Core Viewpoint - Gengxing Co., Ltd. will be subject to delisting risk warnings and other risk warnings starting from April 29, with its stock name changed to *ST Gengxing, and a daily price fluctuation limit of 5% [2][3]. Summary by Relevant Sections Delisting Risk Warning - Gengxing Co., Ltd. is facing delisting risk due to negative values in total profit, net profit, or net profit after deducting non-recurring gains and losses for 2024, along with operating revenue below 300 million yuan [3]. - The company’s audited net assets at the end of 2024 are also negative, which triggers the delisting risk warning according to the Shanghai Stock Exchange listing rules [3]. Other Risk Warning - The company will also receive other risk warnings because its net profit after deducting non-recurring gains and losses has been negative for three consecutive years, and the audit report for 2024 indicates significant uncertainty regarding its ability to continue as a going concern [5]. Financial Performance - In Q1 2025, Gengxing Co., Ltd. reported an operating revenue of 83.19 million yuan, a decrease of 53.42% year-on-year [6][7]. - The net profit attributable to shareholders was -1.53 million yuan, and the net profit after deducting non-recurring gains and losses was -1.82 million yuan [7]. - As of the end of Q1 2025, the company's net assets attributable to shareholders were -4.97 million yuan, compared to -3.44 million yuan at the end of 2024 [9]. Business Strategy - The company aims to revoke the delisting risk warning by focusing on its core business, optimizing resource allocation, and seeking new profit growth points [6]. - Gengxing Co., Ltd. has shifted its focus to bulk commodity supply chain business, particularly liquefied petroleum gas, after reducing its coal supply chain operations [6][10].

Group 1 - The company plans to establish a wholly-owned subsidiary, Zheshang Zhongtuo (Zhejiang Free Trade Zone) Resource Co., Ltd., with a registered capital of 200 million yuan to seize opportunities in the Zhejiang Free Trade Zone [1][2] - This investment aligns with national strategies and aims to enhance the company's competitiveness in the bulk commodity resource allocation industry [2][4] - The establishment of the new company will allow the firm to better leverage policy benefits and regional advantages in Zhoushan, supporting its expansion in the bulk commodity business [2][3] Group 2 - The investment is seen as a strategic move to capture new opportunities presented by the development of the Zhejiang Free Trade Zone [3][4] - The company will implement a policy tracking mechanism to monitor local government policies related to tax incentives and trade facilitation, addressing potential uncertainties in future operations [3] - The investment will not significantly impact the company's financial status or operational results, ensuring the protection of shareholder interests [4]