Audit Opinion - The audit report states that the financial statements of Guangxi Huahengtong Energy Technology Co., Ltd. (hereinafter referred to as Huahengtong) have been prepared in accordance with accounting standards and fairly reflect the company's financial position as of February 28, 2025, and its operating results and cash flows for January to February 2025 [2][3]. Management and Governance Responsibilities - The management of Huahengtong is responsible for preparing financial statements that fairly reflect the company's financial position and for maintaining necessary internal controls to prevent material misstatements due to fraud or error [3][4]. - The governance layer is responsible for overseeing the financial reporting process of Huahengtong [3]. Auditor's 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, and to issue an audit report that includes the audit opinion [4][5]. - The auditor identifies and assesses risks of material misstatement due to fraud or error and designs audit procedures to address these risks [5][6]. Company Overview - Guangxi Huahengtong Energy Technology Co., Ltd. was established on September 22, 2017, with a registered capital of RMB 100 million. The company is located at 31 Chating Road, Beihai City [6][7]. - The company's business scope includes new energy technology consulting, machinery equipment leasing, road cargo transportation, and sales of gas appliances and related components [6]. Financial Reporting Basis - The financial statements are prepared on a going concern basis, reflecting that the company has stable operations and a reasonable asset-liability structure, with no significant adverse risks affecting its ability to continue as a going concern [7][8]. Important Accounting Policies - The company follows the accrual basis of accounting and measures assets at historical cost, with provisions for impairment as necessary [7][8]. - The company uses the weighted average method for inventory cost determination and recognizes inventory at the lower of cost or net realizable value [22][23]. Financial Instruments - Financial assets are classified based on the business model for managing them and their cash flow characteristics, including those measured at amortized cost and those measured at fair value [9][10]. - The company recognizes expected credit losses for financial instruments based on their credit risk stages, with different measurement approaches for each stage [17][18]. Long-term Equity Investments - Long-term equity investments are accounted for using the cost method or the equity method, depending on the level of control or influence the company has over the investee [23][24]. - The company assesses whether there are indications of impairment for long-term equity investments and recognizes impairment losses when necessary [29][30]. Fixed Assets - Fixed assets are recognized at cost and depreciated using the straight-line method over their useful lives, with specific depreciation rates for different asset categories [30][31]. Intangible Assets - Intangible assets are recognized based on contractual or legal rights, with their useful lives determined accordingly. Research phase expenditures are expensed, while development phase expenditures may be capitalized if certain criteria are met [32][34].