Core Viewpoint - Yushen Co., Ltd. has responded to the Shenzhen Stock Exchange's inquiry regarding its financial status, business operations, and fundraising projects, providing detailed insights into its performance and future plans [1][5]. Financial Performance and Business Operations - In Q1 2025, Yushen Co., Ltd. reported a revenue of 259.60 million yuan, a year-on-year increase of 22.74%, while the net profit attributable to shareholders was 7.84 million yuan, a decline of 46.93%. This decline was primarily due to losses in the Guinea land transportation business, which had a gross margin of -135.71% due to poor local traffic conditions and insufficient capacity [2]. - By H1 2025, the company saw an increase in revenue to 661.80 million yuan, a 49.12% year-on-year growth, with net profit rising to 40.81 million yuan, an increase of 3.18% compared to the previous year. The transportation business revenue decreased, while the warehousing business revenue increased [2]. - The company is addressing the declining gross margin in the transportation business through quality optimization and procurement platform adjustments. The provision for bad debts and the aging structure of accounts receivable are comparable to industry peers, indicating that debtors have the capacity to fulfill their obligations [2]. Previous Fundraising Project Analysis - In 2021, the company raised 433 million yuan, with 25.98% of the projects undergoing changes in use. Some projects, such as the Yushen Zhudong Land Port and Qinzhou Port Logistics Park, reached operational status but did not meet expected returns due to cost control and strategic adjustments [3]. - The company has implemented measures to enhance customer cooperation and optimize operational efficiency for projects that did not achieve expected benefits [3]. Current Fundraising Project Interpretation - The company plans to raise up to 380 million yuan, with 266 million yuan allocated for the Yushen Guinea transshipment project and 114 million yuan for working capital and bank loan repayment. The transshipment project is an extension of the company's transportation business and aligns with its core operations [4]. - Despite initial losses in the Guinea land transportation service, the company has taken proactive measures to improve the situation, including appointing management personnel and establishing internal control systems [4]. - The company has signed contracts with suppliers for vessel purchases, reducing uncertainty. Although new fixed asset depreciation will impact financial data, the expected benefits from the project are anticipated to offset this [4]. - A professional transshipment team has been formed, and third-party vessel management companies will be engaged for operations and maintenance. The company has secured cooperation agreements with clients, covering 45.37% of overall transshipment capacity, indicating strong market demand and potential for capacity absorption [4].