Shenzhen Stock Exchange:
We have received the "Inquiry Letter on the Application for Issuance of Shares to Specific Objects by Shenzhen Sunway Communication Co., Ltd." (Shenzhen Stock Exchange Inquiry Letter [2026] 020028) issued by your esteemed exchange on April 8, 2026. Shenzhen Sunway Communication Co., Ltd. (hereinafter referred to as "Sunway Communication," "the Company," or "the Issuer"), together with Shengang Securities Co., Ltd. (hereinafter referred to as "the Sponsor"), Kangda Law Firm (hereinafter referred to as "the Issuer's Lawyers"), and Tianzhi International Certified Public Accountants (Special General Partnership) (hereinafter referred to as "the Issuer's Accountants"), have implemented the relevant issues raised in the Inquiry Letter item by item. We hereby reply to the Inquiry Letter for your review.
Unless otherwise specified, the terms used in this reply have the same meanings as in the "Shenzhen Sunway Communication Co., Ltd. 2026 Annual Report on Issuance of Shares to Specific Objects and Fundraising Prospectus for Listing on the ChiNext Market."
All numerical values in this reply are rounded to two decimal places. If the sum of individual items does not match the total, it is due to rounding. The font used in this reply represents the following:
| Font | Content |
|---|---|
| Bold | Inquiry Letter Issues |
| Song font | Reply to Inquiry Letter Issues |
| KaiTi font (bold) | Revisions and supplements to the Prospectus and other application documents |
1. Inquiry Letter
The total amount of capital to be raised by this issuance of shares is no more than RMB 6,000,000,000.00, after deducting issuance expenses, which will be used for the Commercial Satellite Communication Components and Modules Project (hereinafter referred to as Project One), the RF Components and Modules Project (hereinafter referred to as Project Two), and the Chip Thermal Management Components and Modules Project (hereinafter referred to as Project Three).
Project One primarily focuses on the production of high-frequency high-speed cables and connectors, and array antennas and antenna modules. The projected annual revenue upon full production is RMB 949,913.40 million, with a net profit after tax of RMB 96,942.17 million. Project Two primarily focuses on the production of AI smart terminal antennas and modules, LCP transmission lines, antennas, and modules. The projected annual revenue upon full production is RMB 706,669.06 million, with a net profit after tax of RMB 91,990.00 million. Project Three primarily focuses on the production of chip thermal interface materials (TIM) and chip heat dissipation components. The projected annual revenue upon full production is RMB 310,478.43 million, with a net profit after tax of RMB 47,437.79 million. The Company's main business revenue in the most recent year was RMB 862,506.76 million.
According to the application materials, the proposed fundraising projects are centered around the Company's existing main business. In the commercial satellite communication field, the Company will further expand its product line to include array antennas and modules, building upon its existing mass-produced high-frequency high-speed connectors. All the proposed fundraising projects are related to the Company's existing business and do not involve expanding into new business areas or new products.