Lettall Electronic(SH:603629) Zheng Quan Zhi Xing·2025-06-13 10:41Audit Opinion - The audit opinion states that the financial statements of Jiangsu Litong Electronics Co., Ltd. fairly reflect the company's financial position as of December 31, 2024, and its operating results and cash flows for the year 2024 [2]. Key Audit Matters - Revenue recognition is identified as a key audit matter due to inherent risks associated with improper revenue recognition to meet specific targets. The company's revenue for 2024 primarily comes from the sales of precision metal stamping components, electronic components, and computing services [3][4]. - Long-term asset impairment is another key audit matter, as the book value of fixed assets, construction in progress, and right-of-use assets collectively accounts for 49.17% of total assets as of December 31, 2024. The impairment testing involves significant management judgment and estimates [4][5]. Financial Statements Overview - The company’s financial statements are prepared based on the going concern assumption, indicating no significant doubts about its ability to continue operations for the next 12 months [10]. - The company’s registered capital is RMB 259.93 million, with a total of 259.93 million shares, and its stock has been listed on the Shanghai Stock Exchange since December 24, 2018 [10]. Accounting Policies - The company adheres to the Chinese Accounting Standards, ensuring that the financial statements provide a true and complete reflection of its financial status, operating results, and cash flows [11]. - The company uses the weighted average method for inventory valuation and recognizes inventory at the lower of cost or net realizable value [28]. Financial Performance - The company’s revenue for the year 2024 is primarily derived from its core business activities, including the sale of precision metal components and electronic components, as well as computing services [3][4].