Stock Code: 301631 Stock Abbreviation: Yilian Technology
Shenzhen Yilian Technology Co., Ltd.
and
Guotai Haitong Securities Co., Ltd.
Regarding
Response to the Audit Inquiry Letter for the Application of Shenzhen Yilian Technology Co., Ltd. to Issue Convertible Corporate Bonds to Unspecified Targets
Sponsor (Lead Underwriter)
(No. 618 Shangcheng Road, China (Shanghai) Pilot Free Trade Zone)
July 2026
Shenzhen Stock Exchange:
In accordance with the requirements of the "Audit Inquiry Letter regarding the Application of Shenzhen Yilian Technology Co., Ltd. to Issue Convertible Corporate Bonds to Unspecified Targets" (Audit Letter [2026] No. 020051) issued by your exchange on June 26, 2026 (hereinafter referred to as the "Audit Inquiry Letter"), Shenzhen Yilian Technology Co., Ltd. (hereinafter referred to as "Yilian Technology," "the Company," or "the Issuer"), together with Guotai Haitong Securities Co., Ltd. (hereinafter referred to as "the Sponsor"), Shanghai AllBright Law Offices (hereinafter referred to as "Issuer's Counsel"), and Rongcheng Certified Public Accountants (Special General Partnership) (hereinafter referred to as "the Accountants"), have implemented and verified the relevant issues in the Audit Inquiry Letter one by one. The response is as follows for your review.
Unless otherwise specified, the definitions of terms used in this response to the Audit Inquiry Letter are consistent with those in the "Prospectus for the Issuance of Convertible Corporate Bonds to Unspecified Targets of Shenzhen Yilian Technology Co., Ltd. (Revised Draft)" (hereinafter referred to as the "Prospectus").
| Formatting | Content |
|---|---|
| Bold | Questions listed in the Audit Inquiry Letter |
| Songti | Responses to the questions listed in the Audit Inquiry Letter |
| KaiTi (Bold) | Revisions to the Prospectus and other application documents |
In this response, any discrepancies between the total and the sum of individual items are due to rounding.
Table of Contents
Question 1: 3
Question 2: 59
Other Matters: 91
Question 1
The application materials show that the proposed funds to be raised do not exceed 1.2 billion yuan, which, after deducting issuance expenses, will be used for the New Energy Intelligent Manufacturing Flexible Electrical Connection System Project (hereinafter referred to as the Electrical Connection System Project) and to supplement working capital. The total investment for the Electrical Connection System Project is 1.1842049 billion yuan, with 900 million yuan of the raised funds intended for use. The company plans to build a new production base in Liyang City, Changzhou City, Jiangsu Province. Upon completion and reaching full production, the project will form an annual production capacity of approximately 45 million units of new flexible electrical connection components (hereinafter referred to as FPC). The primary purpose of the project is to replace outsourced FPC components with self-produced FPC components during the production of FPC sampling cell connection components, thereby reducing the company's cost of purchasing FPC components. On the basis of meeting the company's own needs, the company will combine market demand and expansion to sell some FPC products externally.
The issuer has conducted revenue and net profit forecasts for this fundraising project. The issuer's previous fundraising projects, such as the "Liyang Construction Project for Electrical Connection Component Series Products," "Ningde Construction Project for Electrical Connection Component Series Products," and "New Energy Electrical Connection Component Series Production Construction Project," have experienced delays. As of the end of the reporting period, none of these previous projects have reached the intended state of use.
In January 2026, the issuer's continuous supervision institution, China Merchants Securities Co., Ltd., conducted an on-site inspection of the issuer and found that there were some problems with the use of the issuer's raised funds, including the "Liyang Construction Project for Electrical Connection Component Series Products" using its own funds for investment exceeding the original approved amount, some equipment delivery locations for the "Ningde Construction Project for Electrical Connection Component Series Products" not being at the project site, and the addition of factory building leasing for the "New Energy Electrical Connection Component Series Production Construction Project."