Audit Report
Ceyuan Technology Co., Ltd. Shareholders:
I. Audit Opinion
We have audited the financial statements of Ceyuan Technology Co., Ltd. (hereinafter referred to as "Ceyuan Technology"), which comprise the consolidated and parent company balance sheets as of December 31, 2025, December 31, 2024, and December 31, 2023, and the consolidated and parent company income statements, cash flow statements, and statements of changes in equity for the years 2025, 2024, and 2023, as well as notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and parent company financial position of Ceyuan Technology as of December 31, 2025, 2024, and 2023, and the consolidated and parent company results of operations and cash flows for the years 2025, 2024, and 2023 in accordance with the Accounting Standards for Business Enterprises.
II. Basis for Audit Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities under those standards are further described in the "Certified Public Accountant's Responsibilities for the Audit of the Financial Statements" section of our report. We are independent of Ceyuan Technology in accordance with the Code of Ethics for Certified Public Accountants of China and have fulfilled our other ethical responsibilities. 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 for 2025, 2024, and 2023. 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
Relevant accounting period: 2025, 2024, and 2023.
- Matter Description
Please refer to the accounting policies described in Note III, "27. Significant Accounting Policies and Accounting Estimates," and the revenue details in Note V, "34. Notes to Consolidated Financial Statement Items."
Ceyuan Technology's revenue primarily includes sales of complete equipment, components, and testing systems. Operating revenue for 2025, 2024, and 2023 was 239,837.17 ten thousand yuan, 205,188.28 ten thousand yuan, and 215,292.19 ten thousand yuan, respectively. As operating revenue is a key performance indicator and directly impacts the accuracy and reasonableness of the financial statements, we have identified revenue recognition as a key audit matter.
- Audit Response
Our audit procedures for revenue recognition mainly included:
(1) Understanding and evaluating the design and operating effectiveness of key internal controls related to revenue recognition;
(2) Inspecting major sales contracts to identify terms related to the transfer of control of goods and risks and rewards, and evaluating whether the revenue recognition policy complies with the Accounting Standards for Business Enterprises;
(3) Performing substantive analytical procedures on operating revenue and gross profit margins to identify significant or abnormal fluctuations and investigating the causes;
(4) Selecting samples to inspect sales contracts, invoices, delivery notes, receipt notes, and customs declarations to assess the authenticity of revenue recognition; for revenue recognized before and after the balance sheet date, verifying the supporting documents to assess the accuracy of the timing of revenue recognition;
(5) Executing external confirmations and interview procedures to verify key information such as customer sales amounts, thereby confirming the accuracy of recorded revenue.
(II) Inventory Impairment
Please refer to the accounting policies described in Note III, "13. Significant Accounting Policies and Accounting Estimates," and the inventory details in Note V, "7. Notes to Consolidated Financial Statement Items."