Special Explanation Regarding Inquiry Letter for Da Li Technology's 2025 Annual Report
To Shenzhen Stock Exchange:
We acknowledge receipt of the "Inquiry Letter Regarding Zhejiang Da Li Technology Co., Ltd.'s 2025 Annual Report" (Company Department Annual Report Inquiry Letter (2026) No. 12), hereinafter referred to as the Inquiry Letter, transferred from Zhejiang Da Li Technology Co., Ltd. (hereinafter referred to as Da Li Technology or the Company). We have prudently audited the financial matters that require our explanation in the Inquiry Letter and hereby report 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%, with a gross profit margin of 25.85%, compared to 9.51% in the same period last year. Among them, overseas operating revenue was 110 million yuan, a year-on-year increase of 165.84%, accounting for the proportion of operating revenue from 15.12% to 31.80%. In terms of product segments, operating revenue from infrared and optoelectronic 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. Operating revenue from 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. For the years 2023 to 2025, the Company's net profit attributable to 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 significant year-on-year increase of 134.47%, turning from negative to positive. In December 2024, the Company signed a "Research and Development Contract for a Certain Type of Optoelectronic System" with a customer, with an amount of 71 million yuan, which is being performed as of the end of the reporting period.
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(8) Please have the annual audit accountant verify the authenticity, accuracy, and completeness of revenue recognition and deductions. Please express a clear opinion on whether revenue recognition complies with enterprise accounting standards and whether there is a major uncertainty regarding the company's ability to continue as a going concern, and explain whether sufficient and appropriate audit evidence was obtained during the audit process to support the audit conclusion. (Inquiry Letter Question 1)
(I) Regarding Revenue Recognition and Deductions
1. Company Revenue Recognition Policy
| Sales Region | Type | Revenue Recognition Point |
|---|---|---|
| Domestic | Point-in-time performance | Upon completion of delivery |
| Performance over a period of time | Upon completion of installation and acceptance | |
| Overseas | Point-in-time performance | Upon declaration of goods for export and obtaining the bill of lading |
2. Company Revenue Deduction Details
In 2025, the Company achieved operating revenue of 347 million yuan, and after deductions, the operating revenue was 331 million yuan. The details of revenue deductions are as follows:
| Item | 2025 Amount (RMB 10,000) | Remarks |
|---|---|---|
| Rental Income | 287.42 | |
| Material Sales Income | 53.43 | |
| Trading Income | 105.19 | For 2025, the Company sold products to a certain research institute. Part of the products were directly supplied by a supplier to the research institute. The Company did not have control over this portion of sales during the period, and the net method was used for recognition. |
| Incidental Transaction Income | 1,218.58 | For 2025, the Company sold products to a certain technology company. These were not the Company's regular products, and the gross profit margin was significantly lower than that of regular products. Under the principle of prudence, it was recognized as incidental transaction income. |
| Total | 1,664.62 |