新銳股份Drillco Tools S.A.審計(jì)報(bào)告

ReportofIndependentAuditor

Tothe

PartnersandDirectorsof

SuzhouShareateToolsLtd.

Auditor’sOpinion

WehaveauditedthefinancialstatementsofDrillcoToolS.A.anditssubsidiaries,whichcomprisethe

statementsoffinancialpositionasofAugust312024,andDecember312023,andtherelatedstatementsofcomprehensiveincome,changesinequityandcashflowsfortheeightmonthsendedasofAugust31,2024andtheyearendedasofDecember31,2023andtherelatednotestothefinancialstatements.

Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionofDrillcoToolsS.AanditssubsidiariesasofAugust312024,andDecember312023,andtheresultsofitsoperationsanditscashflowsfortheeightmonthsendedasofAugust31,2024andtheyearendedasofDecember31,2023,inaccordancewiththeInternationalFinancialReportingStandards.

Basisfortheopinion

WeconductedourauditsinaccordancewithgenerallyacceptedauditingstandardsinChile.Our

responsibilitiesunderthosestandardsarefurtherdescribedinthe“Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements”sectionofourreport.WeareindependentofDrillcoToolsS.Aanditssubsidiaries,inaccordancewithethicalrequirementsthatarerelevanttoourauditsofthefinancialstatements,andwe

havefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencethatwehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

EmphasisofMatter:SpecialpurposeoftheConsolidatedFinancialStatementsanduserestrictions

ThisreportisissuedtoallshareholdersofSuzhouShareateToolsLtd.solelyforthepurposeoftheir

proposedshareacquisitionofDrillcoToolsS.A.andshouldnotbeusedforanyotherpurpose.Weexpresslydisclaimanyliabilityorobligationtoanyotherpartyregardingthecontentofthisreport.Ouropinionisnot

modifiedinrespectofthismatter.

ResponsibilitiesofManagementfortheFinancialStatements

Managementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsin

accordancewithInternationalFinancialReportingStandards.Thisresponsibilityincludesthedesign,implementationandmaintenanceofinternalcontrolrelevanttothepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatements,whetherduetofraudorerror.

Inpreparingthefinancialstatements,managementisrequiredtoevaluatewhetherthereareconditionsandevents,consideredintheaggregate,thatraisesubstantialdoubtabouttheabilityofDrillcoToolsS.Aanditssubsidiaries,tocontinueasagoingconcernforatleasttwelvemonthsaftertheendofthereportingperiod,butnotlimitedtothatperiod.

ForvisMazarsAuditoresConsultoresLimitada1

ResponsibilitiesoftheAuditorfortheAuditoftheFinancialStatements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatements,asawhole,arefreeofmaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurancebutisnotabsoluteassuranceandthereforeis

notaguaranteethatanauditconductedinaccordancewithGenerallyAcceptedAuditingStandardsinChilewillalwaysdetectamaterialmisstatementwhenitexists.

Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomission,concealment,misrepresentationortheoverrideofcontrolsbyManagement.Amisstatementisconsideredmaterialif,individuallyorinthe

aggregate,itcouldinfluencethejudgmentofareasonableuserofthesefinancialstatements.

AspartofanauditconductedinaccordancewithGenerallyAcceptedAuditingStandardsinChile,we:

.Exerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.

.Identifyandassesstherisksofmaterialmisstatementinthefinancialstatements,whetherdueto

fraudorerror,designandperformauditproceduresresponsivetothoserisks.Thoseprocedures

includeexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.

.Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheinternalcontrolofDrillcoToolsS.Aanditssubsidiaries.Accordingly,nosuchopinionisexpressed.

.Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofsignificantaccountingestimatesmadebymanagement,aswellastheoverallpresentationofthefinancialstatements.

.Concludewhether,inouropinion,thereareeventsorconditionsthat,consideredintheaggregateraisesubstantialdoubtaboutthecapacityofDrillcoToolsS.Aanditssubsidiaries,tocontinueasagoingconcernforareasonableperiodoftime.

Wecommunicatewiththosechargedwithgovernance,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesandmaterialweaknessesininternalcontrolthatweidentifiedduringouraudit.

JuanPabloHessI.ForvisMazarsAuditoresConsultoresLtda.

Santiago,December24,2024

ForvisMazarsAuditoresConsultoresLimitada2

DRILLCO

DrillcoToolsS.A.andSubsidiaries

CONSOLIDATEDFINANCIALSTATEMENTS

FortheperiodsendedAugust31,2024,andDecember31,2023.

