Shenzhen Haoshanghao Information Technology Co., Ltd. Financial Report and Audit Report for the Recent Year

Company Overview

Shenzhen Haoshanghao Information Technology Co., Ltd. (hereinafter referred to as "the Company"), formerly known as Shenzhen Beigaozhi Technology Co., Ltd., was established on December 23, 2014, with approval from the Qianhai Management Bureau of Shenzhen. The company is a joint venture funded by Hotan Investment Co., Ltd. (a company registered in Hong Kong), Shenzhen Focus Investment Management Center (Limited Partnership), Shenzhen Vanguard Investment Management Center (Limited Partnership), and Shenzhen Diantong Investment Management Center (Limited Partnership). The company is headquartered in Shenzhen, Guangdong Province, and holds a business license with a unified social credit code of 91440300321699270K, with a registered capital of RMB 296,785,536.00. The main business activities of the company include selling electronic components to manufacturers in the consumer electronics, Internet of Things, and lighting sectors, as well as providing related product design solutions and technical support services. This financial report was approved by the company's board of directors on March 12, 2026.

Basis for Financial Statement Preparation

1. Preparation Basis
   The Company prepares its financial statements on a going concern basis, recognizing and measuring transactions and events in accordance with the provisions of the Accounting Standards for Business Enterprises and their application guidelines. Additionally, the Company discloses relevant financial information in accordance with the China Securities Regulatory Commission's "Rules for the Disclosure of Information by Companies Issuing Securities No. 15 - General Provisions for Financial Reports (2023 Revision)."

2. Going Concern
   The Company has the ability to continue as a going concern for the 12 months following the end of this reporting period, with no significant matters affecting its ability to continue as a going concern.

Important Accounting Policies and Estimates

1. Compliance with Accounting Standards
   The financial statements prepared by the Company comply with the requirements of the Accounting Standards for Business Enterprises and reflect the Company's financial position, operating results, changes in owners' equity, and cash flows accurately and completely.

2. Accounting Period
   The Company's accounting year runs from January 1 to December 31 each year.

3. Operating Cycle
   The Company uses a 12-month operating cycle as the standard for classifying the liquidity of assets and liabilities.

4. Functional Currency
   The functional currency for the Company and its domestic subsidiaries is RMB, while subsidiaries in Hong Kong use HKD, and those in Taiwan use TWD.

5. Materiality Thresholds
   The following materiality thresholds are established:

   Item	Materiality Threshold
   Significant individual receivables for bad debt provision	Individual receivables and other receivables with a year-end balance greater than RMB 10 million and aged over 1 year
   Significant prepayments	Amount greater than RMB 10 million and aged over 1 year
   Significant other payables	Amount greater than RMB 10 million