Core Viewpoint - The inquiry letter from the Shanghai Stock Exchange regarding the financial disclosures of Wentai Technology Co., Ltd. for the year 2024 highlights significant financial metrics, including a substantial increase in cash reserves and foreign currency holdings, alongside the company's plans to terminate certain convertible bond projects and the sale of major assets [1]. Financial Overview - As of December 31, 2024, the company's cash and cash equivalents amounted to 7.834 billion yuan, while trading financial assets were 1.763 billion yuan, totaling 9.597 billion yuan, representing a year-on-year growth [1]. - The company reported an increase in foreign currency funds amounting to 2.713 billion yuan, which is a 146.41% increase year-on-year [1]. Debt and Interest Expenses - The company had interest-bearing liabilities totaling approximately 18.221 billion yuan, with interest expenses for the year amounting to 692.66 million yuan, resulting in an average interest rate of 3.75% [5]. - The breakdown of interest-bearing liabilities includes bonds payable at 7.953 billion yuan and bank loans at 9.662 billion yuan, with the latter accounting for 52.63% of total liabilities [5]. Cash Management and Usage - The company maintains a significant amount of cash reserves to match its monthly operational cash outflows, which average around 3.9 billion yuan [3]. - The company’s cash flow management strategy includes utilizing commercial paper for external payments, which is more cost-effective compared to the returns on cash reserves [7]. Restricted Cash and Related Party Transactions - The company clarified that its restricted cash is independently managed and not associated with its controlling shareholders or related parties, ensuring no joint or co-managed accounts exist [9][10]. - The total amount of restricted cash held by the company is 2.713 billion yuan, with specific banks and branches listed for transparency [9]. Foreign Currency Holdings - The company reported a significant increase in foreign currency holdings, primarily due to operational needs in overseas entities, including those in Europe, Hong Kong, India, and the United States [10]. - The foreign currency funds are mainly allocated for operational and investment activities, reflecting the company's international business strategy [10].

Core Viewpoint - The company, Hubei Meierya Co., Ltd., reported a significant decline in revenue for the year 2024, with total revenue of 330 million yuan, a year-on-year decrease of 27.42% [2][3]. Business Operations - The company's revenue breakdown includes 286 million yuan from clothing business, 29.8 million yuan from medical business, and 13.6 million yuan from other businesses [2]. - The average revenue per store for direct-operated stores was 2.7558 million yuan, while for franchise stores, it was 769,300 yuan, indicating a substantial difference in performance between the two channels [3]. Customer and Supplier Analysis - The top five customers in the clothing segment for 2022-2024 were identified, with significant contributions from long-term partners [4][5]. - The company reported a total sales amount of 28.609 million yuan from its top customers, accounting for 27.27% of total sales [4]. - The medical segment's top suppliers were also highlighted, with a total procurement amount of 1.38465 million yuan, representing 79.31% of the total procurement for the first four months of 2024 [9]. Revenue Recognition Policies - The company follows a revenue recognition policy based on the transfer of control, confirming revenue when the customer obtains control of the goods [10][12]. - The revenue recognition practices for both the clothing and medical segments were confirmed to comply with the relevant accounting standards [12][13]. Financial Performance and Adjustments - The company reported a total of 371.44 million yuan in revenue deductions for non-main business income and income lacking commercial substance [14]. - The company’s internal control received a negative opinion due to issues related to commercial acceptance bills lacking commercial substance, which affected the accuracy of financial reporting [15].