DRILLCO

DrillcoToolsS.A.andSubsidiaries

TABLEOFCONTENTS

CONSOLIDATEDSTATEMENTSOFFINANCIALPOSITION 1

CONSOLIDATEDSTATEMENTSOFINCOMEBYFUNCTION 3

CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINCOMEBYFUNCTION 4

CONSOLIDATEDSTATEMENTSOFCASHFLOWS,INDIRECT 5

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS 8

Note1.-Generalinformation 8

Note2.-Basisofpreparationandpresentationofthefinancialstatements 9

Note3.-Summaryofsignificantaccountingpolicies 14

Note4.-FinancialRiskManagement 26

Note5-Cashandcashequivalents 28

Note6.-Othernon-financialassets,current 28

Note7.-Tradeandotherreceivables 29

Note8.-Balancesandtransactionswithrelatedparties 29

Note9-Inventories 31

Note10.-CurrentTaxAssetsandLiabilities 32

Note11.-Investmentaccountedusingequitymethod 32

Note12.-Intangibleassetsotherthangoodwill 33

Note13.-Goodwill 34

Note14.-Property,plantandequipment 35

Note15.-Incometaxanddeferredtaxes 37

Note16-Otherfinancialliabilities 38

DRILLCO

DrillcoToolsS.A.andSubsidiaries

Note17.-Tradeandotherpayables 43

Nota18.-Provisionsforemployeebenefits 43

Note19.-Equity 44

Note20.-Revenues 45

Note21.-Costofsales 45

Note22.-OperatingExpenses 46

Note23.-SellingExpenses 46

Note24.-ResearchandDevelopmentExpenses 46

Note25.-FinancialStatementsoftheCompaniesincludedintheconsolidation 47

Note26.-Foreigncurrencytranslationdifferences 53

Note27.-Indexationunits 53

Note28.-Provisions,contingentassetsandliabilities 53

Note29-.Sanctions 54

Note30.-Subsequentevents 54

1

DRILLCO

DrillcoToolsS.A.andSubsidiaries

CONSOLIDATEDSTATEMENTSOFFINANCIALPOSITION

AsofAugust31,2024andDecember31,2023

(ExpressedinthousandsofUnitedStatesdollars-ThUS$)

Assets

Currentassets

Cashandcashequivalents

Othernon-financialassets,currentTradeandotherreceivables,current

Accountsreceivablefromrelatedentities,currentInventories

Currenttaxassets

Totalcurrentassets

Non-CurrentAssets

Note

5

6

7

8

9

10

12.31.2023ThUS$

08.31.2024ThUS$

1,317

1,332

971

1,126

8,224

7,899

132

780

19,147

21,087

1,504

1,455

31,295

33,679

Accountsreceivablefromrelatedparties,non-current

8

1,646

1,710

Investmentaccountedusingequitymethod

11

4,107

5,335

Property,plantandequipment,net

14

8,623

8,708

Intangibleassetsotherthangoodwill

12

122

129

Goodwill

13

395

395

Deferredtaxassets

15

1,929

2,129

Totalnon-currentassets16,82218,406

TOTALASSETS48,11752,085

Theaccompanyingnotesfromnotes1to30areanintegralpartoftheseconsolidatedfinancialstatements

2

DRILLCO

DrillcoToolsS.A.andSubsidiaries

CONSOLIDATEDSTATEMENTSOFFINANCIALPOSITION

AsofAugust31,2024andDecember31,2023

(ExpressedinthousandsofUnitedStatesdollars-ThUS$)

EquityandliabilitiesLiabilities

Currentliabilities

Otherfinancialliabilities,current

TradeaccountspayableandotherpayablesCurrenttaxliabilities

CurrentprovisionsforemployeebenefitsTotalcurrentliabilities

Non-currentliabilities

Note

16

17

10

18

12.31.2023ThUS$

08.31.2024ThUS$

12,043

13,512

12,943

13,364

138

348

1,207

1,532

26,331

28,756

Otherfinancialliabilities,non-current163,3203,863

Accountspayablenon-current17-154

Deferredtaxliabilities152,1462,131

Non-currentprovisionsforemployeebenefits184037

Totalnon-currentliabilities5,5066,185

Totalliabilities31,83734,941

Equity

Issuedcapital1911,70511,705

Accumulatedprofit192,3842,490

Otherreserves192,2122,969

Equityattributabletoownersofparent16,30117,164

Non-controllinginterests19(21)(20)

Totalequity16,28017,144

Totalequityandliabilities48,11752,085

Theaccompanyingnotesfromnotes1to30areanintegralpartoftheseconsolidatedfinancialstatements

