Statement
- This asset evaluation report is prepared in accordance with the basic asset evaluation standards issued by the Ministry of Finance and the professional standards and ethical guidelines issued by the China Asset Appraisal Association.
- The client or other users of this asset evaluation report must use the report in accordance with the laws, administrative regulations, and the scope of use specified in this report; the asset appraisal institution and appraisers shall not bear responsibility for any misuse of the report by the client or other users. This report is only for the use of the client, other users specified in the asset appraisal contract, and users as stipulated by laws and regulations; no other institutions or individuals may use this report. The asset appraisal institution and appraisers remind users to correctly understand the evaluation conclusions, which do not equate to the realizable price of the evaluated object and should not be considered a guarantee of such price.
- The asset appraisal institution and appraisers comply with laws, administrative regulations, and asset appraisal standards, adhering to the principles of independence, objectivity, and fairness, and are legally responsible for the asset evaluation report issued.
- The list of assets and liabilities involved in the evaluation object is declared by the client and the evaluated unit and confirmed by their signatures, seals, or other legally permitted methods; the client and other relevant parties are legally responsible for the authenticity, completeness, and legality of the materials provided.
- The asset appraisal institution and appraisers have no existing or anticipated interest relationships with the evaluated object in the report; there are no biases against relevant parties.
- Asset appraisal professionals have conducted on-site investigations of the evaluated object and its involved assets; they have paid necessary attention to the legal ownership status of the evaluated object and verified the legal ownership documents of the evaluated object and its involved assets.
- The analysis, judgments, and results in the asset appraisal report are subject to the assumptions and limitations stated in the report; users should pay attention to the assumptions under which the evaluation conclusions are valid, special notes in the report, and usage restrictions.
Summary
The asset evaluation report assesses the total equity value of Henan Xinkaiyuan Petrochemical Pipeline Co., Ltd. for Anhui Tuoshan Heavy Industry Co., Ltd.'s proposed acquisition. The evaluation determined the market value of the equity at RMB 433 million, reflecting an increase of RMB 226.5 million (109.69%) over the book value. The report is valid for one year from the evaluation date of September 30, 2025.
Client, Evaluated Unit, and Other Users of the Asset Evaluation Report
The client for this asset evaluation is Anhui Tuoshan Heavy Industry Co., Ltd. (hereinafter referred to as Tuoshan Heavy Industry), and the evaluated unit is Henan Xinkaiyuan Petrochemical Pipeline Co., Ltd. (hereinafter referred to as Xinkaiyuan). According to the Asset Appraisal Entrustment Contract, other users of this asset evaluation report are those specified by national laws and regulations.
Purpose of Evaluation
Tuoshan Heavy Industry intends to acquire equity in Xinkaiyuan, and therefore needs to evaluate the total equity value of Xinkaiyuan's shareholders involved in this economic activity to provide a reference for the value of the total equity of Xinkaiyuan's shareholders.
Evaluation Object and Scope
The evaluation object is the total equity of Xinkaiyuan's shareholders involved in the aforementioned economic activity. The scope of the evaluation includes all assets and related liabilities audited by Tianjian Accounting Firm (Special General Partnership) as of September 30, 2025, including current assets, non-current assets, current liabilities, and non-current liabilities. According to the audited financial statements provided by Xinkaiyuan, the book values of assets, liabilities, and shareholders' equity are RMB 247,390,569.69, RMB 40,892,103.32, and RMB 206,498,466.37, respectively.