Table of Contents
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Business and Operating Conditions: Page 1–159
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Fundraising Projects: Page 159–185
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Attachments: Page 186–189
(1) Copy of the Company's Business License: Page 186
(2) Copy of the Company's Practice Certificate: Page 187
(3) Copies of Practice Certificates for Signing Certified Public Accountants: Page 188–189
Explanation of Financial Matters Regarding the Audit Inquiry Letter for the Issuance of Shares to Specific Targets by Xi'an Tianhe Defense Technology Co., Ltd.
Tian Jian Han [2026] No. 2-73
Shenzhen Stock Exchange:
We have prudently reviewed the financial matters mentioned in the "Audit Inquiry Letter Regarding the Application for Issuance of Shares to Specific Targets by Xi'an Tianhe Defense Technology Co., Ltd." (Audit Letter [2025] No. 020069, hereinafter referred to as the "Inquiry Letter") concerning Xi'an Tianhe Defense Technology Co., Ltd. (hereinafter referred to as "Tianhe Defense" or the "Company"), and issued the "Explanation of Financial Matters Regarding the Audit Inquiry Letter for the Issuance of Shares to Specific Targets by Xi'an Tianhe Defense Technology Co., Ltd." (Tian Jian Han [2025] No. 2-236). As the Company has supplemented its most recent financial data, we have conducted additional verification and report as follows.
Unless otherwise stated, the unit of currency in this explanation is ten thousand yuan. Some totals in this explanation may differ from the sum of individual items due to rounding.
- Business and Operating Conditions
According to the application materials, from 2022 to the first half of 2025, the Company's main products included portable air defense missile intelligence command system series products, 5G radio frequency devices and chips, industry big data series products, and other marine series products. The Company's operating income was 50,182.90 ten thousand yuan, 35,068.85 ten thousand yuan, 40,239.62 ten thousand yuan, and 17,620.05 ten thousand yuan, respectively. There was a decline in 2023 and the most recent period, with the revenue from 5G radio frequency devices and chips continuing to fall during the reporting period, primarily due to market environment factors, military customer procurement plans, changes in customer demand, and the failure to deliver military orders and realize revenue as scheduled. During the reporting period, the proportion of the Company's foreign revenue was 21.83%, 26.00%, 21.80%, and 30.39%, respectively.
From 2022 to the first half of 2025, the net profit attributable to owners of the parent company was -15,118.53 ten thousand yuan, -19,581.66 ten thousand yuan, -10,536.87 ten thousand yuan, and -5,778.08 ten thousand yuan, remaining continuously negative. Net cash flow from operating activities was -7,531.69 ten thousand yuan, -6,807.65 ten thousand yuan, -10,229.74 ten thousand yuan, and -8,185.92 ten thousand yuan, remaining continuously negative.
From 2022 to the first half of 2025, the Company's comprehensive gross profit margin was 28.63%, 20.37%, 28.30%, and 25.54%, respectively. The gross profit margin for 5G radio frequency devices and chips was 25.67%, 18.24%, 19.12%, and 27.23%. The gross profit margin for industry big data series products and others was 43.34%, 29.60%, 33.47%, and 41.33%. The gross profit margin for marine series products was 22.96%, 46.31%, 55.60%, and 52.59%. From 2022 to 2024, the gross profit margin for portable air defense missile intelligence command system series products was 57.22%, 18.11%, and 46.22%. The gross profit margin of some businesses fluctuated significantly.