3

DRILLCO

DrillcoToolsS.A.andSubsidiaries

CONSOLIDATEDSTATEMENTSOFINCOMEBYFUNCTION

FortheperiodsendedAugust31,2024andDecember31,2023(ExpressedinthousandsofUnitedStatesdollars-ThUS$)

Accumulated

08.31.202412.31.2023

NoteThUS$ThUS$

Revenues2025,54441,192

Costofsales21(17,864)(29,200)

Grossprofit7,68011,992

Operatingexpenses22(1,037)(1,718)

Sellingexpenses23(4,743)(6,758)

Researchanddevelopmentexpenses24(893)(1,393)

Impairmentofinventories9.b)(23)(178)

Impairmentofaccountsreceivable7.b)(114)(110)

Otherincome(losses)3455

Financialincome123

Financialcost(923)(1,523)

Profitsinassociatesaccordingtoparticipationmethod119232,354

Foreigncurrencytranslationdifferences26(127)(295)

Indexationunits27(34)7

Profitsbeforetax7552,436

Incometax(expenses)income15(354)113

Profit(loss)fortheperiod4012,549

Profit(loss)attributableto

OwnersoftheParentCompany4022,549

Non-controllinginterests(1)-

Profit(loss)fortheperiod4012,549

Profitspershare

Profit(loss)dilutedpersharefromcontinuingoperationsUS$/Share637

Profit(loss)pershareindiscontinuedoperationsUS$/Share--

Profit(loss)pershare637

AveragenumberofordinarysharesN°shares68,48768,487

Theaccompanyingnotesfromnote1to30areanintegralpartoftheseconsolidatedfinancialstatements.

4

DRILLCO

DrillcoToolsS.A.andSubsidiaries

CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINCOMEBYFUNCTION

FortheyearsendedAugust31,2024andDecember31,2023(ExpressedinthousandsofUnitedStatesdollars-ThUS$)

Accumulated

StatementofcomprehensiveincomeProfit(loss)fortheperiod

Othercomprehensiveincome,beforetaxReevaluationsurplus

ExchangedifferencesperconversionProfitbeforeincometax

IncometaxrelatingtoothercomprehensiveincomeTotalcomprehensiveincome

Comprehensiveincomeattributableto:

OwnersoftheParentCompanyNon-controllinginterests

Totalcomprehensiveincome

12.31.2023ThUS$

Note

08.31.2024ThUS$

401

2,549

114

371

(840)

702

(325)

3,622

(31)

(100)

(356)3,522

(355)3,522

(1)-

(356)

3,522

Theaccompanyingnotesfromnote1to30areanintegralpartoftheseconsolidatedfinancialstatements.

5

DRILLCO

DrillcoToolsS.A.andSubsidiaries

CONSOLIDATEDSTATEMENTSOFCASHFLOWS,INDIRECT

FortheyearsendedAugust31,2024andDecember31,2023(ExpressedinthousandsofUnitedStatesdollars-ThUS$)

Cashflowsfrom(usedin)operatingactivitiesProfit(loss)fortheperiod

Adjustmentsforreconciliationofprofits(losses)Incometaxexpenses

Decreases(increases)ininventories

Increase(decrease)inaccountsreceivableoftradeorigin

Increases(decreases)inotheraccountspayableoftradeoriginIncreases(decreases)inotheraccountsreceivable

Increases(decreases)inotheraccountspayableDepreciationandamortizationexpenses

Foreigncurrencylosses(gains)

Losses(gains)ofindexationunitsAccruedinterest

Earningsaccruedinassociates

Subsidiariesexchangedifferencesperconversion

Otheradjustmentsforitemsotherthancash

Totaladjustmentsforreconciliationofprofits(losses)Netcashflowsfrom(usedin)operationsactivities

Cashflowsfrom(usedin)investingactivitiesPurchasesofproperty,plantandequipmentPurchasesofintangibleassets

Netcashflowsfrom(usedin)investmentactivities

Cashflowsfrom(usedin)financingactivitiesDividendsReceived

DividendspaidPaymentofloans

Netcashflowsfrom(usedin)financingactivities

Netincrease(decrease)incashandcashequivalents

Note

15

9

12-14

26

27

14

12

Accumulated

08.31.2024ThUS$

12.31.2023ThUS$

401

2,549

202

(113)

1,940

(1,521)

(325)

1,097

(582)

1,940

818

(1,280)

(325)

749

667

1,190

127

295

34

(7)

830

1,432

(923)

(2,356)

(840)

(1,543)

(476)

(811)

1,147

(928)

1,548

1,621

(416)

(1,842)

(156)

(83)

(572)

(1,925)

2,323

689

(508)

(669)

(2,806)

(105)

(991)

(85)

(15)

(389)

Cashandcashequivalentsatbeginningoftheyear51,3321,721

Cashandcashequivalentsatendofperiod51,3171,332

Theaccompanyingnotesfromnotes1to30areanintegralpartoftheseconsolidatedfinancialstatements.

