002985SZSE
🚨 Material Event

Response of the Issuer and the Sponsor to the Audit Inquiry Letter

✨ AI Summary

Beijing Beimo High-Tech Friction Material Co., Ltd. has submitted its formal response to the Shenzhen Stock Exchange regarding an audit inquiry letter concerning its proposed private placement of shares. The company outlines the strategic rationale, technical feasibility, and financial projections for three major investment projects focused on aircraft landing systems and civil aviation products. The response addresses regulatory concerns regarding the use of proceeds, project necessity, and potential risks associated with the expansion.

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Full Translation

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Stock Code: 002985 Stock Abbreviation: Beimo High-Tech Listing Venue: Shenzhen Stock Exchange

Response to the Audit Inquiry Letter Regarding the Application of Beijing Beimo High-Tech Friction Material Co., Ltd. for Issuance of Shares to Specific Targets

Sponsor (Lead Underwriter): Changjiang Financing Services Co., Limited

Date: August 2026

Shenzhen Stock Exchange:

Beijing Beimo High-Tech Friction Material Co., Ltd. (hereinafter referred to as the "Company," "Issuer," or "Beimo High-Tech") received the "Audit Inquiry Letter Regarding the Application of Beijing Beimo High-Tech Friction Material Co., Ltd. for Issuance of Shares to Specific Targets" (Audit Letter [2026] No. 120020) (hereinafter referred to as the "Inquiry Letter") from your exchange on April 15, 2026. The Company, in conjunction with Changjiang Financing Services Co., Limited (hereinafter referred to as "Changjiang Financing," "Sponsor Institution," or "Sponsor"), Beijing DeHeng Law Offices (hereinafter referred to as "Lawyer" or "Issuer's Lawyer"), and Zhonghui Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Accountant"), has conducted a thorough study and implementation. We have supplemented the information and provided responses to the matters involved in accordance with the requirements of the Inquiry Letter, and hereby submit them to your exchange for review. Unless otherwise indicated by the context, the abbreviations in this response have the same meanings as those in the "Prospectus for the 2025 Private Placement of Shares of Beijing Beimo High-Tech Friction Material Co., Ltd." (hereinafter referred to as the "Prospectus").

The font conventions for this response are as follows:

ItemFont Style
Questions listed in the Inquiry LetterBold, Black
Responses to questions in the Inquiry LetterSongti
Modifications to application documents such as this response and the ProspectusKaiTi, Bold

Table of Contents

  1. Questions

  2. Questions

  3. Other Issues

Question 1

The application materials show that the total amount of funds to be raised by the Issuer in this issuance is 1,970 million yuan, which is intended to be invested in the Landing System Capacity Expansion Project (hereinafter referred to as Project 1), the Civil Aviation Product Industrialization Project (hereinafter referred to as Project 2), the Civil Aviation Large Aircraft Airworthiness Capability Enhancement Project (hereinafter referred to as Project 3), and the replenishment of working capital. The amounts of raised funds to be used are 888 million yuan, 304 million yuan, 188 million yuan, and 590 million yuan, respectively. Among them, Project 1 intends to build a new full-chain production line for forging, surface treatment, and assembly of key components of aircraft landing systems; Project 2 intends to build new production lines for civil aviation brake discs, wheels, and landing gear; and Project 3 intends to introduce a series of advanced testing and maintenance equipment and other auxiliary equipment, and add a group of maintenance personnel with rich experience.

The equipment purchase and installation cost for Project 1 is 755.0708 million yuan, and the annual operating income after reaching full production is approximately 1,490 million yuan. During the reporting period, the Company's sales revenue from civil aviation products was 219.5423 million yuan, 64.5574 million yuan, and 50.9046 million yuan, respectively. The supporting brake discs and wheels for domestic large aircraft C919 and C909 have entered the design review and ground test stages, respectively.

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