][5]. - Short-term borrowings accounted for 98.28% of total borrowings, with a significant portion being commercial acceptance bills and bank acceptance bills [5]. Cash Management Strategy - The company maintains a substantial amount of cash to match its monthly operational costs, which average around 3.9 billion yuan [3]. - The use of commercial bills for external payments is justified as it provides a lower cost of financing compared to the returns on cash management [6]. Restricted Cash and Related Party Transactions - The company clarified that its restricted cash is independently managed and not used by controlling shareholders or related parties, ensuring no joint accounts exist [10][11]. - The company has established a robust financial management system to ensure compliance with legal and regulatory requirements [11]. Overseas Cash Holdings - The increase in overseas cash holdings is attributed to the redemption of financial products and increased sales revenue from subsidiaries in Hong Kong, India, and the United States [11][15]. - The company’s overseas cash is primarily for operational needs and strategic reserves to manage uncertainties [11]. Use of Proceeds from Asset Sales - Following the termination of certain fundraising projects, the company plans to permanently supplement its working capital with approximately 28.28 billion yuan from the remaining funds [12][13]. - The proceeds from asset sales, totaling 53.6 billion yuan, will be utilized to support the company's core semiconductor business and enhance its operational capabilities [13][14].