*ST威尔: 众环审字（2025）3600271号上海紫江新材料科技股份有限公司

Core Viewpoint - The audit report for Shanghai Zijiang New Materials Technology Co., Ltd. indicates that the financial statements fairly reflect the company's financial position and operating results for the periods ending March 31, 2025, December 31, 2024, and December 31, 2023, in accordance with accounting standards [1]. Financial Statements Summary - The company reported total operating revenue of CNY 155.35 million for Q1 2025, a decrease from CNY 623.42 million in 2024 and CNY 711.39 million in 2023 [7]. - The total operating costs for Q1 2025 were CNY 146.13 million, compared to CNY 576.91 million in 2024 and CNY 618.94 million in 2023 [7]. - The net profit for Q1 2025 was CNY 10.12 million, down from CNY 53.52 million in 2024 and CNY 90.24 million in 2023 [7]. - The total assets as of March 31, 2025, were CNY 1,107.80 million, an increase from CNY 1,033.28 million in 2024 but a slight decrease from CNY 1,101.51 million in 2023 [6]. - The total liabilities as of March 31, 2025, were CNY 572.80 million, compared to CNY 508.40 million in 2024 and CNY 541.25 million in 2023 [6]. Key Audit Matters - Revenue recognition was identified as a key audit matter, with reported revenues of CNY 155.35 million for Q1 2025, CNY 623.42 million for 2024, and CNY 711.39 million for 2023 [1]. - The expected credit loss on accounts receivable was also a key audit matter, with accounts receivable balances of CNY 306.58 million as of March 31, 2025, and CNY 288.81 million as of December 31, 2024 [1]. Management and Governance Responsibilities - The management is responsible for preparing financial statements that fairly reflect the company's financial position and for maintaining necessary internal controls to prevent material misstatements [2]. - The governance layer is tasked with overseeing the financial reporting process [2]. Cash Flow Summary - The net cash flow from operating activities for Q1 2025 was negative CNY 6.38 million, compared to positive CNY 99.98 million in 2024 and CNY 216.52 million in 2023 [8]. - The net cash flow from investing activities was negative CNY 1.06 million for Q1 2025, compared to negative CNY 62.48 million in 2024 [8]. - The net cash flow from financing activities was positive CNY 66.40 million for Q1 2025, contrasting with negative CNY 94.71 million in 2024 [8].