Stock Code: 002106 Stock Abbreviation: Laibao Hi-Tech
Response to the Audit Inquiry Letter Regarding the Application of Shenzhen Laibao Hi-Tech Co., Ltd. for Issuance of Shares to Specific Targets
Sponsor (Lead Underwriter)
(No. 111 Fuhua 1st Road, Futian Street, Futian District, Shenzhen)
August 2026
To: Shenzhen Stock Exchange
In accordance with the requirements of the "Audit Inquiry Letter Regarding the Application of Shenzhen Laibao Hi-Tech Co., Ltd. for Issuance of Shares to Specific Targets" (Audit Letter [2026] No. 120044) (hereinafter referred to as the "Audit Inquiry Letter") issued by your exchange on August 3, 2026, Shenzhen Laibao Hi-Tech Co., Ltd. (hereinafter referred to as "Laibao Hi-Tech," "the Issuer," "the Company," or "the Listed Company"), together with China Merchants Securities Co., Ltd. (hereinafter referred to as the "Sponsor" or "China Merchants Securities"), Guangdong Xinda Law Firm (hereinafter referred to as "Issuer's Counsel"), and Pan-China Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Issuer's Auditor") and other intermediaries, have diligently and faithfully implemented and verified the questions raised in the Audit Inquiry Letter. We have completed the "Response to the Audit Inquiry Letter Regarding the Application of Shenzhen Laibao Hi-Tech Co., Ltd. for Issuance of Shares to Specific Targets" (hereinafter referred to as the "Response to the Inquiry Letter" or "Response"). Simultaneously, in accordance with the requirements of the Audit Inquiry Letter, we have amended and supplemented the "Shenzhen Laibao Hi-Tech Co., Ltd. 2026 Annual Prospectus for Issuance of A-Shares to Specific Targets" (hereinafter referred to as the "Prospectus"). Unless otherwise specified, the abbreviations or terms used in the Response to the Inquiry Letter have the same meanings as those in the Prospectus. In the Response to the Inquiry Letter, any discrepancies between the sum of the figures and the total are due to rounding.
| Font Style | Meaning |
|---|---|
| Bold | Questions listed in the Audit Inquiry Letter |
| Songti | Responses to the questions in the Audit Inquiry Letter and Sponsor's verification opinions |
| Bold, Kai | Amendments and supplements to the Prospectus, revisions to the Response, and updates to financial data |
Table of Contents
Question 1.............................................................................................................................3
Other Issues .....................................................................................................................86
Question 1
According to the application materials, the total amount of funds raised in this issuance shall not exceed 2.5 billion RMB. After deducting issuance expenses, the funds will be used entirely for the "Micro-Cavity Electronic Paper Display (MED) Project" (hereinafter referred to as the "MED Project") and to supplement working capital, and will be implemented by leasing factory buildings.
The total investment for the MED Project is 9 billion RMB, with 1.8 billion RMB proposed to be invested from the raised funds. As of the date of the relevant board resolution for this issuance, the MED Project has completed a cumulative investment of 6.481 billion RMB, which the Company has paid using its own or self-raised funds. After the project is implemented, the average annual revenue is expected to increase by 9.167 billion RMB. The Issuer's operating revenue for the most recent period of the reporting period was 5.987 billion RMB.
During each period of the reporting period, the capacity utilization rate of the Issuer's main product, electronic component display materials, was 79.80%, 49.91%, and 57.57%, respectively, and the capacity utilization rate of touch control materials was 63.76%, 73.18%, and 77.69%, respectively.