Special Explanation of Financial Accounting Issues in the Review Center's Inquiry Letter Regarding Guoke Tiancheng Technology Co., Ltd.'s Application for Issuing Convertible Corporate Bonds to Unspecified Targets
To: Shenzhen Stock Exchange
From: Grand Thornton (Special General Partnership)
Document No.: Grand Thornton Letter (2026) No. 110A006041
Date: [blank]
Subject: Special Explanation of Financial Accounting Issues in the Review Center's Inquiry Letter Regarding Guoke Tiancheng Technology Co., Ltd.'s Application for Issuing Convertible Corporate Bonds to Unspecified Targets
Dear Shenzhen Stock Exchange:
In accordance with the requirements of the "Review Center's Inquiry Letter Regarding Guoke Tiancheng Technology Co., Ltd.'s Application for Issuing Convertible Corporate Bonds to Unspecified Targets" (Inquiry Letter [2026] 020053) (hereinafter referred to as the "Inquiry Letter") issued by your exchange on July 2, 2026, Grand Thornton (Special General Partnership) (hereinafter referred to as the "Reporting Accountant") has conducted a thorough investigation into the issues that require explanation or opinion from the Reporting Accountant as mentioned in the Inquiry Letter, and hereby provides a special explanation as follows:
(Unless otherwise specified, the abbreviations used in this special explanation have the same meaning as in the "Prospectus for Guoke Tiancheng Technology Co., Ltd.'s Application for Issuing Convertible Corporate Bonds to Unspecified Targets" (hereinafter referred to as the "Prospectus").
Unless otherwise specified, all numerical values in this special explanation are rounded to two decimal places. If the sum of the sub-items does not match the total, it is due to rounding.)
Question 1
During the reporting period, the net cash flow from operating activities generated by the company's operations was -9,611.36 million yuan, -2,931.46 million yuan, -12,969.72 million yuan, and -1,209.50 million yuan, respectively, remaining negative.
Please explain: Combine with market competition, please supplement the explanation of the reasonableness of the continuous negative net cash flow from operating activities during the reporting period, and whether there are significant differences compared with comparable companies in the same industry; based on the above situation, further explain whether the solvency is affected, and whether the company has the ability to repay the principal and interest of the convertible corporate bonds.
Issuer's Explanation:
I. Combine with market competition to supplement the explanation of the reasonableness of the continuous negative net cash flow from operating activities during the reporting period, and whether there are significant differences compared with comparable companies in the same industry
(I) The company's net cash flow from operating activities has been continuously negative during the reporting period, which is consistent with the characteristics of the industry and the company's current development stage.
- During the reporting period, the company's cash inflow from operating activities is matched with the scale of operating revenue. The continuous negative net cash flow from operating activities is mainly due to the large cash outflow from operating activities generated by procurement and inventory preparation during the period of continuous growth in operating scale.
The following table shows the comparison between the company's cash flow from operating activities and operating revenue during the reporting period:
| Project | 2025 Fiscal Year | Growth Rate | 2024 Fiscal Year | Growth Rate | 2023 Fiscal Year |
|---|---|---|---|---|---|
| Operating Revenue | 110,338.54 | 14.86% | 96,064.50 | 36.93% | 70,158.45 |
| Cash Inflow from Operations | 114,537.26 | 34.67% | 85,048.56 | 48.10% | 57,427.79 |
| Cash Outflow from Operations | 127,506.98 | 44.93% | 87,980.02 | 31.24% | 67,039.15 |
| Net Cash Flow from Operations | -12,969.72 | - | -2,931.46 | - | -9,611.36 |
| Cash Inflow from Operations / Operating Revenue | 103.81% | - | 88.53% | - | 81.85% |