Core Viewpoint - Jin Jian Rice Industry received an inquiry letter from the regulatory authority regarding its annual report, highlighting concerns over discrepancies in revenue data, declining dairy income with rising gross margins, and significant changes in prepaid objects [2][5][6] Revenue and Profit Analysis - In 2024, Jin Jian Rice Industry reported operating revenue of 4.627 billion yuan, a year-on-year decrease of 12.19% [8] - The net profit attributable to shareholders was 2.23 million yuan, down 83.94% year-on-year, while the non-recurring net profit was -2.56 million yuan [8] - The grain and oil processing business generated revenue of 2.777 billion yuan, a decline of 6.66% year-on-year, but when compared to the adjusted 2023 figure of 2.579 billion yuan, it shows a growth of 7.69% [8] - The agricultural product trading revenue was 1.255 billion yuan, down 13.53% year-on-year, while the main business product revenue was reported at 1.556 billion yuan, a decrease of 12.45% [8] Dairy Business Performance - Dairy revenue was 96.62 million yuan, a decline of 15.21%, but the gross margin increased by 6.85 percentage points to 36.04%, which is relatively high in the industry [11][12] - The increase in gross margin was attributed to lower raw milk procurement prices and improved procurement strategies [12] - The sales structure optimization led to a significant increase in high-margin product revenue from 27.12% in 2023 to 54.38% in 2024 [13] Prepaid Objects Changes - The balance of prepaid items at the end of 2023 and 2024 was 121 million yuan and 124 million yuan, respectively, with a significant change in the top five prepaid items accounting for 70.02% [15] - The major reason for the change in prepaid objects was the completion of asset replacement in 2024, which involved divesting three subsidiaries engaged in feed trading [16] - The company adjusted its supply chain to reduce related party transactions, focusing on core agricultural raw material procurement [16]