Reply to Inquiry Letter on Asset Appraisal Issues
To the Shenzhen Stock Exchange:
Xiamen Jiarong Technology Co., Ltd. (hereinafter referred to as the "Company," "Listed Company," or "Jiarong Technology") received the "Inquiry Letter on the Application for Issuing Shares to Purchase Assets and Raise Supporting Funds by Xiamen Jiarong Technology Co., Ltd." (Inquiry Letter [2026] No. 030009) issued by your esteemed exchange on July 3, 2026. Zhonglian Asset Appraisal Group Co., Ltd. (hereinafter referred to as "Zhonglian Appraisal"), as the asset appraisal institution for this transaction, has, together with the Listed Company and relevant intermediary institutions, investigated and verified the matters required by your esteemed exchange's feedback opinion. The written reply to the relevant issues is as follows.
Issue Five: Regarding the Operating Performance of the Target Asset
The application documents show: (1) During the reporting period, the operating revenue of the target asset mainly came from the sales of electrodialysis application equipment, membrane materials, and accessories. Revenue from electrodialysis application equipment was RMB 16,181.02 million and RMB 22,142.08 million, respectively, and revenue from membrane materials and accessories was RMB 6,640.65 million and RMB 5,258.37 million, respectively. The revenue recognition methods include acceptance confirmation and receipt confirmation. (2) During the reporting period, the revenue proportion in the fourth quarter was 42.83% and 42.00%, respectively. (3) During the reporting period, there was a sales contract dispute between the target asset and Hesheng Silicon Industry (Dunhuang) Co., Ltd. (hereinafter referred to as Hesheng Silicon Industry) and Hebei Yuwei Biotechnology Co., Ltd. (hereinafter referred to as Yuwei Biotechnology). The target asset recognized revenue from Hesheng Silicon Industry based on the second-instance judgment of the court in 2025. (4) Customer A (whose name has been exempted from disclosure) is in the same industry as the target asset. In 2025, Customer A became the target asset's largest customer, with sales of RMB 6,278.53 million. (5) Public information shows a difference between the sales amount of the target asset to Jiangsu Jiugu High-tech Co., Ltd. (hereinafter referred to as Jiugu High-tech) and the procurement amount disclosed in Jiugu High-tech's annual report. (6) Industrial and commercial information shows that Guangzhou Lanran Technology Co., Ltd. (hereinafter referred to as Guangzhou Lanran), one of the top five customers of the target asset, was established in June 2022, with a registered capital of RMB 2 million and only 3 employees in 2025. Guangzhou Lanran was not identified as a related party of the target asset.