Shenzhen Xinhao Photoelectric Technology Co., Ltd. 2025 Annual Financial Statements Audit Report Zhongxi Cai Shen [2026] No. 01213
Zhongxi CPAs (Special General Partnership) Address: 11th Floor, Block A, Xincheng Cultural Building, No. 11 Chongwenmenwai Street, Dongcheng District, Beijing Postal Code: 100062 Tel: 010-67085873 Fax: 010-67084147 Email: zhongxi@zhongxicpa.net
Table of Contents
| Content | Page |
|---|---|
| I. Audit Report | 1-5 |
| II. Audited Financial Statements | |
| Consolidated Balance Sheet | 6-7 |
| Consolidated Income Statement | 8 |
| Consolidated Cash Flow Statement | 9 |
| Consolidated Statement of Changes in Equity | 10-11 |
| Parent Company Balance Sheet | 12 |
| Parent Company Income Statement | 13 |
| Parent Company Cash Flow Statement | 14-15 |
| Parent Company Statement of Changes in Equity | 16-17 |
| III. Notes to Financial Statements | 18-119 |
| IV. CPA Firm Business License and Qualification Certificates |
Audit Report
Zhongxi Cai Shen [2026] No. 01213
To the Shareholders of Shenzhen Xinhao Photoelectric Technology Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Shenzhen Xinhao Photoelectric Technology Co., Ltd. (hereinafter referred to as "Xinhao Photoelectric"), which comprise the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements, the consolidated and parent company cash flow statements, and the consolidated and parent company statements of changes in equity for the year 2025, as well as the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and parent company financial position of Xinhao Photoelectric as of December 31, 2025, and its consolidated and parent company operating results and cash flows for the year 2025 in accordance with the Accounting Standards for Business Enterprises.
II. Basis for Audit Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities under those standards are further described in the "Certified Public Accountant's Responsibilities for the Audit of the Financial Statements" section of the audit report. We are independent of Xinhao Photoelectric in accordance with the Code of Ethics for Certified Public Accountants of China and have fulfilled our other ethical responsibilities in accordance with the code. 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 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, and we do not provide a separate opinion on these matters.
Revenue Recognition
- Matter Description
Xinhao Photoelectric is a high-tech enterprise primarily engaged in the R&D, production, and sales of glass protective screens. Its products are widely used in new-generation information terminals such as smartphones, tablets, and smartwatches. As described in Note IV, 30 and Note VI, 39 to the financial statements, the company realized revenue of 1,640.9217 million RMB in 2025.
Due to the high frequency of product shipments by Xinhao Photoelectric, there is a potential risk that such operating revenue may not be recorded in the appropriate accounting period. We focused on the completeness and accuracy of operating revenue and identified it as a key audit matter.
- Audit Response
Our primary audit procedures for sales revenue included:
(1) Understanding and evaluating the design and operating effectiveness of key internal controls related to revenue recognition;
(2) Selecting samples to review sales contracts or orders to evaluate whether the timing of revenue recognition complies with accounting standards;