[Chart: Company Logo]
Stock Abbreviation: Tailin Bioengineering
Stock Code: 300813
Zhejiang Tailin Bioengineering Co., Ltd.
and
Great Wall Securities Co., Ltd.
Regarding
Reply Report to the Audit Inquiry Letter on the Issuance of Convertible Corporate Bonds to Unspecified Objects by Zhejiang Tailin Bioengineering Co., Ltd.
Sponsor (Lead Underwriter)
(10-19th Floor, South Tower, Energy Building, No. 2026 Jintian Road, Futian Street, Futian District, Shenzhen)
July 2026
Reply to the Audit Inquiry Letter
Shenzhen Stock Exchange:
We have received the "Audit Inquiry Letter on the Application of Zhejiang Tailin Bioengineering Co., Ltd. for the Issuance of Convertible Corporate Bonds to Unspecified Objects" (Audit Letter [2026] No. 020044) (hereinafter referred to as the "Inquiry Letter") issued by your exchange on May 19, 2026. Zhejiang Tailin Bioengineering Co., Ltd. (hereinafter referred to as the "Issuer," "Company," or "Tailin Bioengineering"), together with Great Wall Securities Co., Ltd. (hereinafter referred to as "Great Wall Securities" or "Sponsor"), Pan-China Certified Public Accountants (LLP) (hereinafter referred to as "Issuer's Accountant," "Accountant," or "Pan-China"), and Grandall Law Firm (Hangzhou) (hereinafter referred to as "Issuer's Lawyer," "Lawyer," or "Grandall"), have discussed the issues listed in the Inquiry Letter item by item, conducted inspections, and expressed opinions on relevant matters.
The specific situation is explained as follows for your review.
Unless otherwise specified, the abbreviations used in this reply have the same meanings as those in the "Prospectus for the Issuance of Convertible Corporate Bonds to Unspecified Objects by Zhejiang Tailin Bioengineering Co., Ltd." (hereinafter referred to as the "Prospectus").
The fonts in this reply represent the following meanings:
| Item | Font |
|---|---|
| Questions listed in the Inquiry Letter | Bold |
| Replies to questions in the Inquiry Letter | Songti |
| Revisions and supplements to the Prospectus, etc. | Bold KaiTi |
The main values in this reply report are rounded to two decimal places. Due to rounding, the sum of the sub-items may not equal the total.
Table of Contents
Question 1: 3
Question 2: 104
Question 3: 172
Other Issues: 176
Question 1
In the last three years, the company achieved operating income of 269.8561 million yuan, 348.9983 million yuan, and 339.5388 million yuan, respectively. The net profit attributable to owners of the parent company was 19.6690 million yuan, 13.0507 million yuan, and 16.4854 million yuan, respectively. The gross profit margin of the company's main business was 44.29%, 40.76%, and 45.22%, respectively. Government subsidies included in profit and loss were 16.9820 million yuan, 11.4591 million yuan, and 7.5158 million yuan, respectively, accounting for 77.28%, 89.76%, and 44.90% of the total profit for the current period. During the reporting period, the proportion of the company's export sales income was 8.32%, 7.17%, and 12.46%, respectively. The company sells products to intermediaries or regional pharmaceutical machinery and medical product traders who obtain orders from end-users. During the reporting period, the proportion of distribution sales was approximately 40%.
In the last three years, the ratio of the total balance of accounts receivable and contract assets to operating income was 17.30%, 16.83%, and 19.53%, respectively. At the end of the last three years, the company's bad debt provision ratio was lower than the industry average. The post-period collection ratios for accounts receivable and contract assets for the last three years were 86.44%, 75.97%, and 30.73%, respectively.
At the end of the last three years, the book value of the company's inventory was 160.5504 million yuan, 144.1340 million yuan, and 126.5351 million yuan, respectively. The proportion of work-in-progress in inventory was 23.74%, 15.16%, and 29.07%, respectively. The provision ratio for inventory depreciation was 0.45%, 0.79%, and 3.58%, respectively, which is generally lower than the average level of comparable listed companies in the industry.