Audit Report
Beijing Dehao International Certified Public Accountants (Limited Liability Partnership)
Audit Report No. [2026]00001390
To all shareholders of Harbin Fuirjia Technology Co., Ltd.:
1. Audit Opinion
We have audited the financial statements of Harbin Fuirjia Technology Co., Ltd. (hereinafter referred to as "Fuirjia"), including the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements, consolidated and parent company cash flow statements, consolidated and parent company statements of changes in equity, and the related notes to the financial statements. In our opinion, the attached financial statements present fairly, in all material respects, the financial position of Fuirjia as of December 31, 2025, and its financial performance and cash flows for the year then ended in accordance with the accounting standards for enterprises.
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 No. 1 - Requirements for Independence in Financial Statement Audits and Reviews" and the Code of Ethics for Certified Public Accountants in China, we are independent of Fuirjia and have fulfilled our other ethical responsibilities. We adhered to the independence requirements for auditing public interest entities. 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 determined the following matters to be key audit matters that should be communicated in our audit report.
- Revenue Recognition
- Description of the Matter: For information regarding Fuirjia's accounting policies and amounts related to revenue recognition, please refer to Note 3 (24) and Note 5, Note 32 of the consolidated financial statements. Fuirjia primarily engages in the production and sale of cosmetics, with operating revenue for 2025 amounting to RMB 1,893,150,400. Revenue recognition is one of Fuirjia's key performance indicators, and there is an inherent risk of management manipulating the timing of revenue recognition to achieve specific targets or expectations; therefore, we identified revenue recognition as a key audit matter.
- Audit Response: Our significant audit procedures regarding revenue recognition included: (1) understanding and testing internal controls related to sales revenue and evaluating their operating effectiveness; (2) understanding Fuirjia's sales business model, examining sales contracts and orders from major customers, and evaluating whether the revenue recognition accounting policies comply with the accounting standards for enterprises; (3) using sampling methods to examine supporting documents related to revenue recognition, such as sales contracts, orders, shipping documents, logistics receipts, sales invoices, and payment receipts; (4) for revenue from distribution and consignment businesses, using sampling methods to confirm transaction amounts and payment amounts with customers; (5) for direct sales revenue from third-party platforms, obtaining platform bills, account statements, and logistics information for order data analysis and information system verification; (6) conducting cutoff testing on revenue transactions recorded before and after the balance sheet date to evaluate whether the related revenue was recorded in the appropriate accounting period; (7) performing analytical review procedures to analyze the reasonableness of changes in sales revenue and gross profit margin; (8) checking whether the information related to revenue recognition is appropriately presented and disclosed in the financial statements. Based on the audit work performed, we believe that revenue recognition is in accordance with Fuirjia's accounting policies.