Tianjin Guoan MGL New Materials Technology Co., Ltd.
and
Huatai United Securities Co., Ltd.
Regarding the Audit Inquiry Letter for the Application Documents for the Issuance of Shares to Specific Targets by Tianjin Guoan MGL New Materials Technology Co., Ltd.
Sponsor (Lead Underwriter)
(Room 401, Building B7, Qianhai Shenzhen-Hong Kong Fund Town, No. 128 Guiwan 5th Road, Nanshan Street, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen)
July 2026
Shenzhen Stock Exchange:
Tianjin Guoan MGL New Materials Technology Co., Ltd. (hereinafter referred to as the "Company", "Issuer", or "MGL") received the "Audit Inquiry Letter Regarding the Application for Issuance of Shares to Specific Targets by Tianjin Guoan MGL New Materials Technology Co., Ltd." (Audit Letter [2026] No. 020046) (hereinafter referred to as the "Inquiry Letter") issued by your exchange on May 20, 2026. The Company, in conjunction with Huatai United Securities Co., Ltd. (hereinafter referred to as "Huatai United Securities", "Sponsor Institution", or "Sponsor"), Beijing DeHeng Law Offices (hereinafter referred to as "Lawyer" or "Issuer's Lawyer"), and BDO China Shu Lun Pan Certified Public Accountants LLP (hereinafter referred to as "Accountant" or "Reporting 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 the context otherwise requires, the abbreviations used in this response to the Inquiry Letter have the same meanings as those defined in the "Prospectus for the Issuance of Shares to Specific Targets and Listing on the ChiNext Market by Tianjin Guoan MGL New Materials Technology Co., Ltd. (Declaration Draft)" (hereinafter referred to as the "Prospectus").
The font conventions for this response to the Inquiry Letter are as follows:
| Item | Font |
|---|---|
| Questions listed in the Inquiry Letter | Bold |
| Responses to questions in the Inquiry Letter | Songti |
| Supplementary disclosures and amendments to the Prospectus | KaiTi, Bold |
In some tables within this response, there may be minor discrepancies between the sum of individual items and the total, which are due to rounding during the calculation process.
Table of Contents
Question 1: 3
Question 2: 101
Other Matters: 179
Question 1
According to the application documents, the Company is primarily engaged in the R&D, production, and sales of cathode materials for new energy batteries. Its main products are lithium cobalt oxide and ternary cathode materials. During the reporting period, the Company's lithium cobalt oxide was mainly applied in consumer electronics such as smartphones and laptops, while ternary materials were mainly anchored in the small power battery sector, represented by power tools and electric two-wheeled vehicles. Currently, the Company's ternary materials focus on high-nickel and ultra-high-nickel series, while lithium cobalt oxide focuses on high-voltage series. At the same time, the Company plans to invest in a fourth-generation and above lithium iron phosphate integrated project to develop related high-compaction density lithium iron phosphate products.
For the years 2023-2025, the Company's operating income was 2,316.0807 million yuan, 1,793.9104 million yuan, and 2,320.9090 million yuan, respectively. Net profit attributable to owners of the parent company after deducting non-recurring gains and losses was 47.0896 million yuan, -85.4782 million yuan, and 13.7818 million yuan, respectively. The gross profit margin of the main business was 7.22%, 5.79%, and 7.83%, respectively, indicating performance volatility.
In the last three years, the sales revenue from the top five customers as a percentage of operating income was 71.83%, 76.20%, and 68.38%, respectively. The procurement amount from the top five suppliers as a percentage of total procurement was 72.88%, 79.09%, and 70.24%, respectively, among which the procurement amount from Lanzhou Jinchuan and its related parties was relatively high, accounting for 27.88%, 40.52%, and 32.74% of total procurement, respectively.