[Chart: GDM Logo]
Stock Abbreviation: Jinan Guoji Stock Code: 002636
Response to the Audit Inquiry Letter Regarding the Application for Issuance of Shares to Specific Targets by Jinan Guoji Group Co., Ltd.
Sponsor (Lead Underwriter): Guolian Minsheng Securities Underwriting and Sponsorship Co., Ltd. (No. 8 Puming Road, China (Shanghai) Pilot Free Trade Zone) June 2026
Shenzhen Stock Exchange:
We have received the "Audit Inquiry Letter Regarding the Application for Issuance of Shares to Specific Targets by Jinan Guoji Group Co., Ltd." (Audit Letter [2026] No. 120016) (hereinafter referred to as the "Inquiry Letter") issued by your exchange on March 10, 2026. In accordance with the requirements of the Inquiry Letter, Jinan Guolian Group Co., Ltd. (hereinafter referred to as "Jinan Guoji", "the Company", or "the Issuer"), together with the sponsor Guolian Minsheng Securities Underwriting and Sponsorship Co., Ltd. (hereinafter referred to as "Guolian Minsheng", "the Sponsor", or "the Sponsor Institution"), Beijing Tianyuan Law Firm (hereinafter referred to as "Issuer's Counsel"), and Shanghui Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Issuer's Auditor" or "Auditor") and other relevant parties, have, in the spirit of diligence, honesty, and trustworthiness, discussed, verified, and implemented the items raised in the Inquiry Letter one by one, and have provided responses to each. The responses to the relevant questions are hereby submitted for your review.
Notes:
- Unless otherwise specified, the abbreviations or definitions used in this response report have the same meanings as those in the "Jinan Guoji Group Co., Ltd. 2025 Prospectus for the Issuance of A-shares to Specific Targets".
- If the total sum in this response report does not match the sum of the individual items due to rounding, it is caused by rounding.
- The fonts in this response report represent the following meanings: | Item | Font | | :--- | :--- | | Questions listed in the Inquiry Letter | Bold | | Responses to questions in the Inquiry Letter | Songti | | Content involving modifications or supplements | Bold KaiTi |
Table of Contents Question 1: 3 Question 2: 117 Other Issues: 165
Question 1
According to the application documents, the Company's main business is the research, development, production, and sales of copper-clad laminates, which are basic materials 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 segment through its subsidiaries, Shanghai Aierdun Medical Device Co., Ltd. (hereinafter referred to as "Aierdun") 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 yuan, 3,571,219,200 yuan, 4,048,380,200 yuan, and 3,251,310,100 yuan, respectively; net profit after deducting non-recurring gains and losses was 7,246,400 yuan, -110,067,500 yuan, -82,365,800 yuan, and 151,123,000 yuan, respectively; and net cash flow from operating activities was 455,725,300 yuan, 270,779,000 yuan, -15,931,000 yuan, and -147,584,100 yuan, respectively.
During the reporting period, the main raw materials required for the Company's copper-clad laminate production were electronic copper foil, electronic-grade glass fiber cloth, and synthetic resins. These raw materials or their basic materials are 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 yuan, 113,143,600 yuan, 90,588,500 yuan, and 55,879,000 yuan, respectively, mainly consisting of employee compensation, office and travel expenses, business expenses, and development expenses.