Table of Contents
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Audit Report: Pages 1–6
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Financial Statements: Pages 7–14
(1) Consolidated and Parent Company Balance Sheets: Pages 7–8
(2) Consolidated and Parent Company Income Statements: Page 9
(3) Consolidated and Parent Company Cash Flow Statements: Page 10
(4) Consolidated and Parent Company Statements of Changes in Equity: Pages 11–14
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Notes to Financial Statements: Pages 15–120
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Copies of Qualification Certificates: Pages 121–124
[Chart: Audit Report Cover]
Audit Report
Tianjian Shen [2026] No. 1-1947
To the Shareholders of Hainan Hailan Huanyu Ocean Information Technology Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Hainan Hailan Huanyu Ocean Information Technology Co., Ltd. (hereinafter referred to as "Hailan Huanyu"), which comprise the consolidated and parent company balance sheets as of December 31, 2024, December 31, 2025, and March 31, 2026, 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 years 2024, 2025, and the period from January to March 2026, as well as the 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 Hailan Huanyu as of December 31, 2024, December 31, 2025, and March 31, 2026, and the consolidated and parent company results of operations and cash flows for the years 2024, 2025, and the period from January to March 2026, 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 "Certified Public Accountant's Responsibilities for the Audit of the Financial Statements" section of the audit report. We are independent of Hailan Huanyu 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 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, and we do not provide a separate opinion on these matters.
(I) Revenue Recognition
- Matter Description
Relevant accounting periods: 2024, 2025, and January to March 2026.
For relevant disclosures, please refer to Notes III (24) and V (II) 1 to the financial statements.
Hailan Huanyu's operating revenue is primarily derived from radar networking integrated monitoring systems, radar monitoring information services, and the sale of sea surface surveillance radar. For the years 2024, 2025, and the period from January to March 2026, Hailan Huanyu's operating revenue was RMB 260.294 million, RMB 381.5579 million, and RMB 29.4185 million, respectively. The combined operating revenue from radar networking integrated monitoring systems, radar monitoring information services, and sea surface surveillance radar sales was RMB 233.0111 million, RMB 328.7506 million, and RMB 26.246 million, respectively, accounting for 89.53%, 86.17%, and 89.31% of operating revenue.
As operating revenue is one of Hailan Huanyu's key performance indicators, there is an inherent risk that management may engage in inappropriate revenue recognition to achieve specific targets or expectations. Furthermore, revenue recognition involves significant management judgment; therefore, we identified revenue recognition as a key audit matter.
- Audit Response
Our audit procedures regarding revenue recognition mainly included: