Reply to the Inquiry Letter on the Application Documents for Issuing Shares to Specific Objects of Suzhou Xianglou New Materials Co., Ltd.
To Shenzhen Stock Exchange:
In accordance with the requirements of your inquiry letter ("Inquiry Letter") (Shenzhen Stock Exchange Inquiry Letter [2025] No. 020079), we have conducted a逐项 (item-by-item) verification of the issues related to the accountant in the Inquiry Letter regarding Suzhou Xianglou New Materials Co., Ltd.'s (hereinafter referred to as the "Company," "Issuer," or "Xianglou New Materials") application for issuing shares to specific objects. We have supplemented the information and responded to the issues involved in accordance with the requirements of the Inquiry Letter. The detailed replies to the questions raised in your Inquiry Letter are as follows.
Unless otherwise specified, the abbreviations used in this reply are the same as those defined in the "Prospectus (Application Draft) for Suzhou Xianglou New Materials Co., Ltd.'s Application for Issuing Shares to Specific Objects and Listing on the ChiNext Market for the Year 2025" (hereinafter referred to as the "Prospectus").
The font specifications for this Inquiry Letter Reply are as follows: Inquiry Letter Issues: Bold Reply to Inquiry Letter Issues: Songti Supplementary Disclosure and Amendments to the Prospectus and Inquiry Letter Reply: Kaiti, Bold
Minor discrepancies may exist between the sum of individual items and the total sum in some tables of this Inquiry Letter Reply, which are all due to rounding in the calculation process.
Question 1
According to the application documents, the Company's main products are precision stamping special steel materials, used in automotive applications for engine systems, transmission and clutch systems, seat systems, and interior systems as structural and functional components. Other application areas include robots, aerospace, electrical products, precision instruments, rail transit, chemicals, and tools. During the reporting period, the Company's revenue showed a growth trend, with revenues of 121,183.69 million yuan, 135,347.52 million yuan, 148,534.37 million yuan, and 110,500.38 million yuan, respectively.
The average unit price of the Company's main products, special structural steel, was 8449.78 yuan/ton, 7841.45 yuan/ton, 7656.48 yuan/ton, and 7233.53 yuan/ton, respectively. During the reporting period, the procurement price of steel for the Company's main business continued to decline. The gross profit margin of the main business for each period was 19.57%, 24.05%, 24.77%, and 23.30%, respectively, showing a downward trend in the most recent period. During the reporting period, the amount purchased from the top five suppliers accounted for 79.72%, 80.99%, 81.96%, and 77.34% of the total procurement amount for each period, indicating a high degree of supplier concentration. The energy required for the Company's production and operation is mainly electricity and natural gas.
At the end of each reporting period, the Company's accounts receivable increased year by year, amounting to 35,568.04 million yuan, 42,983.24 million yuan, 45,176.49 million yuan, and 41,652.92 million yuan, respectively. At the end of each reporting period, the book value of the Company's inventory was 29,666.08 million yuan, 31,020.62 million yuan, 34,877.74 million yuan, and 42,529.13 million yuan, accounting for 23.09%, 21.87%, 28.23%, and 29.58% of the current period's current assets, respectively. The inventory scale is relatively large. The inventory turnover ratio for the reporting period was 3.46, 3.32, 3.34, and 2.87 (annualized), respectively, with a decrease in the most recent period.
During the reporting period, the amount of the Company's construction in progress was 0 million yuan, 11,431.01 million yuan, 43,551.99 million yuan, and 9,168.90 million yuan, respectively. In the most recent period, the amount of advance payments was 16,349.83 million yuan, an increase from 12,940.66 million yuan in 2024.