Audit Report
Hua Xing Accounting Firm (Special General Partnership)
Audit Report No. Hua Xing Shen Zi [2026] 26005850026
To all shareholders of Fujian Tongsheng New Materials Technology Co., Ltd.:
1. Audit Opinion
We have audited the financial statements of Fujian Tongsheng New Materials Technology Co., Ltd. (hereinafter referred to as "Tongsheng Co., Ltd."), including the balance sheets as of December 31, 2025, and December 31, 2024, the income statements, cash flow statements, and statements of changes in equity for the years 2025 and 2024, along with the accompanying notes. In our opinion, the attached financial statements have been prepared in accordance with the provisions of enterprise accounting standards in all material respects and fairly present the financial position of Tongsheng Co., Ltd. as of December 31, 2025, and December 31, 2024, as well as the operational results and cash flows for the years 2025 and 2024.
2. Basis for Audit Opinion
We conducted our audit in accordance with the auditing standards for certified public accountants in China. The section "Responsibilities of Certified Public Accountants for the Audit of Financial Statements" further elaborates on our responsibilities under these standards. In accordance with the Code of Ethics for Certified Public Accountants in China, we are independent of Tongsheng Co., Ltd. and have fulfilled our other ethical responsibilities. We believe that the audit evidence we obtained is sufficient and appropriate to provide a basis for our audit opinion.
3. Management's and Governance's Responsibilities for the Financial Statements
Management is responsible for the preparation of financial statements in accordance with enterprise accounting standards to ensure that they fairly present the financial position and design, implement, and maintain necessary internal controls to prevent material misstatements in the financial statements due to fraud or error. In preparing the financial statements, management is responsible for assessing the company's ability to continue as a going concern, disclosing matters related to going concern (as applicable), and using the going concern assumption unless management intends to liquidate the company, cease operations, or has no other realistic alternatives.
4. Responsibilities of Certified Public Accountants for the Audit of Financial Statements
Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion. Reasonable assurance is a high level of assurance, but it does not guarantee that an audit conducted in accordance with auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. In conducting our audit in accordance with auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also perform the following procedures:
- Identify and assess the risks of material misstatement of the financial statements due to fraud or error, design and implement audit procedures to address those risks, and obtain sufficient and appropriate audit evidence to provide a basis for our audit opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Understand internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.