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Special Explanation from RSM China on Financial Accounting Issues in the Review Inquiry Letter Regarding the Company's Application for Specific Stock Issuance

Titan Wind Energy (Suzhou) Co., Ltd.··164 pages

✨ AI Summary

RSM China provides a detailed response to financial accounting inquiries related to the stock issuance application by TianShun Wind Energy (Suzhou) Co., Ltd. Key figures include declining revenues and profit margins from 2023 to 2025, with significant losses reported in 2025. The firm emphasizes the need for further clarification on financial performance and related transactions, highlighting potential risks and compliance with accounting standards.

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Full Translation

AI Translation· azure_openai

Special Explanation from RSM China on Financial Accounting Issues in the Review Inquiry Letter Regarding the Company's Application for Specific Stock Issuance

1. Financial Performance Overview

From 2023 to 2025, the issuer's operating revenues were 772,662.48 million yuan, 486,037.46 million yuan, and 538,772.00 million yuan, respectively. Revenue from wind tower and blade products declined year on year, while marine engineering product revenues were 151,093.06 million yuan, 42,931.26 million yuan, and 137,424.61 million yuan. The gross profit margins for the main business from 2023 to 2025 were 21.75%, 19.91%, and 18.96%, respectively. The gross profit margin for onshore wind power equipment (including blades and towers) was 12.22%, 3.78%, and 1.61%, significantly lower than the industry average of 17.21%, 14.34%, and 20.44%. The gross margin for blade products was negative in the last two years. The gross profit margins for marine engineering products were 16.33%, 3.08%, and 7.87%, also below the industry average.

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