The Shanghai Stock Exchange recently issued an inquiry letter to Guolian Shares regarding its 2025 annual report, focusing on multiple anomalies in the company's operating data. The company achieved revenue of 50.981 billion yuan in 2025, a year-on-year decline of 4.86 percent, while its self-operated trading scale reached 94.676 billion yuan, up 7.03 percent year-on-year. Among its segments, the Weiduoduo division saw revenue plunge 37.34 percent year-on-year. The second-largest accounts receivable customer, Jiangyin Xiangjiang Plastic, was established in April 2024 and has only one insured employee. Meanwhile, the company has repeatedly made corrections to revenue-related accounting errors in the past. The regulator has asked the company to disclose in detail the total and net revenue and gross margin quantitative changes by product category over the past three years, whether there have been significant changes in cross-border business models and revenue recognition, the criteria for determining gross versus net revenue recognition, details on the transfer of title, logistics, and control, complete transaction information for top customers such as Jiangyin Xiangjiang, and the commercial rationale for small and medium-sized key customers. It also requires verification of whether the same customer uses both revenue recognition methods simultaneously. In its reply, Guolian Shares stated that the increase in net revenue recognition for Weiduoduo and Feiduoduo stems from two factors: first, the expansion of title-transfer trading in rubber, cotton, and fertilizer categories; second, the difficulty in obtaining complete logistics documentation after traders enter the industry chain, with both scenarios applying net accounting under accounting standards. The steady growth in overall self-operated scale is attributed to increased platform industry penetration, with the company having established cooperative cloud factories totaling 290 by the end of 2025. The revenue decline is partly due to the company proactively streamlining low-margin, high-risk businesses, and partly because a large number of Weiduoduo transactions switched to net accounting, with both factors contributing jointly. Cross-border business is divided into indirect quota exports and direct imports and exports, with no significant changes in operating models compared to previous years. The company's revenue recognition criteria remained unchanged throughout the year: orders with complete physical logistics and where the company bears inventory risk use gross recognition, while orders involving pure title transfer and missing logistics documentation use net recognition. Jiangyin Xiangjiang's total annual transaction volume was 96.3728 million yuan, with the vast majority of orders applying gross recognition, and the two parties established stable cooperation through industry exhibitions. The platform's group-buying procurement model causes significant annual fluctuations in the top five customers. Small and medium-sized manufacturing enterprises with low registered capital, short establishment periods, and few personnel have stable procurement needs and become core customers by leveraging the platform's cost-saving group purchasing, which is commercially reasonable. The company determines the accounting method based on the characteristics of each individual order, so different orders under the same customer name may use either gross or net recognition.
Beijing United Information Technology Co LtdShanghai Stock Exchange inquiry letter focusing on revenue decline, accounting errors, and questionable customer (Jiangyin Xiangjiang) raises regulatory scrutiny and risk.