Sihui Fushi Electronic Technology Co., Ltd.
Audit Report and Financial Statements
Fiscal Year 2025
Xin Kuai Shi Bao Zi [2026] No. ZI10094
(For the period from January 1, 2025 to December 31, 2025)
Table of Contents
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Audit Report
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Financial Statements
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Consolidated Balance Sheet and Parent Company Balance Sheet
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Consolidated Income Statement and Parent Company Income Statement
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Consolidated Cash Flow Statement and Parent Company Cash Flow Statement
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Consolidated Statement of Changes in Owners' Equity and Parent Company Statement of Changes in Owners' Equity
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Notes to Financial Statements
- Certificate of Practice Qualifications for Accounting Firm and Certified Public Accountants
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Audit Report
To the Shareholders of Sihui Fushi Electronic Technology Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Sihui Fushi Electronic Technology Co., Ltd. (hereinafter referred to as "Sihui Fushi"), which comprise the consolidated and parent company balance sheets as of December 31, 2025, and the 2025 consolidated and parent company income statements, cash flow statements, and statements of changes in owners' equity, as well as the 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 parent company financial position of Sihui Fushi as of December 31, 2025, and its consolidated and parent company operating results and cash flows for the year 2025.
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 "Responsibilities of Certified Public Accountants for the Audit of Financial Statements" section of this report. In accordance with the "Code of Ethics for Certified Public Accountants of China" and the "Independence Requirements for Financial Statement Audits and Review Engagements," we are independent of Sihui Fushi 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 matter in our audit:
(I) Revenue Recognition
- Description of the Matter
In 2025, Sihui Fushi's operating revenue was 1,931,730,200 RMB. Based on Sihui Fushi's revenue recognition methods, for products sold to domestic customers, revenue is recognized after the customer confirms the quantity and the settlement amount is confirmed; for products sold to overseas customers, revenue is recognized after Sihui Fushi obtains the customs declaration form and the customer or its designated location signs for receipt; for transactions conducted via Vendor Managed Inventory (VMI), revenue is recognized after the customer collects the products and they are verified.
Considering that operating revenue is a key performance indicator for Sihui Fushi, there is a potential risk of material misstatement regarding whether sales revenue is recognized in the appropriate accounting period; therefore, we identified revenue recognition as a key audit matter.
Please refer to Note "III. Significant Accounting Policies and Accounting Estimates" - "(XXIV) Revenue," "V. Notes to Consolidated Financial Statements" - "(XXXV) Operating Revenue, Operating Cost," and "XVII. Notes to Parent Company Financial Statements" - "(IV) Operating Revenue and Operating Cost."