Shenzhen Stock Exchange:
According to the "Inquiry Letter on the Review of Ji'an Mankun Technology Co., Ltd.'s Application for Issuance of Convertible Bonds to Unspecified Targets" (Shenzhen Stock Exchange Listing Review Center, January 20, 2026, Audit Letter [2026] No. 020002) (hereinafter referred to as the "Inquiry Letter") issued by the Listing Review Center of the Shenzhen Stock Exchange on January 20, 2026, Ji'an Mankun Technology Co., Ltd. (hereinafter referred to as "Mankun Technology," "the Issuer," or "the Company"), together with Ping An Securities Co., Ltd. (hereinafter referred to as "the Sponsor" or "Ping An Securities"), Beijing Guofeng Law Firm (hereinafter referred to as "the Issuer's Lawyers" or "Guofeng Law Firm"), and Tianjian Certified Public Accountants (Special General Partnership) (hereinafter referred to as "the Issuer's Accountants" or "Tianjian Accountants"), have, in accordance with the principles of diligence, due care, and good faith, conducted item-by-item verification and review of the issues raised in the Inquiry Letter. The reply is as follows, for your review.
Unless otherwise specified, the terminology used in this reply is consistent with that in the "Prospectus for the Issuance of Convertible Bonds to Unspecified Targets by Ji'an Mankun Technology Co., Ltd." (hereinafter referred to as the "Prospectus").
The font styles in this reply represent the following:
| Audit Inquiry Question | Black font |
|---|---|
| Reply to the question | Song font |
| Revision and supplement to the Prospectus | KaiTi font bold |
Minor discrepancies may exist between the sum of individual data and the total in some tables in this reply, which are due to rounding in the calculation process.
Table of Contents
| Question | Page |
|---|---|
| Question One | 3 |
| Question Two | 81 |
| Other Matters | 165 |
Question One
According to the reporting materials, during the reporting period, the Company's main business revenue was RMB 97,944.46 million, RMB 112,902.89 million, RMB 114,932.21 million, and RMB 109,790.73 million, respectively. The net profit attributable to the parent company after deducting non-recurring gains and losses was RMB 8,031.70 million, RMB 10,296.91 million, RMB 8,885.85 million, and RMB 9,356.45 million, respectively. The net cash flow from operating activities was RMB 10,502.33 million, RMB 11,585.92 million, RMB 10,962.40 million, and RMB 3,686.76 million, respectively. The gross profit margin of the main business was 14.36%, 13.51%, 10.44%, and 9.90%, respectively. Among them, the Company's main business gross profit margin showed a downward trend, and the gross profit margin of each product category fluctuated significantly. From January to September 2025, the net cash flow from operating activities decreased, mainly due to the Company replenishing inventory for the new third factory, leading to a significant outflow of cash for the payment of acceptance bills due to suppliers in January-September 2025.
During the reporting period, the Company's other business revenue mainly came from scrap revenue, which was RMB 6,238.19 million, RMB 8,796.50 million, RMB 11,840.99 million, and RMB 12,469.63 million, accounting for 5.99%, 7.23%, 9.34%, and 10.20% of the Company's operating revenue, respectively.
During the reporting period, the proportion of export revenue to operating revenue was 14.06%, 18.67%, 17.59%, and 17.69%, respectively. The main export destinations included Taiwan, Southeast Asia, Japan, South Korea, Europe, and the United States.
During the reporting period, the procurement amount from the top five raw material suppliers accounted for 38.88%, 42.17%, 50.98%, and 56.44% of the total raw material procurement amount for the period, respectively. During the reporting period, the Company added new top five customers and top five raw material suppliers.
During the reporting period, the Company's raw material costs accounted for a high proportion, and the purchase price of direct materials had a significant impact on the main business cost. The main raw materials required for the Company's production include copper-clad laminates, copper foil, copper balls, prepreg, and gold salt. The prices of these raw materials are significantly affected by the market prices of commodities such as copper and gold.