Nanjing Quanxin Transmission Technology Co., Ltd.
and
Sinolink Securities Co., Ltd.
Regarding
Response to the Audit Inquiry Letter on the Application of Nanjing Quanxin Transmission Technology Co., Ltd. for Issuance of Convertible Corporate Bonds to Unspecified Targets
Sponsor (Lead Underwriter)
(No. 95, Dongchenggen Shangjie, Qingyang District, Chengdu)
July 2026
Shenzhen Stock Exchange:
In accordance with the requirements of the "Audit Inquiry Letter on the Application of Nanjing Quanxin Transmission Technology Co., Ltd. for Issuance of Convertible Corporate Bonds to Unspecified Targets" (Audit Letter [2026] No. 020036) (hereinafter referred to as the "Inquiry Letter") issued by your exchange on May 8, 2026, Nanjing Quanxin Transmission Technology Co., Ltd. (hereinafter referred to as "Quanxin Technology," the "Company," or the "Issuer"), together with Sinolink Securities Co., Ltd. (hereinafter referred to as "Sinolink Securities," the "Sponsor," or the "Sponsoring Institution"), the issuer's counsel Beijing Hylands Law Firm (hereinafter referred to as "Issuer's Counsel" or "Hylands Law Firm"), and the issuer's auditor Tianheng Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Issuer's Auditor" or "Tianheng CPA"), have diligently and faithfully implemented, verified, and responded to the questions listed in the Inquiry Letter one by one. The specific response content is attached.
Explanation regarding the interpretation, format, and supplementary disclosure of the response content:
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Unless otherwise specified, the abbreviations or definitions used in this response are consistent with the "Prospectus for the Issuance of Convertible Corporate Bonds to Unspecified Targets by Nanjing Quanxin Transmission Technology Co., Ltd." (hereinafter referred to as the "Prospectus").
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If the sum of the totals in this response does not match the sum of the listed figures, it is due to rounding.
The font specifications for this Inquiry Letter response are as follows:
| Item | Font |
|---|---|
| Questions listed in the Inquiry Letter | Bold |
| Responses to questions in the Inquiry Letter | Songti |
| Supplementary disclosures and amendments to the Prospectus, etc. | KaiTi, Bold |
Table of Contents
Question 1: 3
Question 2: 79
Question 1
- From 2023 to 2025, the Company's operating income was 103,650.92 ten thousand yuan, 91,042.37 ten thousand yuan, and 83,855.90 ten thousand yuan, respectively. Operating profit was 15,376.80 ten thousand yuan, 790.06 ten thousand yuan, and 3,388.67 ten thousand yuan, respectively, indicating an overall decline in operating performance. During the reporting period, the Company's comprehensive gross profit margin was 39.68%, 31.99%, and 35.53%, respectively. Net cash flow from operating activities was 13,550.63 ten thousand yuan, -484.32 ten thousand yuan, and 39,735.98 ten thousand yuan, respectively.
According to the application materials, from 2023 to 2025, the proportion of operating income from the top five customers (calculated on a consolidated basis under the same control) was 90.81%, 83.64%, and 79.16%.
As of the end of 2023 to 2025, the book value of the Company's accounts receivable was 82,203.08 ten thousand yuan, 91,430.60 ten thousand yuan, and 85,194.73 ten thousand yuan, respectively. The proportion of accounts receivable within one year to the total accounts receivable was 81.45%, 66.15%, and 65.34%, respectively. The accounts receivable turnover rate was 1.35 times, 0.97 times, and 0.86 times, respectively. The balance of notes receivable was 29,179.00 ten thousand yuan, 31,285.22 ten thousand yuan, and 10,574.63 ten thousand yuan, respectively, accounting for 13.02%, 15.76%, and 5.37% of current assets, mainly consisting of commercial acceptance bills used by large state-owned group companies in the military industry or their subsidiaries to pay for goods.
As of the end of 2023 to 2025, the book value of the Company's fixed assets was 39,821.44 ten thousand yuan, 38,974.70 ten thousand yuan, and 37,083.20 ten thousand yuan, respectively, mainly including buildings, machinery and equipment, transportation equipment, and office and other equipment. From 2023 to 2025, the capacity utilization rate of the Company's cable products was 85.51%, 84.50%, and 59.47%, respectively. As of December 31, 2025, the book value of the Company's long-term equity investment was 1,352.17 ten thousand yuan.