Announcement on Reply to the Inquiry Letter on the 2025 Annual Report from Shenzhen Stock Exchange
The Company and all members of its Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from any false representations, misleading statements, or material omissions.
Recently, Jinpu Garden Co., Ltd. (hereinafter referred to as the "Company") received the "Inquiry Letter on the 2025 Annual Report of Jinpu Garden Co., Ltd." (GEM Annual Report Inquiry Letter [2026] No. 326) (hereinafter referred to as the "Inquiry Letter") issued by the Shenzhen Stock Exchange. The Company and Zhongxinghua Certified Public Accountants (Special General Partnership) (hereinafter referred to as the "Annual Audit Firm") have conscientiously implemented and verified each item of the issues listed in the Inquiry Letter, and the relevant issues are hereby replied to as follows:
Question 1:
The annual report shows that at the end of the reporting period, the Company's asset-liability ratio increased from 62.12% to 65.61%, and the current ratio and quick ratio decreased to 1.63 and 1.55, respectively. The balance of monetary funds at the end of the period was 247 million yuan, of which restricted funds were 41.2241 million yuan; short-term borrowings were 374 million yuan, and bonds payable were 332 million yuan, totaling 706 million yuan, far exceeding the monetary funds and financial assets held for trading that can be quickly realized. During the reporting period, the net cash flow from financing activities was -112 million yuan, turning from a net inflow in the previous year to a significant net outflow. Please ask your company to:
(1) Based on the monetary funds that can be freely used at the end of the reporting period, the total bank credit line, the amount used and the remaining available amount, the principal and interest of various interest-bearing debts due within 12 months and to be repaid (including short-term borrowings, notes payable, bonds payable due within one year, long-term borrowings, etc.) in a detailed timetable, and the payment cycle and pressure of operating payables, quantitatively analyze your company's current liquidity risk exposure and explain whether there is a risk of short-term debt default.
(2) Based on your company's operating revenue declining for two consecutive years, a large loss incurred in the current year, a continuous increase in the asset-liability ratio, and a weakening of short-term and long-term solvency indicators, please explain whether there is any significant uncertainty about your company's ability to continue as a going concern, and supplement the disclosure of the specific measures your company has taken or plans to take to improve cash flow, reduce the debt ratio, and restore profitability, and their feasibility.
(3) Based on the current stock price, convertible bond conversion price, interest payment, and redemption standard, please explain the specific sources and arrangements for your company's debt repayment funds if convertible bonds need to be repaid in a concentrated manner, and fully disclose the relevant risks.
Please have the annual audit firm provide a clear audit opinion on the company's cash flow situation, solvency, and the appropriateness of the going concern assumption.
Reply:
I. Based on the monetary funds that can be freely used at the end of the reporting period, the total bank credit line, the amount used and the remaining available amount, the principal and interest of various interest-bearing debts due within 12 months and to be repaid (including short-term borrowings, notes payable, bonds payable due within one year, long-term borrowings, etc.) in a detailed timetable, and the payment cycle and pressure of operating payables, quantitatively analyze your company's current liquidity risk exposure and explain whether there is a risk of short-term debt default.