Special Explanation on Financial Accounting Issues
Shenzhen Stock Exchange Announcement
On April 28, 2026, the announcement regarding Anhui Zhongding Sealing Parts Co., Ltd.'s application for issuing convertible bonds to unspecified objects was released. The inquiry (2026 120023) has been received. RSM China has confirmed its role as the reporting accountant for Anhui Zhongding Sealing Parts Co., Ltd. (hereinafter referred to as "the Company"). This document addresses the financial accounting issues raised in the inquiry.
Inquiry and Response
If there are no special instructions, this special explanation will clarify the inquiry regarding the Company's application for issuing convertible bonds to unspecified objects.
Inquiry Issues
| Inquiry Issues | Response |
|---|---|
| Response to the inquiry issues | [blank] |
Financial Projections
The Company projects the following financial figures for the years 2023 to 2025:
| Year | Revenue (10,000 Yuan) | Expense (10,000 Yuan) | Profit (10,000 Yuan) |
|---|---|---|---|
| 2023 | 29,241.56 | [blank] | [blank] |
| 2024 | 30,813.35 | [blank] | [blank] |
| 2025 | 32,899.68 | [blank] | [blank] |
Conclusion
This special explanation aims to provide clarity on the financial accounting issues raised in the inquiry and ensure compliance with relevant regulations.
2. Reasons for the Purchases by the Issuer and the Zhongshan Group: Background, Business Rationality, Necessity, and Public Interest
According to the report, the purchases by the Zhongshan Group are as follows:
| Item | 2025 Year | 2024 Year | 2023 Year |
|---|---|---|---|
| Purchase Amount | [blank] | [blank] | [blank] |
| Total | [blank] | [blank] | [blank] |
(1) Basic Information of the Zhongshan Group
| Company Name | Establishment Date | Registered Capital (10,000 Yuan) | Actual Controller | Main Business | History of Cooperation |
|---|---|---|---|---|---|
| Zhongshan Zhongshan Group Co., Ltd. | 1996-11-7 | 11,497.30 | [blank] | [blank] | Over ten years |
In 2025, the Zhongshan Group's business revenue is expected to exceed 20 billion yuan, with the total sales amount not exceeding 0.50%. There are no significant changes in the issuer's operational situation, and it is expected that the customers have stable relationships, and the business performance is stable, not dependent on the issuer's economic capacity.
(2) Reasons for the Purchases: Background, Business Rationality, and Necessity
According to the report, the purchases by the Zhongshan Group are driven by the need to support the business operations and maintain stable relationships with customers. The issuer is engaged in various business activities, including real estate management, energy management, and other related services. The Zhongshan Group has established a stable customer base and has a strong market presence, which is essential for maintaining its competitive edge.
(3) Public Interest of the Purchases
According to the report, the issuer will conduct transactions based on the "Related Party Transaction Management Measures" and the relevant approval procedures. It will also report on the expected transactions and conduct independent reviews to ensure transparency and prevent any harm to the issuer and other shareholders' interests.
2.2 Purchase Pricing Mechanism
According to the report, the pricing for purchases made by the Zhongshan Group will be based on the cost-plus pricing model, which includes the following:
- The Zhongshan Group will determine the purchase price based on the original material costs, production costs, labor costs, and other related expenses. Additionally, the pricing will consider market conditions and the pricing strategies of competitors.
- The pricing will be reviewed and approved through the "Purchase Management Manual," and the internal departments will ensure compliance with the pricing standards.