China Gold Irradiation Co., Ltd.
and
China Securities Co., Ltd.
Response to the Audit Inquiry Letter Regarding China Gold Irradiation Co., Ltd.'s Application for Issuance of A-Shares to Specific Targets
Sponsor (Lead Underwriter)
(Building 4, No. 66 Anli Road, Chaoyang District, Beijing)
August 2026
Table of Contents
Question 1: 2
Question 2: 70
Question 3: 74
Other Questions: 75
Question 1
According to the application documents, the issuer's main business areas are irradiation technology services (including irradiation sterilization services and irradiation modification services), disinfection supply services, and technical testing services. The total amount of funds to be raised in this issuance shall not exceed 800 million RMB (inclusive). After deducting relevant issuance expenses, the net proceeds are intended to be used for the China Gold Irradiation Changsha Sterilization Technology Service Center Project (referred to as Project 1), the Hefei Comprehensive Sterilization Technology Center Project (referred to as Project 2), the China Gold Health Technology (Jiaxing) Co., Ltd. Annual Sterilization of 300,000 Cubic Meters of Medical Devices Project Phase II (referred to as Project 3), the Cobalt Source Procurement Project (referred to as Project 4), and for supplementing working capital. The issuance targets are no more than 35 (inclusive) specific targets that meet the conditions stipulated by the China Securities Regulatory Commission, including the company's controlling shareholder, China Gold Group Co., Ltd. (referred to as China Gold Group). China Gold Group will subscribe for the company's shares in this issuance with 100 million RMB, and other shares will be subscribed by other issuance targets.
Among the above-mentioned fundraising projects, Project 2 and Project 3 have obtained energy efficiency assessments, while Project 1 and Project 4 are not subject to energy efficiency assessments. In addition, Project 1 and Project 4 involve the implementation of fundraising projects by non-wholly owned subsidiaries. After the board of directors approves this issuance and before the raised funds are in place, the company will invest with its own funds according to the actual progress of the fundraising projects and will replace them after the raised funds are in place.
The company mainly uses cobalt sources to provide irradiation technology services. Its service capacity is largely determined by the activity of the cobalt source. Continuous natural decay will lead to a decrease in cobalt source activity, thereby reducing the company's service capacity. The company's existing technology is mainly based on gamma irradiation and electron beam irradiation. This fundraising project involves the construction of a new X-ray irradiation device, which is a new technical direction for the company. This type of device differs from the existing system in terms of process control, equipment operation and maintenance, and safety management.
The company's 2025 annual report shows that as of the end of 2025, total assets were 1.3170252 billion RMB, total liabilities were 242.2145 million RMB, and the asset-liability ratio was 18.39%. Among the company's monetary funds, the amount deposited with the related party, China Gold Group Finance Co., Ltd., was 265.6532 million RMB, accounting for 99.62% of the total monetary funds. In 2025 and the first quarter of 2026, the company's net profit after deducting non-recurring gains and losses attributable to the parent company fell by 20.42% and 9.19%, respectively.