Company Overview - Hangzhou Bicheng Digital Technology Co., Ltd. was established by individuals Xu Wenjia and Yang Ting, transitioning from Hangzhou Bicheng Network Technology Co., Ltd. to a joint-stock company on July 10, 2020 [1] - The company operates in the e-commerce service industry, providing comprehensive e-commerce operation services to brand owners, including brand retail, channel distribution, brand operation management, and digital marketing services [1] Financial Reporting - The financial statements have been prepared based on the assumption of going concern and in accordance with the relevant accounting standards issued by the Ministry of Finance and the China Securities Regulatory Commission [1][2] - The financial statements reflect the company's financial position and operating results as of May 31, 2025, December 31, 2024, and December 31, 2023 [3] Consolidation Scope - The consolidated financial statements include 47 subsidiaries, with details provided in the notes section [1] Accounting Policies - The company has established specific accounting policies for financial instrument impairment, fixed asset depreciation, intangible asset amortization, and revenue recognition based on its operational characteristics [2][3] - The company uses the accrual basis for accounting, with historical cost as the measurement basis for most financial statements [2] Financial Instruments - Financial assets are classified into three categories at 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] - The company assesses expected credit losses based on the risk of default and recognizes impairment losses accordingly [14][16] Inventory Management - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs recognized when necessary [18][19] Fixed Assets - Fixed assets are recognized when it is probable that future economic benefits will flow to the company and the cost can be measured reliably, with depreciation calculated using the straight-line method over their useful lives [29][30] Long-term Investments - Long-term equity investments are accounted for using the cost method for controlled entities and the equity method for joint ventures and associates [24][25]

Audit Opinion - The audit report states that the financial statements of Hangzhou Bicheng Digital Technology Co., Ltd. fairly reflect the company's financial position as of December 31, 2023, and December 31, 2024, in accordance with accounting standards [1][2]. Key Audit Matters - Revenue recognition is identified as a key audit matter due to the inherent risk of management potentially using inappropriate revenue recognition to meet specific targets. The reported revenue for the periods is CNY 1,281,217,347.12 and CNY 1,362,754,567.32 [3][4]. - The company’s inventory net realizable value is also a key audit matter, with inventory balances of CNY 272,350,329.21 and CNY 373,586,813.27 as of the respective dates. The determination of this value involves significant management judgment [5]. Management Responsibilities - The management of the company is responsible for preparing the financial statements in accordance with accounting standards and maintaining necessary internal controls to prevent material misstatements due to fraud or error [6][7]. 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 the foreseeable future [10][12]. Company Overview - Hangzhou Bicheng Digital Technology Co., Ltd. was established as a limited liability company and transformed into a joint-stock company in 2020. The company primarily provides comprehensive e-commerce operation services for brand owners [9][10]. Consolidation Scope - The financial statements include 35 subsidiaries, reflecting the company's extensive operational structure [11]. Accounting Policies - The company employs various accounting policies and estimates, including those related to revenue recognition, inventory valuation, and financial instruments, ensuring compliance with relevant accounting standards [12][24].