Response from Pan-China Certified Public Accountants (LLP) Regarding the Shenzhen Stock Exchange Inquiry Letter on the 2025 Annual Report of Jiangxi Haiyuan Composite Material Technology Co., Ltd.

*ST Haiyuan Co., Ltd.·June 11, 2026·105 pages

✨ AI Summary

This document provides the response from Pan-China Certified Public Accountants to the Shenzhen Stock Exchange regarding inquiries about Jiangxi Haiyuan Composite Material Technology Co., Ltd.'s 2025 annual report. The response addresses concerns over revenue recognition, significant growth in photovoltaic business, and related-party transactions. It confirms the commercial substance of these transactions and provides detailed explanations for the company's financial performance and operational strategies during the reporting period.

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Full Translation

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Table of Contents

Regarding Revenue Deduction: Page 1—31
Regarding Negative Net Profit and Net Assets: Page 31—47
Regarding Major Litigation: Page 47—54
Regarding Related-Party Procurement: Page 54—63
Regarding Construction in Progress and Asset Impairment Provision: Page 63—74
Regarding Accounts Payable: Page 74—79
Regarding Inventory: Page 79—87
Regarding Accounts Receivable: Page 87—95
Regarding Internal Control and Correction of Prior Period Accounting Errors: Page 95—98
Regarding Revocation of Delisting Risk Warning: Page 98—104

Special Explanation on Inquiry Letter

Pan-China Letter [2026] No. 3-90

Shenzhen Stock Exchange:

We have received the "Inquiry Letter Regarding the 2025 Annual Report of Jiangxi Haiyuan Composite Material Technology Co., Ltd." (Company Department Annual Report Inquiry Letter [2026] No. 133, hereinafter referred to as the "Inquiry Letter") forwarded by Jiangxi Haiyuan Composite Material Technology Co., Ltd. (hereinafter referred to as "Haiyuan Composite" or the "Company"). We have prudently reviewed the financial matters in the Inquiry Letter that require our explanation and report as follows.

Regarding Revenue Deduction

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