Group 1 - The major shareholder Z&FINTERNATIONALTRADINGLIMITED has completed its share reduction plan on June 16, 2025 [1] - The company has a total inventory of 1 billion, and it follows accounting standards for inventory impairment [1] - The controlling shareholder, Antu Industrial, completed its previous share increase plan on February 20, 2025, acquiring 5,541,300 shares [1] Group 2 - The accounts receivable turnover rate has decreased from 7.25 times in 2017 to 3.9 times in 2024 due to the expansion of the overall service business, which has a longer collection cycle [1]

Core Viewpoint - The company, Fuzhijie Environmental Protection, reported a significant decline in revenue and net profit for 2024, attributing the downturn to various factors including a downturn in the environmental protection industry and financial strain on its main customer base [1][2]. Revenue Performance - In 2024, the company achieved operating revenue of 187 million yuan, a year-on-year decrease of 67.56%, with a net profit attributable to shareholders of -50 million yuan, compared to 100 million yuan in the same period last year [1]. - The company's main business segments, including high-end solid-liquid separation equipment, waste gas purification technology equipment, and operational services, all experienced revenue declines of over 90% [2]. Business Segment Analysis - The "high-end solid-liquid separation equipment" segment generated revenue of 117 million yuan, while "operational services" and "waste gas purification technology equipment" segments reported revenues of 12.72 million yuan and 9.62 million yuan, respectively, all showing a year-on-year decline [2]. - The revenue drop in the "high-end solid-liquid separation equipment" and "waste gas purification technology equipment" segments was primarily due to the completion of significant projects in 2023, which did not have comparable projects in 2024 [2]. Employee Compensation - Despite the overall revenue and profit decline, employee compensation increased, with management expenses for employee salaries reaching 38.76 million yuan, a 44.14% increase from 26.89 million yuan in the previous year [2][3]. - The increase in employee compensation was attributed to a reduction in project hours and an adjustment in salaries based on performance and departmental evaluations [3]. Accounts Receivable Management - As of the end of 2024, the company's accounts receivable totaled 166 million yuan, with contract assets of 113 million yuan, exceeding the total revenue for the year [4]. - The accounts receivable turnover rate significantly declined from 5.47 in 2022 to 1.22 in 2024, primarily due to reduced project income and longer collection cycles [4][5]. Collection Cycle Challenges - The prolonged collection cycle was explained by the strong bargaining power of downstream clients, mainly state-owned water companies and large contractors, leading to slower approval processes for receivables [5]. - The impact of two major projects, Bamboo Garden and Old Port, was significant on the accounts receivable turnover rate, with an upward trend observed when excluding these projects from the analysis [5].

Core Viewpoint - Tianfulong Group's IPO has been approved, but the company faces challenges such as declining profit margins, increasing inventory, and reduced fundraising, which may affect investor confidence post-listing [3][4][9]. Financial Performance - Tianfulong's main business involves the R&D, production, and sales of differentiated polyester short fibers, with revenue projected to grow from 2.576 billion yuan in 2022 to 3.841 billion yuan in 2024, and net profit expected to rise from 358 million yuan to 454 million yuan during the same period [4]. - Despite revenue and net profit growth, the company's gross profit margin has decreased from 18.86% in 2022 to 16.50% in 2024, a decline of 2.36 percentage points [4]. Tax Incentives - The increase in net profit is largely attributed to tax incentives, including VAT refunds, which contributed 63 million yuan, 54 million yuan, and 87 million yuan to net profit in 2022, 2023, and 2024, respectively, accounting for 16.05%, 11.68%, and 17.77% of net profit [5]. Inventory and Receivables - Tianfulong's inventory has surged from 398 million yuan in 2022 to 660 million yuan in 2024, representing 12.34% and 17.05% of total assets, respectively [8]. - The accounts receivable turnover ratio for Tianfulong was 14.02 times in 2022, compared to industry peers' ratios of 32.69 times and 26.49 times in 2022 and 2023, indicating weaker performance in managing receivables [7]. IPO Fundraising Changes - Initially, Tianfulong aimed to raise 1.09 billion yuan, but later reduced the fundraising target to 790 million yuan by eliminating a 300 million yuan project for supplementing working capital, raising questions about the necessity of this funding [9][10]. - The company has sufficient cash reserves, with bank deposits increasing from 483 million yuan in 2022 to 752 million yuan in 2024, suggesting that the need for additional working capital may not be justified [10].