Core Viewpoint - The company received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, prompting a detailed response about its trade business and financial performance [1][2]. Group 1: Trade Business Performance - The company achieved operating revenue of 847 million yuan in the reporting period, representing a year-on-year increase of 28.03% [1]. - Trade business revenue reached 345 million yuan, a significant increase of 140.46% compared to the previous year, with a gross profit margin of 3.87%, up by 1.52 percentage points [2][3]. - The increase in trade revenue was attributed to a rise in market demand and strategic utilization of shareholder resources, resulting in the sale of 185,000 tons of high and low sulfur asphalt and 34,518.67 million yuan in revenue [4][5]. Group 2: Business Model and Revenue Recognition - The company operates its trade business through two main models: "winter storage and summer sales" and "sales determine procurement," which help mitigate market risks and enhance profitability [4][5]. - Revenue recognition methods include total amount method and net amount method, depending on the control over goods and the nature of the transaction, aligning with the relevant accounting standards [13][14]. - The company confirmed that it bears the main responsibility for the goods, assumes inventory-related risks, and possesses pricing autonomy, qualifying it as the principal in transactions [20][21]. Group 3: Customer and Supplier Relationships - The company disclosed its top ten customers and suppliers, ensuring no overlapping relationships that could indicate conflicts of interest [6][9]. - Changes in core customers were noted due to increased collaboration with local construction enterprises, adding new related and non-related customers [8][9]. - The company confirmed that there are no overlapping relationships between suppliers and customers, maintaining a clear distinction in business operations [10][11]. Group 4: Financial Performance and Accounts Payable - Quarterly financial data showed significant fluctuations, with operating revenues of 112 million yuan, 116 million yuan, 199 million yuan, and 420 million yuan, while net profit attributable to the parent company experienced a 95.5% decline in the last quarter [22][23]. - The accounts payable at the end of 2024 reached 216 million yuan, a substantial increase of 285% year-on-year, primarily due to the company's procurement strategy of purchasing asphalt on a "goods first, payment later" basis [22][23].