- Response from Lixin Certified Public Accountants (Special General Partnership) Regarding the Inquiry Letter on Zhejiang Fengmao Technology Co., Ltd.'s Application for Issuing Convertible Corporate Bonds to Unspecified Objects
To: Shenzhen Stock Exchange
We acknowledge receipt of your inquiry letter dated January 16, 2026, regarding Zhejiang Fengmao Technology Co., Ltd.'s application for issuing convertible corporate bonds to unspecified objects (Inquiry Letter [2026] No. 020001, hereinafter referred to as "Inquiry Letter"). In accordance with the requirements outlined in your Inquiry Letter, we have conducted a thorough review of the issues raised and hereby provide our responses for your review.
We have not issued an audit or review report for the financial statements of Zhejiang Fengmao Technology Co., Ltd. for the periods from January to March 2025 and from January to March 2026. Therefore, we do not express any opinion or conclusion on the financial information for the aforementioned periods. The verification procedures described below and the results of the verification are solely for the purpose of assisting the company in responding to your inquiry and do not constitute an audit or review.
Unless otherwise specified, the terms and abbreviations used in this response report have the same meanings as those in the prospectus for the issuance of convertible corporate bonds by Zhejiang Fengmao Technology Co., Ltd. to unspecified objects. If there are discrepancies in totals due to rounding, they are all due to rounding.
Question 1: According to the application materials, the issuer's operating revenues for the reporting periods were 60,803.43 million yuan, 80,157.52 million yuan, 94,857.98 million yuan, and 67,422.64 million yuan, with net profits attributable to the parent company shareholders after deducting non-recurring gains and losses of 9,027.89 million yuan, 12,610.40 million yuan, 14,467.91 million yuan, and 6,588.53 million yuan, respectively. For the period from January to September 2025, the issuer's operating revenue increased by 0.58% compared to the same period last year, while net profit attributable to the parent company shareholders after deducting non-recurring gains and losses decreased by 36.81%. The issuer's comprehensive gross profit margins during the reporting periods were 28.68%, 29.83%, 30.56%, and 26.26%. For the period from January to September 2025, the company's gross profit margin decreased by 4.30% compared to 2024. The issuer's overseas sales revenues during the reporting periods were 27,427.17 million yuan, 40,186.25 million yuan, 48,113.72 million yuan, and 29,370.48 million yuan, accounting for 45.11%, 50.13%, 50.72%, and 43.56% of total operating revenue, respectively. At the end of each reporting period, the issuer's inventory book values were 17,013.26 million yuan, 17,942.82 million yuan, 21,983.62 million yuan, and 26,310.49 million yuan, accounting for 34.02%, 15.23%, 17.88%, and 22.96% of current assets, respectively; net accounts receivable were 13,363.35 million yuan, 16,609.43 million yuan, 24,583.62 million yuan, and 28,224.07 million yuan, accounting for 21.98%, 20.72%, 25.92%, and 41.86% of total operating revenue, respectively. During the reporting period, the issuer's purchases from related party Shunjiang Industrial for equipment, parts, and maintenance services increased, amounting to 1,154.6 million yuan, 238.94 million yuan, 742.5 million yuan, and 1,713.54 million yuan, respectively.
In May 2025, the issuer acquired 80% equity of Ningbo Ouxun with a paid-in capital of 16 million yuan. Subsequently, Ningbo Ouxun acquired operational assets related to industrial belts from its minority shareholder Ningbo Ciguang Synchronous Belt Co., Ltd. at an assessed price of 19,562.5 million yuan.