Financial Statement Notes for Guangdong Feinan Resource Utilization Co., Ltd. for the Year 2025
(Unless otherwise specified, amounts are in Renminbi Yuan)
1. Company Overview
Guangdong Feinan Resource Utilization Co., Ltd. (hereinafter referred to as "the Company") was established on August 22, 2008, as Zhaoqing Feinan Metal Co., Ltd., and registered with the Zhaoqing Administration for Industry and Commerce in Guangdong Province, with a unified social credit code of 914412847665669483. The Company was reorganized into a joint-stock company in December 2018. In May 2023, the Company was approved by the China Securities Regulatory Commission for its initial public offering of 40.01 million ordinary shares (A shares) at a price of RMB 23.97, listed on the Shenzhen Stock Exchange's Growth Enterprise Market. As of December 31, 2025, the total share capital of the Company is 561,952,003 shares. The legal representative of the Company is Sun Yanjun, and the registered address is Luoyuan Industrial Park, Luoyuan Town, Sihui City, Guangdong Province. The Company has established a corporate governance structure comprising a shareholders' meeting and a board of directors, with departments including sales, production, finance, human resources and administration, safety and environmental protection, procurement, internal audit, and securities legal affairs. The Company and its subsidiaries are engaged in hazardous waste disposal and recycling of renewable resources, covering the entire industry chain of "hazardous waste collection, harmless disposal, and resource recycling." The main business has not changed since the Company's establishment. This financial statement and its notes were approved by the Company's third board of directors at its sixth meeting on April 9, 2026.
2. Basis for Financial Statement Preparation
This financial statement is prepared in accordance with the accounting standards for enterprises and their application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance (collectively referred to as "Enterprise Accounting Standards"). Additionally, the Company discloses relevant financial information in accordance with the China Securities Regulatory Commission's "General Provisions on Financial Reporting for Publicly Issuing Securities Companies (Revised 2023)." The financial statements are presented on a going concern basis. The Company's accounting is based on the accrual basis of accounting. Except for certain financial instruments, the financial statements are measured at historical cost. If assets are impaired, the Company will make provisions for impairment in accordance with relevant regulations.
3. Important Accounting Policies and Estimates
The Company determines its depreciation policy for fixed assets, amortization policy for intangible assets, and revenue recognition policy based on its production and operational characteristics. Specific accounting policies can be found in Notes 3, 15, 19, and 26.
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Statement of Compliance with Enterprise Accounting Standards The financial statements comply with the requirements of the Enterprise Accounting Standards and reflect the Company's consolidated and individual financial position as of December 31, 2025, as well as the consolidated and individual operating results and cash flows for 2025 in a true and complete manner.
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Accounting Period The Company's accounting period follows the Gregorian calendar year, from January 1 to December 31 each year.
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Operating Cycle The Company's operating cycle is 12 months.
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Functional Currency The Company and its domestic subsidiaries use Renminbi as their functional currency. The functional currency of the Company's overseas subsidiaries is determined based on the currency of the primary economic environment in which they operate, and financial statements are translated into Renminbi. The currency used in preparing these financial statements is Renminbi.