Shenzhen Yitong Asset Appraisal Real Estate and Land Valuation Co., Ltd.
Audit Opinion on the "Inquiry Letter Regarding Anhui Dehao Run Da Electric Co., Ltd.'s 2025 Annual Report" and Related Issues Concerning the Appraisal Institution
Shenzhen Stock Exchange:
Anhui Dehao Run Da Electric Co., Ltd. received the "Inquiry Letter Regarding Anhui Dehao Run Da Electric Co., Ltd.'s 2025 Annual Report" (hereinafter referred to as the "Annual Report Inquiry Letter") issued by your exchange. In accordance with the requirements of the "Annual Report Inquiry Letter," Shenzhen Yitong Asset Appraisal Real Estate and Land Valuation Co., Ltd. has diligently reviewed the responses to the issues involved in the "Annual Report Inquiry Letter" and has issued this audit opinion. The specific review situation is reported as follows:
Question 8: The annual report shows that as of the end of the reporting period, your company's inventory book balance was RMB 9,064.44 million, with an inventory price decline provision of RMB 1,498.41 million, representing a provision ratio of 16.53%. During the reporting period, your company's asset impairment loss was RMB 5,574.00 million, including RMB 465.87 million for inventory price decline and contract performance cost impairment loss, RMB 1,015.36 million for fixed asset impairment loss, RMB 3,294.20 million for construction-in-progress impairment loss, and RMB 808.25 million for intangible asset impairment loss. Your company stated that the asset impairment was mainly due to idle land held by Dalian Zongde Lighting (currently listed for sale). On August 1, 2025, your company publicly listed for transfer the land use rights and construction-in-progress held by Dalian Zongde Lighting. As no potential transferees meeting the conditions were solicited, your company re-listed three times and lowered the listing price. As of the disclosure date of the annual report, no potential transferees meeting the conditions have been solicited. Please have your company:
(2) Describe the location, usage status, book balance and book value, and appraisal situation (including but not limited to appraisal methods, appraisal basis, key assumptions and parameters, and appreciation rate) of the two land use rights and construction-in-progress held by Dalian Zongde Lighting. Combined with the listing transaction status of the target assets as of the date of this response and the process of calculating asset impairment losses, explain whether the impairment losses for the target assets are sufficient.
Please have the appraisal institution review the above matter (2) and provide a clear opinion.
Company Response:
- Location, usage status, book balance, and book value of the two land use rights and construction-in-progress held by Dalian Zongde Lighting
(1) Construction-in-progress
The book value of the construction-in-progress within the scope of Dalian Zongde Lighting's appraisal is RMB 54,630,580.00, with an accumulated impairment provision of RMB 23,219,036.63. These are the unfinished and idle workshops in the factory area, namely Workshop 1 (#25 Building) and Workshop 2 (#24 Building), with a total construction area of 33,993.15 m². The details are as follows:
| Serial No. | Project Name | Location | Structure | Construction Area (m²) | Completion Progress | Estimated Completion Date | Book Value (RMB) |
|---|---|---|---|---|---|---|---|
| 1 | Workshop 1 (#25 Building) | Dalian Economic and Technological Development Zone Central Industrial Zone | Steel structure and reinforced concrete structure | 14,872.56 | 86% | Since early 2016, idle; restart and completion dates to be determined | 25,563,140.00 |
| 2 | Workshop 2 (#24 Building) | Dalian Economic and Technological Development Zone Central Industrial Zone | Steel structure and reinforced concrete structure | 19,120.59 | 77% | Since early 2016, idle; restart and completion dates to be determined | 29,067,440.00 |