Independent Financial Advisor's Verification Opinion on Response to Inquiry Letter Regarding Hunan Friendship Apollo Commercial Co., Ltd.
1-1 Shenzhen Stock Exchange Listing Review Center: Entrusted by Hunan Friendship Apollo Commercial Co., Ltd. (hereinafter referred to as "the Company," "the Listed Company," or "Friendship Apollo"), West Securities Co., Ltd. (hereinafter referred to as "the Independent Financial Advisor" or "West Securities") serves as the independent financial advisor for the issuance of shares and cash payment for asset acquisition and fundraising by Hunan Friendship Apollo Commercial Co., Ltd. In accordance with your inquiry letter dated July 14, 2025, regarding the review of the application for the issuance of shares to purchase assets and raise supporting funds (Inquiry Letter [2025] No. 130012) (hereinafter referred to as "the Inquiry Letter"), the Independent Financial Advisor has conducted a thorough analysis and verification of the questions raised in the Inquiry Letter. We hereby submit the following responses for your review. Unless otherwise specified, the abbreviations used in this verification opinion are consistent with the definitions in the "Draft Report on the Issuance of Shares and Cash Payment for Asset Acquisition and Related Transactions by Hunan Friendship Apollo Commercial Co., Ltd." The figures mentioned in this document are rounded to two decimal places, and discrepancies between totals and subtotals are due to rounding. The financial data and indicators cited in this response refer to consolidated financial data and the financial indicators calculated based on such data unless otherwise specified. The font used in this response indicates the following meanings: questions listed in the Inquiry Letter are in bold font; responses to the Inquiry Letter are in regular font; modifications to the disclosures in the Inquiry Letter and restructuring report are in italicized bold font.
1-2 Table of Contents
- Regarding the Sales Model and Operating Performance of the Target Assets ............................................................................................................. 3
- Regarding the Procurement and Related Transactions of the Target Assets ........................................................................................................... 7
- Regarding the Technical Level of the Target Assets ........................................................................................................................................ 10
- Regarding the Financial Statements of the Target Assets ................................................................................................................................ 15
- Regarding the Assessment Forecast ................................................................................................................................................................ 16
- Regarding the Historical Development and Shareholders of the Target Assets .................................................................................................. 19
- Regarding the Employee Stock Ownership Platform Related to the Target Assets ............................................................................................... 23
- Regarding Integration Control and Transaction Arrangements ......................................................................................................................... 26
- Regarding the Lock-up Period of Shares and Number of Shareholders .............................................................................................................. 28
- Regarding the Fundraising of Supporting Funds ........................................................................................................................................... 29
- Regarding the Equity of the Listed Company ................................................................................................................................................ 30
- Other Issues ........................................................................................................................................................................................................ 31