Zhejiang Dali Technology Co., Ltd. (hereinafter referred to as the "Company") received the "Inquiry Letter regarding the 2025 Annual Report of Zhejiang Dali Technology Co., Ltd." (Company Department Annual Report Inquiry Letter [2026] No. 12, hereinafter referred to as the "Inquiry Letter") issued by the Shenzhen Stock Exchange on April 8, 2026. The Board of Directors of the Company attaches great importance to this and has actively organized relevant personnel, in conjunction with the Company's annual audit accountants, to verify and implement the issues involved in the annual report inquiry letter one by one. The response content is hereby announced as follows:
I. Regarding the Company's Operating Revenue
The annual report shows that the Company's operating revenue during the reporting period was 347 million yuan, a year-on-year increase of 26.41%. After deductions, the operating revenue was 331 million yuan, a year-on-year increase of 22.29%. The gross profit margin was 25.85%, compared to 9.51% in the same period last year. Among this, overseas operating revenue was 110 million yuan, a year-on-year increase of 165.84%, with its proportion of operating revenue rising from 15.12% to 31.80%. By product, the operating revenue of infrared and photoelectric products was 285 million yuan, a year-on-year increase of 38.50%, with a gross profit margin of 23.05%, a year-on-year decrease of 8.25 percentage points. The operating revenue of the inspection robot series products was 11 million yuan, a year-on-year decrease of 58.56%, with a gross profit margin of 58.95%, a year-on-year increase of 13.59 percentage points. From 2023 to 2025, the Company's net profit attributable to shareholders of the parent company (hereinafter referred to as "net profit") was -292 million yuan, -384 million yuan, and -224 million yuan, respectively. The net cash flow from operating activities during the reporting period was 23 million yuan, compared to -67 million yuan in the same period last year, a year-on-year significant increase of 134.47%, turning from negative to positive. In December 2024, the Company signed a "Development Contract for a Certain Type of Photoelectric System" with a customer for an amount of 71 million yuan, which was being fulfilled at the end of the reporting period.
(1) Combining the composition of operating revenue, industry characteristics, business model, the degree of correlation between related businesses and main businesses, and the commercial substance of transactions, explain whether the operating revenue deduction items are complete, whether the deduction amount is sufficient, and whether it complies with the provisions of "Matters Related to Operating Revenue Deduction" in the "Guidelines for Self-Regulation of Listed Companies No. 1 — Business Handling" of the Exchange.
(2) Explain in detail the reasons for the significant growth in overseas operating revenue, list the names of major overseas customers, their countries or regions, products sold, and amounts. Explain the confirmation policy for overseas sales revenue, logistics documents, capital collection status, and foreign exchange risk management measures. Combining overseas business expansion costs, the impact of exchange rate fluctuations, and the international trade environment, analyze the sustainability of high growth in overseas revenue and explain whether there are circumstances of adjusting profits or fabricating revenue through overseas transactions.
(3) Combining the main application fields, sales price fluctuations, and unit cost composition and changes of infrared and photoelectric products, explain in detail the specific reasons for the revenue growth but the decline in gross profit margin of such products. Determine if there is a situation of exchanging price for volume, and quantitatively analyze the rationality of the decline in gross profit margin combined with factors such as raw material price fluctuations and labor cost changes.