Explanation of Financial Matters in the Review Inquiry Letter Regarding Hangzhou Tianyuan Pet Products Co., Ltd.'s Issuance of Shares for Asset Acquisition and Fundraising (Revised Draft)

Table of Contents

1. About the Listing and Guidance Filing of the Target Assets on the New Third Board………………Pages 1-2
2. About the Business Model of the Target Assets……………………………………Pages 3-14
3. About the Operating Income of the Target Assets……………………………………Pages 14-71
4. About the Third-Party Receivables and Returns of the Target Assets……………………Pages 71-83
5. About the Suppliers of the Target Assets………………………………………Pages 83-92
6. About the Costs and Expenses of the Target Assets…………………………………Pages 92-106
7. About the Gross Profit Margin of the Target Assets………………………………………Pages 106-126
8. About the Accounts Receivable and Other Receivables of the Target Assets……………………Pages 126-139
9. About the Inventory and Prepayments of the Target Assets………………………………Pages 139-150
10. About the Share-Based Payments of the Target Assets……………………………………Pages 150-166
11. Appendix…………………………………………………… Pages 167-171
    (1) Copy of the Business License of the Company………………………………………… Page 167
    (2) Copy of the Practicing Certificate of the Company………………………………………… Page 168
    (3) Copy of the Certified Public Accountant's Certificate ……………………… Page 169-171

Explanation of Financial Matters in the Review Inquiry Letter Regarding Hangzhou Tianyuan Pet Products Co., Ltd.'s Issuance of Shares for Asset Acquisition and Fundraising

Tianjian Letter [2026] No. 466
Shenzhen Stock Exchange: We acknowledge receipt of the "Review Inquiry Letter Regarding Hangzhou Tianyuan Pet Products Co., Ltd.'s Issuance of Shares for Asset Acquisition and Fundraising" (Review Letter [2025] No. 030008, hereinafter referred to as the Review Inquiry Letter) forwarded by Guotai Junan Securities Co., Ltd. We have conducted a thorough review of the financial matters mentioned in the Review Inquiry Letter concerning Hangzhou Tianyuan Pet Products Co., Ltd. (hereinafter referred to as the listed company or Tianyuan Pet) and Guangzhou Taotong Technology Co., Ltd. (hereinafter referred to as Taotong Technology Company) and issued the "Explanation of Financial Matters in the Review Inquiry Letter Regarding Hangzhou Tianyuan Pet Products Co., Ltd.'s Issuance of Shares for Asset Acquisition and Fundraising" Tianjian Letter [2025] No. 954. Due to the supplementary recent financial data provided by Taotong Technology Company, we conducted an additional review, and the report is as follows.

1. About the Listing and Guidance Filing of the Target Assets

The application documents indicate:
(1) On May 20, 2016, the stocks of the target assets were publicly traded on the National Small and Medium Enterprises Share Transfer System (hereinafter referred to as the share transfer system), with the stock abbreviation "Taotong Technology" and stock code "837088." The transfer method was through agreement transfer, and the stocks were delisted from the share transfer system on April 19, 2018. The reporting period for this transaction is for the years 2023 and 2024, and there is no overlap with the listing period.
(2) The target assets submitted a listing guidance filing to the Guangdong Bureau of the China Securities Regulatory Commission in June 2023, which has since been withdrawn. The listed company is requested to disclose:
(1) (2) … (3) Whether there are significant changes in the main financial data and other information disclosed in this restructuring plan compared to the listing and guidance periods, and if so, analyze the specific differences.