Core Viewpoint - Delin Hai (688069.SH) reported a revenue growth of 44.71% in 2024, but its net loss expanded to -86.15 million yuan, raising regulatory concerns about the company's financial performance characterized by "increased revenue without increased profit" [2][3]. Financial Performance - In 2024, Delin Hai achieved an operating income of 447 million yuan, a year-on-year increase of 44.71%. However, the net profit was a loss of 86.15 million yuan, which further widened compared to the previous year [3]. - The company attributed the loss to increased expenses of 9.52 million yuan, credit impairment losses and asset impairment losses increasing by 17.85 million yuan, reduced investment income by 22.96 million yuan, and increased income tax expenses by 9.64 million yuan [3]. - The net profit of Delin Hai has been declining year-on-year since its listing in July 2020, with figures of 193 million yuan, 109 million yuan, 56.42 million yuan, and -13.44 million yuan from 2020 to 2023 [3][4]. Client Concentration - Delin Hai's top five clients accounted for 71.17% of total annual sales, with the largest client contributing 41.18% of sales, amounting to 185 million yuan [5]. - The company explained that the high client concentration is due to the nature of its business in the governance of eutrophic lakes, focusing on areas with severe blue-green algae outbreaks [5][6]. Accounts Receivable - As of the end of 2024, Delin Hai's accounts receivable balance was 690 million yuan, with a bad debt provision of 260 million yuan, resulting in a book value of 430 million yuan. The bad debt ratio is relatively high, with a provision for bad debts of 119 million yuan, an increase of 40 million yuan from the previous year [6]. - The company indicated that the high bad debt ratio is due to the aging of receivables, primarily from long-term debtors such as the Tonghai County Water Conservancy Bureau and others. However, it expects to recover these receivables [6].