Audit Report
Tianjian Audit [2026] No. 8-214
To all shareholders of Beijing Haochuang Ruitong Electric Equipment Co., Ltd.:
1. Audit Opinion
We have audited the financial statements of Beijing Haochuang Ruitong Electric Equipment Co., Ltd. (hereinafter referred to as "Haochuang Ruitong"), 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. We believe that 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 Haochuang Ruitong as of December 31, 2025, as well as the operating results and cash flows for the year 2025.
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 the audit 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 Haochuang Ruitong and have fulfilled our other ethical responsibilities. We adhered to the independence requirements for auditing public interest entities during the audit. We believe that the audit evidence we 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.
(1) Revenue Recognition
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Description of the Matter
For detailed information disclosure, please refer to notes 3(23) and 5(2) of the financial statements. Haochuang Ruitong's operating revenue mainly comes from the sales of smart distribution equipment. The operating revenue for the year 2025 amounted to RMB 895,398,883.65. Since operating revenue is one of Haochuang Ruitong's key performance indicators, there is an inherent risk that management may engage in inappropriate revenue recognition to achieve specific targets or expectations, and revenue recognition involves significant management judgment; therefore, we identified revenue recognition as a key audit matter. -
Audit Response
In response to revenue recognition, our audit procedures primarily included:
- Understanding key internal controls related to revenue recognition, evaluating the design of these controls, determining whether they were implemented, and testing the operating effectiveness of relevant internal controls;
- Reviewing sales contracts to understand key terms or conditions and evaluating whether the revenue recognition methods were appropriate;
- Performing analytical procedures on operating revenue and gross margin by month, product, and customer to identify any significant or unusual fluctuations and investigating the reasons;
- Selecting items to examine relevant supporting documents, including sales contracts, orders, delivery notes, sales invoices, and customer acceptance documents;
- Combining accounts receivable and contract asset confirmations, selecting items to confirm sales amounts;
- Performing cutoff tests to check whether revenue was recognized in the appropriate period;
- Obtaining records of sales returns after the balance sheet date to check for any situations that did not meet revenue recognition criteria as of the balance sheet date;
- Checking whether information related to operating revenue was appropriately presented in the financial statements.