Audit Report
Rongcheng Audit No. [2026] 361Z0368
Shanghai Jianda Zhixin Medical Technology Group Co., Ltd.
To all shareholders of Shanghai Jianda Zhixin Medical Technology Group Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Shanghai Jianda Zhixin Medical Technology Group Co., Ltd. (hereinafter referred to as "Jianda Zhixin"), 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 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 financial position of Jianda Zhixin as of December 31, 2025, as well as the operational results and cash flows for the year 2025.
II. 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 the audit report further elaborates on our responsibilities under these standards. In accordance with the Code of Ethics for Certified Public Accountants in China and the independence standards applicable to the audit of financial statements of public interest entities, we are independent of Jianda Zhixin and have complied with the independence requirements. We believe that the audit evidence we 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 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, and we do not provide a separate opinion on these matters.
(1) Revenue Recognition
Relevant accounting period: Year 2025.
- Description of the matter In 2025, the company's main business revenue amounted to RMB 1,938,586,000, accounting for 99.77% of total operating revenue. As operating revenue is one of the company's key performance indicators, there is an inherent risk that the management of Jianda Zhixin 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 Our procedures in response to this key audit matter included:
- Understanding the business processes and internal control designs related to different sales business models, evaluating their design effectiveness, and testing the operating effectiveness of key internal controls.
- Communicating with management and business personnel to understand the timing of control transfer related to revenue recognition under different sales business models, selecting samples to inspect sales contracts and analyze relevant contract terms; communicating with management and financial personnel to understand the company's revenue recognition policies and principles under different sales business models; evaluating whether the revenue recognition policies comply with the requirements of enterprise accounting standards.
- Conducting general control tests and application control tests on the company's information systems, focusing on the completeness and accuracy of key business data related to sales.
- Performing analytical procedures on sales revenue and gross margin from different dimensions to analyze whether there are abnormal fluctuations in revenue during the reporting period.
- Selecting samples to inspect sales revenue transactions, checking supporting documents related to revenue recognition, including sales contracts/sales orders, sales invoices, delivery notes, settlement information, logistics records, and payment records.
- Conducting cutoff testing on revenue transactions recorded before and after the balance sheet date to evaluate whether revenue was recorded in the appropriate accounting period; checking sales returns during and after the period to identify any significant post-period revenue reversals.
- Confirming with major customers to assess the authenticity and completeness of revenue recognition.