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Gospell Digital Technology Co., Ltd.
Audit Report
2025 Annual
Table of Contents
| Item | Page |
|---|---|
| I. Audit Report | 1-6 |
| II. Consolidated Balance Sheet | 7-8 |
| III. Consolidated Income Statement | 9 |
| IV. Consolidated Cash Flow Statement | 10 |
| V. Consolidated Statement of Changes in Equity | 11-12 |
| VI. Balance Sheet | 13-14 |
| VII. Income Statement | 15 |
| VIII. Cash Flow Statement | 16 |
| IX. Statement of Changes in Equity | 17-18 |
| X. Notes to Financial Statements | 19-103 |
Entrusting Entity: Gospell Digital Technology Co., Ltd.
Auditing Entity: Reanda Certified Public Accountants (Special General Partnership)
Contact Number: (010) 85886680
Fax Number: (010) 85886690
Website: http://www.Reanda.com
Reanda Shen Zi [2026] No. 0275
To the Shareholders of Gospell Digital Technology Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Gospell Digital Technology Co., Ltd. (hereinafter referred to as "Gospell"), which comprise the consolidated balance sheet as at December 31, 2025, and the 2025 consolidated income statement, consolidated cash flow statement, consolidated statement of changes in equity, and notes to the financial statements.
In our opinion, the accompanying financial statements are prepared in all material respects in accordance with the Accounting Standards for Business Enterprises and fairly present the consolidated financial position of Gospell as at December 31, 2025, and its consolidated operating results and cash flows for the year 2025.
II. 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 Gospell 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.
III. 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 are key audit matters to be communicated in the audit report.
(I) Revenue Recognition
- Matter Description
For relevant information disclosure, please refer to Notes III (21), V (1) and XIV (1) to the financial statements.
Gospell's operating revenue is mainly derived from the sales of consumer electronic products, digital television products, new material products, smart projects, and other products and services. In 2025, Gospell's operating revenue amounted to RMB 364,522,300.
Since operating revenue is one of Gospell's key performance indicators, there is an inherent risk that Gospell's management may recognize revenue inappropriately to achieve specific targets or expectations. Therefore, we have identified revenue recognition as a key audit matter.
- Audit Response
Our audit procedures for revenue recognition mainly included:
(1) Understanding and evaluating the design of key internal controls related to revenue recognition, determining whether they have been implemented, and testing the operating effectiveness of relevant internal controls;
(2) Inspecting sales contracts to understand major terms and conditions and evaluating whether the revenue recognition method is appropriate;
(3) Performing analytical procedures on operating revenue and gross profit margin by month, product, and customer to identify whether there are significant or abnormal fluctuations and investigating the causes;