6

DRILLCO

DrillcoToolsS.A.andSubsidiaries

CONSOLIDATEDSTATEMENTSOFCHANGESINNETEQUITY

AsofAugust31,2024,andDecember31,2023

(ExpressedinthousandsofUnitedStatesdollars-ThUS$)

OtherReserves

Issuedcapital

Revaluationsurplus

Exchange

differencesper

conversion

OtherReserves

Totalotherreserves

Earnings(losses)accumulated

Equity

attributabletothe

controller’s

owners

Non-controllinginterests

Totalequity

StartingbalanceasofJanuary01,2024

11,705

1,833

1,196

(60)

2,969

2,490

17,164

(20)

17,144

Changesinequity

Comprehensiveincome

Profitlossfortheperiod

Revaluationsurplus,netofdeferredtaxes

Exchangedifferencesperconversion

-

-

-

-

83

-

-

-

(840)

-

-

-

-

83

(840)

402

-

-

402

83

(840)

(1)

-

-

401

83

(840)

Totalcomprehensiveincome

-

83

(840)

-

(757)

402

(355)

(1)

(356)

Dividends

-

-

-

-

-

(508)

(508)

-

(508)

Totalofchangesinequity

-

83

(840)

-

(757)

(106)

(863)

(1)

(864)

FinalbalanceasofAugust31,2024

11,705

1,916

356

(60)

2,212

2,384

16,301

(21)

16,280

Theaccompanyingnotesfromnotes1to30areanintegralpartoftheseconsolidatedfinancialstatements.

7

DRILLCO

DrillcoToolsS.A.andSubsidiaries

CONSOLIDATEDSTATEMENTSOFCHANGESINNETEQUITY

AsofAugust31,2024andDecember31,2023

(ExpressedinthousandsofUnitedStatesdollars-ThUS$)

OtherReserves

Issuedcapital

Revaluationsurplus

Exchange

differencesper

conversion

OtherReserves

Totalotherreserves

Earnings(losses)accumulated

Equity

attributabletothe

controller’s

owners

Non-controllinginterests

Totalequity

StartingbalanceasofJanuary01,2023

11,705

1,562

494

(60)

1,996

610

14,311

(20)

14,291

Changesinequity

Comprehensiveincome

Profitlossfortheperiod

Revaluationsurplus,netofde-ferredtaxes

Exchangedifferencesperconver-sion

-

-

-

-

271

-

-

-

702

-

-

-

-

271

702

2,549

-

-

2,549

271

702

-

-

-

2,549

271

702

Totalcomprehensiveincome

-

271

702

-

973

2,549

3,522

-

3,522

Dividends

-

-

-

-

-

(669)

(669)

-

(669)

Totalofchangesinequity

-

271

702

-

973

1,880

2,853

-

2,853

FinalbalanceasofDecember31,2023

11,705

1,833

1,196

(60)

2,969

2,490

17,164

(20)

17,144

Theaccompanyingnotesfromnotes1to30areanintegralpartoftheseconsolidatedfinancialstatements.

8

DRILLCO

DrillcoToolsS.A.andSubsidiaries

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS

FortheyearsendedAugust31,2024andDecember31,2023

Note1.-Generalinformation.

DrillcoToolsS.A.,identifiedbyTaxpayerNumber88.859.600-3(hereinafteralsoreferredtoastheCom-pany,theParentCompanyortheGroup),isaclosely-heldcorporationincorporatedwithChileancapitalin

May,1982.Itscorporatepurposeisthedesign,manufactureandmarketingofDownTheHole(DTH)drillingproducts,suchaspercussionhammers,drillbitsandaccessoriesforthemining,construction,oilandwa-terwellindustries.

1.1.-Stockcapitalandownership.

AsofAugust31,2024,thestockcapitalamountstoThUS$11,705(ThCh$10,266,866),andisdividedinto68,487nominativeshareswithnoparvalue,whicharefullysubscribedandpaidin.

AsofAugust31,2024andDecember31,2023,theownershipstructureofDrillcoToolsS.A.ismadeupofthefollowingshareholders:

SharesOwnership%

TaxpayerNoShareholder08.31.202412.31.202308.31.202412.31.2023

96.888.700-9

HoldingEmpresasDrillcoLtda.

