Core Viewpoint - The company, Lanzhou Lishang Guochao Industrial Group Co., Ltd., has received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, highlighting significant financial losses and the need for detailed disclosures about its subsidiaries and their financial performance [1]. Group 1: Financial Performance - Lishang Holdings, a wholly-owned subsidiary, reported total assets of 480 million yuan and a net asset of -140 million yuan at the end of 2024, with net profits of -34.82 million yuan, -31.37 million yuan, and -146.47 million yuan for the years 2022 to 2024, indicating continuous substantial losses [1]. - The company has been requested to provide additional disclosures regarding Lishang Holdings and its subsidiaries, including establishment time, registered capital, main business, and major clients and suppliers [2]. Group 2: Subsidiary Overview - Lishang Holdings was established on May 21, 2021, with a registered and paid-in capital of 50 million yuan, and has no minority shareholders [3]. - The main business of Lishang Holdings is headquarters management, with minimal new retail business in 2022, while Lishang Meilian and Lishui Guochao focus on new retail, including consignment and distribution services [3]. Group 3: Financial Data Analysis - Lishang Holdings' total liabilities have been significant, with liabilities of 558.66 million yuan, 421.26 million yuan, and 350.11 million yuan over the past three years, indicating a high debt ratio [5]. - The company has reported a net profit of -878.26 million yuan for the first quarter of 2025, with significant losses attributed to impairment losses on long-term equity investments and uncollectible lease receivables [6][8]. Group 4: Revenue and Cost Trends - Lishang Meilian's revenue has been declining, with a notable drop in 2024 compared to 2023, primarily due to a sluggish consumer market and low profitability from consignment business [8]. - The company has implemented a strategy to reduce inventory by shifting to a sales-based procurement model, leading to a significant decrease in inventory levels [5].