Core Viewpoint - The audit report for Shuangle Pigment Co., Ltd. indicates that the financial statements for the year 2022 fairly reflect the company's financial position and operating results in accordance with accounting standards [1][2]. Audit Opinion - The audit opinion states that the financial statements are prepared in accordance with accounting standards and provide a fair view of the company's financial status as of December 31, 2022 [1]. - The audit was conducted following the Chinese Certified Public Accountant auditing standards, ensuring independence and ethical compliance [1][3]. Key Audit Matters - **Revenue Recognition**: The audit focused on the recognition of domestic sales revenue, assessing the effectiveness of internal controls and the appropriateness of accounting policies [1][2]. - **Recoverability of Accounts Receivable**: The audit evaluated the methods used to estimate the recoverability of accounts receivable, with a specific focus on the adequacy of provisions for bad debts [1][2]. - **Existence and Valuation of Fixed Assets**: The audit examined the existence, accuracy, and valuation of fixed assets, including the assessment of depreciation policies [2][3]. Financial Statements Overview - **Consolidated Balance Sheet**: As of December 31, 2022, total assets amounted to RMB 1,915,186,656.57, a decrease from RMB 1,939,936,093.31 in the previous year [6][7]. - **Consolidated Income Statement**: Total operating revenue for 2022 was RMB 1,270,705,476.24, down from RMB 1,336,104,395.88 in 2021, while total operating costs increased to RMB 1,260,125,550.73 from RMB 1,232,931,110.46 [8][9]. - **Consolidated Cash Flow Statement**: The net cash flow from operating activities was RMB 10,035,236.33, compared to a negative cash flow of RMB -106,388,842.98 in the previous year [10]. Management Responsibilities - The management is responsible for preparing financial statements that fairly reflect the company's financial position and for maintaining effective internal controls to prevent material misstatements [3][4]. Auditor Responsibilities - The auditor's goal is to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error [4][5].

Core Viewpoint - Shuangle Co., Ltd. reported significant growth in 2024, with total revenue reaching 1.575 billion yuan, a year-on-year increase of 9.90%, and net profit attributable to shareholders soaring by 155.30% to 121 million yuan, despite facing market pressures in the fourth quarter where net profit declined by 4.8% year-on-year [1][4]. Group 1: Business Performance - The company maintained stable development in its main business areas, particularly in phthalocyanine and chromium-based pigments, while enhancing brand image through participation in various international and domestic exhibitions [4]. - Despite the overall annual profit growth, the fourth quarter showed a decline in net profit, indicating market pressures and intensified competition [4][7]. Group 2: Technological Innovation - The company has increased investment in technological innovation, optimizing production processes and promoting new product development, and has been recognized as a "high-tech enterprise" [5]. - Continuous R&D investment is crucial for the company to address market competition and technological changes [5]. Group 3: Digitalization and Cost Control - Shuangle Co., Ltd. actively advanced digitalization and intelligent production in 2024, implementing refined management and enhancing safety production levels [6]. - Despite improvements in production efficiency, the fourth quarter's net profit decline highlighted the need for stronger cost control measures [6][7].