Canwin Appraisal Co., Ltd.
Address: 13th Floor, Block B, China Resources Tower, 1366 Qianjiang Road, Hangzhou
Postal Code: 310020
Tel: (0571) 81726488
81726388
Response to the Shenzhen Stock Exchange's "Special Inquiry Letter on the Application of Zhejiang Chunhui Intelligent Control Co., Ltd. for Issuing Shares and Paying Cash to Purchase Assets" Regarding Asset Appraisal Issues
To the Listing Review Center of the Shenzhen Stock Exchange:
We acknowledge receipt of the "Special Inquiry Letter on the Application of Zhejiang Chunhui Intelligent Control Co., Ltd. for Issuing Shares and Paying Cash to Purchase Assets" (Special Inquiry Letter [2025] 030014, hereinafter referred to as the "Special Inquiry Letter") forwarded by Zhejiang Chunhui Intelligent Control Co., Ltd. (hereinafter referred to as the "Company" or "Chunhui Intelligent Control"). We have prudently reviewed the appraisal matters that require our explanation in the Special Inquiry Letter and hereby report our findings on the asset appraisal-related issues as follows:
I. Supplementary Disclosure on Whether There Are Significant Differences Between the Actual Performance of the Target Assets and the Forecast Data as of the Date of This Reply, and if So, Further Disclosure of Reasons and Impact on the Transaction Valuation.
- Audit Findings
Comparison of the target company's projected and actual performance for 2025 (operating revenue and profit before interest and tax):
Unit: RMB 10,000
| Item | 2025 Projected Amount | Full Year Actual Amount | Actual Percentage |
|---|---|---|---|
| Operating Revenue | 12,751.16 | 14,008.99 | 109.86% |
| Profit Before Tax | 3,185.37 | 3,581.51 | 112.44% |
The target company's actual operating revenue for the full year 2025 was RMB 14,008.99 million, representing 109.86% of the total projected revenue for 2025. The actual profit before tax for the full year 2025 was RMB 3,581.51 million, representing 112.44% of the total projected value for 2025.
Comparison of the target company's projected and actual performance for 2026 (operating revenue and profit before interest and tax):
| Item | 2026 Projected Amount | 2026 Jan-May Actual Amount | Actual Percentage |
|---|---|---|---|
| Operating Revenue | 14,378.95 | 6,424.22 | 44.68% |
| Profit Before Tax | 3,423.63 | 1,733.14 | 50.62% |
The target company's actual operating revenue from January to May 2026 was RMB 6,424.22 million, representing 44.68% of the total projected revenue for 2026. The actual profit before tax from January to May 2026 was RMB 1,733.14 million, representing 50.62% of the total projected value for 2026.
- Audit Procedure
Regarding the aforementioned matters, the appraiser obtained the target company's financial reports as of December 31, 2025, and the audit reports as of May 31, 2026. The audit reports for the period from January 1 to May 31, 2026, were reviewed, and the forecast data was verified accordingly.
- Audit Conclusion
The appraiser concludes that there are no significant discrepancies between the target company's actual performance and the forecast data, which does not affect the valuation of this transaction.
II. Forecasts of Revenue, Reporting Period Sales Volume and Price Changes, and Analysis of the Target Company's Core Competitiveness and Downstream Bargaining Power.
(1) Forecasts of Military and Civilian Product Revenue
Influenced by the national strategic development of the military industry and other factors, the progress of projects related to the aerospace sector has been adjusted, leading to a decline in business in this area for the current period. As uncertainties gradually dissipate, business in related fields is expected to recover.
According to data from CCID Consulting, the market size of China's sensor industry reached RMB 406.12 billion in 2024, and CCID Consulting predicts it will reach RMB 579.34 billion by 2027.