Securities Code: 003032 Securities Abbreviation: *ST Intco Announcement No.: 2026-029 Jiangsu Intco Holding Co., Ltd. Response to Shenzhen Stock Exchange Inquiry Letter Regarding the 2025 Annual Report
The Company and the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or significant omissions.
Jiangsu Intco Holding Co., Ltd. (hereinafter referred to as the "Company") received the "Inquiry Letter Regarding Jiangsu Intco Holding Co., Ltd.'s 2025 Annual Report" (Company Department Annual Report Inquiry Letter [2026] No. 85) (hereinafter referred to as the "Inquiry Letter") from the Listed Company Supervision Department II of the Shenzhen Stock Exchange on April 30, 2026. The Company's Board of Directors and management attach great importance to this matter and have conducted a thorough and systematic review of each item raised in the "Inquiry Letter." The relevant issues mentioned in the "Inquiry Letter" are hereby responded to as follows:
If the sum of the totals in this reply does not match the sum of the individual items, it is due to rounding.
Question 1: On April 23, 2025, your company's stock trading was subject to a delisting risk warning from the Exchange because the company's total profit, net profit, and net profit after deducting non-recurring gains and losses for 2024 were all negative, and its operating revenue after deduction was less than RMB 300 million. The annual report shows that in 2025, your company achieved operating revenue of RMB 379 million, a year-on-year increase of 54.43%, and operating revenue after deduction was RMB 370 million; net profit attributable to shareholders of the listed company (hereinafter referred to as net profit) was -RMB 90.4485 million, a year-on-year decrease in loss of 32.46%; net cash flow from operating activities was RMB 80.3255 million, turning from negative to positive year-on-year. Among the company's main businesses, short-term training business revenue was RMB 205 million, a year-on-year decrease of 2.81%, and higher education business revenue was RMB 139 million, a year-on-year increase of 646.16%. The company's revenue growth mainly comes from the higher education business and the newly consolidated subsidiaries. The gross profit margins of short-term training and higher education businesses are 60.33% and 32.64% respectively, an increase of 27.67 and 11.23 percentage points year-on-year. Please explain:
(1) Based on industry conditions, market competition landscape, company business situation, revenue structure, changes in short-term training course structure, training attendance, average customer price changes, and enrollment numbers for various higher education institutions, please explain the reasons and reasonableness of the company's operating revenue growth. (2) Based on the company's business situation, detailed cost structure and changes, its matching with revenue growth, and the situation of comparable companies in the same industry, please explain the reasons and reasonableness of the changes in the gross profit margin of the company's short-term training and higher education businesses, and whether there are significant differences compared to comparable companies.
(3) Based on the matching relationship between cash received from sales of goods and rendering of labor services and operating revenue, and the changes in operating receivables and payables, please explain the reasons for the net cash flow from operating activities turning from negative to positive, and the significant difference between net profit and net cash flow from operating activities.