Yinchuan Weili Transmission Technology Co., Ltd.
2025 Annual Audit Report
Table of Contents
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Audit Report: Page 1–6
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Financial Statements: Page 7–14
(1) Consolidated Balance Sheet: Page 7
(2) Parent Company Balance Sheet: Page 8
(3) Consolidated Income Statement: Page 9
(4) Parent Company Income Statement: Page 10
(5) Consolidated Cash Flow Statement: Page 11
(6) Parent Company Cash Flow Statement: Page 12
(7) Consolidated Statement of Changes in Equity: Page 13
(8) Parent Company Statement of Changes in Equity: Page 14
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Notes to Financial Statements: Page 15–102
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Attachments: Page 103–106
(1) Copy of Business License: Page 103
(2) Copy of Practice Certificate: Page 104
(3) Copy of Certified Public Accountant Qualification Certificate: Page 105–106
[Chart: Audit firm seal]
Audit Report
Tianjian Shen [2026] No. 10437
To the shareholders of Yinchuan Weili Transmission Technology Co., Ltd.:
- Audit Opinion
We have audited the financial statements of Yinchuan Weili Transmission Technology Co., Ltd. (hereinafter referred to as "Weili Transmission"), which include the consolidated and parent company balance sheets as of December 31, 2025, the 2025 consolidated and parent company income statements, the consolidated and parent company cash flow statements, the consolidated and parent company statements of changes in equity, and 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 reflect the consolidated and parent company financial position of Weili Transmission as of December 31, 2025, as well as the consolidated and parent company operating results and cash flows for the year 2025.
- 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 the audit report. In accordance with the Code of Ethics for Certified Public Accountants of China and the "Code of Ethics for Financial Statement Audits and Review Engagements," we are independent of Weili Transmission 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.
- 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 of 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.
(1) Revenue Recognition
- Matter Description
For relevant information disclosure, please refer to Notes (XXV) and V (2) 1 to the financial statements.
The operating revenue of Weili Transmission is mainly derived from the research, development, production, and sales of wind power gearboxes. In 2025, the operating revenue of Weili Transmission amounted to RMB 87,722.85 ten thousand.
Since operating revenue is one of the key performance indicators for Weili Transmission (hereinafter referred to as "Management"), there is an inherent risk that Management may achieve specific targets or expectations through inappropriate revenue recognition. Therefore, we identified revenue recognition as a key audit matter.
- Audit Response
Our audit procedures for revenue recognition mainly included:
(1) Understanding key internal controls related to revenue recognition, evaluating the design of these controls, determining whether they have been implemented, and testing the operating effectiveness of relevant internal controls;
(2) Inspecting sales contracts to understand key terms or conditions and evaluating whether the revenue recognition method is appropriate;
(3) Performing analytical procedures on operating revenue and gross profit margins by month, product, and customer to identify whether there are any significant or abnormal fluctuations and investigating the reasons;