Stock Code: 003019 Stock Abbreviation: TES Touch
TES Touch Embedded Solutions (Xiamen) Co., Ltd.
(Factory Building, No. 60 Xinglin South Road, Jimei District, Xiamen)
Reply Report on the Audit Inquiry Letter Regarding the Application of TES Touch Embedded Solutions (Xiamen) Co., Ltd. for Issuance of Shares to Specific Targets
Sponsor (Lead Underwriter): Guotai Haitong Securities Co., Ltd.
(No. 618 Shangcheng Road, China (Shanghai) Pilot Free Trade Zone)
July 2026
Shenzhen Stock Exchange:
We have received your "Audit Inquiry Letter Regarding the Application of TES Touch Embedded Solutions (Xiamen) Co., Ltd. for Issuance of Shares to Specific Targets" (Audit Letter [2026] No. 120037) (hereinafter referred to as the "Audit Inquiry Letter") issued on July 1, 2026. TES Touch Embedded Solutions (Xiamen) Co., Ltd. (hereinafter referred to as "TES Touch," the "Issuer," or the "Company"), together with Guotai Haitong Securities Co., Ltd. (hereinafter referred to as the "Sponsor" or "Guotai Haitong"), Beijing Tianyuan Law Firm (hereinafter referred to as the "Issuer's Counsel"), and Lixin Certified Public Accountants (Special General Partnership) (hereinafter referred to as the "Issuer's Auditor") and other relevant parties, have conducted a line-by-line verification of the issues listed in the Audit Inquiry Letter. Simultaneously, we have revised and supplemented the "Prospectus for the 2026 Annual Issuance of A-Shares to Specific Targets by TES Touch Embedded Solutions (Xiamen) Co., Ltd." (hereinafter referred to as the "Prospectus") in accordance with the requirements. We hereby submit our reply for your review.
Unless otherwise specified, the abbreviations used in this reply report have the same meanings as those in the Prospectus.
The fonts used in this reply report have the following meanings:
| Item | Font Style |
|---|---|
| Questions listed in the Audit Inquiry Letter | Bold |
| Replies to questions listed in the Audit Inquiry Letter | Songti |
| Content involving modifications and supplements to the Prospectus | Kai-ti (Bold) |
If the sum of the mantissas of the totals in this reply report does not match the sum of the mantissas of the listed figures, it is due to rounding.
Table of Contents
Question 1: 4
Question 2: 57
Other Issues: 96
Question 1:
According to the application documents, the total amount of funds raised from this issuance shall not exceed 925,000,000.00 RMB (inclusive). After deducting issuance expenses, the net proceeds will be used for the overseas smart manufacturing base project and to supplement working capital.
The investment project for the raised funds is an expansion of the company's existing smart interactive display equipment business, mainly used for the production of products such as smart interactive displays, smart interactive all-in-one machines, and smart vehicle-mounted displays. The company intends to use this project to continue optimizing its global production capacity, further amplify its competitive advantages, disperse geopolitical risks, and better meet the personalized needs of global customers.
The implementation entity for this project is the company's wholly-owned subsidiary, TES Technology (Thailand) Co., Ltd., and the implementation site is the WHA Rayong Industrial Estate in Rayong, Thailand. The construction period of this project is 3 years. After reaching full production, the expected annual operating income is 150,280,000.00 RMB, the average net profit is 16,312,530,000.00 RMB, the internal rate of return (after income tax) is 17.08%, and the payback period (after income tax) is 7.46 years.