Financial Report and Audit Report of Shanghai Bairun Investment Holding Group Co., Ltd. for the Most Recent Year

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Shanghai Bairun Investment Holding Group Co., Ltd.

Audit Report and Financial Statements

Fiscal Year 2025

(January 1, 2025 to December 31, 2025)

Table of Contents

Audit Report 1-5
Financial Statements

Consolidated Balance Sheet and Parent Company Balance Sheet 1-4

Consolidated Income Statement and Parent Company Income Statement 5-6

Consolidated Cash Flow Statement and Parent Company Cash Flow Statement 7-8

Consolidated Statement of Changes in Equity and Parent Company Statement of Changes in Equity 9-12

Notes to Financial Statements 1-98

Audit Report

Xin Kuai Shi Bao Zi [2026] No. ZA12589

To the Shareholders of Shanghai Bairun Investment Holding Group Co., Ltd.:

Audit Opinion

We have audited the financial statements of Shanghai Bairun Investment Holding Group Co., Ltd. (hereinafter referred to as "Bairun Shares"), which comprise the consolidated and parent company balance sheets as of December 31, 2025, and the consolidated and parent company income statements, consolidated and parent company cash flow statements, and consolidated and parent company statements of changes in equity for the year 2025, as well as notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and parent company financial position of Bairun Shares as of December 31, 2025, and its consolidated and parent company operating results and cash flows for the year 2025 in accordance with the Accounting Standards for Business Enterprises.

Basis for Audit Opinion

We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities under those standards are further described in the "Certified Public Accountant's Responsibilities for the Audit of the Financial Statements" section of our report. We are independent of Bairun Shares 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, we do not provide a separate opinion on these matters.

We have summarized the key audit matters identified in our audit as follows:

Key Audit Matter	How the Matter was Addressed in the Audit
(1) Revenue Recognition	Our audit procedures included: A. Understanding and evaluating the design and operating effectiveness of internal controls related to revenue policy, revenue recognition, and collections; B. Performing analytical procedures, analyzing the reasonableness of revenue and gross margin fluctuations; C. Performing detail testing, selecting samples of current year transactions, checking contracts, invoices, delivery notes, and receipt confirmations; D. For revenue recorded before and after the balance sheet date, selecting samples and checking contracts, delivery notes, and receipt confirmations to evaluate whether revenue was recorded in the appropriate accounting period.
(2) Accuracy and Completeness of Sales Expenses	Our audit procedures included: A. Understanding and evaluating the design and operating effectiveness of internal controls related to costs and expenses; B. Performing analytical procedures, calculating the ratio of various expenses to total sales expenses, and comparing with prior periods to judge the reasonableness of fluctuations; C. Performing detail testing, combined with industry characteristics and Bairun Shares' marketing policies, obtaining contracts for major sales expenses (advertising, market activities, etc.), checking and reviewing, and verifying the accuracy and completeness of sales expenses; D. For sales expenses recorded before and after the balance sheet date, selecting samples, checking supporting documents, and evaluating whether they were recorded in the appropriate accounting period.

Key Audit Matter

How the Matter was Addressed in the Audit

(1) Revenue Recognition

Our audit procedures included: A. Understanding and evaluating the design and operating effectiveness of internal controls related to revenue policy, revenue recognition, and collections; B. Performing analytical procedures, analyzing the reasonableness of revenue and gross margin fluctuations; C. Performing detail testing, selecting samples of current year transactions, checking contracts, invoices, delivery notes, and receipt confirmations; D. For revenue recorded before and after the balance sheet date, selecting samples and checking contracts, delivery notes, and receipt confirmations to evaluate whether revenue was recorded in the appropriate accounting period.

(2) Accuracy and Completeness of Sales Expenses

Our audit procedures included: A. Understanding and evaluating the design and operating effectiveness of internal controls related to costs and expenses; B. Performing analytical procedures, calculating the ratio of various expenses to total sales expenses, and comparing with prior periods to judge the reasonableness of fluctuations; C. Performing detail testing, combined with industry characteristics and Bairun Shares' marketing policies, obtaining contracts for major sales expenses (advertising, market activities, etc.), checking and reviewing, and verifying the accuracy and completeness of sales expenses; D. For sales expenses recorded before and after the balance sheet date, selecting samples, checking supporting documents, and evaluating whether they were recorded in the appropriate accounting period.

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