Special Explanation from Grant Thornton on Financial Accounting Issues in Jiangsu Benchuan Intelligent Circuit Technology Co., Ltd.'s Application for Convertible Bonds
- According to the inquiry letter issued by the Shenzhen Stock Exchange on August 6, 2025, regarding Jiangsu Benchuan Intelligent Circuit Technology Co., Ltd.'s application for issuing convertible bonds to unspecified objects (Inquiry Letter [2025] 020040), Grant Thornton (Special General Partnership) has conducted a review of the financial accounting issues raised in the inquiry letter and provides the following special explanation:
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- Question 1: During the reporting period, the company's operating revenues were 55,926.34 million yuan, 51,094.26 million yuan, 59,610.27 million yuan, and 17,048.74 million yuan, with net profits (after deducting non-recurring gains and losses) of 3,405.22 million yuan, -673.93 million yuan, 1,697.04 million yuan, and 903.85 million yuan, respectively. The net cash flow from operating activities was 11,045.02 million yuan, 7,459.99 million yuan, 2,818.46 million yuan, and 1,790.54 million yuan, with gross profit margins of 15.79%, 11.60%, 12.42%, and 15.69%, respectively. Notably, the net profit after deducting non-recurring gains and losses was negative in 2023, while both operating revenue and net profit after deducting non-recurring gains and losses grew in 2024, despite a decline in net cash flow from operating activities.
During the reporting period, the company's other business income primarily consisted of sales revenue from waste liquids, waste sludge, scrapped boards, frames, edge scraps, waste aluminum sheets, and waste copper foils, amounting to 25,168.4 million yuan, 30,857.6 million yuan, 45,347.6 million yuan, and 15,412.5 million yuan, with gross margins exceeding 90%. The proportion of foreign sales in the main business revenue was 57.37%, 52.13%, 48.39%, and 50.78%, with major export destinations including the United States and Europe, where sales amounted to 24,897.09 million yuan, 20,025.93 million yuan, 20,125.18 million yuan, and 6,151.60 million yuan, accounting for 81.25%, 80.02%, 75.52%, and 78.12% of the company's foreign sales revenue, respectively.
During the reporting period, the company had trade-type companies among its top five customers and suppliers. The proportion of purchases from the top five raw material suppliers was 64.90%, 58.74%, 58.91%, and 66.71%, with the first supplier accounting for over 30%. The company's capacity utilization rates were 82.68%, 77.54%, 87.40%, and 85.95%, and when orders increased beyond its production capacity, the company outsourced some orders or processes to suppliers. The amount of outsourced processing accounted for 17.70%, 7.60%, 8.35%, and 9.52% of the main business costs during the reporting period.
As of March 31, 2025, the company's trading financial assets had a book value of 141,161.4 million yuan, consisting of bank wealth management products and brokerage wealth management products; long-term equity investments had a book value of 9 million yuan; and the associated companies included Shenzhen Baoteng Fushun Venture Capital Fund Partnership (Limited Partnership) and Thailand Lucheng Co., Ltd.