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Explanation of Pan-China Certified Public Accountants (LLP) Regarding Financial Matters in the Audit Inquiry Letter for Xiamen Hongxin Electron-Tech Group Co., Ltd.'s Application for Issuance of Shares to Specific Targets

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This document provides Pan-China Certified Public Accountants' responses to regulatory inquiries regarding Xiamen Hongxin Electron-Tech Group's financial performance and operations. It details revenue trends, profit margins, and the growth of the company's AI computing server business. The report also addresses accounts receivable balances and production capacity utilization rates. This filing serves as a formal response to the Shenzhen Stock Exchange's audit inquiry.

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Explanation Regarding Financial Matters in the Audit Inquiry Letter for Xiamen Hongxin Electron-Tech Group Co., Ltd.'s Application for Issuance of Shares to Specific Targets

Tianjian Han [2026] No. 8-69

To: Shenzhen Stock Exchange

We have conducted a diligent review of the financial matters mentioned in the "Audit Inquiry Letter regarding Xiamen Hongxin Electron-Tech Group Co., Ltd.'s Application for Issuance of Shares to Specific Targets" (Audit Letter [2025] No. 020054, hereinafter referred to as the "Audit Inquiry Letter") and have issued the "Explanation Regarding Financial Matters in the Audit Inquiry Letter for Xiamen Hongxin Electron-Tech Group Co., Ltd.'s Application for Issuance of Shares to Specific Targets" (Tianjian Han [2025] No. 8-125). As the company has supplemented its most recent financial data, we have performed additional verification and hereby report as follows.

Unless otherwise specified, the monetary unit in this explanation is RMB ten thousand yuan.

The reporting period refers to the years 2023, 2024, and 2025.

In this explanation, the sum of the listed figures may differ from the total due to rounding.

For abbreviations used in this explanation, please refer to the following table:

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