Anhui Dehao Runda Electric Co., Ltd. (hereinafter referred to as the "Company") received the "Inquiry Letter Regarding the 2025 Annual Report of Anhui Dehao Runda Electric Co., Ltd." (hereinafter referred to as the "Annual Report Inquiry Letter") issued by the Shenzhen Stock Exchange. In accordance with the requirements of the "Annual Report Inquiry Letter," the Company has conducted an investigation into the relevant matters and hereby provides its response and announcement as follows:
I. Regarding issues related to going-concern ability, please provide the following:
(I) Combined with the development of main business during the reporting period, cost and expense control measures, industry competition landscape, and data from comparable companies in the same industry, explain the specific reasons for the continuous negative net profit after deducting non-recurring gains and losses, analyze whether there is a risk of continuous deterioration in profitability, and describe the specific improvement measures taken and planned by the Company, as well as their effectiveness.
1. Specific reasons for the continuous negative net profit after deducting non-recurring gains and losses
The Company's net profit after deducting non-recurring gains and losses has been negative for several consecutive years, mainly due to the combined influence of intensified industry competition, rapid product iteration, weak profitability of the main business, and historical burdens. The specific situation is as follows:
(1) Development of main business during the reporting period
The Company's current main business consists of kitchen small appliances, primarily smart coffee machines, and LED packaging business, forming a dual-core development pattern. During the reporting period, affected by factors such as intensified industry competition and rapid product iteration, the Company achieved operating income of 663.453 million RMB, a year-on-year decrease of 10.02%. The net profit attributable to shareholders of the listed company was 34.0967 million RMB, achieving a turnaround from loss to profit. This was mainly due to the Company's disposal of idle assets in Dalian, which confirmed asset disposal gains, and the promotion of historical debt clearing for subsidiaries, which confirmed debt restructuring gains. At the same time, the reduction in the scale of idle assets led to a decrease in depreciation and amortization expenses, coupled with internal management optimization to reduce administrative expenses. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -117.7931 million RMB, mainly because the profitability of the Company's two core businesses is weak, coupled with the impact of historical burdens, causing the Company's net profit after deducting non-recurring gains and losses to remain negative.
(2) Cost and expense control measures
During the reporting period, the specific situation of the Company's costs and expenses is as follows:
| Item | 2025 Amount (10k RMB) | 2025 % of Revenue | 2024 Amount (10k RMB) | 2024 % of Revenue | YoY Change |
|---|---|---|---|---|---|
| I. Operating Income | 66345.30 | 100.00% | 73736.30 | 100.00% | -10.02% |
| (1) Small Appliance Industry | 35177.55 | 53.02% | 40838.89 | 55.39% | -13.86% |
| (2) LED Industry | 28957.98 | 43.65% | 30536.27 | 41.41% | -5.17% |
| (3) Other Business Income | 2209.78 | 3.33% | 2361.13 | 3.20% | -6.41% |
| II. Total Operating Costs | 71405.60 | 107.63% | 83718.84 | 113.54% | -14.71% |
| 1. Operating Costs | 55307.83 | 83.36% | 61356.92 | 83.21% | -9.86% |
| (1) Small Appliance Industry | 30721.57 | 46.31% | 34996.88 | 47.46% | -12.22% |
| (2) LED Industry | 23270.55 | 35.07% | 24847.67 | 33.70% | -6.35% |
| (3) Other Business Expenses | 1315.71 | 1.98% | 1512.37 | 2.05% | -13.00% |
| 2. Taxes and Period Expenses Total | 16097.77 | 24.26% | 22361.92 | 30.33% | -28.01% |
| (1) Taxes and Surcharges | 1297.72 | 1.96% | 1777.42 | 2.41% | -26.99% |
| (2) Selling Expenses | 2874.28 | 4.33% | 2312.94 | 3.14% | 24.27% |
| (3) Administrative Expenses | 10204.04 | 15.38% | 14938.51 | 20.26% | -31.69% |
| (4) R&D Expenses | 2843.86 | 4.29% | 2195.05 | 2.98% | 29.56% |
| (5) Financial Expenses | -1122.12 | -1.69% | 1138.01 | 1.54% | -198.60% |