Deloitte Touche Tohmatsu Certified Public Accountants LLP (Special General Partnership) regarding the Reply to the Audit Inquiry Letter on the Application of STO Express Co., Ltd. for Issuing Convertible Corporate Bonds to Unspecified Targets
Deloitte Report (Letter) No. Q01186 [blank]
To STO Express Co., Ltd.:
Deloitte Touche Tohmatsu Certified Public Accountants LLP (Special General Partnership) (hereinafter referred to as "we" or "Deloitte") was engaged to conduct a special verification of matters related to the application of STO Express Co., Ltd. (hereinafter referred to as "STO Express," "the Issuer," or "the Company") for issuing convertible corporate bonds to unspecified targets.
On June 17, 2026, we received the "Audit Inquiry Letter Regarding the Application of STO Express Co., Ltd. for Issuing Convertible Corporate Bonds to Unspecified Targets" (Audit Letter [2026] No. 120035) (hereinafter referred to as the "Inquiry Letter") forwarded by STO Express from the Shenzhen Stock Exchange. In accordance with the requirements of the Inquiry Letter and the Company's relevant explanations, and based on the audit work we have performed, we provide our responses to the questions in the Inquiry Letter that require explanation by the accountant as follows:
Question 1:
The application materials show that the total amount of funds to be raised in this issuance does not exceed 3 billion RMB, of which 2.1367015 billion RMB will be invested in the "Smart Logistics Equipment Upgrade Project" and 863.2985 million RMB will be invested in the "Trunk Line Capacity Network Improvement Project," with a total planned investment of 4.7509238 billion RMB. The "Smart Logistics Equipment Upgrade Project" mainly involves the purchase of various smart logistics conveying equipment, automated sorting equipment, and other supporting equipment to improve the processing efficiency of express sorting and transshipment operations at transfer centers and the digital intelligence level of warehousing operations. The "Trunk Line Capacity Network Improvement Project" mainly involves the purchase of trunk line transport tractor units, trailers, and other equipment, including new energy vehicles, to improve the loading rate of transport vehicles, reduce transport costs, and improve transport efficiency.
The impact of the new fixed asset investment from the current fundraising project on the company's operating performance is mainly reflected in the depreciation expenses of the new fixed assets, which are primarily machinery, equipment, and transport vehicles.