1. Special Explanation on Financial Accounting Issues
To the Shenzhen Stock Exchange:
In accordance with your inquiry letter dated April 22, 2026, regarding Anhui Zhongfu Yuanchuang Technology Group Co., Ltd.'s application for specific object stock issuance (Inquiry Letter [2026] 020032), we, RSM China (Special General Partnership), as the reporting accountants for this stock issuance, have diligently reviewed and discussed the issues listed in the inquiry letter. We hereby respond as follows for your review.
The font styles in this response indicate the following meanings:
- Bold: Issues listed in the inquiry letter
- Regular: Responses to the issues listed in the inquiry letter
- Italics, Bold: Additional disclosures or modifications
If there are discrepancies in totals due to rounding, they are caused by rounding. Unless otherwise specified, the reporting periods refer to the years 2023, 2024, and 2025, with the end of each reporting period indicating the end of the respective year. Abbreviations used in this response have the same meanings as those in the prospectus.
2. Financial Performance Overview
The company's main business includes municipal sewage treatment, industrial wastewater treatment, solid waste treatment, and environmental engineering. The operating revenues from 2022 to the first nine months of 2025 were as follows:
| Year | Revenue (10,000 Yuan) |
|---|---|
| 2022 | 117,279.22 |
| 2023 | 81,413.87 |
| 2024 | 95,746.21 |
| 2025 | 72,089.10 |
The revenue fluctuations were primarily due to a decrease in engineering business income. The gross profit margins for the main business during the same period were: