Shenzhen Jiu'an Certified Public Accountants (LLP)
Response to the Shenzhen Stock Exchange's "Inquiry Letter Regarding the 2025 Annual Report of Tibet Development Co., Ltd."
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Postal Code: 518057
Tel: (0755) 26996149
Fax: (0755) 26996149
Website: www.jiuancpa.com
Shenzhen Stock Exchange:
Tibet Development Co., Ltd. (hereinafter referred to as the "Listed Company" or "Tibet Development") received the "Inquiry Letter Regarding the 2025 Annual Report of Tibet Development Co., Ltd." (Company Annual Report Inquiry Letter [2026] No. 147) (hereinafter referred to as the "Inquiry Letter") from your exchange on May 14, 2026. In accordance with the requirements of the Inquiry Letter, Shenzhen Jiu'an Certified Public Accountants (LLP) (hereinafter referred to as "we" or "the Accountants"), as the auditor for Tibet Development's 2025 annual financial statements, has reviewed the matters requiring verification and an explicit opinion, as follows:
- Regarding operating income and non-recurring profit or loss. The annual report shows that during the reporting period, the company achieved operating income of 433 million RMB, a year-on-year increase of 2.81%; net profit attributable to shareholders of the listed company (hereinafter referred to as "net profit") was 144 million RMB, a year-on-year increase of 449.70%; and net profit after deducting non-recurring profit or loss attributable to shareholders of the listed company (hereinafter referred to as "net profit after deduction") was 23.9132 million RMB, a year-on-year decrease of 12.77%. By product, sales revenue of ordinary bottled beer was 217 million RMB, a year-on-year decrease of 5.95%, with a gross profit margin increase of 4.5%; sales revenue of small-bottle beer was 129 million RMB, a year-on-year increase of 41.9%, with a gross profit margin increase of 2.95%. During the reporting period, the company reversed 183 million RMB in impairment provisions for receivables that were tested individually for impairment, which was included in non-recurring profit or loss.
Please explain:
(1) The reasons for and reasonableness of the significant growth in small-bottle beer sales revenue;
[Company Response]:
In 2025, sales revenue for small-bottle beer 3650 was 129 million RMB, a year-on-year increase of 41.9%, with a gross profit margin increase of 2.95%. The reasons for the significant growth in revenue for this product category this year are: primarily the company's optimization of its product series structure, deep cultivation of channels to actively expand the high-end market, and increased promotional efforts for the small-bottle beer 3650 product. This has established initial market brand advantages for the product and steadily improved consumer acceptance, leading to a significant year-on-year increase in the product's production capacity and sales volume. Simultaneously, the continuous increase in the sales proportion of the high-value-added small-bottle beer 3650, along with the continued promotion of refined supply chain management—using centralized procurement and multi-party price comparisons to effectively reduce the purchase unit price of major raw materials such as malt and glass bottles—has effectively reduced the variable cost per unit. The decrease in fixed costs per unit allocated due to increased sales volume led to a 2.95% increase in the gross profit margin for this product this year. The growth in revenue and gross profit margin for this product is reasonable.
Although sales revenue for ordinary bottled beer declined this year, the company continued to promote refined supply chain management, effectively reducing the purchase price of glass bottles used for ordinary bottled beer and the purchase unit price of raw materials such as malt and rice through centralized procurement and multi-party price comparisons, and improved the bottle return utilization rate, causing the gross profit margin of ordinary bottled beer to rise slightly.