Core Viewpoint - The company has received a regulatory inquiry from the Shanghai Stock Exchange regarding its 2024 annual report disclosures, particularly focusing on its trading business and the recognition of revenue from standard warehouse receipt transactions. Group 1: Trading Business Overview - In the first half of 2024, the company's trading business revenue was 637 million yuan, which significantly increased to 2.602 billion yuan in the second half [1] - The total revenue from trading activities for 2024 was 3.268 billion yuan, with standard warehouse receipt transactions contributing 1.814 billion yuan [1] - The average gross margin for most traded products was less than 0.2%, with an overall average gross margin of -0.3%, a decrease of 0.71 percentage points year-on-year [1] Group 2: Revenue Recognition and Accounting Practices - The company distinguishes between standard warehouse receipt business and other forms of trading, providing detailed disclosures on the top ten customers and suppliers, product types, transaction amounts, and relationships [1] - Revenue from non-financing trading is recognized using the gross method, while financing trading is recognized using the net method [4] - The company has implemented various internal controls to ensure the accuracy of revenue recognition related to metal trading, including analyzing the timing of control transfer and verifying supporting documents [7] Group 3: South African Onikin Mine Operations - The company has invested 26 million yuan in the Onikin Mine, with a book value of fixed assets at 128 million yuan and intangible assets (mining rights) at 4.3 million yuan [1] - Cumulative investments in the Onikin Mine from 2018 to 2024 amounted to 1.113 billion yuan, with significant expenditures on mining engineering and construction [8] - The company has faced challenges in resuming operations at the Onikin Mine due to various external factors, including public health events and changes in national policies [9] Group 4: Future Development Plans - The company plans to focus on the Tau Mine and 6th well for resource extraction in 2025, with a projected investment of approximately 27 million USD for the Tau Mine and 35 million USD for the W Mine over the next three years [9] - The development of the Onikin Mine is contingent on the company's financial situation, with ongoing assessments of the feasibility of various mining projects [9]