Audit Report
Zhonghui No. (2026) 01187
To all shareholders of Guomai Cultural Media Co., Ltd.:
(1) Audit Opinion
We have audited the financial statements of Guomai Cultural Media Co., Ltd. (hereinafter referred to as "Guomai Cultural"), including the consolidated and company balance sheets as of December 31, 2025, the consolidated and company income statements for the year 2025, the consolidated and company cash flow statements, the consolidated and company statements of changes in equity, and the related notes to the financial statements. In our opinion, the attached financial statements have been prepared in accordance with the provisions of enterprise accounting standards in all material respects and fairly present the consolidated and company financial position of Guomai Cultural as of December 31, 2025, as well as the consolidated and company operational results and cash flows for the year 2025.
(2) Basis for Audit Opinion
We conducted our audit in accordance with the auditing standards for certified public accountants in China. The section "Responsibilities of Certified Public Accountants for the Audit of Financial Statements" in this report further elaborates on our responsibilities under these standards. In accordance with the independence standards for certified public accountants and the code of ethics for certified public accountants in China, we are independent of Guomai Cultural 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.
(3) 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 audit opinion, and we do not express a separate opinion on these matters. We have identified the following matters that need to be communicated in the audit report.
- Revenue Recognition
- Description of the Matter: For details on Guomai Cultural's accounting policies and disclosures related to revenue recognition, please refer to Note 3/28, Note 5/35, and Note 17/4 of the consolidated financial statements. The consolidated revenue for the current period is CNY 641 million. Since revenue is a key financial indicator for Guomai Cultural, we have identified revenue recognition as a key audit matter.
- Audit Response: Our significant audit procedures regarding revenue recognition included:
- Understanding, evaluating, and testing the design and operating effectiveness of Guomai Cultural's internal controls related to revenue recognition;
- Analyzing the company's sales policies, particularly the sales models for various products, and assessing the commercial rationale of its sales activities in conjunction with industry analysis data;
- Obtaining sales contracts with significant customers and examining key terms related to delivery methods, transfer of ownership, discounts, and payment settlements to verify whether the company's revenue recognition policies comply with relevant accounting standards;
- Conducting gross margin analysis by business category and assessing the reasonableness of revenue recognition during the reporting period in conjunction with gross margin comparisons to industry peers;
- Comparing the sales quantities recognized for revenue with the quantities of costs recognized to ensure consistency;
- Obtaining specific regulations and documentation regarding discounts and allowances, and sampling larger amounts to verify proper authorization and calculation accuracy;
- Sampling significant business documents, including contracts and consignment lists, to determine whether the company recognized, recorded, and reported revenue in accordance with its revenue recognition policies;
- Performing cutoff tests to assess whether there were any premature or delayed revenue recognitions;
- Conducting positive confirmation procedures with significant customers to verify the sales revenue and outstanding balances during the reporting period, confirming the authenticity and completeness of revenue.