Special Explanation from RSM China on Financial Accounting Issues in the Review Inquiry Letter Regarding Ruihu Automobile Mould Co., Ltd.'s Application for Convertible Bonds
RSM China (Special General Partnership)
Beijing, China
Document No. RSM Special [2026] 241Z0035
1. Response to Inquiry Letter
Shenzhen Stock Exchange: We have received your inquiry letter [2026] 120001 dated January 8, 2026, regarding Ruihu Automobile Mould Co., Ltd.'s application for issuing convertible bonds to unspecified objects (hereinafter referred to as "Inquiry Letter"). As the reporting accountant for Ruihu Automobile Mould Co., Ltd. (hereinafter referred to as "Ruihu Mould," "Issuer," or "Company"), RSM China has carefully reviewed the issues raised in the Inquiry Letter that require clarification or opinion from the reporting accountant. The specific responses are as follows, and we request your review. Unless otherwise specified, the abbreviations or definitions used in this response report are consistent with those in the "Prospectus for the Issuance of Convertible Bonds by Ruihu Automobile Mould Co., Ltd. (Draft for Submission)." The font used in this response report is as follows:
- Questions listed in the Inquiry Letter: Boldface (not bold)
- Responses to questions listed in the Inquiry Letter: Song typeface (not bold)
- Revisions and supplementary disclosures to the prospectus and this inquiry response: Kai typeface (bold)
In this response report, if there are discrepancies in totals due to rounding, they are due to rounding.
RSM China (Special General Partnership)
Head Office: 10th Floor, Building 1, No. 22 Fuchengmen Outer Street, Xicheng District, Beijing (100037)
TEL: 010-6600 1391
FAX: 010-6600 1392
E-mail: bj@rsmchina.com.cn
https://www.rsm.global/china/
2. Table of Contents
- Question 1 ............................................................................................................................ 3
- Question 2 .......................................................................................................................... 68
3. Question 1
During the reporting period, the revenue from the Company's lightweight parts business was 14.3875 million yuan, 287.3867 million yuan, 729.6577 million yuan, and 726.4030 million yuan, respectively. The total amount of recurring related party sales with certain related parties during the reporting period was 279.8399 million yuan, 819.3898 million yuan, 1,411.5529 million yuan, and 1,610.3322 million yuan, accounting for 23.96%, 43.65%, 58.22%, and 61.83% of operating revenue, respectively. The total amount of recurring related party purchases with certain related parties was 104.9068 million yuan, 218.2696 million yuan, 236.3459 million yuan, and 275.9401 million yuan, accounting for 11.74%, 14.68%, 12.98%, and 12.86% of operating costs, respectively. During the reporting period, the Company sold goods to and purchased goods from the same related party. The sales proportion of the Company's top five customers was 53.14%, 55.35%, 68.25%, and 67.33%, respectively. At the end of each reporting period, the book balance of accounts receivable was 310.0271 million yuan, 428.8904 million yuan, 493.5041 million yuan, and 853.4786 million yuan, accounting for 26.55%, 22.85%, 20.36%, and 24.58% of operating revenue, respectively. The book balance of inventory at the end of each reporting period was 1,509.3558 million yuan, 1,789.0327 million yuan, 2,048.3049 million yuan, and 2,280.1047 million yuan. The inventory mainly consists of work-in-progress, accounting for 94.03%, 91.81%, 90.43%, and 89.64% of the book balance of inventory, respectively. At the end of each reporting period, the prepayments were 101.8334 million yuan, 163.9266 million yuan, 152.3920 million yuan, and 408.0284 million yuan, mainly for materials purchased in advance from suppliers and progress payments to subcontractors.