WZ Group(SH:600704) Zheng Quan Zhi Xing·2025-07-16 11:19Audit Opinion - The audit report states that the financial statements of Huzhou South Taihu Electric Power Technology Co., Ltd. fairly reflect its financial position as of December 31, 2024, and its operating results and cash flows for the year 2024 [2][3]. Company Overview - Huzhou South Taihu Electric Power Technology Co., Ltd. was established by Meixinda Group Co., Ltd. and registered on March 18, 2014, in Huzhou, Zhejiang Province, with a registered capital of 320 million yuan [5][6]. - The company operates in the energy sector, primarily engaged in the production and supply of steam, hot water, and electricity, as well as the reuse of ash [5]. Financial Reporting Basis - The financial statements are prepared based on the assumption of going concern, indicating that the company does not have significant doubts about its ability to continue operations for at least the next 12 months [6]. Important Accounting Policies - The financial statements comply with the requirements of the enterprise accounting standards, reflecting the company's financial status, operating results, and cash flows accurately [6][7]. - The accounting period is from January 1 to December 31 each year, and the company uses Renminbi as its functional currency [6]. Financial Instruments - Financial assets are classified into three categories upon initial recognition: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss [8][9]. - Financial liabilities are classified into four categories, including those measured at fair value with changes recognized in profit or loss [8][9]. Inventory and Long-term Assets - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs recognized when necessary [18]. - Long-term assets, including fixed assets and intangible assets, are subject to impairment testing if there are indications of impairment [29][30]. Revenue Recognition - The company evaluates contracts at inception to identify performance obligations and determines whether they are satisfied over time or at a point in time [32][33].