RISONG(SH:688090) Zheng Quan Zhi Xing·2025-07-14 12:18Core Viewpoint - The company received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, highlighting a significant decline in revenue but an increase in gross profit margin, indicating a strategic shift in its business approach [1][2]. Revenue and Profitability - The company achieved a revenue of 624.57 million yuan in 2024, a year-on-year decrease of 19.47%, while the gross profit margin increased by 4.41 percentage points to 20.69% [1][6]. - The revenue from certain robotic automation production line projects was recognized using the time-based method, with a reported income of 514.72 million yuan during a specific period, reflecting a year-on-year growth of 27.53% [1][6]. Client and Accounts Receivable Analysis - The top five clients in the robotic automation production line business are all well-known automotive manufacturers, with a total contract amount of 1.33 billion yuan and sales revenue of 501.25 million yuan [2][4]. - As of December 31, 2024, the accounts receivable amounted to 96.18 million yuan, with overdue accounts receivable of 66.76 million yuan, which aligns with the upstream funding situation in the automotive industry [5][6]. - The company reported a post-period collection rate of 74.99% as of June 30, 2025, indicating a good recoverability of accounts receivable [5][6]. Market Conditions and Strategic Adjustments - The automotive manufacturing industry's capacity utilization rate was 72.2%, down 2.4% from 2023, leading to a general slowdown in fixed asset investment among downstream clients [5][6]. - The company adjusted its order-taking strategy to focus on higher-margin projects with good historical payment records, opting to forgo lower-margin, longer payment cycle orders [5][6]. Comparison with Industry Peers - Comparable companies in the industry also experienced a decline in revenue but an increase in gross profit margin, indicating a similar strategic focus on quality over quantity [6][6]. - The average revenue decline among comparable companies was 16.03%, while their gross profit margin increased to 18.38% [6][6]. Revenue Recognition Methodology - The company employs a time-based revenue recognition method for its robotic automation production line projects, which aligns with the new revenue recognition standards [10][12]. - The products provided are non-standard customized products, making them difficult to repurpose for other uses, thus justifying the revenue recognition method [11][12].