Explanation of Financial Matters in the Inquiry Letter Regarding the Application of Chongqing Meilixin Technology Co., Ltd. for Issuance of Shares to Specific Objects
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Add: 1366 Qianjiang Road, Hangzhou, China
Website: www.pccpa.cn
Tianjian Letter [2026] 8-133
Shenzhen Stock Exchange:
We acknowledge receipt of the "Inquiry Letter Regarding the Application of Chongqing Meilixin Technology Co., Ltd. for Issuance of Shares to Specific Objects" (Inquiry Letter [2026] 020062, hereinafter referred to as the "Inquiry Letter") forwarded by Changjiang Securities Co., Ltd. We have prudently reviewed the financial matters mentioned in the Inquiry Letter concerning Chongqing Meilixin Technology Co., Ltd. (hereinafter referred to as Meilixin Company or the Company) and hereby report as follows.
Question 1
According to the application documents, the total amount of this private placement of shares shall not exceed RMB 1,200,000,000.00. The net proceeds from the fundraising will be invested in the "Semiconductor Equipment Precision Structural Components Project" (hereinafter referred to as Project One), the "Communication and Automotive Parts Solderable Die-casting Industrialization Project" (hereinafter referred to as Project Two), and to supplement working capital and repay bank loans.
Project One aims to expand the Company's production capacity for semiconductor equipment structural components. Upon reaching full production, it is expected to achieve an annual operating revenue of RMB 1,078,155,000.00, an annual net profit of RMB 117,128,300.00, and an internal rate of return (after tax) of 22.68%. In the most recent year, the Company's revenue from the semiconductor field was RMB 13,837,810.00, accounting for 3.68% of the total operating revenue. Project One plans to be implemented by leasing factory premises, and a lease agreement has been signed. Project Two is to construct a solderable die-casting parts production line. Upon reaching full production, it is expected to achieve an annual operating revenue of RMB 510,436,900.00, an annual net profit of RMB 30,847,500.00, and an internal rate of return (after tax) of 15.19%. Project Two plans to be implemented by leasing factory premises, and a letter of intent for lease has been signed. The Company expects losses in 2024 and 2025, partly due to an increase in impairment losses on assets. During the reporting period, the Company's gross profit margin for its main business has been continuously declining.
The Company's previous fundraising was through its initial public offering of shares in 2023. The proceeds from the previous fundraising were invested in Chongqing Meilixin's R&D center construction project, new energy vehicle systems, 5G communication components and molds, and new energy vehicle parts expansion projects (hereinafter referred to as previous fundraising projects). The benefits of the previous fundraising projects could not be calculated separately, and there were instances where surplus fundraising funds were used to permanently supplement working capital. The overall investment returns of the new energy vehicle systems, 5G communication components and molds, and new energy vehicle parts expansion projects in 2024 and 2025 have not met expectations.
During the reporting period, the Company's main export countries and regions include the United States, Estonia, Mexico, India, Poland, Germany, and France. As of the end of 2025, the Company has determined that it does not hold any financial investments.