Reply from Xinyong Zhonghe Accounting Firm Regarding Sichuan Chuanhuan Technology Co., Ltd.'s Application for Specific Object Stock Issuance Review Inquiry Letter
Xinyong Zhonghe Accounting Firm (Special General Partnership)
May 2026
- Xinyong Zhonghe Accounting Firm (Special General Partnership) Reply to the Inquiry Letter on Sichuan Chuanhuan Technology Co., Ltd.'s Application for Specific Object Stock Issuance XYZH/2026CDAE1F0087
To: Shenzhen Stock Exchange
On May 14, 2026, your exchange issued the "Inquiry Letter on Sichuan Chuanhuan Technology Co., Ltd.'s Application for Specific Object Stock Issuance" (Inquiry Letter [2026] No. 020041) (hereinafter referred to as "Inquiry Letter"). As the financial auditing institution for Sichuan Chuanhuan Technology Co., Ltd. (hereinafter referred to as "the issuer" or "the company") regarding its application for specific object stock issuance, we have diligently discussed, verified, and implemented the questions raised in the Inquiry Letter, providing detailed responses for each item. Unless otherwise specified, the abbreviations used in this reply have the same meanings as those in the "Sichuan Chuanhuan Technology Co., Ltd. 2026 A-Share Stock Issuance Prospectus." The font styles in this reply represent the following meanings:
- Bold for questions listed in the Inquiry Letter
- Regular font for responses to the questions in the Inquiry Letter
- Italic (bold) for revisions and supplements to the prospectus and responses
If there are discrepancies in totals due to rounding, they are caused by rounding.
Table of Contents
- Question 1 ............................................................................................................................ 3
- Question 2 .......................................................................................................................... 25
XYZH/2026CDAE1F0087 Sichuan Chuanhuan Technology Co., Ltd.
Inquiry Letter Response (Continued)
Question 1. According to the application materials, the issuer's comprehensive gross profit margins for each reporting period were 23.46%, 25.57%, 24.60%, and 23.09%, with fluctuations in gross profit margins for specific products. The gross profit margins for fuel system pipelines and assemblies were 26.90%, 34.30%, 24.72%, and 21.26%, while the gross profit margins for motorcycle pipelines were 29.67%, 23.30%, 31.89%, and 27.29%. At the end of each reporting period, the company's accounts receivable book values were 248.86 million yuan, 368.88 million yuan, 443.28 million yuan, and 481.50 million yuan, with accounts receivable turnover rates of 4.01 times, 3.59 times, 3.36 times, and 2.27 times, respectively. The company's inventory book balances were 312.45 million yuan, 293.60 million yuan, 307.30 million yuan, and 333.71 million yuan, primarily consisting of raw materials and finished goods, with inventory impairment provisions of 3.71%, 5.12%, 4.79%, and 2.62%, which are lower than comparable companies in the industry.
In May 2025, the issuer experienced a production safety incident. The Dazhou Market Supervision Administration imposed a fine of 400,000 yuan on the issuer and a fine of 130,500 yuan on the actual controller, Wen Qichao. The issuer is requested to: