Audit Report
Pengsheng A Audit No. [2025]00064
Pengsheng Accounting Firm (Special General Partnership)
Shenzhen, China
To all shareholders of Jiayu Holdings Co., Ltd.:
I. Inability to Express an Opinion
We have been entrusted to audit the financial statements of Jiayu Holdings Co., Ltd. (hereinafter referred to as "your company"), including the consolidated and parent company balance sheets as of December 31, 2024, the consolidated and parent company income statements, consolidated and parent company cash flow statements, consolidated and parent company statements of changes in equity, and related financial statement notes. We do not express an audit opinion on the attached financial statements of your company. Due to the significance of the matters described in the "Basis for Inability to Express an Opinion" section, we were unable to obtain sufficient and appropriate audit evidence to serve as a basis for expressing an audit opinion on the financial statements.
II. Basis for Inability to Express an Opinion
(1) Limitations on Confirmation Audit Procedures
As of December 31, 2024, your company's accounts receivable had a book balance of 1,387,538.5 thousand yuan, with confirmation letters sent for 958,187.2 thousand yuan and replies received for 3,554.9 thousand yuan, resulting in a reply rate of 0.37%; other receivables had a book balance of 398,324.0 thousand yuan, with confirmation letters sent for 15,144.8 thousand yuan and no replies received; prepaid expenses had a book balance of 45,293.7 thousand yuan, with confirmation letters sent for 34,344.6 thousand yuan and replies received for 6,181.8 thousand yuan, resulting in a reply rate of 18.00%; accounts payable had a book balance of 1,078,813.2 thousand yuan, with confirmation letters sent for 804,318.7 thousand yuan and replies received for 31,995.6 thousand yuan, resulting in a reply rate of 3.98%; and advance receipts and contract liabilities had a book balance of 188,303.3 thousand yuan, with confirmation letters sent for 130,989.0 thousand yuan and replies received for 2,564.2 thousand yuan, resulting in a reply rate of 1.96%. The operating income for 2024 was 482,175.9 thousand yuan, with confirmation letters sent for 334,024.2 thousand yuan and replies received for 106.2 thousand yuan, resulting in a reply rate of 0.03%. Due to the low number of replies, we were unable to obtain sufficient and appropriate audit evidence through other alternative audit procedures.
(2) Matters from Previous Audit Report with Modified Opinion Not Resolved
In the current period, we still cannot obtain sufficient and appropriate audit evidence regarding the revenue recognition of 218,543.6 thousand yuan by the subsidiary Liaoning Jiayu Construction Energy-saving Technology Co., Ltd. for the project undertaken from Chaoyang Jiayu Clean Energy Technology Co., Ltd. (hereinafter referred to as "Chaoyang Energy-saving Company").
(3) Contingent Matters
As described in the financial statement notes "IX. Commitments and Contingent Matters," your company has numerous complex litigation cases, and the final outcomes have significant uncertainty regarding their impact on the financial statements. We were unable to obtain sufficient and appropriate audit evidence related to contingent matters to assess their impact on your company's financial statements.