Special Explanation on the Retrospective Adjustment of Financial Statement Data Disclosed in the 2025 Annual Report of Furan Energy Group Co., Ltd. Due to Business Combination Under Common Control
Guangdong Sinong Certified Public Accountants LLP
To the shareholders of Furan Energy Group Co., Ltd.:
We were engaged to audit the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements for the year ended December 31, 2025, the consolidated and parent company cash flow statements, the consolidated and parent company statements of changes in owners' equity, and the notes to the financial statements of Furan Energy Group Co., Ltd. (hereinafter referred to as "Furan Energy") for the year ended December 31, 2025. We issued an audit report with a standard unqualified opinion, audit report No. Sinong Shen Zi [2026] 25009450016.
Furan Energy has prepared the "Special Explanation on the Retrospective Adjustment of Financial Statement Data Disclosed in the 2025 Annual Report of Furan Energy Group Co., Ltd. Due to Business Combination Under Common Control" (hereinafter referred to as the "Special Explanation on Retrospective Adjustment"). It is Furan Energy's responsibility to prepare and disclose the Special Explanation on Retrospective Adjustment truthfully, legally, and completely. We have reviewed the relevant content of the Special Explanation on Retrospective Adjustment and found no inconsistencies in all material aspects. The relevant retrospective adjustments comply with the requirements of the Enterprise Accounting Standards.
To better understand Furan Energy's retrospective adjustment matter, the Special Explanation on Retrospective Adjustment should be read in conjunction with the audited financial report.
This Special Explanation is for the purpose of disclosure in Furan Energy's 2025 annual report only and may not be used for any other purpose without the written consent of our firm.
Guangdong Sinong Certified Public Accountants LLP (Special General Partnership) Certified Public Accountant: An Xia Certified Public Accountant: Chen Qinggong China, Guangzhou March 23, 2026
I. Explanation of the Reason for Retrospective Adjustment
In December 2025, prior to the business combination under common control with Foshan Funeng Smart Manufacturing Technology Co., Ltd. (hereinafter referred to as "Funeng Smart Manufacturing"), the Company held a 49.00% equity interest in Funeng Smart Manufacturing, and Funeng Dongfang Equipment Technology Co., Ltd. (hereinafter referred to as "Funeng Dongfang") held a 51.00% equity interest in Funeng Smart Manufacturing. The Company and Funeng Dongfang were both controlled by Foshan Investment Holding Group Co., Ltd., and this control was not temporary.
As of December 31, 2025, the Company paid the transaction price to Funeng Dongfang, completed the industrial and commercial change registration and the transfer of control, and acquired Funeng Dongfang's 51.00% equity interest in Funeng Smart Manufacturing. Since then, the Company's shareholding in Funeng Smart Manufacturing has reached 100.00%, and Funeng Smart Manufacturing has been included in the scope of the Company's consolidated financial statements for 2025, becoming a subsidiary acquired through a business combination under common control.