- Securities Code: 000887 Securities Abbreviation: Zhongding Co., Ltd. Reply to the Inquiry Letter Regarding Anhui Zhongding Sealing Parts Co., Ltd.'s Application for Issuing Convertible Corporate Bonds to Unspecified Objects (Inquiry Letter [2026] No. 120023) (Sponsor (Lead Underwriter) (268 Huzhong Road, Fuzhou City)) June 2026
- Shenzhen Stock Exchange: We have received your inquiry letter dated April 28, 2026, regarding Anhui Zhongding Sealing Parts Co., Ltd.'s application for issuing convertible corporate bonds to unspecified objects (Inquiry Letter [2026] No. 120023) (hereinafter referred to as "Inquiry Letter"). Anhui Zhongding Sealing Parts Co., Ltd. (hereinafter referred to as "the Company", "the Issuer", "Zhongding Co., Ltd.") has, together with Industrial Securities Co., Ltd. (hereinafter referred to as "Industrial Securities", "Sponsor", "Sponsoring Institution"), Anhui Chengyi Law Firm (hereinafter referred to as "Issuer's Lawyer"), and Rongcheng Accounting Firm (Special General Partnership) (hereinafter referred to as "Reporting Accountant"), diligently and honestly verified and implemented the issues involved in the Inquiry Letter, and now replies as follows for your review. Unless otherwise specified, the abbreviations or definitions in this reply are the same as those in the prospectus for the issuance of convertible corporate bonds to unspecified objects. If there are discrepancies in the totals in this reply compared to the sums of the individual items, they are due to rounding. The font in this reply represents the following meanings: Questions listed in the Inquiry Letter are in bold font; responses to the questions in the Inquiry Letter are in Song font; modifications to the prospectus and other application documents are in italic font (bold).
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- Question 1 During the reporting period, the Issuer and its subsidiaries were penalized for violating environmental protection, safety production, and other relevant regulations. Among the top five suppliers of the Company, Anhui Zhongding Holding (Group) Co., Ltd. (hereinafter referred to as "Zhongding Group") is the controlling shareholder, and Anhui Zhongding Rubber and Plastic Products Co., Ltd. (hereinafter referred to as "Zhongding Rubber and Plastic") is controlled by the close relative of the actual controller Xia Yujie. During the reporting period, Zhongding Rubber and Plastic was the Company's largest supplier, and Zhongding Group became one of the top five suppliers in 2024 and from January to September 2025. The Company has procurement and other related transactions with enterprises controlled by the controlling shareholder, such as Ningguo Hongjia Metal Surface Treatment Co., Ltd. and Anhui Zhongding Power Co., Ltd. In December 2021, the Issuer's controlling shareholder Zhongding Group acquired the shock absorber business of Bridgestone Corporation in Japan. On December 10, 2021, the Issuer's controlling shareholder made a commitment letter to avoid potential competition. According to the agreement, after completing the acquisition of the new company, Zhongding Group entrusted the Issuer to be responsible for the specific production and operation of the new company in a custodial manner. At the same time, Zhongding Group promised to actively promote the development of the new company within 60 months from the date of obtaining 100% equity of the new company. If the business can achieve profitability, Zhongding Group commits to preferentially transfer 100% of the equity of the new company held by it to Zhongding Co., Ltd. Please supplement the explanation: (1) The specific circumstances of the administrative penalties involving the Issuer and its subsidiaries, in conjunction with the specific provisions of relevant laws and regulations, explain whether the relevant penalties constitute major illegal acts and whether they comply with the relevant provisions of Article 11 of the "Registration Measures" and Article 18 of the "Legal Application Opinions on Securities and Futures". (2) In conjunction with the Company's cash flow situation, whether there are significant differences compared to comparable companies in the same industry, the characteristics
000887SZSE
Reply to the Inquiry Letter Regarding Anhui Zhongding Sealing Parts Co., Ltd.'s Application for Issuing Convertible Corporate Bonds to Unspecified Objects (Revised Draft)
✨ AI Summary
Anhui Zhongding Sealing Parts Co., Ltd. responds to the Shenzhen Stock Exchange's inquiry regarding its application to issue convertible bonds. The company confirms compliance with regulations and outlines its financial stability, cash flow, and the impact of related party transactions. The issuance aims to optimize its capital structure and support business expansion.
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