WHOLE SHINE MEDICAL Issued Qualified Opinion Audit Report; Subsidiary's 51% Stake in Delun Medical Frozen by Court

Source: Special Explanation on Issuing a Qualified Opinion on the 2025 Financial Statements of Haochen Medical Technology Co., Ltd.

DentalGoodNews｜April 28, 2026, WHOLE SHINE MEDICAL TECHNOLOGY CO.,LTD. (hereinafter referred to as "WHOLE SHINE MEDICAL") released a special explanation on its 2025 annual report. The auditing firm, Zhonghua Certified Public Accountants (Special General Partnership), issued a qualified audit opinion on the company's 2025 financial statements. The core of the qualified opinion centers on the company's 6.68% equity investment in Fushun Bank Co., Ltd. (hereinafter referred to as "Fushun Bank"), as the auditor was unable to obtain sufficient audit evidence regarding the equity method adjustment and impairment provision for this asset with a book value of RMB 431 million.

Source: Haochen Medical 2025 Annual Report

According to previous reports by DENTALGOODNEWS (Leading Dental Industry Media, DGN), WHOLE SHINE MEDICAL achieved operating revenue of RMB 703 million in 2025, a year-on-year decrease of 18.42%. The Net Profit Attributable to Shareholders of the Parent Company was a loss of RMB 119 million, expanding the loss by 216.85% year-on-year. As of December 31, 2025, the company's net cash flow from operating activities was RMB 66 million, a year-on-year decrease of 28.53%.

During the reporting period, the company recognized an equity method adjustment of RMB -6.5616 million for Fushun Bank and recorded a long-term equity investment impairment loss of RMB 39.1561 million. Due to the inability to establish effective communication with Fushun Bank's management and auditors, the auditing firm explicitly stated that it could not determine whether adjustments to the above amounts were necessary, nor could it ascertain the potential impact of this matter on the company's profit or loss nature.

In addition to the audit opinion risks, WHOLE SHINE MEDICAL's governance structure and liquidity risks were also prominently disclosed. Due to a control dispute between the executive partner of the largest shareholder and the partner Beijing Shoutu Ronghui, and based on a court judgment, Huiyin Aofeng has terminated the relevant cooperation agreement. This means that the actual controller of WHOLE SHINE MEDICAL has changed, and the company is currently in a state of having no actual controller.

Furthermore, due to loan disputes with financial institutions such as Zheshang Asset Management and Wenzhou Bank, the 51% equity of 德伦医疗｜Delun Medical held by WHOLE SHINE MEDICAL's subsidiary Zhiyu Medical, as well as the real estate of the company's wholly-owned subsidiary Yongda Electric in Jilin City, have been judicially frozen by the court. The freeze period for Delun Medical's equity is two years, corresponding to a capital contribution of RMB 26.52 million, and the relevant case number is (2025) Ji 0204 Min Chu No. 4757.

The company's board of directors stated that the matters in the qualified opinion do not affect the company's normal production and operations. In the future, it will actively cooperate with evaluation and auditing institutions to obtain Fushun Bank's financial data as soon as possible to eliminate the impact of the qualified opinion.