Stock Code: 301307 Stock Abbreviation: Millison
Response to the Audit Inquiry Letter Regarding the Application of Chongqing Millison Technologies Co., Ltd. for Issuance of Shares to Specific Targets
Sponsor (Lead Underwriter)
Address: Rooms 302-1, 302-2, 303-3, No. 128 Beizhangjiabang Road, China (Shanghai) Pilot Free Trade Zone
Date: August 2026
Shenzhen Stock Exchange:
Chongqing Millison Technologies Co., Ltd. (hereinafter referred to as the "Company," "Issuer," or "Millison") received the "Audit Inquiry Letter Regarding the Application of Chongqing Millison Technologies Co., Ltd. for Issuance of Shares to Specific Targets" (Audit Letter [2026] No. 020062) (hereinafter referred to as the "Inquiry Letter") issued by your exchange on July 17, 2026. The Company, in conjunction with Changjiang Financing Services Co., Ltd. (hereinafter referred to as "Changjiang Financing," "Sponsor Institution," or "Sponsor"), Grandall Law Firm (Shenzhen) (hereinafter referred to as "Lawyer" or "Issuer's Lawyer"), and Pan-China Certified Public Accountants (LLP) (hereinafter referred to as "Accountant"), has conducted a thorough study and implementation. We have supplemented the information and provided responses to the matters involved in accordance with the requirements of the Inquiry Letter, and hereby submit them to your exchange for review.
Unless otherwise specified, the abbreviations used in this response to the Inquiry Letter have the same meanings as those defined in the "Chongqing Millison Technologies Co., Ltd. 2025 Annual Prospectus for Issuance of A-Shares to Specific Targets" (hereinafter referred to as the "Prospectus").
The font conventions for this response to the Inquiry Letter are as follows:
| Item | Font Style |
|---|---|
| Questions listed in the Inquiry Letter | Bold, Black |
| Responses to the questions in the Inquiry Letter | Songti |
| Revisions to application documents such as the Prospectus | Bold, Kaiti |
In this response to the Inquiry Letter, some totals in the tables may differ slightly from the sum of individual items due to rounding; unless otherwise specified, the currency used in this response is Renminbi.
Table of Contents
Table of Contents..............................................................................................................................2
Question 1.............................................................................................................................3
Question 2...........................................................................................................................70
Other Issues....................................................................................................................72
Question 1
According to the application documents, the total amount of this issuance of shares to specific targets does not exceed 1,200,000,000 RMB. The net proceeds will be invested in the Semiconductor Equipment Precision Structural Parts Construction Project (hereinafter referred to as Project I), the Communication and Automotive Parts Brazable Die-Casting Industrialization Project (hereinafter referred to as Project II), and the replenishment of working capital and repayment of bank loans.
Project I aims to expand the Company's production capacity for semiconductor equipment structural parts. Upon reaching full production, it is expected to achieve an annual operating income of 107,815,500 RMB, an annual net profit of 11,712,830 RMB, and an internal rate of return (after tax) of 22.68%. In the most recent year, the Issuer's revenue in the semiconductor field was 138,378,100 RMB, accounting for 3.68% of its main business revenue. Project I is intended to be implemented through leased factory buildings, and a lease contract has been signed. Project II aims to build a brazable die-casting production line. Upon reaching full production, it is expected to achieve an annual operating income of 510,436,900 RMB, an annual net profit of 30,847,500 RMB, and an internal rate of return (after tax) of 15.19%. Project II is intended to be implemented through leased factory buildings, and a letter of intent for the lease has been signed. The Company's performance in 2024 and 2025 was in a loss, partly due to an increase in asset impairment losses. During the reporting period, the gross profit margin of the Company's main business continued to decline.