Core Viewpoint - Guangdong Chuangshiji Intelligent Equipment Group Co., Ltd. has responded to the Shenzhen Stock Exchange's inquiry regarding its application for a specific stock issuance, analyzing its operational status, financial indicators, and pending litigation comprehensively [1] Financial Performance Summary - The company's operating revenues for the reporting period were 4,526.90 million, 3,529.21 million, 4,605.31 million, and 1,047.94 million respectively, with significant fluctuations in the 3C product series, which saw a revenue drop of 42.21% in 2023 but a rebound of 153.29% in 2024 [1] - The comprehensive gross profit margins were 26.51%, 21.52%, 23.08%, and 23.03%, which are below the industry average [1] - The net profit attributable to the parent company, excluding non-recurring items, was 230.27 million, 64.80 million, 202.37 million, and 94.10 million, with a notable increase in 2024, while net cash flow from operating activities showed a significant decline [1] Business Segment Analysis - The 3C product series, primarily used in consumer electronics, experienced revenue decline in 2023 due to decreased market demand and lower sales prices, but saw a recovery in 2024 with rapid sales growth [2] - The general product series, which serves various manufacturing sectors, also faced a decline in 2023 but improved in 2024 due to a better macroeconomic environment [2] Financial Metrics Interpretation - The fluctuations in gross profit margins were influenced by market demand, product structure changes, and sales strategies, with the 3C drilling and tapping machine's margin significantly impacting overall margins [3] - The net cash flow from operating activities did not align with net profit trends due to increased inventory and accounts payable, while accounts receivable remained stable except for a notable increase at the end of 2024 [3] - The company's liquidity ratios are consistent with industry peers, and its debt ratio is slightly higher than the industry average, attributed to historical losses and a direct sales model [3] Pending Litigation - A lawsuit was filed by Beijing Jingdiao in November 2019 against Shenzhen Chuangshiji for alleged trade secret infringement, with a first-instance judgment requiring compensation of 12.80 million, and the case is currently under appeal [4] Fundraising Rationality Analysis - The company plans to raise no more than 550 million through a specific stock issuance, primarily to address funding gaps and improve its capital structure and debt repayment capacity [5][6]

Core Viewpoint - Guangdong Chuangjishi Intelligent Equipment Group Co., Ltd. responded to the Shenzhen Stock Exchange's inquiry regarding its application for a specific stock issuance, detailing its operational status, financial indicators, and the necessity of fundraising [1] Revenue and Sales Analysis - The company's revenue for the reporting period was 4,526.90 million, 3,529.21 million, 4,605.31 million, and 1,047.94 million, primarily from 3C series and general series products [1] - Revenue from 3C series products saw a significant decline of 42.21% in 2023, followed by a substantial increase of 153.29% in 2024; general series product revenue has been on a downward trend [1][2] - The company's production and sales rate decreased annually, recorded at 118.34%, 107.51%, 78.74%, and 67.49%, attributed to time lags in product acceptance and market demand fluctuations [2] Gross Margin and Financial Indicators - The company's overall gross margin was 26.51%, 21.52%, 23.08%, and 23.03%, which is below the industry average due to differences in product structure, sales model, and customer concentration [1][3] - The net profit attributable to the parent company, excluding non-recurring gains and losses, was 230.27 million, 64.80 million, 202.37 million, and 94.10 million, with a significant increase in 2024 but a notable decline in cash flow from operating activities [1][3] - Accounts receivable showed stable growth except for a notable increase at the end of 2024, primarily due to concentrated procurement by certain customers [3] Legal and Accounting Matters - The company is involved in a lawsuit regarding technical secret infringement, with a first-instance judgment requiring compensation of 12.80 million; the case is currently under appeal [4] - Accounting errors during the reporting period had a minimal impact on financial indicators, and the company has rectified these issues without significant internal control deficiencies [4] Fundraising Necessity - The company plans to raise no more than 550 million, with the funds aimed at supplementing working capital and repaying bank loans, addressing a funding gap of 1,424.97 million [6]