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Zhongxinghua Certified Public Accountants LLP (Special General Partnership)
ZHONGXINGHUA CERTIFIED PUBLIC ACCOUNTANTS LLP
Address: 20th Floor, Tower B, Lize SOHO, 20 Lize Road, Fengtai District, Beijing
Postal Code: 100073
Tel: (010) 51423818
Fax: (010) 51423816
Table of Contents
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Audit Report
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Notes to the Audit Report
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Consolidated Balance Sheet
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Consolidated Income Statement
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Consolidated Cash Flow Statement
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Consolidated Statement of Changes in Shareholders' Equity
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Parent Company Balance Sheet
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Parent Company Income Statement
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Parent Company Cash Flow Statement
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Parent Company Statement of Changes in Shareholders' Equity
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Notes to the Financial Statements
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Attachments to the Audit Report
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Copy of Business License of Zhongxinghua Certified Public Accountants LLP (Special General Partnership)
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Copy of Practicing Certificate of Zhongxinghua Certified Public Accountants LLP (Special General Partnership)
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Copy of Securities and Futures Related Business License of Zhongxinghua Certified Public Accountants LLP (Special General Partnership)
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Copy of Certified Public Accountant Practicing Certificate
Tel: 010-51423818 Fax: 010-51423816
Audit Report
Zhongxinghua Audit [2026] No. 0006966
To the Shareholders of Jiangsu Fasten Co., Ltd.:
- Audit Opinion
We have audited the financial statements of Jiangsu Fasten Co., Ltd. (hereinafter "Fasten Co."), including the consolidated and parent company balance sheets as of December 31, 2025, the 2025 consolidated and parent company income statements, the consolidated and parent company cash flow statements, the consolidated and parent company statements of changes in shareholders' equity, and the relevant notes to the financial statements.
In our opinion, the accompanying financial statements have been prepared in all material respects in accordance with the Accounting Standards for Business Enterprises, and fairly present the consolidated and parent company financial position of Fasten Co. as of December 31, 2025, and the consolidated and parent company operating results and cash flows for the year 2025.
- Basis for Audit Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities under these standards are further described in the "Responsibilities of Certified Public Accountants for the Audit of Financial Statements" section of the audit report. We are independent of Fasten Co. in accordance with the Code of Ethics for Certified Public Accountants of China and have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
- Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined that the following matters should be communicated in the audit report.
(1) Revenue Recognition
- Matter Description
Please refer to Note "III. 26 Revenue" and Note "V. 34 Notes to the Consolidated Financial Statements" of the 2025 financial statements of Fasten Co. The 2025 annual operating revenue of Fasten Co. was 310,079,800 RMB.
Since revenue is a key performance indicator, there is an inherent risk that management may manipulate the timing of revenue recognition to meet specific targets or expectations; therefore, we identified revenue recognition as a key audit matter.
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Audit Response
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Through inquiries with management regarding sales contracts, we understood and evaluated whether Fasten Co.'s revenue recognition policy complies with the provisions of the Accounting Standards for Business Enterprises, and compared Fasten Co.'s revenue recognition policy with that of comparable companies in the industry.