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Audited Financial Report and Audit Report of Baohuan Optoelectronics (Xiamen) Co., Ltd. for the Most Recent Year

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This document presents the 2025 audited financial statements for Baohuan Optoelectronics (Xiamen) Co., Ltd. The independent auditor, BDO China Shu Lun Pan Certified Public Accountants LLP, issued an unqualified opinion on the company's financial position and performance. Key audit matters identified include revenue recognition and inventory impairment. The report confirms that the financial statements fairly reflect the company's financial status and operating results for the 2025 fiscal year.

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Baohuan Optoelectronics (Xiamen) Co., Ltd.

Audit Report and Financial Statements

2025 Fiscal Year

BDO Audit Report [2026] No. ZB10033

(January 1, 2025 to December 31, 2025)

Table of ContentsPage
Audit Report1-5
Financial Statements
Consolidated and Parent Company Balance Sheets1-4
Consolidated and Parent Company Income Statements5-6
Consolidated and Parent Company Cash Flow Statements7-8
Consolidated and Parent Company Statements of Changes in Equity9-12
Notes to Financial Statements1-13

Audit Report

To the Shareholders of Baohuan Optoelectronics (Xiamen) Co., Ltd.:

I. Audit Opinion

We have audited the financial statements of Baohuan Optoelectronics (Xiamen) Co., Ltd. (hereinafter referred to as "Baohuan Optoelectronics"), which comprise the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements, the consolidated and parent company cash flow statements, and the consolidated and parent company statements of changes in equity for the year 2025, as well as the related 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 Baohuan Optoelectronics 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.

II. 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 "Responsibilities of Certified Public Accountants for the Audit of Financial Statements" section of this report. We are independent of Baohuan Optoelectronics 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 for 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 identified the following key audit matters in our audit:

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