Wuxi Innochip Microelectronics Co., Ltd.
2024 and 2025 Audit Report
Grant Thornton (Special General Partnership)
Table of Contents
Audit Report 1-5
Consolidated Balance Sheet 1-2
Consolidated Income Statement 3
Consolidated Cash Flow Statement 4
Consolidated Statement of Changes in Shareholders' Equity 5-6
Company Balance Sheet 7-8
Company Income Statement 9
Company Cash Flow Statement 10
Company Statement of Changes in Shareholders' Equity 11-12
Notes to Financial Statements 13-96
Audit Report
Grant Thornton Audit [2026] No. 310A030305
To Wuxi Innochip Microelectronics Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Wuxi Innochip Microelectronics Co., Ltd. (hereinafter referred to as "Innochip"), which comprise the consolidated and company balance sheets as of December 31, 2024, and December 31, 2025, the consolidated and company income statements, the consolidated and company cash flow statements, and the consolidated and company statements of changes in shareholders' equity for the years 2024 and 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 company financial position of Innochip as of December 31, 2024, and December 31, 2025, and its consolidated and company operating results and cash flows for the years 2024 and 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 Innochip in accordance with the Code of Ethics for Certified Public Accountants of China 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 years 2024 and 2025. 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.
(I) Revenue Recognition
- Matter Description
Relevant accounting periods: 2024 and 2025.
For relevant information disclosure, please refer to Notes III, 25 and Notes V, 32 to the financial statements.
The operating revenue recognized by Innochip for the years 2024 and 2025 was 584.147 million RMB and 664.0705 million RMB, respectively.
Due to the significant amount of operating revenue, which is a primary item in Innochip's financial statements and a key performance indicator, there is an inherent risk that management may manipulate the timing of revenue recognition to achieve specific targets or expectations. Therefore, we identified revenue recognition as a key audit matter.
- Audit Response
In the audit of the 2024 and 2025 financial statements, we performed the following main procedures regarding revenue recognition:
(1) Understand, evaluate, and test the design and operating effectiveness of management's internal controls related to revenue recognition;
(2) Examine major customer contract terms and evaluate whether the accounting policies for revenue recognition comply with the requirements of the Accounting Standards for Business Enterprises;
(3) Perform analytical procedures on operating revenue and gross profit margin, comparing and analyzing the trends in operating revenue and gross profit margin during the reporting period and against the industry, and assessing their reasonableness;
(4) In conjunction with the audit of accounts receivable, select major customers to confirm transaction amounts, examine subsequent collections from major customers, and conduct site visits to important customers;