Core Viewpoint - Shanghai Kaixin (300899.SZ) faces significant financial challenges, including a sharp decline in annual revenue and net profit, leading to potential delisting risks due to non-compliance with disclosure regulations [1][2][3] Financial Performance - In 2024, Shanghai Kaixin reported operating revenue of 81.61 million yuan, a year-on-year decrease of 34.52%, and a net loss of 1.65 million yuan, a decline of 110.56% [2] - The company experienced a dramatic drop in Q4 2023, with revenue of 3.31 million yuan and a net loss of 8.77 million yuan [4] - Conversely, the first quarter of 2025 showed a significant increase in performance, with projected revenue between 71 million and 91 million yuan, representing a year-on-year growth of 127.13% to 191.11% [4] Revenue Recognition Issues - The discrepancies in revenue recognition between internal and external audits have led to significant adjustments in reported figures, raising questions about the company's financial management [3][5] - The company attributed the lack of timely disclosure of risks to differences in revenue recognition timing with auditors, which were only resolved later [3] Customer Concentration and Accounts Receivable - A high concentration of sales among a few customers poses risks, with the top five customers accounting for 71.67% of total sales [5][6] - As of 2023, accounts receivable stood at 115 million yuan, with a bad debt provision of 17.31 million yuan, indicating potential liquidity issues [5][6] Industry Context - The company claims to benefit from a recovery in the industry, with new orders increasing by over 20% compared to 2023, and cash received from sales rising by 69.94% [6] - The sustainability of this recovery remains uncertain, as the company has faced ongoing financial difficulties since its listing in 2020 [5][6]