Special Explanation Regarding Financial and Accounting Issues in the Audit Inquiry Letter for Shenzhen Leadshine Technology Co., Ltd.'s Application for Issuance of Shares to Specific Targets
RSM Special Letter [2026] No. 518Z0740
Shenzhen Stock Exchange:
In accordance with the requirements of the "Audit Inquiry Letter Regarding Shenzhen Leadshine Technology Co., Ltd.'s Application for Issuance of Shares to Specific Targets" (Audit Letter [2026] No. 120018) (hereinafter referred to as the "Audit Inquiry Letter") issued by your exchange on March 30, 2026, RSM China (LLP) (hereinafter referred to as "we" or "the accountants") has carefully reviewed the issues mentioned in the inquiry letter that require explanation or professional opinion from the accountants. We hereby provide this special explanation as follows:
Unless otherwise specified, terms used in this response have the same meanings as those defined in the "Shenzhen Leadshine Technology Co., Ltd. Prospectus for Issuance of Shares to Specific Targets" (hereinafter referred to as the "Prospectus").
In this response, any discrepancies between the total sum and the sum of individual items are due to rounding.
Problem 1
According to the application materials, during the reporting period, the company's operating income was 1,337.8621 million yuan, 1,415.3677 million yuan, 1,584.2833 million yuan, and 1,300.4010 million yuan, respectively; the gross profit margins were 37.57%, 38.25%, 38.45%, and 39.08%, respectively; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 130.1177 million yuan, 124.4434 million yuan, 196.1392 million yuan, and 155.2039 million yuan, respectively. Among these, the net profit for 2023 declined, and the overall performance showed volatility.
At the end of each reporting period, the book value of notes receivable and accounts receivable was 560.2293 million yuan, 585.5604 million yuan, 757.7311 million yuan, and 788.2323 million yuan, respectively, accounting for 38.10%, 37.20%, 44.34%, and 35.31% of current assets, representing a relatively large scale.
At the end of each reporting period, the book value of the company's inventory was 395.2623 million yuan, 463.2334 million yuan, 375.5671 million yuan, and 393.7712 million yuan, respectively, accounting for 26.88%, 29.43%, 21.98%, and 17.64% of current assets at the end of the same period.
The main control chip is an important raw material for the company, and currently, some are developed and produced by overseas manufacturers. The company mainly purchases from domestic agents of overseas manufacturers.
The company's sales and service models include direct sales and distribution. During the reporting period, the proportion of income realized through the distribution model showed a year-on-year upward trend. During the reporting period, the company had export sales income.
As of September 30, 2025, the book value of the company's long-term equity investment was 34.4304 million yuan, which is an investment in Changzhou Sanxie Electric Co., Ltd. and Shenzhen U-Easy Control Software Co., Ltd. The book value of the company's other equity instrument investments was 15.00 million yuan, which is an investment in Shanghai SemiDrive Technology Ltd. and Shenzhen Sifeng Technology Co., Ltd. The company has determined that the relevant direct investments do not constitute financial investments.