Stock Abbreviation: Runhe Materials
Stock Code: 300727
Ningbo Runhe High-tech Materials Technology Co., Ltd.
and
Orient Securities Co., Ltd.
Regarding
Response to the Audit Inquiry Letter on the Application of Ningbo Runhe High-tech Materials Technology Co., Ltd. for Issuance of Convertible Corporate Bonds to Unspecified Targets
Sponsor (Lead Underwriter)
(Orient Securities Building, 119 South Zhongshan Road, Huangpu District, Shanghai)
June 2026
Shenzhen Stock Exchange:
In accordance with the requirements of the "Audit Inquiry Letter on the Application of Ningbo Runhe High-tech Materials Technology Co., Ltd. for Issuance of Convertible Corporate Bonds to Unspecified Targets" (Audit Letter [2026] No. 020017) (hereinafter referred to as the "Audit Inquiry Letter") issued by your exchange, Ningbo Runhe High-tech Materials Technology Co., Ltd. (hereinafter referred to as "Runhe Materials," "the Issuer," or "the Company"), together with Orient Securities Co., Ltd. (hereinafter referred to as the "Sponsor," "Sponsor Institution," or "Orient Securities"), Rongtong Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Issuer's Accountant"), and Grandall Law Firm (Shanghai) (hereinafter referred to as "Issuer's Lawyer"), have conducted investigations, verifications, and implementation of the questions raised in the Audit Inquiry Letter in the spirit of diligence, responsibility, honesty, and trustworthiness. The response is hereby submitted for your review.
Except for the reporting period of 2023, 2024, 2025, and the first quarter of 2026, the abbreviations or definitions used in this response are consistent with the "Prospectus for the Issuance of Convertible Corporate Bonds to Unspecified Targets of Ningbo Runhe High-tech Materials Technology Co., Ltd." Content involving supplementary disclosure or modification of the application documents has been marked in bold italics.
| Format | Content |
|---|---|
| Bold | Questions listed in the Audit Inquiry Letter |
| Songti | Responses to questions in the Audit Inquiry Letter |
| Bold Italics | Modifications to application documents such as the prospectus |
In this response, if the sum of the totals and the sum of the individual items differ in the last digit, it is due to rounding.
[Chart: Table of Contents]
Question 1
According to the application materials, during the reporting period, the Company's net profit was 90.1382 million yuan, 82.2103 million yuan, 96.2364 million yuan, and 95.2908 million yuan, respectively. The net cash flow from operating activities was -5.704 million yuan, 154.7675 million yuan, 52.6135 million yuan, and 49.41 million yuan, respectively.
During the reporting period, the Company's export sales revenue was 269.7161 million yuan, 283.2469 million yuan, 383.2668 million yuan, and 281.1532 million yuan, respectively, accounting for 23.01%, 24.99%, 28.90%, and 27.36% of the main business revenue.
During the reporting period, the Company's accounts receivable were 236.5253 million yuan, 269.039 million yuan, 295.0009 million yuan, and 354.0606 million yuan, respectively, accounting for 26.12%, 25.27%, 25.51%, and 31.31% of current assets.
At the end of each period of the reporting period, the book value of the Company's fixed assets was 458.7646 million yuan, 446.393 million yuan, 422.5001 million yuan, and 540.342 million yuan, respectively, accounting for 85.15%, 82.61%, 72.62%, and 86.97% of non-current assets.
In July 2022, the Company's wholly-owned subsidiary, Xiaohe Materials, was subject to an administrative penalty of 128,000 yuan by the Deqing County Emergency Management Bureau due to a fire accident. In May 2025, the Company was subject to an administrative penalty of 30,000 yuan by the Ministry of Finance for providing financial accounting reports with inconsistent preparation bases to different accounting information users.