Keboda's response to the Shanghai Stock Exchange's inquiry regarding the 14.9 billion yuan convertible bond application draws attention to the benefit estimates of the fundraising projects and the reasonableness of the proposed financing scale.

Keboda Technology Co., Ltd. (hereinafter referred to as “Keboda”) recently responded to the Shanghai Stock Exchange regarding its inquiry letter on the application documents for the issuance of convertible corporate bonds to unspecified entities. The company plans to raise a total of no more than 1,490,740,000 yuan for multiple capacity expansion and information technology construction projects. The inquiry letter mainly focused on the fundraising investment projects and financing scale, company business, and operational status, to which Keboda provided detailed explanations.

In terms of the benefit estimation of the fundraising investment projects, Keboda disclosed the estimation basis for key parameters such as product unit price, sales volume, costs, gross profit margin, and expense ratio for the domain control project, Anhui expansion project, and Zhejiang expansion project. The projected operating revenue for the domain control project upon reaching full capacity is expected to be 5,742,700.20 yuan, with an after-tax internal rate of return of 17.11% and a gross profit margin of 11.90%; the projected operating revenue for the Anhui expansion project upon reaching full capacity is expected to be 813,458.90 yuan, with an after-tax internal rate of return of 16.89% and a gross profit margin of 27.14%; the projected operating revenue for the Zhejiang expansion project upon reaching full capacity is expected to be 4,360,454.90 yuan, with an after-tax internal rate of return of 18.01% and a gross profit margin of 15.83%. The company stated that the selection basis for the main parameters in the benefit estimation is sufficient, and it is reasonable and prudent compared to the company’s historical data and comparable companies in the industry.

Regarding the reasonableness of the financing scale, Keboda disclosed that as of September 30, 2025, the company has invested a total of 310,785,400 yuan from its own funds into this fundraising investment project and plans to use the raised funds for reimbursement. According to estimates, the company expects a funding gap of approximately 2,042,549.60 yuan over the next three years (2026-2028), while the proposed fundraising amount is 1,490,740,000 yuan, indicating that the funding gap exceeds the total amount of the proposed fundraising, thus making the financing scale necessary and reasonable.

In terms of company business and operational status, Keboda’s overall gross profit margin showed a downward trend during the reporting period, at 32.90%, 29.58%, 28.46%, and 25.70%, respectively. The company explained that the main reasons include intensified market competition, changes in product structure, rising prices of certain raw materials, adjustments in accounting policies, and the merger with Shanghai Keboda Intelligent Technology Co., Ltd. Despite some ongoing impacts, the company believes that the overall risk is controllable and expects to continue meeting the relevant issuance conditions for convertible bonds.

Regarding the issue of large inventory balances, the company stated that the main reasons are income growth, customer settlement models, and a higher proportion of overseas business. The inventory aging is mainly within one year, with a high order coverage rate and good transfer situation after the period, and the provision for inventory impairment is sufficient, with no significant differences compared to comparable companies in the industry.

In addition, Keboda also explained the situation regarding accounts receivable growth, changes in overseas income, fluctuations in sales service fees, and financial investments. The company stated that the growth in accounts receivable is in line with the trend of income growth, and the collection situation is good; overseas income has increased along with the overall sales scale, which matches the customs declaration data and export tax rebate amounts; changes in sales service fees are mainly due to the costs related to obtaining customer designated project payments; from six months before the board resolution date of this issue until the issue date, the company has no financial investments implemented or planned, and there were no large or long-term financial investment situations at the end of the most recent period.

The reporting accountant has verified the above issues and believes that the key indicators for Keboda’s benefit assessment of the fundraising investment projects are reasonable and prudent, the financing scale meets the company’s actual development needs, the company’s operational status is good, and it is expected to continue meeting the conditions for the issuance of convertible bonds, with the accounting treatment of inventory, accounts receivable, and other items complying with accounting standards.

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Editor: Xiaolang Express