Guangdong Kexiang Electronic Technology Co., Ltd. 2025 Annual Financial Statements and Audit Report
TABLE OF CONTENTS
| Content | Page Number |
|---|---|
| Audit Report | 1-5 |
| Consolidated Balance Sheet | 6-7 |
| Company Balance Sheet | 8-9 |
| Consolidated Income Statement | 10 |
| Company Income Statement | 11 |
| Consolidated Cash Flow Statement | 12 |
| Company Cash Flow Statement | 13 |
| Consolidated Statement of Changes in Owners' Equity | 14-15 |
| Company Statement of Changes in Owners' Equity | 16-17 |
| Notes to Financial Statements | 18-143 |
Audit Report Zhonghui Certificate (2026) No. 05436 To all shareholders of Guangdong Kexiang Electronic Technology Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Guangdong Kexiang Electronic Technology Co., Ltd. (hereinafter referred to as "Kexiang Shares" or "the Company"), which comprise the consolidated and company balance sheets as of December 31, 2025, the consolidated and company income statements, consolidated and company statements of changes in owners' equity, and consolidated and company cash flow statements for the year ended December 31, 2025, and the related notes to the financial statements.
In our opinion, the accompanying financial statements are prepared, in all material respects, in accordance with the provisions of the Accounting Standards for Business Enterprises, and fairly reflect the consolidated and company financial position of Kexiang Shares as of December 31, 2025, and the consolidated and company results of operations and cash flows for the year ended December 31, 2025.
II. Basis for Audit Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. The section "Auditor's Responsibilities for the Audit of Financial Statements" in this audit report further elaborates on our responsibilities under these standards. In accordance with the independence standards and the Code of Professional Ethics for Certified Public Accountants in China, we are independent of Kexiang Shares and have fulfilled our other responsibilities under the Code of Professional Ethics. 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. We will not provide a separate opinion on these matters, as they are considered in the context of our audit opinion on the financial statements as a whole.
(I) Revenue Recognition
- Description of Key Audit Matter
Kexiang Shares' sales revenue is mainly derived from the research, development, production, and sales of high-density printed circuit boards. Refer to Note 5.39 to the financial statements. Kexiang Shares' main business revenue for 2025 was RMB 3,382,532,297.45, mainly from the sales of high-density printed circuit boards. The company's revenue recognition principles are as follows: (1) General sales: ① Domestic sales: Revenue is recognized when the goods are shipped according to the sales order and the customer's signed receipt is obtained, confirming that the customer has obtained control of the related goods. ② Overseas sales: Revenue is recognized when the goods are delivered from the warehouse, customs declaration procedures are completed, the customs declaration form is obtained, and the goods are delivered to the customer's designated location, confirming that the customer has obtained control of the related goods. (2) VMI model: Revenue is recognized when the customer uses or puts the goods into use. The appropriateness of revenue recognition has a significant impact on the company's operating results, so we have identified the recognition of sales revenue as a key audit matter.
- Our Response to the Key Audit Matter in the Audit