Response to the Audit Inquiry Letter Regarding the Application for Issuance of Shares to Specific Targets by Kingboard Laminates Holdings Limited
Shanghui Letter [2026] No. 0804
Shenzhen Stock Exchange:
We have received the "Audit Inquiry Letter Regarding the Application for Issuance of Shares to Specific Targets by Kingboard Laminates Holdings Limited" (Audit Letter [2026] No. 120016) (hereinafter referred to as the "Inquiry Letter") forwarded by Guolian Minsheng Securities Underwriting and Sponsorship Co., Ltd. on March 10, 2026. Shanghui Certified Public Accountants (Special General Partnership) (hereinafter referred to as "we," "the reporting accountants," or "the issuer's accountants"), acting as the reporting accountants for Kingboard Laminates Holdings Limited (hereinafter referred to as "the issuer," "the company," or "Kingboard Laminates") regarding its issuance of shares to specific targets, has implemented and verified the items listed in the Inquiry Letter one by one. We hereby provide our response to the questions in the Inquiry Letter for your review.
Notes:
- Unless otherwise specified, the abbreviations used in this response are the same as those defined in the "Kingboard Laminates Holdings Limited 2025 Prospectus for the Issuance of A-Shares to Specific Targets."
- Any discrepancies between the totals and the sums of the individual items in this response are due to rounding.
- The fonts used in this response represent the following meanings: | Item | Font | | :--- | :--- | | Questions listed in the Inquiry Letter | Bold | | Responses to the questions | Songti | | Content involving modifications or supplements | KaiTi (Bold) |
Table of Contents Question 1: 3 Question 2: 113
Question 1
According to the application documents, the company's main business is the research, development, production, and sales of copper-clad laminates, the basic material for the electronics industry, accounting for approximately 87% of sales revenue during the reporting period. In addition, the company operates a medical and health business through its subsidiaries, Shanghai Elton Medical Devices Co., Ltd. (hereinafter referred to as "Elton") and Guangxi Chanfang Pharmaceutical Co., Ltd. (hereinafter referred to as "Guangxi Chanfang"). During the reporting period, the company's operating performance fluctuated, with operating income of 3,760,398,800 RMB, 3,571,219,200 RMB, 4,048,380,200 RMB, and 3,251,310,100 RMB, respectively. Net profit after deducting non-recurring gains and losses was 7,246,400 RMB, -110,067,500 RMB, -82,365,800 RMB, and 151,123,000 RMB, respectively. Net cash flow from operating activities was 455,725,300 RMB, 270,779,000 RMB, -15,931,000 RMB, and -147,584,100 RMB, respectively.
During the reporting period, the main raw materials required for the company's copper-clad laminate production were electronic copper foil, electronic-grade fiberglass cloth, and synthetic resins. These raw materials or their basic materials are bulk commodities, and their prices fluctuate frequently with the macroeconomy. The company's comprehensive gross profit margins were 11.76%, 8.61%, 7.43%, and 12.11%, showing a trend of first declining and then rebounding. During the reporting period, the company's sales expenses were 117,854,400 RMB, 113,143,600 RMB, 90,588,500 RMB, and 55,879,000 RMB, respectively, mainly consisting of employee compensation, office and travel expenses, business expenses, and development expenses.