AuditReport

AuditReport

ToallshareholdersofChanghongMeilingCo.,Ltd.:

(I)Auditopinion

WehaveauditedthefinancialstatementsofChanghongMeilingCo.,Ltd.(hereinafterreferredtoas“ChanghongMeiling”),includingtheconsolidatedandparentcompanybalancesheetsasofDecember31,2025,theconsolidatedandparentcompanyincomestatements,consolidatedandparentcompanycashflowstatements,consolidatedandparentcompanystatementsofchangesinequityfortheyearendedDecember31,2025,andtherelatednotestothefinancialstatements.

Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedandparentcompanyfinancialpositionofChanghongMeilingasofDecember31,2025,anditsconsolidatedandparentcompanyoperatingresultsandcashflowsfortheyearthenended,inaccordancewiththeaccountingstandardsforenterprises.

(II)Basisforformingtheauditopinion

WeconductedourauditinaccordancewiththeChineseAuditingStandardsforCertifiedPublicAccountants.Thesection“Responsibilitiesofcertifiedpublicaccountantsfortheauditoffinancialstatements”intheauditreportfurtherexplainsourresponsibilitiesunderthesestandards.InaccordancewiththeCodeof

IndependenceforCertifiedPublicAccountantsNo.1—RequirementsforIndependenceinFinancialStatementAuditandReviewEngagementsandtheCodeofEthicsforCertifiedPublicAccountantsinChina,weareindependentofChanghongMeilingandhavefulfilledourotherethicalresponsibilities.Wehavecompliedwiththeindependencerequirementsforauditsofentitiesofpublicinterest.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.(III)KeyauditmattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceintheauditofthecurrentperiod’sfinancialstatements.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawholeandinformingourauditopinion.Wedonotprovideaseparateopiniononthesematters.(I)Operatingrevenuerecognition

1.MatterdescriptionForrelateddisclosures,seeNotes3(30)and5(2)1tothefinancialstatements.ChanghongMeiling’ssalesrevenueprimarilyderivesfromsalesofrefrigerators(cabinets),airconditioners,washingmachines,smallhomeappliances,andkitchenandbathroomappliancestodomesticandoverseascustomers.Fortheyear2025,operatingrevenueamountedtoRMB3,040,792.65million,ofwhichrevenuefromrefrigerators(cabinets),airconditioners,andwashingmachinesamountedtoRMB

2,853,390.02million,representing93.84%oftotaloperatingrevenue.

AsoperatingrevenueisoneofChanghongMeiling’skeyperformanceindicators,thereisaninherentriskthatmanagementmightrecognizerevenueinappropriatelytoachievespecifictargetsorexpectations.Therefore,weidentifiedrevenuerecognitionasakeyauditmatter.

2.Auditresponse

Regardingoperatingrevenuerecognition,ourauditproceduresmainlyincluded:

(1)Understandingthekeyinternalcontrolsrelatedtorevenuerecognition,evaluatingtheirdesign,determiningwhethertheywereimplemented,andtestingtheoperatingeffectivenessofrelevantinternalcontrols;

(2)Examiningsalescontractstounderstandkeytermsorconditions,andevaluatingwhethertherevenuerecognitionmethodisappropriate;

(3)Performinganalyticalproceduresonoperatingrevenueandgrossmarginbymonth,product,andcustomertoidentifysignificantorunusualfluctuationsandinvestigatingthecauses;

(4)Fordomesticsalesrevenue,selectingsamplestoinspectsupportingdocumentsincludingsalescontracts,orders,salesinvoices,deliverynotes,customeraccountstatements,anddeliveryreceipts;forexportrevenue,obtainingelectronicportdataandreconcilingwithaccountingrecords,andselectingsamplestoinspectsupportingdocumentsincludingsalescontracts,exportcustomsdeclarations,billsoflading,andsalesinvoices;

(5)Performingaccountsreceivableconfirmationsbyselectingspecificsamplesandsendingconfirmationletterstomajorcustomersregardingcurrentperiodsales;

(6)Performingcut-offteststoverifythatrevenuewasrecognizedintheappropriateperiod;

(7)Checkingwhetheroperatingrevenue-relatedinformationhasbeenproperlydisclosedinthefinancialstatements.

(II)Capitalizationofresearchanddevelopmentexpenditures

1.Matterdescription

Forrelateddisclosures,seeNotes3(21),5(1)19,and6tothefinancialstatements.

AsofDecember31,2025,theCompany’sR&Dwasfocusedonrefrigerator,

washingmachine,andairconditionerprojects.In2025,theCompanycapitalizedatotalofRMB244,860,276.26ofexpendituresincurredintheprocessofdevelopingpatentedandnon-patentedtechnologiesasdevelopmentcosts.R&DexpenditurescanonlybecapitalizedwhenallcapitalizationcriterialistedinNote3(21)aresimultaneouslymet.DeterminingwhetherR&Dexpendituresmeetallcapitalizationcriteriarequiressignificantaccountingestimatesandjudgmentsbymanagement;therefore,weidentifiedcapitalizationofR&Dexpendituresasakeyauditmatter.

