Core Viewpoint - The inquiry letter from the Shanghai Stock Exchange regarding the information disclosure of Jinhua Enterprise (Group) Co., Ltd. highlights issues related to the use of raised funds and project management, particularly concerning the new factory relocation and expansion project [1][2]. Group 1: Fundraising and Project Management - The company raised 628 million yuan through a private placement, with 480 million yuan allocated for the new factory relocation and expansion project. As of the end of 2024, 369 million yuan had been invested in this project [1]. - A contract was signed with Shaanxi Hongyuan Zhenye Industrial Co., Ltd. for the renovation and minor works of the public areas of the pharmaceutical plant, with an initial payment of 18 million yuan made [1][2]. - The inquiry raised concerns about the management of raised funds and project budgets, specifically regarding the prepayment of large engineering amounts and whether there was any disguised fund occupation [1][2]. Group 2: Contractual Details and Payment Terms - The contract with Shaanxi Hongyuan includes specific construction content, a bill of quantities, acceptance standards, and payment schedule [2][3]. - The payment schedule stipulates that 80% of the payment is made based on the completed work verified by the project owner, with payments made by the 10th of each month for the previous month's work [4]. - The company has made significant prepayments exceeding 5 million yuan for various projects, including a prepayment of 42 million yuan for a total project cost of 280 million yuan, and 10 million yuan for another project [4][5]. Group 3: Supplier Relationships and Compliance - The company provided details on the latest fund usage for the investment projects, totaling 393.13 million yuan, which includes engineering costs, equipment costs, and other related expenses [2][4]. - Among the top suppliers in the past two years, some did not follow the bidding procedures, particularly Shaanxi Hongyuan and Shaanxi Fuhuihui Decoration Engineering Co., Ltd. [7][8]. - The company confirmed that the main suppliers do not have any direct or indirect relationships with the actual controllers or other shareholders, except for Shaanxi Juchi Construction Engineering Monitoring Co., Ltd., which is an associated party [9][10].