Core Viewpoint - Zhejiang Jinying Co., Ltd. received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, focusing on issues related to cash funds and inventory management [1][2]. Group 1: Cash Funds - The company reported a cash balance of 278 million yuan at the end of the period, with restricted cash amounting to 56.76 million yuan, primarily for pledged deposits [1]. - The interest income for the period was 664,000 yuan, representing 0.24% of the cash balance, indicating a low yield on funds [1]. - The company provided detailed disclosures on cash fund storage, including amounts, account types, interest rates, and restrictions [2][3]. Group 2: Inventory Management - The company’s inventory at the end of the period was valued at 701 million yuan, accounting for 38.80% of total assets, with a year-on-year increase of 17.17% [6]. - The company recognized inventory impairment losses of 41.65 million yuan, significantly higher than the previous year's 1.98 million yuan, which was a major factor in the decline of the company's performance [6]. - The company provided a breakdown of inventory by business segment, detailing types, quantities, aging, and impairment provisions [8][9]. Group 3: Inventory Turnover and Market Conditions - The average inventory turnover days increased from 188 days in 2023 to 219 days in 2024, primarily due to a slowdown in sales and increased inventory levels in the textile segment [13][14]. - The company’s inventory growth is justified by its sales scale and the need to maintain sufficient raw materials for production, given the long procurement times for imported materials [14][15]. - The company has stable long-term relationships with major customers, with an order backlog of 193 million yuan at the end of 2024 [15].