IPO News | Huayuan Calculation Plans Hong Kong IPO The China Securities Regulatory Commission Requests Supplementary Explanation on Whether There Are Anomalies in Shareholding Prices and Other Matters

On September 4, the China Securities Regulatory Commission (CSRC) issued the "Supplementary Material Requirements for Overseas Issuance and Listing Filing (August 31, 2026 - September 4, 2026)." The International Department of the CSRC has provided supplementary material requirements for five companies. Among them, it requires Huayuan Computing to provide supplementary explanations regarding the prices and pricing basis of previous capital increases, equity or share transfers, and whether there are any abnormal shareholding prices, among other matters. According to Hong Kong Stock Exchange's disclosure on June 14, Huayuan Computing Technology (Shanghai) Co., Ltd. has submitted its application to the main board of the Hong Kong Stock Exchange, with China Galaxy International and Jianyin International as co-sponsors. The CSRC asks Huayuan Computing to provide explanations on the following matters and requests legal verification from lawyers to issue clear legal opinions: 1. Please explain: (1) the prices and pricing basis of your company's previous capital increases, equity or share transfers, whether there are cases of abnormal shareholding prices, whether there is any transfer of benefits, whether capital contributions are fully paid, and whether there are any unfulfilled capital obligations, capital withdrawal, or defects in the capital contribution methods; (2) please provide conclusive opinions regarding the legality and compliance of your company's establishment and previous equity changes, as well as whether there are any prohibited entities defined by laws and regulations holding shares in your company. 2. Please explain: (1) in conjunction with the business scope of your company and its subsidiaries, apart from cognitive intelligent algorithm products, whether your company is actually engaged in or plans to develop businesses in other areas, and whether it has obtained necessary qualifications and licenses; (2) based on the "Special Administrative Measures for Access of Foreign Investment (Negative List)" and other relevant regulations on foreign investment management, explain the business, operational scope, qualifications, and licensing of your company and its subsidiaries concerning prohibited or restricted foreign investment areas; (3) the current status of your company's "Value-Added Telecommunications Business Operating License," and whether it continues to meet foreign investment management regulations before and after this issuance and listing and "full circulation." 3. Please explain: (1) the progress of your state-owned shareholders in handling state-owned share identification, and whether the shares intended to participate in "full circulation" are subject to pledge, freeze, or other rights defects; (2) please ensure that your company conducts a thorough verification of shareholders such as Shanghai Wumu Enterprise Management Consulting Partnership (Limited Partnership) in strict accordance with the relevant requirements of "Guidelines for the Application of Regulatory Rules, Type 2 for Overseas Issuance and Listing," and explain whether your major shareholders include entities that are prohibited by laws and regulations from directly or indirectly holding shares of the issuer. The prospectus indicates that Huayuan Computing develops and sells cognitive intelligent products, enabling enterprises to operate and optimize their production and business operations. The company's products mainly include: (i) a cognitive intelligent algorithm platform, providing core infrastructure and capabilities for the development, deployment, and operation of cognitive intelligent applications; (ii) industrial-grade intelligent agents for industrial production scenarios; and (iii) operational decision-making intelligent agents for enterprises. The company's products are primarily offered through software or integrated software and hardware solutions, and can be deployed on-site, integrated into the existing systems and workflows of customers. Since its establishment in 2002, Huayuan Computing has adhered to a dual-driven approach of innovation in underlying algorithm technology and innovation in vertical scenario industries. Currently, the value of cognitive intelligence characterized by logical causal reasoning and trustworthy decision-making is increasingly prominent. Based on a profound insight into the evolution trends of artificial intelligence, the company has proactively laid out systematic research and application of cognitive intelligence and reasoning decision-making since 2017, becoming one of the first enterprises in the country to engage in research and industrial practice in this field.