Table of Contents
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Regarding Principal Business (Pages 1–39)
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Regarding Fund-Raising Projects (Pages 39–76)
Explanation of Financial Matters in the Audit Inquiry Letter Regarding Zhejiang Kindao Technology Co., Ltd.'s Issuance of Convertible Corporate Bonds to Unspecified Targets
Tianjian Letter [2026] No. 828
Shenzhen Stock Exchange:
We have received the "Audit Inquiry Letter Regarding Zhejiang Kindao Technology Co., Ltd.'s Application for Issuance of Convertible Corporate Bonds to Unspecified Targets" (Audit Letter [2026] No. 020050, hereinafter referred to as the "Audit Inquiry Letter") forwarded by Zhejiang Kindao Technology Co., Ltd. We have prudently reviewed the financial matters of Zhejiang Kindao Technology Co., Ltd. (hereinafter referred to as "Kindao Technology" or the "Company") mentioned in the Audit Inquiry Letter and report as follows.
Unless otherwise specified, the monetary units involved in this audit inquiry letter are in RMB ten thousand yuan.
1. Regarding Principal Business
The issuer's principal business is the research, development, production, and sales of transmission devices for industrial vehicles. During the reporting periods, the issuer's principal business revenue was RMB 64,322.04 ten thousand, RMB 61,405.97 ten thousand, RMB 68,960.00 ten thousand, and RMB 19,624.65 ten thousand, respectively. Among these, the revenue scale and proportion of hydraulic forklift transmissions are relatively stable, while the revenue and proportion of electric forklift transmissions show a growth trend. During the reporting periods, the issuer's revenue from its top five customers exceeded 70% of its operating revenue, with revenue from its largest customer, Hangcha Group, exceeding 50% of operating revenue, indicating a high level of customer concentration.
During the reporting periods, the issuer's direct materials accounted for over 60% of the cost of principal business. The main raw materials include castings, bearings, torque converters, and steel, which are significantly affected by fluctuations in steel prices.
During the reporting periods, the net cash flow from the issuer's operating activities was RMB 13,654.89 ten thousand, RMB 6,454.51 ten thousand, RMB 7,247.24 ten thousand, and RMB -3,297.79 ten thousand, respectively. The net cash flow from operating activities for the most recent period was negative.
As of March 31, 2026, the company's total transactional financial assets amounted to RMB 15,123.71 ten thousand, which are wealth management products purchased by the company to improve the efficiency of capital use and the level of return.