Shenzhen Stock Exchange:
According to your letter dated May 20, 2026, titled "Inquiry Letter on Xiangtan Yongda Machinery Manufacturing Co., Ltd.'s Issuance of Shares and Cash Payment for Asset Acquisition and Fundraising Application" (Inquiry Letter [2026] No. 130010) (hereinafter referred to as "Inquiry Letter"), Walker (Beijing) International Asset Appraisal Co., Ltd. (hereinafter referred to as "we" or "the appraisal agency") is the appraisal agency for Xiangtan Yongda Machinery Manufacturing Co., Ltd.'s proposed acquisition of equity in Jiangsu Jinyuan High-end Equipment Co., Ltd. (hereinafter referred to as "Yongda Shares" or "the listed company," "Jinyuan Equipment" or "the target company"). In accordance with the relevant requirements of the Inquiry Letter, we have verified the issues related to the appraisal agency mentioned in the Inquiry Letter and provide our opinions as follows. Unless otherwise specified, the abbreviations used in this response have the same meanings as defined in the "Definitions" section of the restructuring report. The total numbers in this response may differ from the direct sums due to rounding.
Response to the Questions Listed in the Inquiry Letter
Question 3: Regarding the Appraisal Forecast
The application documents show:
- The assessed value of the total equity of the target assets is 1.449 billion yuan, with an appreciation rate of 8.74%. The transaction price for 100% equity of the target assets is 1.42 billion yuan.
- In this appraisal, the appreciation of long-term equity investments is 31.43%; the appreciation of fixed assets is 29.4385 million yuan, with an appreciation rate of 9.56%; the appreciation of intangible assets is 85.9019 million yuan, with an appreciation rate of 256.29%, mainly due to the appreciation of land and off-balance-sheet patent rights, where the predicted sales revenue of corresponding products in the patent technology assessment increases from 1.093 billion yuan to 1.217 billion yuan.
- The appreciation rate of the income method assessment for this transaction is 16.95%, predicting that net profit will increase from 102 million yuan in 2026 to 135 million yuan in 2030, with a perpetual period of 143 million yuan.
- The price-to-earnings ratio and price-to-book ratio of the target assets are lower than the average levels of selected comparable listed companies and comparable transaction cases.
- The listed company will pay cash to acquire 51% equity of the target assets in 2024 (hereinafter referred to as the previous transaction), with the assessment benchmark date for the previous transaction being May 31, 2024. The assessed value of the total equity of the target assets was 1.251 billion yuan, with an appreciation rate of 16.56%.