Response to the Inquiry Letter Regarding Wuhu Fusa Technology Co., Ltd.'s Application for Specific Object Stock Issuance
RSM China (Special General Partnership)
Beijing, China
1. Introduction
According to the inquiry letter issued by your esteemed exchange on May 18, 2026, regarding Wuhu Fusa Technology Co., Ltd.'s application for a specific object stock issuance (Inquiry Letter [2026] 020043), RSM China (Special General Partnership) (hereinafter referred to as "we" or "the reporting accountant") has conducted a special review of the issues related to our firm as mentioned in the inquiry letter. We hereby respond to the inquiries raised in the inquiry letter as follows:
Question 1
The application materials indicate that the total amount to be raised from this specific object stock issuance will not exceed 960 million yuan. After deducting issuance costs, the net proceeds will be used for the construction of the Wuhu automotive interior parts intelligent manufacturing base (hereinafter referred to as the "Wuhu Project"), the construction of the Thailand production base (hereinafter referred to as the "Thailand Project"), the digital transformation of core production equipment (hereinafter referred to as the "Technical Upgrade Project"), and to supplement working capital.
The Wuhu Project will establish a new production base for automotive interior functional and decorative parts in Wuhu, Anhui, enhancing the company's production capacity and scale of automotive interior parts, and promoting the intelligent transformation of production through the establishment of intelligent production lines. It is expected that upon reaching full production, the project will increase the company's average annual operating income by 464.3051 million yuan (excluding tax) and net profit by 32.4718 million yuan; the issuer has not yet obtained the environmental impact assessment for this project.
The Thailand Project will establish self-owned production capacity for automotive interior parts in Thailand, increasing the company's production and operational presence in overseas markets. It is expected that upon reaching full production, the project will increase the company's average annual operating income by 453.3578 million yuan (excluding tax) and net profit by 44.7659 million yuan.
The Technical Upgrade Project will phase out some old and inefficient equipment, replace it with advanced machinery and equipment required for automotive parts production, and upgrade existing production lines.
2. Request for Additional Information
Please provide additional explanations regarding the following: