Table of Contents
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Audit Report: Pages 1-5
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Financial Statements: Pages 6-13
(1) Consolidated Balance Sheet: Page 6
(2) Parent Company Balance Sheet: Page 7
(3) Consolidated Income Statement: Page 8
(4) Parent Company Income Statement: Page 9
(5) Consolidated Cash Flow Statement: Page 10
(6) Parent Company Cash Flow Statement: Page 11
(7) Consolidated Statement of Changes in Equity: Page 12
(8) Parent Company Statement of Changes in Equity: Page 13
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Notes to Financial Statements: Pages 14-85
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Attachments: Pages 86-89
[Chart: Audit report cover page]
Audit Report
Tian Jian Shen [2026] No. 17341
To the Shareholders of Hangzhou Heshun Technology Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Hangzhou Heshun Technology Co., Ltd. (hereinafter referred to as Heshun Technology), which comprise the consolidated and parent company balance sheets as of June 30, 2026, the consolidated and parent company income statements, cash flow statements, and statements of changes in equity for the period from January to June 2026, as well as 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 present the consolidated and parent company financial position of Heshun Technology as of June 30, 2026, and its consolidated and parent company operating results and cash flows for the period from January to June 2026.
II. 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 "Certified Public Accountant's Responsibilities for the Audit of the Financial Statements" section of the audit report. In accordance with the Code of Ethics for Certified Public Accountants of China and the Independence Standards for Certified Public Accountants of China No. 1—Independence Requirements for Audit and Review Engagements, we are independent of Heshun Technology and have fulfilled our other ethical responsibilities. We have complied with the independence requirements for public interest entities during the audit. 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, we do not provide a separate opinion on these matters.
(I) Revenue Recognition
- Matter Description
For relevant information disclosure, please refer to Note V (II) 1 to the financial statements.
Heshun Technology's operating revenue is primarily derived from the sales of polyester film. For the period from January to June 2026, Heshun Technology realized an operating revenue of 377.4067 million RMB. Since operating revenue is one of Heshun Technology's key performance indicators, there is an inherent risk that management may engage in inappropriate revenue recognition to achieve specific targets or expectations. Therefore, we identified revenue recognition as a key audit matter.