Audit Report
Grant Thornton Audit [2026] No. 441A033999
To the Shareholders of Shenzhen Hangsheng Electronics Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Shenzhen Hangsheng Electronics Co., Ltd. (hereinafter referred to as "Hangsheng Electronics" or "the Company"), which comprise the consolidated and company balance sheets as of December 31, 2024, December 31, 2025, and April 30, 2026, the consolidated and company income statements, the consolidated and company cash flow statements, and the consolidated and company statements of changes in shareholders' equity for the years 2024, 2025, and the period from January to April 2026, as well as the related notes to the financial statements.
In our opinion, the accompanying financial statements have been prepared in all material respects in accordance with the Accounting Standards for Business Enterprises and fairly present the consolidated and company financial position of Hangsheng Electronics as of December 31, 2024, December 31, 2025, and April 30, 2026, as well as the consolidated and company operating results and cash flows for the years 2024, 2025, and the period from January to April 2026.
II. Basis for Audit Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities under these standards are further described in the "Certified Public Accountant's Responsibilities for the Audit of the Financial Statements" section of the audit report. In accordance with the Code of Ethics for Certified Public Accountants of China and the Independence Standards for Audits of Public Interest Entities, we are independent of Hangsheng Electronics 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 April 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
Relevant information disclosure is detailed in Notes III.25, V.40, and XVI.5 to the financial statements.
- Matter Description
Hangsheng Electronics is primarily engaged in the research, development, production, and sales of automotive electronic products. For the years 2024, 2025, and the period from January to April 2026, the operating revenue realized by Hangsheng Electronics was 4,059.5973 million RMB, 4,835.1157 million RMB, and 1,330.7241 million RMB, respectively. Given the significance of the operating revenue amount to the financial statements as a whole and its status as one of Hangsheng Electronics' key performance indicators, the inherent risk of misstatement in revenue recognition is high; therefore, we identified revenue recognition as a key audit matter.
- Audit Response
In the audit of the financial statements for the years 2024, 2025, and the period from January to April 2026, we primarily implemented the following audit procedures regarding revenue recognition:
(1) Understanding the design of internal controls related to revenue recognition, testing key internal controls, and evaluating the design and operating effectiveness of internal controls related to revenue recognition;
(2) Sampling and inspecting sales contracts and inquiring with Hangsheng Electronics management (hereinafter referred to as "management") to evaluate whether the specific methods of revenue recognition comply with the provisions of the Accounting Standards for Business Enterprises, analyzing whether the identification of performance obligations, transaction price allocation, and the determination of the timing of transfer of control of related goods or services conform to industry practices and Hangsheng Electronics' business model, and reviewing whether related accounting policies are consistently applied;