Core Viewpoint - Jiangsu Longda Superalloy Co., Ltd. has received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, prompting the company to provide clarifications and corrections related to its financial disclosures and operational performance [1]. Financial Performance - The company reported significant revenue growth in the aerospace, gas turbine, and automotive turbocharger sectors, with increases of 46.64%, 67.34%, and 52.34% respectively [1]. - Other business revenues amounted to 85.724 million yuan [1]. - The company adjusted its financial data, ensuring that the corrections do not impact the overall financial status or cash flow for the years 2023 and 2024 [1]. Revenue Structure - The revenue structure for 2024 shows a notable increase in the aerospace sector, driven by demand from key domestic aerospace manufacturers [5]. - The gas turbine sector also experienced substantial growth, attributed to increased demand from domestic and international high-temperature alloy material service providers [9]. - The automotive turbocharger sector's revenue decreased from 16.08% in 2022 to 3.4% in 2024, indicating a shift in market dynamics [1]. Client Performance - The top five clients in the aerospace sector contributed significantly to revenue, with notable sales increases observed from key clients [6]. - The company’s sales to client one in the aerospace sector increased dramatically, reflecting a growing demand for domestic civil aviation engine materials [5]. - In the gas turbine sector, sales to client nine surged due to increased high-temperature alloy demand, highlighting the impact of domestic projects on revenue growth [9]. Sales Model Analysis - The company categorizes its sales into direct sales and dealer models, with direct sales representing end-user transactions and dealer sales involving trade merchants [3]. - Adjustments in sales models have been made to better reflect the operational realities and market conditions [3].

Core Viewpoint - Longda Co., Ltd. is intensifying its investment in overseas subsidiaries to advance its internationalization strategy, particularly through a $40 million increase in investment in its Singapore subsidiary, Singda Superalloy PTE. LTD. [1][5] Investment Strategy - Longda Co., Ltd. plans to invest an additional $40 million in its Singapore subsidiary to enhance overseas manufacturing capacity, upgrade equipment, and improve local operational systems [1][3] - The total investment in the Singapore subsidiary will rise from $20 million to $60 million following this additional investment [3] Financial Performance - As of the end of March, Longda Co., Ltd. had cash reserves of 175 million yuan (approximately $25 million) and discounted receivables of about 200 million yuan (approximately $29 million), which can be utilized for the increased investment [1][3] - In 2024, Longda Co., Ltd. reported overseas revenue of 262 million yuan (approximately $38 million), a year-on-year increase of 167.82% [7] - The company's gross margin for overseas markets reached 29.8%, an increase of 7.1 percentage points year-on-year [7] Market Expansion - The establishment of the Singapore subsidiary is part of Longda Co., Ltd.'s strategic development plan to create an international operational platform, including a business headquarters and R&D center in Southeast Asia [2] - The company is expanding its product lines to include corrosion-resistant alloys and high-performance special deformation alloys to meet international customer demands [3] Recent Developments - Longda Co., Ltd. has completed the acquisition of land for its Malaysian subsidiary, which is set to begin construction in July 2025 [2][4] - The company has seen a recovery in its performance, with 2024 revenues reaching 1.391 billion yuan (approximately $200 million), a 15.22% increase year-on-year, and a net profit of 66.11 million yuan (approximately $9.5 million), up 19.38% [6][8]