Yunnan Jiaotou Ecological Technology Co., Ltd. (hereinafter referred to as "the Company" or "Jiaotou Ecological") and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
On April 1, 2026, the Company received an inquiry letter from the Shenzhen Stock Exchange's Listed Company Management Department regarding the Company's 2025 annual report (Inquiry Letter No. 8 [2026]), requesting explanations on relevant matters of the 2025 annual report. After receiving the inquiry letter, the Company actively organized relevant departments to study the contents item by item, and now announces the response as follows:
- The Company achieved an operating income of 513 million yuan during the reporting period, a year-on-year decrease of 15.04%; the net profit attributable to shareholders of the listed company (hereinafter referred to as net profit) was -25 million yuan, compared to -88 million yuan in the same period last year; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (hereinafter referred to as net profit after deduction) was -80 million yuan, continuing to be negative since 2016. The Company's gross profit margins over the past three years were 12.84%, 10.35%, and 8.29%, showing a continuous downward trend. The Company's 2024 financial report received an unqualified audit report with a paragraph on significant uncertainty regarding going concern from the annual audit accountant, mainly due to the negative net profit attributable to the parent company's shareholders after deducting non-recurring gains and losses for three consecutive years from 2022 to 2024. The annual audit accountant issued a standard unqualified audit report for the Company's 2025 financial statements.
The Company is requested to: (1) Explain the reasons for the decline in operating income and the continuous decline in gross margin in conjunction with the industry environment, operating conditions, and project settlement cycles, and analyze whether the gross margin level is within a reasonable range compared to peer companies in the same industry, and whether there is a risk of further decline in gross margin.
The Company's response is as follows:
- Reasons for the decline in operating income In 2023, the Company's revenue was 602.9 million yuan, in 2024, it was 603.5 million yuan, while in 2025, it was 512.8 million yuan. The main reason for the decline in operating income compared to the previous two years is that in 2025, some projects were affected by external factors such as delays in the handover of work areas by the owner units and adjustments to design plans, resulting in construction progress not meeting expectations, leading to a significant decline in revenue for 2025. Specific details are shown in the table below: