Core Viewpoint - Nanjing Guanshi Technology Co., Ltd. has experienced significant fluctuations in revenue and profit margins in its semiconductor display device business, leading to regulatory inquiries regarding its financial disclosures and operational performance [2][3]. Financial Performance - The company reported revenues of 894 million yuan in 2023 and 1.359 billion yuan in 2024, reflecting a year-on-year change of -19.26% and 51.95% respectively, primarily due to changes in the semiconductor display device business [3]. - The gross profit margin for this business decreased from 15.56% in 2023 to 10.25% in 2024, indicating a decline in profitability despite revenue growth [3][10]. Customer and Supplier Relationships - The company is required to disclose details about its top five customers and suppliers, including transaction amounts and balances, to explain the significant revenue increase and declining gross margins [3][4]. - Key customers include Xianyang Rainbow Optoelectronics and Nanjing Sharp Electronics, with the latter being a long-term partner that increased its business with the company in 2024 [5][8]. Product Performance - The main products in the semiconductor display device business include polarizers, functional devices, and liquid crystal panels, with polarizers accounting for approximately 66.91% of total revenue in 2023 [7][8]. - The revenue from polarizers increased by about 230 million yuan in 2024, driven by new customer acquisitions and increased sales to existing clients, although the gross margin decreased by approximately 4.5 percentage points due to competitive pricing pressures [8][10]. Capacity Utilization - The capacity utilization rates for polarizers and functional devices improved in 2024 compared to 2023, correlating with revenue growth [17][18]. - Liquid crystal panel production saw a shift from contract processing to self-purchased raw materials, leading to a significant increase in revenue but also higher costs and negative gross margins [9][15]. Impairment Losses - The company recognized fixed asset impairment losses of 28.2438 million yuan in 2024, primarily due to underutilization of liquid crystal panel production lines [3][20]. - Impairment assessments conducted in 2023 and 2024 indicated that the liquid crystal panel assets required adjustments based on projected cash flows and market conditions [20][22].