BDO China Shu Lun Pan Certified Public Accountants (Special General Partnership)
Reply to the Audit Inquiry Letter Regarding the Application of Beijing Zhongke Runyu Environmental Technology Co., Ltd. for Issuing Convertible Corporate Bonds to Unspecified Targets
Letter No. [2026] ZG071
Shenzhen Stock Exchange:
We have received the "Audit Inquiry Letter Regarding the Application of Beijing Zhongke Runyu Environmental Technology Co., Ltd. for Issuing Convertible Corporate Bonds to Unspecified Targets" (Audit Letter [2026] No. 020034) (hereinafter referred to as the "Inquiry Letter") issued by your exchange on April 30, 2026. As the reporting accountants for Beijing Zhongke Runyu Environmental Technology Co., Ltd. (hereinafter referred to as the "Company," "Issuer," or "Zhongke Environmental") for this issuance of convertible corporate bonds to unspecified targets, BDO China Shu Lun Pan Certified Public Accountants (Special General Partnership) (hereinafter referred to as the "Reporting Accountants" or "Accountants") has conducted an investigation into the matters requested in the Inquiry Letter and has provided the following response.
Unless otherwise specified, the definitions or abbreviations used in this reply have the same meanings as those in the "Prospectus (Revised Draft) for the Issuance of Convertible Corporate Bonds to Unspecified Targets by Beijing Zhongke Runyu Environmental Technology Co., Ltd." (hereinafter referred to as the "Prospectus").
The fonts used in this feedback reply represent the following meanings:
| Font | Meaning |
|---|---|
| Bold | Questions listed in the audit inquiry letter |
| Songti | Replies to the questions listed in the audit inquiry letter |
| Bold Kai | Revisions and supplements to application documents such as the prospectus; modifications to the replies to the questions listed in the inquiry letter |
Table of Contents
Question 1: 1
Question 2: 60
Question 1
- According to the application materials, the Issuer's main business income consists of waste-to-energy incineration, project construction, environmental protection equipment sales and technical services, and hazardous waste treatment and disposal. During the reporting period, the company's operating income was 1,404,005,400 yuan, 1,662,799,400 yuan, and 1,872,576,400 yuan, respectively. At the end of each period of the reporting period, the balance of accounts receivable was 638,315,400 yuan, 703,037,700 yuan, and 837,324,600 yuan, respectively. The Issuer's power generation business enjoys electricity price subsidy policies.
The Issuer is primarily engaged in the investment, construction, and operation of waste-to-energy projects through BOT, BOO, and other concession methods. Assets formed by BOT business are accounted for as intangible assets, while assets formed by the BOO model are accounted for as fixed assets. At the end of each period of the reporting period, the book value of the company's intangible assets was 3,928,605,100 yuan, 4,073,482,800 yuan, and 4,650,242,500 yuan, respectively, accounting for 54.93%, 54.39%, and 54.26% of total assets, mainly consisting of BOT project concession rights. At the end of each period of the reporting period, the company's fixed assets were 922,923,000 yuan, 1,169,277,900 yuan, and 1,165,879,400 yuan, respectively.
Regarding technology sources, the Issuer has obtained grate furnace patent technology licenses through signed technology licensing agreements.
The acquisition method for some of the company's franchised waste-to-energy projects is inconsistent with relevant regulations. As of the end of the reporting period, the Issuer has 8 houses and buildings for which ownership certificates have not yet been obtained.
As of December 31, 2025 (the end of the most recent period), the Issuer held other receivables, other current assets, and other non-current assets, which were not identified as financial investments.