Huaxing Certified Public Accountants LLP Guangdong Branch
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Special Audit Report on the Authenticity of Revenue of Guangzhou Xinde Communication Technology Co., Ltd. During the Reporting Period
Huaxing Guangdong Special Letter [2026] No. 25016320065
To: Fujian Star-Net Communication Co., Ltd.
Huaxing Certified Public Accountants LLP Guangdong Branch (hereinafter referred to as "we" or "the accountants"), as the accountants for Fujian Star-Net Communication Co., Ltd.'s proposed investment in Guangzhou Xinde Communication Technology Co., Ltd. (hereinafter referred to as the "Transaction"), have conducted a special audit on the authenticity of the revenue of the target company, Guangzhou Xinde Communication Technology Co., Ltd. (hereinafter referred to as "Xinde Communication" or "the target company") for the years 2023, 2024, and 2025 (hereinafter referred to as the "Reporting Period"). The specific audit findings are as follows:
- Basic Information and Performance of Guangzhou Xinde Communication Technology Co., Ltd.
(1) Basic Information of Guangzhou Xinde Communication Technology Co., Ltd.
| Company Name | Guangzhou Xinde Communication Technology Co., Ltd. |
|---|---|
| Enterprise Nature | Limited Liability Company |
| Registered Capital | RMB 33,330,000 (as of August 7, 2026) |
| Legal Representative | Chen Chunming |
| Date of Establishment | 2007-04-09 |
| Unified Social Credit Code | 914401167994422471 |
| Registered Address | 13th Floor, Building 1, No. 13 Bohua 4th Road, Huangpu District, Guangzhou |
| Principal Office Address | 13th Floor, Building 1, No. 13 Bohua 4th Road, Huangpu District, Guangzhou |
| Business Scope | Integrated circuit chip design and services; communication equipment manufacturing; network equipment manufacturing; optical communication equipment manufacturing; communication equipment sales; optical communication equipment sales; network equipment sales; mechanical and electrical equipment sales; optical cable sales; optical fiber sales; integrated circuit design; information technology consulting services; information system integration services; software development; software sales; technical services, technology development, technical consulting, technical exchange, technology transfer, technology promotion; computer and communication equipment leasing; import and export of goods; import and export of technology; leasing of non-residential real estate; housing leasing; catering management; parking services; general contracting of projects. |
(2) Business Overview of Guangzhou Xinde Communication Technology Co., Ltd.
- Basic Information of Xinde Communication's Core Products
Xinde Communication's core products include Optical Network Units (ONU/ONT), Optical Line Terminals (OLT), home/commercial wireless routers (Wireless Router/AP), and 4G/5G CPE routers. These products are widely used in broadband access for homes and businesses, industrial internet, video surveillance, smart cities, smart grids (power distribution automation), and government office networks.
Xinde Communication is a communication equipment manufacturer, positioned in the midstream of the communication equipment manufacturing industry chain. The company primarily provides products to communication equipment providers and Internet Service Providers (ISPs) through an ODM (Original Design Manufacturer) model. In recent years, the company has also increased its investment in promoting its own brands, resulting in a year-on-year increase in sales of self-branded products. By 2025, self-branded product sales are expected to reach 45%, enhancing customer loyalty and maintaining stable gross profit margins.
Xinde Communication actively responds to the national "Going Global" and "Belt and Road" strategic initiatives, vigorously expanding into markets in developing countries such as India and Brazil, as well as "Belt and Road" countries like Bangladesh and Pakistan. Leveraging its high-quality products and professional, efficient customized design and production capabilities, the company has established good cooperative relationships with major overseas customers such as GOIP (India), NETLINK (India), RIO BRANCO (Brazil), RASA (Bangladesh), and SISTEMASY SERVICIOS DE COMUNICACION, S.A. DE C.V. (Mexico), and TANZANIA TELECOMMUNICATIONS CORPORATION (Tanzania).