Table of Contents
I. Special Review Opinion on Non-Recurring Gains and Losses……………………………Page 1-2
II. Detailed Statement of Non-Recurring Gains and Losses for 2025………………………Page 3-4
III. Notes to the Detailed Statement of Non-Recurring Gains and Losses for 2025…………Page 5-6
Special Review Opinion on Non-Recurring Gains and Losses
Tianjian Audit [2026] No. 1190
All shareholders of Hangzhou Hetai Electromechanical Co., Ltd.:
We have been entrusted to audit the financial statements of Hangzhou Hetai Electromechanical Co., Ltd. (hereinafter referred to as Hetai Electromechanical) for the year 2025, including the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements, consolidated and parent company cash flow statements, consolidated and parent company statements of changes in equity, as well as the notes to the financial statements, and have issued an audit report. Based on this, we have reviewed the attached detailed statement of non-recurring gains and losses for 2025 prepared by the management of Hetai Electromechanical (hereinafter referred to as the detailed statement of non-recurring gains and losses).
I. Limitation on the Use of the Report and Purpose
This report is intended solely for use in the disclosure of Hetai Electromechanical's annual report and may not be used for any other purpose. We agree to submit this report as a necessary document of Hetai Electromechanical's annual report, along with other documents for external disclosure.
To better understand Hetai Electromechanical's non-recurring gains and losses for 2025, the detailed statement of non-recurring gains and losses should be read in conjunction with the audited financial statements.
II. Responsibilities of Management
The management of Hetai Electromechanical is responsible for providing true, lawful, and complete relevant materials, preparing the detailed statement of non-recurring gains and losses in accordance with the provisions of the China Securities Regulatory Commission's "Interpretative Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public - Non-Recurring Gains and Losses (Revised 2023)" (CSRC Announcement [2023] No. 65), and ensuring that its content is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
III. Responsibilities of the Certified Public Accountant
Our responsibility is to express a special review opinion on the detailed statement prepared by the management of Hetai Electromechanical based on the implementation of the review work.
IV. Overview of Work
Our review was conducted in accordance with the Chinese Certified Public Accountant Practice Standards. These standards require us to plan and perform the review work to obtain reasonable assurance that the detailed statement of non-recurring gains and losses is free from material misstatement. During the review process, we performed procedures, including reviewing accounting records, that we deemed necessary. We believe that our review work provides a reasonable basis for our opinion.
V. Special Review Opinion
We believe that the detailed statement of non-recurring gains and losses prepared by the management of Hetai Electromechanical complies with the provisions of the China Securities Regulatory Commission's "Interpretative Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public - Non-Recurring Gains and Losses (Revised 2023)" (CSRC Announcement [2023] No. 65) in all material respects and accurately reflects Hetai Electromechanical's non-recurring gains and losses for 2025.
Tianjian Accounting Firm (Special General Partnership)
Certified Public Accountant of China:
Hangzhou, China
Certified Public Accountant of China:
March 26, 2026
Detailed Statement of Non-Recurring Gains and Losses for 2025 - Notes
Amount Unit: Renminbi Yuan
I. Explanation of Significant Non-Recurring Gains and Losses
(1) Government subsidies recognized in the current period's profits and losses, except for those closely related to the company's normal business operations, in accordance with national policy provisions, enjoyed based on determined criteria, and have a lasting impact on the company's profits and losses.
Government subsidies related to income and used to compensate for the company's incurred relevant costs or losses:
Item Amount Reporting Item Explanation
Disability Employment and Entrepreneurship Subsidy 19,920.00 Other Income Hangzhou Disabled Persons Federation [2018] No. 94
College Graduate Employment and Entrepreneurship Subsidy 9,000.00 Other Income Zhejiang Human Resources and Social Security Department [2024] No. 49
National High-Tech Enterprise Subsidy 200,000.00 Other Income Xiaoshan Science and Technology [2023] No. 18
"Opening Red" Reward 200,000.00 Other Income Xiaoshan Government Office [2023] No. 1
Ningwei Street Office Economic High-Quality Development Subsidy 780,000.00 Other Income Ningwei Street [2024] No. 29
Unemployment Insurance Stabilization Subsidy 87,774.12 Other Income Zhejiang Human Resources and Social Security Department [2024] No. 40
Xiaoshan Development Zone Economic High-Quality Development Subsidy 150,000.00 Other Income Xiaoshan Management [2024] No. 66
Support for Export-Oriented Economic Development Subsidy 45,000.00 Other Income Xiaoshan Commerce [2023] No. 47
Subtotal 1,491,694.12 Other Income
(2) Except for effective hedging activities related to the company's normal business operations, the fair value changes and gains and losses from the disposal of financial assets and financial liabilities held by non-financial enterprises:
Item Amount Reporting Item
Fair Value Change Gains from Financial Products Held 5,310,448.13 Fair Value Change Gains
Investment Income from Disposal of Financial Products 3,467,618.98 Investment Income
Subtotal 8,778,067.11
II. Explanation of the Classification of Non-Recurring Gains and Losses Defined in the "Interpretative Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public - Non-Recurring Gains and Losses (Revised 2023)" as Recurring Gains and Losses
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