Stock Abbreviation: Huhua Shares Stock Code: 003002
Reply to the Audit Inquiry Letter Regarding the Application for Issuance of Shares to Specific Targets by Shanxi Huhua Group Co., Ltd. (Revised Draft)
Sponsor (Lead Underwriter): GF Securities Co., Ltd. Address: Room 618, No. 2 Tengfei First Street, Sino-Singapore Guangzhou Knowledge City, Huangpu District, Guangzhou, Guangdong Province Date: June 2026
Shenzhen Stock Exchange:
We have received the "Audit Inquiry Letter Regarding the Application for Issuance of Shares to Specific Targets by Shanxi Huhua Group Co., Ltd." (Audit Letter [2026] No. 120006) (hereinafter referred to as the "Inquiry Letter") issued by your exchange on January 23, 2026. Shanxi Huhua Group Co., Ltd. (hereinafter referred to as the "Issuer," "Huhua Shares," or the "Company"), together with GF Securities Co., Ltd. (hereinafter referred to as the "Sponsor," "Sponsoring Institution," or "Lead Underwriter"), Beijing Zhonglun Law Firm (hereinafter referred to as "Issuer's Counsel"), and Shinewing Certified Public Accountants (Special General Partnership) (hereinafter referred to as the "Reporting Accountant" or "Shinewing"), have conducted a thorough review of the questions listed in the Inquiry Letter. The responses are provided as follows for your review.
Explanations regarding the interpretation, format, and supplementary disclosure of the response content are as follows:
-
Unless otherwise specified, the abbreviations used in this response are the same as those in the "Prospectus for the 2025 Private Placement of A-Shares by Shanxi Huhua Group Co., Ltd. (Declaration Draft)."
-
In this response, any discrepancies between the total sums and the sums of the listed figures are due to rounding.
-
For ease of reading, the content in this response is formatted as follows:
| Content | Font |
|---|---|
| Questions listed in the Inquiry Letter | Bold |
| Responses to questions in the Inquiry Letter | Songti |
| Revisions and supplements to the Prospectus | Bold KaiTi |
Table of Contents
Question 1: 4 Question 2: 81 Question 3: 141 Other Questions: 164
Question 1:
During the reporting period, the Company's operating income was 963.8523 million yuan, 1,313.8705 million yuan, 1,101.1211 million yuan, and 969.6685 million yuan, respectively; net profit attributable to the parent company was 121.3059 million yuan, 204.6812 million yuan, 140.0181 million yuan, and 145.5487 million yuan, respectively, showing fluctuations in operating performance. During the reporting period, the Company's sales model was a combination of direct sales and distribution. At the end of each period of the reporting period, the book value of the Company's accounts receivable was 211.5573 million yuan, 240.0421 million yuan, 297.2111 million yuan, and 411.7774 million yuan, respectively, accounting for 22.92%, 23.09%, 32.08%, and 39.46% of the current assets at the end of the same period; the Company's prepayments balance was 10.7325 million yuan, 11.7696 million yuan, 13.8383 million yuan, and 46.69 million yuan, respectively; the book value of the Company's goodwill was 72.5419 million yuan, 78.6399 million yuan, 76.5842 million yuan, and 184.0989 million yuan, respectively. In March 2025, the Company acquired Hebei Tianning Chemical Co., Ltd. (hereinafter referred to as "Tianning Chemical") through a business combination not under common control, resulting in goodwill of 108.2383 million yuan. At the end of each period of the reporting period, the book value of the Company's fixed assets was 232.3075 million yuan, 287.3353 million yuan, 455.5736 million yuan, and 555.8042 million yuan, respectively, accounting for 29.15%, 31.75%, 41.03%, and 42.16% of the non-current assets at the end of the same period. The Company's fixed assets mainly consist of houses, buildings, and machinery and equipment.