Shenzhen Zhongheng Huafa Co., Ltd Audit report Da Xin Shen Zi [2026] No. 5-00080 Daxin Certified Public Accountants (Special General Partnership) WUYIGE CERTIFIED PUBLIC ACCOUNTANTS LLP.
WUYIGE Certified Public Accountants.LLP Phone: +86(10)82330558 Room 2206 22/F, No. 1 Zhichun Road, Haidian District, Beijing, Xueyuan International Tower Fax: +86(10)82327668 22nd Floor, 22nd Floor, No.1 Zhichun Road, Haidian Building, Haidian Building. Website: www.daxincpa.com.cn Postal code 100083 Beijing, China, 100083 Audit report Da Xin Shen Zi [2026] No. 5-00080 To all shareholders of Shenzhen Zhongheng Huafa Co., Ltd.: I. Audit Opinion We have audited the financial statements of Shenzhen Zhongheng Huafa Co., Ltd. (hereinafter referred to as "your company"), including the year 2025 Consolidated and parent company balance sheets as of December 31, consolidated and parent company income statements for fiscal year 2025, consolidated and parent company income statements Statement of cash flows, consolidated and parent company statements of changes in shareholders' equity, and notes to the financial statements. We believe that the attached financial statements are prepared in all material respects in accordance with the provisions of the Enterprise Accounting Standards and fairly reflect Your company's consolidated and parent company financial position as of December 31, 2025, as well as the consolidated and parent company's operating results for the year 2025 and cash flows from the merger and parent company. 2. Forming the basis for the audit opinion We carried out the audit work in accordance with the Chinese Certified Public Accountant Auditing Standards. The audit report "CPA is correct." The section "Responsibilities of Financial Statement Audits" further elaborates on our responsibilities under these standards. According to the rank of Chinese Certified Public Accountant Code of Ethics and the Chinese Certified Public Accountant Independence Standards, we are independent of your company and have fulfilled their professional ethics standards He is responsible. We comply with the independence requirements applicable to audits of public interest entities' financial statements during the audit. We believe that the audit evidence we have obtained is sufficient and appropriate, providing a basis for issuing an audit opinion. 3. Key audit matters Key audit matters are those we consider most important for the current financial statement audit based on our professional judgment. These things The response to item is based on auditing the overall financial statements and forming an audit opinion; we do not express these matters separately See. (1) Revenue recognition
- Description of matters
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WUYIGE Certified Public Accountants.LLP Phone: +86(10)82330558 Room 2206 22/F, No. 1 Zhichun Road, Haidian District, Beijing, Xueyuan International Tower Fax: +86(10)82327668 22nd Floor, 22nd Floor, No.1 Zhichun Road, Haidian Building, Haidian Building. Website: www.daxincpa.com.cn Postal code 100083 Beijing, China, 100083 As stated in Note 5 (29) of your consolidated financial statements, the main business of your company's display and injection-molded parts for 2025 is recognized Business revenue was RMB 809.9461 million, accounting for 94.41% of operating income, with revenue from product sales coming from commodity control Confirmation occurs when control has been transferred to the customer. For domestic sales, revenue is recognized when the product is shipped and the other party signs for receipt; for exports, revenue is recognized After the product has been shipped and customs clearance procedures completed, revenue is recognized via the bill of lading. Because operating revenue is significant and is one of the key performance indicators, we have identified operating revenue as a key audit matter. 2. Audit response (1) We understood, evaluated, and tested the design and implementation of key internal controls related to the revenue cycle, and tested internally Control effectiveness; (2) Select samples to inspect sales contracts or orders, verify invoices, outbound orders, receipts, customs declarations, freight bills, etc., Identifying contract terms and conditions related to the transfer of commodity control, and evaluating whether the timing of revenue recognition complies with enterprise accounting standards Requirements;