Core Viewpoint - The company, Jinlang Technology, is responding to an inquiry regarding its application for issuing convertible bonds, highlighting its revenue sources, financial performance, and market conditions in the photovoltaic industry [1][10]. Financial Performance - The company's operating revenue from 2021 to the first nine months of 2024 was 3.31 billion, 5.89 billion, 6.10 billion, and 5.16 billion CNY respectively, with inverter product sales and distributed photovoltaic power generation being the main revenue sources [1][12]. - The sales revenue from grid-connected inverters was 1.02 billion, 3.79 billion, 4.06 billion, and 4.00 billion CNY, while the sales revenue from energy storage inverters was 175.78 million, 1.07 billion, 438.70 million, and 383.00 million CNY [1][12]. - The company's gross profit margin for the reporting periods was 28.71%, 33.52%, 32.38%, and 33.67%, with the gross margin for photovoltaic inverter business declining [2][4]. Market Environment - The global photovoltaic market is experiencing growth, driven by the transition to renewable energy and the decreasing costs of photovoltaic technology, leading to increased demand for inverters [11][14]. - The company is focusing on expanding its presence in emerging markets such as India and Pakistan, which are expected to drive future growth in inverter demand [14][12]. Business Structure - The company has established two core business segments: photovoltaic inverters and distributed photovoltaic power generation, with the inverter business focusing on string inverters [12][13]. - The revenue contribution from distributed photovoltaic power generation has been increasing, with its gross profit contribution exceeding 50% in recent periods [14][12]. Customer Dynamics - The company has seen significant changes in its top five customers during the reporting period, with new customers such as Luminous Power Technologies and AE SOLAR ALTERNATIVE ENERGY emerging [3][12]. - Accounts receivable have increased, with the balance at the end of each period being 482.37 million, 1.05 billion, 936.07 million, and 1.51 billion CNY, indicating a trend of decreasing proportion of receivables aged within one year [3][4]. Financial Health - The company's total liabilities increased from 407.07 million CNY at the end of 2021 to 1.36 billion CNY by September 2024, with a debt ratio that fluctuated but remained below industry averages [4][10]. - The cash balance at the end of each period was 747.33 million, 1.58 billion, 1.08 billion, and 1.11 billion CNY, indicating a need for careful liquidity management [4][10].

Core Viewpoint - The company is experiencing fluctuations in revenue and profitability within the photovoltaic inverter and distributed photovoltaic power generation sectors, influenced by market competition and changing sales dynamics in various regions [10][11][12]. Revenue and Financial Performance - From 2021 to the first nine months of 2024, the company's revenue from inverter products and distributed photovoltaic power generation was the primary source of income, with inverter sales revenue showing significant growth in earlier years but declining in 2023 [2][10]. - The company's inverter sales revenue for the respective years was 2,842.84 million, 4,002.97 million, 4,064.07 million, and 4,002.97 million CNY, with a notable decrease in growth rate in 2023 compared to previous years [2][10]. - The overall revenue for the company was 588,043.19 million, 608,814.79 million, 610,083.70 million, and 588,960.14 million CNY during the reporting periods [10][22]. Gross Margin Analysis - The company's comprehensive gross margin for the reporting periods was 28.71%, 33.52%, 32.38%, and 33.67%, with inverter business margins declining due to lower export ratios and increased sales in lower-margin regions [3][20]. - The gross margin for the inverter business was 26.13%, 28.88%, 23.14%, and 21.12%, while the distributed photovoltaic power generation business maintained higher margins of 68.69%, 65.46%, 59.93%, and 60.11% [3][20]. Accounts Receivable and Inventory Management - The company's accounts receivable increased significantly, with values of 482.37 million, 1,052.73 million, 936.07 million, and 1,509.98 million CNY, while the turnover rate decreased, indicating potential liquidity issues [4][5]. - Inventory values also rose, with figures of 1,290.84 million, 2,063.82 million, and a declining turnover rate, suggesting inefficiencies in inventory management compared to industry peers [4][5]. Debt and Liquidity Position - The total liabilities of the company increased from 4,070.70 million to 13,551.33 million CNY over the reporting period, with a debt ratio that fluctuated, indicating potential liquidity risks [5][6]. - The company's cash balance was reported at 747.33 million, 1,577.01 million, 1,078.15 million, and 1,112.21 million CNY, reflecting a need for better cash flow management [5][6]. Market Environment and Competitive Landscape - The global photovoltaic market is experiencing growth, with emerging markets in Asia, South America, and Africa contributing to increased demand for inverters [11][15]. - The company is focusing on expanding its market presence in both domestic and international markets, adapting to regional market conditions to maximize overall efficiency [11][15]. Strategic Initiatives - The company is implementing strategies to enhance competitiveness, including optimizing customer structure, improving product offerings, and maintaining a focus on high-margin clients [22]. - Continuous investment in research and development is aimed at producing higher value-added inverter products to meet market demands [22].