SCGS(SH:600678) Zheng Quan Zhi Xing·2025-07-18 10:14Core Viewpoint - Sichuan Jinding (Group) Co., Ltd. received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, prompting the company to provide detailed explanations and disclosures about its revenue, production, and financial practices [1][2]. Revenue Analysis - The company achieved a total operating revenue of 356.75 million yuan in 2024, with a core revenue of 319.44 million yuan after excluding unrelated business income [3]. - Limestone sales contributed 279.25 million yuan, showing a significant year-on-year increase in both production (9.74 million tons, up 339.88 thousand tons) and sales volume (9.71 million tons, up 348.43 thousand tons) [3]. - In Q4 2024, limestone sales revenue reached 123.50 million yuan, accounting for 44.22% of the annual total, with a year-on-year growth of 414.72% and a quarter-on-quarter increase of 77.77% [3][6]. Customer Demand and Market Conditions - The increase in Q4 limestone sales was attributed to rising demand from key customers in the construction materials sector, with significant sales to various companies for construction purposes [5][6]. - The company noted that several infrastructure projects in the region, including highways and water supply projects, have driven demand for limestone and related materials [6]. Production and Operational Efficiency - The company provided detailed monthly data on production personnel, working hours, and resource consumption, indicating a well-matched production capacity with limestone extraction [4][7]. - The operational model involves outsourcing certain services, with the company primarily responsible for site management and safety [7]. Revenue Recognition Practices - The company follows a "goods first, payment later" policy, ensuring that revenue is recognized only upon delivery and transfer of control to customers, in compliance with accounting standards [8][9]. - The audit confirmed that there were no irregularities in revenue recognition practices, and the company adhered to the relevant accounting standards [9][10]. Fixed Assets and Construction Projects - The company reported a fixed asset balance increase of 258 million yuan due to the completion of the comprehensive utilization production line project, which is expected to enhance production capacity significantly [10][11]. - The project is anticipated to generate an additional annual revenue of approximately 100 million yuan, contributing positively to the company's financial performance [16]. Financial Health and Accounts Receivable - As of the end of 2024, the company reported accounts receivable of 44.73 million yuan, a 133.25% increase from the beginning of the year, indicating a growing customer base and sales volume [26][27]. - The company is also managing prepayments effectively, with a balance of 102 million yuan as of Q1 2025, reflecting ongoing business activities and supplier relationships [26].