Shenzhen Stock Exchange:
In accordance with the "Audit Inquiry Letter regarding the Application for Issuance of Shares to Specific Targets by Shenzhen Increase Technology Co., Ltd." (Audit Letter [2026] No. 020040) issued by your exchange on May 14, 2026, Shenzhen Increase Technology Co., Ltd. (hereinafter referred to as "Increase," "the Issuer," "the Applicant," or "the Company"), together with Guotai Haitong Securities Co., Ltd. (hereinafter "the Sponsor"), Shanghai AllBright Law Offices (hereinafter "the Issuer's Lawyer"), and Rongtong Certified Public Accountants (Special General Partnership) (hereinafter "the Accountant"), have carefully verified and implemented the issues involved in the inquiry letter. The response is as follows, please review.
Unless otherwise specified, the abbreviations or definitions used in this response are consistent with the "Prospectus for the Issuance of Shares to Specific Targets by Shenzhen Increase Technology Co., Ltd. (Declaration Draft)" (hereinafter "the Prospectus").
The font styles in this response represent the following meanings:
| Inquiry Item | Bold, Black |
|---|---|
| Response to the inquiry | Songti, Times New Roman |
| Modifications to the Prospectus and other application documents | Kaiti, Bold |
If there is any discrepancy between the total sum and the sum of the listed figures in this response, it is due to rounding.
Question 1
According to the declaration materials, from 2022 to the first nine months of 2025, the company's operating income was 342.5263 million yuan, 270.7164 million yuan, 253.6974 million yuan, and 301.5412 million yuan, respectively. The net profit attributable to the parent company was -60.6859 million yuan, -40.7791 million yuan, -89.6554 million yuan, and -44.6694 million yuan, respectively, remaining negative, mainly due to factors such as fierce competition in the downstream market and large-scale R&D investment. The comprehensive gross profit margins were 21.80%, 21.89%, 20.38%, and 18.54%, respectively, with the overall gross profit margin level lower than the industry average. The net cash flow from operating activities was -27.6623 million yuan, -6.8994 million yuan, 0.7878 million yuan, and 17.0032 million yuan, respectively, showing an overall growth trend.
From the end of 2022 to the end of September 2025, the book value of the company's accounts receivable was 220.8360 million yuan, 190.7001 million yuan, 173.7043 million yuan, and 192.1070 million yuan, respectively, accounting for 40.12%, 44.55%, 39.25%, and 38.09% of the total current assets at the end of each period. The proportion of the issuer's accounts receivable within one year is over 60%. According to the declaration materials, from 2023 to 2024, the company's accounts receivable turnover rate continued to decline.
From the end of 2022 to the end of September 2025, the book value of the issuer's inventory was 97.1851 million yuan, 64.4911 million yuan, 103.4091 million yuan, and 109.4545 million yuan, respectively, accounting for 9.39%, 6.70%, 10.10%, and 10.13% of assets.
From the end of 2022 to the end of September 2025, the company's fixed assets mainly consisted of houses and buildings, machinery and equipment, office equipment, and others, with book values of 183.1831 million yuan, 185.4536 million yuan, 366.8229 million yuan, and 350.5046 million yuan, respectively, accounting for 17.70%, 19.27%, 35.81%, and 32.43% of assets, with high amounts and proportions. The book value of the issuer's construction in progress was 155.7298 million yuan, 219.0600 million yuan, 104.3606 million yuan, and 123.8052 million yuan, respectively, accounting for 15.05%, 22.76%, 10.19%, and 11.46% of assets.
From 2022 to the first nine months of 2025, the company's R&D expenses were 53.3463 million yuan, 56.4784 million yuan, 64.0754 million yuan, and 47.9960 million yuan, respectively, accounting for 15.57%, 20.86%, 25.26%, and 15.92% of the operating income for each period.