65,063

65,063

95.00%

95.00%

78.238.060-5

InversionesGardutLtda.

3,424

68,487

3,424

68,487

5.00%

100.00%

5.00%

Total

100.00%

1.2.-Subsidiariesincludedintheconsolidatedfinancialstatements.

Thesubsidiariesincludedintheseconsolidatedfinancialstatementsarethefollowing:

Subsidiary

Functionalcurrency

Country

08.31.2024Ownership%

12.31.2023Ownership%

DrillcoToolsINC.

U.S.dollar

UnitedStates

100%

100%

DrillcoToolsEuropaS.R.L.

Euro

Italy

95%

95%

DrillcoToolsPerúS.A.C.

PeruvianSol

Peru

100%

100%

DrillcoAsiaCO.,LTD.

KoreanWon

SouthKorea

100%

100%

DrillcoAfrica(PTY)LTD.

SouthAfricanRand

SouthAfrica

100%

100%

DrillcoEuropeLimited.

PoundSterling

England

100%

100%

DrillcoAustraliaPTYLTD.

AustralianDollar

Australia

100%

100%

9

DRILLCO

DrillcoToolsS.A.andSubsidiaries

Note1.-Companyinformation,continued1.3.-BoardofDirectorsandManagement.

DrillcoToolsS.A.ismanagedbyaBoardofDirectorsmadeupofthreestandingdirectors,whoareelectedforaperiodofthreeyears,andmaybere-electedindefinitely.

ThecurrentBoardofDirectorsismadeupofthefollowingmembers:

NameTaxpayerNoPosition

RolandoCarmonaGómez

7.549.,209-K

Chairman

RodrigoCarmonaGómez

6.947.116-1

Director

FélixTenorioMartínez

9.981.118-1

Director

Note2.-Basisofpreparationandpresentationofthefinancialstatements.

2.1.-Financialstatements

TheseconsolidatedfinancialstatementscorrespondtotheperiodendedAugust31,2024andDecember31,2023havebeenpreparedinaccordancewiththeInternationalFinancialReportingStandards(IFRS)anditsinterpretationsissuedbytheInternationalAccountingStandardsBoard(hereinafter“IASB”).

TheseconsolidatedfinancialstatementsareissuedtoallshareholdersofSuzhouShareateToolsLtd.solelyforthepurposeoftheirproposedshareacquisitionofDrillcoToolsS.A.andshouldnotbeusedforanyotherpurpose.

Theseconsolidatedfinancialstatementshavebeenpreparedbasedontheaccountingrecordsmaintainedbytheparentcompanyyandbyotherentitiesthatarepartoftheconsolidatedgroup.

2.2.-Informationresponsibility

TheinformationpresentedintheseconsolidatedfinancialstatementsistheresponsibilityoftheManage-mentofDrillcoToolsS.A.andSubsidiaries,whichexpresslystatethattheprinciplesandcriteriaincludedintheInternationalFinancialReportingStandards(IFRS)havebeenfullyapplied.

TheconsolidatedfinancialstatementspreparedbythecompanycomplywiththerequirementsofIFRSandaccuratelyandcompletelyreflectthecompany'sfinancialposition,operationincome,changesinshare-holders'equityandcashflows.

TheconsolidatedfinancialstatementshavebeenreviewedandauthorizedforissuancebytheCompany'sManagementasofDecember24,2024.

10

DRILLCO

DrillcoToolsS.A.andSubsidiaries

Note2.-Basisofpreparationandpresentationofthefinancialstatements,continued.2.3.-Estimates,JudgmentsandCriteriausedbyManagement

IntheconsolidatedfinancialstatementsofDrillcoToolsS.A.andSubsidiaries,certainjudgmentsandesti-matesmadebyManagementhavebeenusedtoquantifysomeoftheassets,liabilities,income,expenses,andcommitmentsrecordedtherein.Theseestimatesmainlyinvolvethefollowing:

.Fairvalueofproperty,plant,andequipment

.Theusefullifeofproperty,plantandequipment,intangibleassets,andtheirresidualvalue..Lossesduetoimpairmentofcertainassets,includingaccountsreceivablefromcustomers..Provisionsforcommitmentsacquiredwiththirdpartiesandcontingentliabilities,and

.Theprovisionsthatcoverthedifferentvariablesthataffecttheproductsinstock.

Althoughtheseestimatesweremadebasedonthebestinformationavailableatthedateofpreparationoftheseconsolidatedfinancialstatements,itisposs