[Chart: Weili Logo]
Yinchuan Weili Transmission Technology Co., Ltd.
and
Guotai Haitong Securities Co., Ltd.
Regarding
Reply Report to the Audit Inquiry Letter on the Application of Yinchuan Weili Transmission Technology Co., Ltd. for Issuance of Shares to Specific Targets
Sponsor (Lead Underwriter)
(No. 618, Shangcheng Road, China (Shanghai) Pilot Free Trade Zone)
August 2026
Shenzhen Stock Exchange:
In accordance with the requirements of the "Audit Inquiry Letter on the Application of Yinchuan Weili Transmission Technology Co., Ltd. for Issuance of Shares to Specific Targets" (Audit Letter [2026] No. 020061) (hereinafter referred to as the "Inquiry Letter") issued by your exchange on July 17, 2026, Yinchuan Weili Transmission Technology Co., Ltd. (hereinafter referred to as "Weili Transmission," "the Issuer," or "the Company"), together with Guotai Haitong Securities Co., Ltd. (hereinafter referred to as the "Sponsor" or "Guotai Haitong"), Beijing Zhonglun Law Firm (hereinafter referred to as "the Lawyer" or "Zhonglun Lawyer"), and Tianjian Certified Public Accountants (Special General Partnership) (hereinafter referred to as "the Accountant" or "Tianjian Accountant"), have carefully verified and implemented the items raised in the Inquiry Letter. The response is as follows, please review.
Unless otherwise specified, the abbreviations or definitions in this reply report have the same meanings as in the prospectus.
The fonts in this reply report have the following meanings:
| Item | Font |
|---|---|
| Questions listed in the audit inquiry letter | Bold |
| Responses to questions listed in the audit inquiry letter | Songti |
| Content involving amendments or supplements to the prospectus in the response | Bold Italics |
Some totals in this reply report may differ from the sum of their components due to rounding.
Table of Contents
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Directory
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Question 1
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Question 2
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Other Issues
Question 1
According to the application materials, the total amount of funds to be raised in this issuance shall not exceed 600 million RMB (inclusive), which will be used to invest in the Wind Power Speed Increaser Smart Factory (Phase I) project and to supplement working capital. After the Wind Power Speed Increaser Smart Factory (Phase I) project reaches full production, it is expected to add an annual production capacity of 2,000 wind power speed increasers, with an expected sales gross margin of 23.54% after reaching production, which is higher than the gross margin of existing similar businesses. The net proceeds from the issuer's initial public offering were 555 million RMB, used for three projects: the Precision Wind Power Reducer Production Construction Project, the R&D Center Construction Project, and the Working Capital Supplementation Project. Among them, the cumulative revenue realized by the Precision Wind Power Reducer Production Construction Project is lower than promised, mainly due to the impact of project production progress, changes in the market environment, and delayed customer scheduling.