Audit Report
Tianjian Audit [2026] No. 8-613
To all shareholders of Jiaxin Liheng Facility Management (Shanghai) Co., Ltd.:
1. Audit Opinion
We have audited the financial statements of Jiaxin Liheng Facility Management (Shanghai) Co., Ltd. (hereinafter referred to as "Jiaxin Liheng"), including the consolidated and parent company balance sheets as of December 31, 2024, and December 31, 2025, the consolidated and parent company income statements, consolidated and parent company cash flow statements, consolidated and parent company statements of changes in equity for the years 2024 and 2025, and the related notes to the financial statements. In our opinion, the attached financial statements have been prepared in all material respects in accordance with the provisions of the Accounting Standards for Business Enterprises and fairly present the financial position of Jiaxin Liheng as of December 31, 2024, and December 31, 2025, as well as the operating results and cash flows for the years 2024 and 2025.
2. Basis for Audit Opinion
We conducted our audit in accordance with the auditing standards for certified public accountants in China. The section of the audit report titled "Responsibilities of Certified Public Accountants for the Audit of Financial Statements" further elaborates on our responsibilities under these standards. In accordance with the "Independence Standards for Certified Public Accountants No. 1 - Requirements for Independence in Financial Statement Audits and Reviews" and the Code of Ethics for Certified Public Accountants in China, we are independent of Jiaxin Liheng 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.
3. 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 and 2025. Our responses to these matters are based on our audit of the financial statements as a whole and we do not express a separate opinion on these matters.
(1) Revenue Recognition
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Description of the Matter Relevant accounting periods: 2024 and 2025. For detailed disclosures, please refer to the notes to the financial statements, Note 3 (23) and Note 5 (2)1. Jiaxin Liheng's operating revenue mainly comes from comprehensive facility management services. The operating revenue for 2024 and 2025 was RMB 2,975,015,738.73 and RMB 3,112,330,307.08, respectively. Since operating revenue is one of Jiaxin Liheng's key performance indicators, there is an inherent risk that management may engage in inappropriate revenue recognition to achieve specific targets or expectations, and revenue recognition involves significant management judgment; therefore, we identified revenue recognition as a key audit matter.
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Audit Response Our audit procedures regarding revenue recognition included:
- (1) Understanding key internal controls related to revenue recognition, evaluating the design of these controls, determining whether they are implemented, and testing the operating effectiveness of relevant internal controls;
- (2) Reviewing service contracts to understand and evaluate whether Jiaxin Liheng's revenue recognition policies comply with the provisions of the Accounting Standards for Business Enterprises and whether the revenue recognition methods are appropriate;
- (3) Confirming the transaction amounts with major customers through accounts receivable confirmations;
- (4) Examining original evidence such as service contracts, revenue settlement documents, sales invoices, and bank receipt records to test whether there are significant discrepancies between revenue and recorded amounts;
- (5) Performing cutoff tests to check whether revenue is recognized in the appropriate accounting period;
- (6) Checking whether information related to operating revenue has been appropriately disclosed in the financial statements.