Core Viewpoint - Yuyue Medical has established a strict supplier selection and admission mechanism, aiming to continuously develop and introduce high-quality suppliers [2] Group 1 - The company has set up multi-dimensional supplier admission standards [2] - The focus on quality suppliers indicates a commitment to enhancing product quality and reliability [2]

Core Viewpoint - The company is actively evaluating the compliance progress of domestic injection molding machines in the medical field and is committed to developing and introducing high-quality suppliers [1] Group 1 - Investors inquired about the strict requirements for cleanliness and consistency in medical-grade injection molding and whether the company has assessed the progress of domestic injection molding machines in terms of medical compliance [1] - The company has established a rigorous supplier screening and admission mechanism, implementing multi-dimensional standards for supplier admission [1] - The company will continue to develop and introduce high-quality suppliers, indicating a potential shift towards local premium suppliers in its key equipment procurement strategy over the next three years [1]

Core Viewpoint - Guotong Co., Ltd. (002205) is enhancing its procurement strategy by expanding its supplier network and establishing partnerships with multiple suppliers to gain more options for raw material procurement [1] Group 1: Supplier Network Expansion - The company is actively expanding its supplier network to establish cooperative relationships with various suppliers [1] - This strategy aims to provide the company with more choices for raw material procurement [1] Group 2: Supplier Performance Evaluation - The company conducts regular evaluations of current suppliers' performance [1] - It seeks to identify more competitive suppliers to mitigate raw material price fluctuations [1] Group 3: Inventory Management - The company is implementing reasonable inventory strategies to flexibly control inventory levels based on market conditions for raw materials [1] - This approach is designed to enhance the company's ability to respond to raw material price volatility [1]

Core Viewpoint - The inquiry letter from the Shanghai Stock Exchange regarding Baotailong New Materials Co., Ltd. focuses on the company's financial disclosures, particularly concerning supplier relationships and prepayments, highlighting significant changes in supplier dynamics and the implications for liquidity risk [1][2]. Supplier and Prepayment Analysis - Over the past three years, the top five suppliers accounted for 32.95%, 32.89%, and 40.87% of the total annual procurement, indicating a notable fluctuation in supplier relationships [1]. - The prepayment balances for the company were reported as 0.25 billion, 0.49 billion, and 0.40 billion for the respective years, with a significant portion attributed to Huayu Company, which has a 45% stake in a subsidiary of Baotailong [1][2]. - Huayu Company has been a consistent top supplier from 2021 to 2023, with procurement amounts of 1.85 billion, 1.67 billion, and 1.64 billion, respectively [2]. Transaction and Fund Flow Disclosure - The company is required to disclose detailed information about its top suppliers, including their names, establishment dates, main businesses, actual controllers, procurement content, and any related party transactions [2][3]. - The inquiry also seeks clarification on the rationale for Huayu Company being both a customer and supplier, and whether the prepayments align with the procurement scale and liquidity risk [2][7]. Long-term Asset Expenditure - The company reported a net cash outflow of 4.01 billion from investment activities, with 3.99 billion allocated to the acquisition of long-term assets, which exceeds the net cash flow from operating activities of 3.13 billion [8][10]. - The company is expected to provide details on significant long-term asset expenditures, including transaction parties, amounts, payment methods, and project progress to ensure compliance and transparency [8][9]. Audit and Compliance - The annual audit firm has conducted procedures to verify the authenticity and legality of accounts payable and to ensure there are no duplicate payments or improper fund flows to related parties [8]. - The audit findings indicate that the company's disclosures regarding fund flows and supplier relationships are consistent with the information obtained during the audit process [8].