Core Viewpoint - Yongtaiyun Chemical Logistics Co., Ltd. has responded in detail to the Shenzhen Stock Exchange's inquiry regarding its application for a specific stock issuance, addressing business development, financial status, and related risks [1] Business Fluctuations and Gross Margin Changes - The revenue from Yongtaiyun's cross-border chemical logistics supply chain services showed significant fluctuations, with figures of 2.698 billion, 1.564 billion, 2.152 billion, and 950 million yuan for the respective periods. This revenue is influenced by the shipping market's conditions and the chemical export price index [2] - The gross margin for 2024 is projected at 11.35%, a decrease of 4.17 percentage points from 2023, primarily due to intensified industry competition reducing price increase potential per container. However, the gross margin for the first half of 2025 has stabilized [2] - To counteract the decline in gross margin, the company is enhancing overseas warehousing resources, such as establishing a comprehensive storage base in Dubai, and is also exploring new clients and businesses to lower logistics costs and improve gross margin [2] Supply Chain Trade Business Expansion - Following its listing, the company has significantly expanded its supply chain trade business, which generated revenue of 1.349 billion yuan in 2024, accounting for 34.68% of total main business revenue. This business synergizes with other main operations, promoting cross-border logistics and improving warehouse resource utilization [3] - The main products in the supply chain trade include used cars, nickel products, chemicals, and textiles, with different revenue recognition methods applied. The company adheres to market pricing principles in transactions with major clients and suppliers, maintaining stable credit policies and cooperation history [3] Used Car Trade Business Compliance and Risks - The used car trade primarily involves zero-kilometer vehicles, complying with relevant policies and regulations, resulting in low legal risks. In 2024, some overseas clients faced payment delays due to geopolitical events, but the negative impact has been mitigated [4] - The gross margin for the used car trade, previously low, has risen to 3.89% in the first half of 2025, with the company continuing to monitor policies to ensure stable and sustainable operations [4] Equity Changes in Haotai Chemical and Nickel Shen New Materials - The company sold 51% of its stake in Haotai Chemical and reduced its stake in Nickel Shen New Materials to 49% due to unmet synergy expectations and strategic adjustments. These sales are deemed commercially reasonable and do not affect the stability of the company's operations [5] Revenue Recognition and Accounting Policies - The revenue recognition methods for different product types comply with accounting standards and are consistent with comparable companies in the industry. Adjustments were made in 2023 to correct revenue recognition methods, ensuring accuracy and completeness [6] Agency Business and Client-Supplier Relationships - The agency business involves companies that are both major clients and suppliers, which is typical in the industry. The relationships are deemed commercially reasonable, with no significant conflicts of interest identified [7][8] Prepaid Procurement and Financial Management - The company employs prepaid procurement practices, which are standard in the industry, ensuring good settlement conditions and no capital occupation. In 2024, the company aims to optimize financial management by shortening payment terms [9] Issued Goods and Inventory Risks - The company's issued goods mainly consist of used cars and nickel products, with inventory management aligned with business models and procurement strategies. The inventory aging structure is healthy, and while cash flow was negative in 2024 and the first half of 2025, inventory turnover remains rapid, minimizing risks of inventory backlog and depreciation [10]