Core Viewpoint - The company, Guoxing Optoelectronics, reported a decline in both revenue and net profit during the reporting period, attributing this to intensified market competition, changes in downstream demand, and increased operating expenses [1][2]. Revenue and Profit Trends - The company's revenue for the reporting periods was 3,579.89 million, 3,541.64 million, 3,472.86 million, and 1,681.24 million, while net profit attributable to shareholders was 121.34 million, 85.64 million, 51.53 million, and 24.57 million, indicating a downward trend [1]. - The core business of LED packaging and components accounted for over 70% of revenue but also showed a declining trend, with revenues of 2,608.09 million, 2,528.12 million, and 2,508.19 million from 2022 to 2024 [2]. Trade Business Performance - The trade business, primarily operated by a subsidiary, reported low gross margins of 0.75%, 0.69%, 0.49%, and 0.14% during the reporting periods, with total revenue of 2,360.81 million [3]. - The trade business includes exports of automotive parts, sports goods, and other products, with daily chemical products making up 43.98% of total revenue [3]. Accounts Receivable and Inventory Management - Accounts receivable increased to 547.15 million, 528.59 million, 752.89 million, and 850.20 million, representing 25.28% of revenue, attributed to changes in credit policy and customer structure [4]. - Inventory remained around 900 million, with sufficient provisions for inventory impairment, totaling 91.99 million, 95.15 million, 101.89 million, and 79.86 million [4]. Business Data Fluctuations and Response Measures - The integrated circuit packaging and testing business experienced significant fluctuations in gross margins, from 21.32% in 2022 to -0.25% in 2024, but has since recovered to 7.91% due to industry recovery [5]. - The company plans to enhance profitability through project funding, optimizing product structure, and reducing production costs, focusing on emerging fields such as ultra-high-definition displays and smart automotive applications [5].

Core Viewpoint - Guoxing Optoelectronics (002449.SZ) reported a significant decline in performance for the first nine months of 2025, prompting inquiries from the Shenzhen Stock Exchange regarding the company's accounting practices and ongoing business challenges [1] Financial Performance - For the period of January to September 2025, the company's net profit was 31.11 million yuan, a year-on-year decrease of 55.27% [1] - The operating revenue for the same period was 2,499.77 million yuan, reflecting a year-on-year decline of 7.01% [1] Product Performance - Revenue from small-pitch LED products continued to decline, with sales amounting to 96.39 million yuan and a gross margin of -30.37% for January to September 2025 [1] - The gross margin for TOP white light products improved to 12.79% in the first nine months of 2025, up from 0.51% in 2024 [1] Trade and Accounting Practices - Revenue from trade and application products reached 429.72 million yuan, with a gross margin of 0.66% [1] - The company employs different accounting methods for its trade business, using the gross method for export trade and the net method for domestic copper strip trade [1] - The top five customers accounted for 17.74% of the trade business revenue, with ELEMENTS INTERNATIONAL GROUP LIMITED being the largest customer, generating sales of daily necessities worth 22.84 million yuan [1]