Shenzhen Stock Exchange:
Regarding the "Inquiry Letter on the Application of Beijing Chengan Technology Co., Ltd. for Issuance of Shares to Specific Objects" (Inquiry Letter [2026] No. 020047) issued by your exchange on May 26, 2026, Beijing Chengan Technology Co., Ltd. (hereinafter referred to as "Chengan Technology," "the Issuer," "the Company," or "the Listed Company"), together with China Securities Co., Ltd. (hereinafter referred to as "the Sponsor"), Shanghai Jincheng 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, in accordance with the principles of diligence, responsibility, honesty, and good faith, conducted thorough investigations, verifications, and discussions on the issues raised in the inquiry letter and have completed the "Reply of Beijing Chengan Technology Co., Ltd. and China Securities Co., Ltd. to the Inquiry Letter on the Application of Beijing Chengan Technology Co., Ltd. for Issuance of Shares to Specific Objects" (hereinafter referred to as "This Reply"). The reply is hereby submitted for your review.
Unless otherwise specified, abbreviations in this reply have the same meaning as in the "Prospectus for Issuance of A Shares to Specific Objects by Beijing Chengan Technology Co., Ltd." (hereinafter referred to as the "Prospectus"). Content involving modifications to the application documents is indicated in bold italics.
| Black (Bold) | Reply to Inquiry Letter Issues |
|---|---|
| Songti (Not Bold) | Reply to the issues raised in the inquiry letter |
| Kaiti (Bold) | Content involving modifications to the Prospectus and other application documents |
In this reply, if the sum of the total and sub-items differs in the last digit, it is due to rounding.
Question 1
According to the application documents, the Issuer's main business is the research and development, design, manufacturing, sales, and related services of public safety software and public safety equipment. During the reporting period, the Company's operating revenue was RMB 225,682.47 million, RMB 140,105.94 million, RMB 146,815.08 million, and RMB 22,292.57 million, respectively. The net profit attributable to the parent company after deducting non-recurring items was RMB 7,964.17 million, RMB -32,212.72 million, RMB -22,106.49 million, and RMB -2,971.92 million, respectively. The gross profit margins were 38.35%, 26.54%, 29.61%, and 36.06%, respectively.
During the reporting period, there were significant changes in the Company's top five customers and suppliers, with some overlap between major customers and suppliers. At the end of each reporting period, the book value of the Company's accounts receivable was RMB 213,206.00 million, RMB 188,338.11 million, RMB 174,849.29 million, and RMB 170,175.86 million, respectively. As of the latest period, the proportion of accounts receivable with an aging of more than one year in the provision for bad debts by category was 61.93%. At the end of each reporting period, the book value of the Company's contract assets was RMB 18,477.47 million, RMB 36,279.77 million, RMB 53,232.51 million, and RMB 51,693.16 million, respectively, of which projects that were completed but not settled accounted for over 80% of the contract asset book value.
As of the latest period, the Company identified its equity investment in Qingkong Jinxin (Beijing) Public Safety Industry Investment Management Co., Ltd. as a financial investment.