Shenzhen Stock Exchange:
According to the "Inquiry Letter Regarding Shenzhen Leadshine Electromechanical Co., Ltd.'s Application for Issuance of Shares to Specific Objects" (Shenzhen Stock Exchange Inquiry Letter [2026] No. 120018) issued by your exchange on March 30, 2026 (hereinafter referred to as the "Inquiry Letter"), Shenzhen Leadshine Electromechanical Co., Ltd. (hereinafter referred to as the "Company," "Listed Company," "Leadshine," or "Issuer"), together with China Securities Co., Ltd. (hereinafter referred to as the "Sponsor"), Guangdong Huashang Law Firm (hereinafter referred to as the "Issuer's Lawyers"), and Rongcheng Certified Public Accountants (Special General Partnership) (hereinafter referred to as the "Issuer's Accountants"), in accordance with the principles of diligence, integrity, and good faith, have conducted thorough investigations, verifications, and discussions on each question raised in the Inquiry Letter and have completed the "Reply to the Inquiry Letter Regarding Shenzhen Leadshine Electromechanical Co., Ltd.'s Application for Issuance of Shares to Specific Objects" (hereinafter referred to as the "Reply"). The Reply is hereby submitted for your review.
Unless otherwise specified, the abbreviations used in this Reply have the same meaning as those in the "Shenzhen Leadshine Electromechanical Co., Ltd. Prospectus for Issuance of Shares to Specific Objects" (hereinafter referred to as the "Prospectus"). Content involving modifications to the application documents is indicated in bold italics.
| Bold (Bold) | Reply to the Inquiry Letter Questions |
|---|---|
| Italic (Not Bold) | Reply to the questions raised in the Inquiry Letter |
| Bold Italic (Bold Italic) | Content involving modifications to the Prospectus and other application documents |
In this Reply, if the sum of the component figures differs from the total figure due to rounding, it is due to rounding.
Table of Contents
Problem 1
Problem 2
Other Issues
Problem 1
According to the application materials, during the reporting period, the Company's operating revenue was RMB 133,786.21 million, RMB 141,536.77 million, RMB 158,428.33 million, and RMB 130,040.10 million, respectively; the gross profit margins were 37.57%, 38.25%, 38.45%, and 39.08%, respectively; and the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB 13,011.77 million, RMB 12,444.34 million, RMB 19,613.92 million, and RMB 15,520.39 million, respectively. The net profit in 2023 declined, indicating overall performance fluctuations.
At the end of each reporting period, the carrying amount of notes receivable and accounts receivable was RMB 56,022.93 million, RMB 58,556.04 million, RMB 75,773.11 million, and RMB 78,823.23 million, respectively, accounting for 38.10%, 37.20%, 44.34%, and 35.31% of current assets, respectively, which is a significant amount.
At the end of each reporting period, the carrying amount of inventory was RMB 39,526.23 million, RMB 46,323.34 million, RMB 37,556.71 million, and RMB 39,377.12 million, respectively, accounting for 26.88%, 29.43%, 21.98%, and 17.64% of current assets at the end of the respective periods.
The main control chip is an important raw material for the Company. Currently, some of it is developed and produced by overseas manufacturers. The Company primarily procures it from domestic agents of overseas manufacturers.
The Company's sales and service model includes direct sales and distribution. During the reporting period, the proportion of revenue generated from the distribution model showed an increasing trend year by year. During the reporting period, the Company had export sales revenue.
As of September 30, 2025, the carrying amount of the Company's long-term equity investments was RMB 3,443.04 million, representing investments in Changzhou Sanxie Electric Motor Co., Ltd. and Youyi Control Software (Shenzhen) Co., Ltd. The carrying amount of the Company's other equity instrument investments was RMB 1,500.00 million, representing investments in Shanghai Xianji Semiconductor Technology Co., Ltd. and Shenzhen Dimeng Technology Co., Ltd. The Company has determined that these direct investments do not constitute financial investments.