2.AuditresponseOurauditproceduresregardingcapitalizationofR&Dexpendituresmainlyincluded:

(1)UnderstandingthescopeandaccountingtreatmentofR&Dexpenditures,understandingkeycontrolsoverR&Dcapitalization,andtestingtheoperatingeffectivenessofrelevantinternalcontrols;

(2)UnderstandingtheCompany’saccountingpoliciesforR&Dcapitalizationandevaluatingtheircompliancewiththerelevantprovisionsoftheaccountingstandardsforenterprises;

(3)ObtainingdetailedR&Dexpenditureschedules,performinganalyticalprocedures,selectingspecificsamplestoinspectsupportingdocumentsforR&Dexpenditures,evaluatingwhethertheaggregationofR&Dcostsisappropriateandwhethertheexpendituresaregenuine;

(4)Obtainingandexaminingprojectinitiationreports,small-batchtrialproductionevaluationreports,trialproductionreviewreports,andacceptancereportsforprojectsinthedevelopmentstage,andinterviewingmanagementtoevaluatetheappropriatenessofmanagement’sjudgmentsonprojectfeasibilityandthereasonablenessofcapitalizationtiming;

(5)Checkingwhethercapitalization-relatedinformationhasbeenappropriately

disclosedinthefinancialstatements.(IV)OtherinformationThemanagementofChanghongMeiling(hereinafterreferredtoas“management”)isresponsibleforotherinformation.Otherinformationincludesinformationpresentedintheannualreport,butdoesnotincludethefinancialstatementsorourauditreport.Ourauditopiniononthefinancialstatementsdoesnotcoverotherinformation,andwedonotexpressanyformofassuranceconclusiononotherinformation.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorappearstobemateriallymisstatedbasedonknowledgeobtainedduringtheaudit.Basedontheworkwehaveperformed,ifweidentifyamaterialmisstatementofthisotherinformation,wearerequiredtoreportthefact.Inthisregard,wehavenothingtoreport.(V)ResponsibilitiesofmanagementandthosechargedwithgovernanceforthefinancialstatementsManagementisresponsibleforthepreparationofthefinancialstatementsinaccordancewithaccountingstandardsforenterprisessothattheyfairlypresentthefinancialpositionandoperatingresults,andfordesigning,implementing,andmaintaininginternalcontrolasmanagementdeterminesnecessarytoensurethatthefinancialstatementsarefreefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthefinancialstatements,managementisresponsibleforassessingChanghongMeiling’sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcern(asapplicable),andusingthegoingconcernassumptionunlessmanagementintendstoliquidate,ceaseoperations,orhasnorealistic

alternative.

TheboardofdirectorsandsupervisorycommitteeofChanghongMeiling(hereinafterreferredtoas“thosechargedwithgovernance”)areresponsibleforoverseeingtheCompany’sfinancialreportingprocess.(VI)Responsibilitiesofcertifiedpublicaccountantsfortheauditoffinancialstatements

Ourobjectiveistoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butitdoesnotguaranteethatanauditconductedinaccordancewithauditingstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementsmayarisefromfraudorerror,andareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablyinfluencetheeconomicdecisionsofuserstakenonthebasisofthefinancialstatements.

Inperforminganauditinaccordancewithauditingstandards,weexerciseprofessionaljudgmentandmaintainprofessionalskepticism.Atthesametime,wealsoperformthefollowingprocedures:

(I)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandimplementauditprocedurestorespondtothoserisks,andobtainsufficientandappropriateauditevidenceasthebasisforourauditopinion.Becausefraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,oroverrideofinternalcontrols,theriskofnotdetectingamaterialmisstatementduetofraudishigherthanthatduetoerror.

(II)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.

(III)Evaluatetheappropriatenessofaccountingpoliciesselectedbymanagementandthereasonablenessofaccountingestimatesandrelateddisclosures.

(IV)Concludeontheappropriatenessofmanagement’suseofthegoingconcern

assumption.Atthesametime,basedontheauditevidenceobtained,concludewhetherthereareanysignificantuncertaintiesrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheabilityofChanghongMeilingtocontinueasagoingconcern.Ifweconcludethatthereisasignificantuncertainty,auditingstandardsrequireustodrawattentionintheauditreporttotherelateddisclosuresinthefinancialstatements;ifsuchdisclosuresareinadequate,weshouldexpressamodifiedopinion.Ourconclusionsarebasedoninformationavailableasofthedateoftheauditreport.However,futureeventsorconditionsmaycauseChanghongMeilingtobeunabletocontinueasagoingconcern.

(V)Evaluatetheoverallpresentation,structure,andcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsfairly.

(VI)ObtainsufficientandappropriateauditevidenceregardingthefinancialinformationofentitiesorbusinessactivitieswithinChanghongMeilingtoexpressanauditopiniononthefinancialstatements.Weareresponsiblefordirecting,supervising,andperformingthegroupaudit,andbearfullresponsibilityfortheauditopinion.

Wecommunicatewiththosechargedwithgovernanceregardingtheplannedscopeandtimingoftheaudit,aswellassignificantauditfindings,includinganysignificantdeficienciesininternalcontrolidentifiedduringtheaudit.

Wealsoprovidestatementstothosechargedwithgovernanceregardingcompliancewithethicalrequirementsrelatedtoindependence,andcommunicatewiththemaboutallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,aswellasrelatedsafeguards(ifapplicable).

Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminewhichmatterswereofmostsignificanceintheauditofthecurrentperiodfinancialstatements,andthusconstitutekeyauditmatters.Wedescribethesemattersintheauditreportunlesslaworregulationprohibitspublicdisclosureofthematter,or

intherarecircumstanceswheretheadverseconsequencesofcommunicatingamatterintheauditreportwouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication,wedeterminethatthemattershouldnotbecommunicatedintheauditreport.

Pan-ChinaCertifiedPublicAccountantsLLPChineseCertifiedPublicAccountants:

LiYuanliang(ProjectPartner)

Hangzhou,ChinaChineseCertifiedPublicAccountants:

PengYahui

April1,2026