JSHX(SH:600307) Zheng Quan Zhi Xing·2025-07-15 11:18Core Viewpoint - Gansu Jiugang Group Hongxing Steel Co., Ltd. has received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, focusing on significant increases in related party transactions and the need for detailed disclosures on these transactions [1]. Related Party Transactions - The company reported related party sales of CNY 32.2 billion, CNY 58 billion, and CNY 96.72 billion from 2022 to 2024, while related party purchases amounted to CNY 106.86 billion, CNY 137.85 billion, and CNY 196.99 billion during the same period, indicating substantial growth in both sales and purchases [1]. - The company engaged in transactions with related parties such as Huifeng Industrial Products, with sales totaling CNY 46.92 billion and purchases amounting to CNY 42.05 billion, highlighting simultaneous procurement and sales activities with similar transaction amounts [1]. - The inquiry letter requests detailed disclosures on related party transactions, including names, relationships, transaction content, background, amounts, settlement methods, credit policies, and pricing mechanisms, to assess the fairness of pricing and potential conflicts of interest [1]. Financial Performance and Market Comparison - The company is required to explain the reasons and rationality behind the significant increase in related party transaction amounts and proportions over the past three years, considering industry developments, operational performance, and competitive market conditions [1]. - The company must provide a comparison of related party transaction pricing with market prices and non-related party transactions to ensure fair pricing practices [1]. Transaction Pricing Mechanisms - The company employs market-based pricing for its products, with specific pricing strategies for steel, raw materials, and energy products, ensuring that prices reflect market conditions and competitive dynamics [3][4]. - Pricing for steel products is determined based on regional market prices, production costs, inventory levels, and demand-supply conditions, with adjustments made according to market fluctuations [3][4].