Table of Contents
I. Audit Report: Pages 1–5
II. Financial Statements: Pages 6–11
(I) Balance Sheet: Pages 6–7
(II) Income Statement: Page 8
(III) Cash Flow Statement: Page 9
(IV) Statement of Changes in Equity: Pages 10–11
III. Notes to Financial Statements: Pages 12–81
IV. Attachments: Pages 82–86
(I) Copy of Business License: Page 82
(II) Copy of Practice Certificate: Page 83
(III) Proof of Filing for Securities Services: Page 84
(IV) Copies of Certified Public Accountants' Qualification Certificates: Pages 85–86
Audit Report
Tian Jian Shen [2026] No. 17418
To the Shareholders of Changsha Afus Technology Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Changsha Afus Technology Co., Ltd. (hereinafter referred to as Afus Technology), including the balance sheets as of December 31, 2024, December 31, 2025, and March 31, 2026, the income statements, cash flow statements, and statements of changes in equity for the years 2024, 2025, and the period from January to March 2026, as well as the related notes to the financial statements.
In our opinion, the accompanying financial statements have been prepared in all material respects in accordance with the Accounting Standards for Business Enterprises and fairly present the financial position of Afus Technology as of December 31, 2024, December 31, 2025, and March 31, 2026, as well as its operating results and cash flows for the years 2024, 2025, and the period from January to March 2026.
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. In accordance with the Code of Ethics for Certified Public Accountants of China and the "Independence Standards for Certified Public Accountants of China No. 1 — Independence Requirements for Financial Statement Audit and Review Engagements," we are independent of Afus Technology 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 for the years 2024, 2025, and the period from January to March 2026. 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.
(I) Revenue Recognition
- Matter Description
For relevant information disclosure, please refer to Notes III (17) and V (II) 1 to the financial statements.
The operating revenue of Afus Technology is primarily derived from the sale of deterministic polishing equipment for ultra-high precision optical components. For the years 2024, 2025, and the period from January to March 2026, the operating revenue of Afus Technology was RMB 72.9329 million, RMB 138.2116 million, and RMB 35.5615 million, respectively. Among these, the operating revenue from the deterministic polishing equipment for ultra-high precision optical components was RMB 68.1698 million, RMB 129.4614 million, and RMB 34.9187 million, accounting for 93.47%, 93.67%, and 98.19% of operating revenue, respectively.
As operating revenue is one of the key performance indicators for Afus Technology, there is an inherent risk that management may engage in inappropriate revenue recognition 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 include: