Company Overview - Guangdong Siquan New Materials Co., Ltd. was established on June 2, 2011, in Dongguan, Guangdong Province, and transformed into a joint-stock company on June 15, 2016, with a total share capital of 30 million yuan [2] - The company focuses on the research, production, and sales of thermal management materials, magnetic materials, and nano-protective materials, with its main products being artificial graphite heat dissipation films and sheets [2][3] - As of December 31, 2024, the company's registered capital is 57,681,334 yuan, and it has established a corporate governance structure including a shareholders' meeting, board of directors, and supervisory board [2][3] Financial Reporting - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance and the relevant regulations of the China Securities Regulatory Commission [2][3] - The financial statements are based on the principle of going concern and are prepared using the accrual basis of accounting [2][3] - The company adopts a calendar year as its accounting period, running from January 1 to December 31 [2] Accounting Policies - The company has established important accounting policies regarding fixed asset depreciation, intangible asset amortization, and revenue recognition [2][3] - Significant single items for bad debt provisions are recognized when accounts receivable are overdue and the balance exceeds 250,000 yuan [2][3] - The company classifies its financial assets into categories based on their management business model and cash flow characteristics [2][3] Financial Instruments - Financial instruments are recognized when the company becomes a party to the financial instrument contract [2][3] - Financial assets are classified into three categories: 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 [2][3] - The company assesses expected credit losses based on the risk of default and recognizes loss provisions accordingly [2][3] Inventory Management - The company classifies its inventory into raw materials, semi-finished products, work in progress, low-value consumables, turnover materials, and finished goods [2][3] - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs recognized when the net realizable value is lower than cost [2][3] - The company uses a perpetual inventory system for inventory management [2][3]