Reply to the Inquiry Letter
Shenzhen Stock Exchange:
We have received your Inquiry Letter on the Application for Issuance of Shares to Specific Objects by Wuhan Zhongyuan Huadian Science & Technology Co., Ltd. (Inquiry Letter [2026] 020016) (hereinafter referred to as the "Inquiry Letter").
Wuhan Zhongyuan Huadian Science & Technology Co., Ltd. (hereinafter referred to as "Zhongyuan Shares," "the Company," or "the Issuer"), together with its sponsor, China Merchants Securities Co., Ltd., and Hunan Qiyuan Law Firm and Xinyongzhonghe Certified Public Accountants (Special General Partnership), has conducted thorough verification and implementation of the issues raised in your Inquiry Letter and has made corresponding revisions and supplements to the Prospectus and other application documents. We hereby reply to the issues raised in your Inquiry Letter for your review.
Unless otherwise specified, the abbreviations and definitions used in this Inquiry Letter Reply are the same as those in the Prospectus.
If there are any discrepancies in the sum of partial totals or individual figures in this Inquiry Letter Reply, they are due to rounding.
The content of this reply is presented in the following font styles:
| Inquiry Item | Reply to Inquiry Item |
|---|---|
| Inquiry Item | Bold |
| Reply to Inquiry Item | Songti |
| Revisions and supplementary disclosures to the Prospectus | Kaiti, Bold |
Table of Contents
Problem 1: 3
Problem 2: 84
Other Problems: 119
Problem 1:
- During the reporting periods, the Company's operating revenue was RMB 44,280.76 million, RMB 44,808.54 million, RMB 55,369.27 million, and RMB 41,534.97 million, respectively. Revenue from medical information technology services was RMB 7,456.04 million, RMB 3,097.16 million, RMB 1,831.73 million, and RMB 1,355.20 million, respectively, showing a year-on-year decrease. During the reporting periods, the Company's comprehensive gross profit margin was 46.10%, 47.34%, 46.97%, and 50.26%, respectively, which is higher than the average level of comparable companies in the same industry (33.70%, 35.47%, 35.67%, and 34.51%). The gross profit margin of the Company's integrated energy services projects was 30.96%, 21.38%, 18.89%, and 12.14%, respectively, showing an overall downward trend. The gross profit margin of the medical information technology projects was 24.10%, 25.89%, 5.23%, and 45.32%, respectively, showing significant fluctuations.
During the reporting periods, the Company's sales expenses were RMB 5,996.87 million, RMB 5,609.04 million, RMB 6,188.62 million, and RMB 3,355.57 million, respectively, mainly consisting of employee compensation and business entertainment expenses. During the reporting periods, the operating revenue from the top five customers on a consolidated basis was RMB 25,450.31 million, RMB 32,668.37 million, RMB 41,370.34 million, and RMB 31,072.59 million, accounting for 57.47%, 72.91%, 74.72%, and 74.81% of the operating revenue, respectively. The top five customers include some hospital clients. During the reporting period, there were instances where some customers overlapped with suppliers. The total procurement amount was RMB 679.62 million, RMB 389.4 million, RMB 1,052.03 million, and RMB 740.98 million, respectively, and the total sales amount was RMB 2,901.35 million, RMB 2,291.65 million, RMB 2,611.42 million, and RMB 2,253.27 million, respectively.