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Huaxing Certified Public Accountants (Special General Partnership) Response to the 2025 Annual Report Inquiry Letter (II) for Goldfa Laby Baby & Children Products Co., Ltd. Huaxing Zhuanzi [2026] No. 25015490066
To: Listing Management Department I, Shenzhen Stock Exchange
We have received the "Inquiry Letter regarding the 2025 Annual Report of Goldfa Laby Baby & Children Products Co., Ltd. (II)" forwarded by Goldfa Laby Baby & Children Products Co., Ltd. (hereinafter referred to as "Goldfa Laby" or the "Company"). As the auditor for Goldfa Laby's 2025 financial statements, we provide our response to the issues raised in the inquiry letter as follows:
Question 1: Revenue Authenticity and Operating Quality
The annual report shows that your company achieved operating revenue of 123 million yuan in the fourth quarter of 2025, accounting for 31.85% of annual revenue, the highest for the year. However, the net cash flow from operating activities in the fourth quarter was -22.1939 million yuan, accounting for 59.30% of the annual net outflow, the lowest for the year. In your maternal and infant consumer goods business, the "other maternal and infant products" category achieved revenue of 143 million yuan, a year-on-year increase of 137.81%, while operating costs increased by 176.05% year-on-year, and the gross profit margin decreased by 11.29 percentage points to 18.48%. As of the end of 2025, your company's accounts receivable balance was 44.9746 million yuan, of which the balance of accounts receivable with an aging of over one year was 13.8742 million yuan, a year-on-year increase of 123.35%, and its proportion of total accounts receivable rose from 16.69% at the end of 2024 to 30.85%. Against the backdrop of an 86% increase in operating revenue, the growth rate of long-aging accounts receivable far exceeds the revenue growth rate. As of the end of 2025, your company's inventory balance was 140 million yuan, the inventory impairment provision balance was 33.4432 million yuan, and the provision ratio was 23.86%. Among them, the inventory turnover days for maternal and infant cotton products was 368 days, and the inventory turnover days for infant clothing was 346 days, far exceeding normal industry levels. Your company's online sales revenue in 2025 was 189 million yuan, a year-on-year increase of 123.19%, accounting for 48.96% of operating revenue. Your company's total number of employees in 2025 was 668, which is basically the same as the 686 in 2024, but operating revenue grew by 71.86%. After excluding the impact of the medical aesthetics business consolidation, the per capita revenue of the maternal and infant business increased from approximately 319,000 yuan to approximately 569,000 yuan, an increase of approximately 78.4%.
Please have your company:
(1) Quantitatively analyze the reasons for and rationality of the serious divergence between fourth-quarter revenue and cash flow, combined with business models, sales cycles, credit policies, and collection status. Please explain whether the fourth-quarter revenue recognition followed the company's established accounting policies, and whether there were any instances of premature revenue recognition or relaxed credit policies to stimulate sales in order to meet performance targets.
(2) Combined with the specific product composition, sales channels, pricing strategies, and cost structure of this category, explain in detail the reasons for and commercial rationality of the mismatch between revenue and cost changes and the significant decline in gross profit margin. Please explain the sustainability of the revenue growth of this category, and whether there were any instances of inflating revenue through low-price promotions or false transactions.
(3) List the details of accounts receivable with an aging of over one year by debtor, including customer name, sales content, contract amount, aging, reasons for non-payment, and collection measures taken by the company. Combined with credit policies, customer performance capabilities, and historical collection status, explain the significant increase in long-aging accounts receivable, whether the relevant revenue recognition is true and accurate, and whether there were any instances of fictitious transactions or stimulating sales through relaxed credit policies.