Response to the Inquiry Letter Regarding Guangxi Yuegui Guangye Holdings Co., Ltd.'s Application for Stock Issuance to Specific Objects
To: Shenzhen Stock Exchange
According to your inquiry letter dated January 27, 2026, regarding Guangxi Yuegui Guangye Holdings Co., Ltd.'s application for stock issuance to specific objects (Inquiry Letter [2026] No. 120008), Zhongshen Zhonghuan Accounting Firm (Special General Partnership) (hereinafter referred to as "our firm," "the accountants," or "we") has diligently addressed and verified the questions raised in the inquiry letter as the auditing institution for Guangxi Yuegui Guangye Holdings Co., Ltd. (hereinafter referred to as "the issuer," "the company," "the listed company," or "Yuegui Shares"). We have completed the response to the inquiry letter (hereinafter referred to as "this response" or "this reply"). Unless otherwise specified, the abbreviations or definitions in this response have the same meanings as those in the prospectus. In this response, any discrepancies between the total and the sum of individual figures are due to rounding.
Question 1
During the reporting periods, the issuer's operating revenues were 2,705.49 million yuan, 3,360.14 million yuan, 2,796.15 million yuan, and 2,143.55 million yuan, respectively. The revenue from the syrup paper segment showed an upward trend, while the revenue from the non-metallic minerals and chemical segments experienced fluctuations. The revenue from the new energy segment rapidly increased in the most recent period, while the income from processing trade continued to decline. The gross profit margins for the reporting periods were 31.58%, 21.41%, 31.61%, and 40.89%, showing significant volatility. The net profit attributable to the parent company after deducting non-recurring gains and losses was 285.73 million yuan, 64.00 million yuan, 281.65 million yuan, and 438.73 million yuan, respectively, which was inconsistent with the trend of operating revenue.
During the reporting periods, the company's revenue from refined sugar products was 431.20 million yuan, 418.33 million yuan, 541.51 million yuan, and 353.23 million yuan, with corresponding operating costs of 378.79 million yuan, 390.70 million yuan, 507.74 million yuan, and 313.75 million yuan. The company's routine purchases for sugar production mainly included raw materials (sugarcane and eucalyptus) and labor (wages for production workers), with sugarcane sourced from local farmers. The processing trade revenue for the reporting periods was 636.83 million yuan, 1,314.96 million yuan, 299.13 million yuan, and 16.78 million yuan. Starting in 2024, the company will reduce its trading sugar business, leading to a significant decrease in processing trade revenue.
On December 30, 2024, the company received a corrective order from the Guangxi Securities Regulatory Bureau due to adjustments in revenue recognition methods for certain business segments from gross to net, which were not retroactively applied to similar business revenue recognition methods from 2020 to September 2023. The company adjusted part of its trading sugar business to recognize revenue on a net basis according to the new regulations in 2023 and will apply the gross method for processing trade revenue in 2024.
At the end of the most recent period, the issuer's cash balance was 829.14 million yuan, with short-term loans of 789.54 million yuan and long-term loans of 717.74 million yuan. The issuer incurred interest expenses of 26.50 million yuan and interest income of 6.48 million yuan.
Question 2
During the reporting periods, the company's inventory mainly consisted of real estate development products, finished goods, and raw materials, with book values of 708.75 million yuan, 602.68 million yuan, 620.42 million yuan, and 632.69 million yuan, respectively. The book value of real estate development products was 382.90 million yuan for each period, representing undeveloped land in the Yuegui Industrial Park and a 174-acre commercial residential area in Dushan. In 2024, the company recognized an inventory impairment provision of 24.06 million yuan for the Dushan project.