Xinjiang Xuefeng Sci-Tech (Group) Co.Ltd(603227) : reply to Xinjiang Xuefeng Sci-Tech (Group) Co.Ltd(603227) inquiry letter [dahuahe Zi [2022] No. Tungkong Inc(002117) ] Shanghai Stock Exchange: we have received the “reply to Xinjiang Xinjiang Xuefeng Sci-Tech (Group) Co.Ltd(603227) (Group) Co., Ltd. (hereinafter referred to as” company “,” listed company “or” Xuefeng shares “) from your office The inquiry letter on the information disclosure of the plan for issuing shares, paying cash to purchase assets, raising supporting funds and related party transactions of a joint stock limited company (szgh2022] 0055, hereinafter referred to as the “inquiry letter”). We have carefully verified the matters in the inquiry letter that require the opinions of accountants, and now reply as follows: Item 1 According to the plan, the underlying assets are mainly engaged in the production and sales of chemical raw materials and chemical fertilizers such as melamine, ammonium nitrate and nitro compound fertilizer. In 2020 and 2021, the underlying assets achieved operating revenue of 1.303 billion yuan and 3.295 billion yuan respectively, with a year-on-year increase of 152.88%; The net profit was 941177 million yuan and 878 million yuan respectively, with a year-on-year increase of 832.40%. The operating performance of the underlying assets has increased significantly within one year. The company is requested to verify and make supplementary disclosure: (1) list the operating income of the underlying assets in recent three years according to the main business, including the amount, proportion and year-on-year change of income; (2) Explain the reason and rationality of the substantial growth of the performance of the underlying assets in the short term in combination with the industry situation, the target sales volume and price changes, and the performance changes of comparable companies in the contract industry; (3) In combination with industry cycle fluctuations, upstream and downstream supply and demand changes, price trends of target raw materials and products, explain whether the performance growth of target assets is sustainable, and fully prompt relevant risks