{"url_path":"/sec/wyhg/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 EXHIBITS**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1999860/0001213900-26-056618-index.html","accession_number":"0001213900-26-056618","cik":"0001999860","ticker":"WYHG","issuer_name":"Wing Yip Food Holdings Group Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1999860/0001213900-26-056618-index.html","primary_entity_key":"0001999860","primary_entity_name":"Wing Yip Food Holdings Group Ltd"},"word_count":14230,"has_tables":true,"body_markdown":"**Item 19. EXHIBITS**\n\n** **\n\n**EXHIBIT INDEX**\n\n** **\n\n**Exhibit No.**\n \n**Description**\n\n1.1\n \n[Articles of Association (incorporated by reference to Exhibit 3.1 of the registration statement on Form F-1 (File No. 333-277694), as amended, initially filed with the Securities and Exchange Commission on March 6, 2024)](https://www.sec.gov/Archives/edgar/data/1999860/000121390024020363/ff12024ex3-1_wingyip.htm)\n\n2.1\n \n[Specimen Certificate for Ordinary Shares (incorporated herein by reference to Exhibit 4.1 to the registration statement on Form F-1 (File No. 333-277694), as amended, initially filed with the Securities and Exchange Commission on March 6, 2024)](https://www.sec.gov/Archives/edgar/data/1999860/000121390024020363/ff12024ex4-1_wingyip.htm)\n\n2.2\n \n[Description of Securities (incorporated by reference to Exhibit 2.2 to our annual report on Form 20-F (File No. 001-42407), filed with the Securities and Exchange Commission on April 30, 2025)](https://www.sec.gov/Archives/edgar/data/1999860/000121390025037724/ea023948001ex2-2_wingyip.htm)\n\n2.3\n \n[Form of Deposit Agreement among the Registrant, Deutsche Bank Trust Company Americas, as depositary, and the holders and beneficial owners of ADSs issued hereunder (incorporated herein by reference to Exhibit 4.3 to the registration statement on Form F-1 (File No. 333-277694), as amended, initially filed with the Securities and Exchange Commission on March 6, 2024)](https://www.sec.gov/Archives/edgar/data/1999860/000121390024044590/ea020004602ex4-3_wingyip.htm)\n\n2.4\n \n[Form of the American depositary receipt (included in Exhibit 2.3)](https://www.sec.gov/Archives/edgar/data/1999860/000121390024044590/ea020004602ex4-3_wingyip.htm)\n\n4.1\n \n[Form of Employment Agreement by and between executive officers and the Registrant (incorporated herein by reference to Exhibit 10.1 to the registration statement on Form F-1 (File No. 333-277694), as amended, initially filed with the Securities and Exchange Commission on March 6, 2024)](https://www.sec.gov/Archives/edgar/data/1999860/000121390024020363/ff12024ex10-1_wingyip.htm)\n\n4.2\n \n[Form of Indemnification Agreement with the Registrant’s directors and officers (incorporated herein by reference to Exhibit 10.2 to the registration statement on Form F-1 (File No. 333-277694), as amended, initially filed with the Securities and Exchange Commission on March 6, 2024)](https://www.sec.gov/Archives/edgar/data/1999860/000121390024020363/ff12024ex10-2_wingyip.htm)\n\n8.1\n \n[List of subsidiaries of the Registrant (incorporated herein by reference to Exhibit 21.1 to the registration statement on Form F-1 (File No. 333-277694), as amended, initially filed with the Securities and Exchange Commission on March 6, 2024)](https://www.sec.gov/Archives/edgar/data/1999860/000121390024020363/ff12024ex21-1_wingyip.htm)\n\n11.1\n \n[Code of Business Conduct and Ethics of the Registrant (incorporated herein by reference to Exhibit 99.1 to the registration statement on Form F-1 (File No. 333-277694), as amended, initially filed with the Securities and Exchange Commission on March 6, 2024)](https://www.sec.gov/Archives/edgar/data/1999860/000121390024020363/ff12024ex99-1_wingyip.htm)\n\n11.2\n \n[Insider Trading Compliance Manual of the Registrant (incorporated by reference to Exhibit 11.2 of the Annual Report on Form 20-F (File No. 001-42407), filed with the SEC on April 30, 2025)](https://www.sec.gov/Archives/edgar/data/1999860/000121390025037724/ea023948001ex11-2_wingyip.htm)\n\n12.1*\n \n[Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea029023601ex12-1.htm)\n\n12.2*\n \n[Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ea029023601ex12-2.htm)\n\n13.1**\n \n[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea029023601ex13-1.htm)\n\n13.2**\n \n[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ea029023601ex13-2.htm)\n\n97.1\n \n[Compensation Recovery Policy of the Registrant (incorporated by reference to Exhibit 97.1 of the Annual Report on Form 20-F (File No. 001-42407), filed with the SEC on April 30, 2025)](https://www.sec.gov/Archives/edgar/data/1999860/000121390025037724/ea023948001ex97-1_wingyip.htm)\n\n101.INS*\n \nInline XBRL Instance Document\n\n101.SCH*\n \nInline XBRL Taxonomy Extension Schema Document\n\n101.CAL*\n \nInline XBRL Taxonomy Extension Calculation Linkbase Document\n\n101.DEF*\n \nInline XBRL Taxonomy Extension Definition Linkbase Document\n\n101.LAB*\n \nInline XBRL Taxonomy Extension Label Linkbase Document\n\n101.PRE*\n \nInline XBRL Taxonomy Extension Presentation Linkbase Document\n\n104*\n \nCover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)\n\n \n\n*\nFiled with this annual report on Form 20-F\n\n**\nFurnished with this annual report on Form 20-F\n\n \n\n117\n\n \n\n** **\n\n**SIGNATURES**\n\n** **\n\nThe registrant hereby certifies that it meets\nall of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report\non its behalf.\n\n \n\n \nWing Yip Food Holdings Group Limited\n\n \n \n \n\n \nBy:\n*/s/ Tingfeng Wang*\n\n \n \nTingfeng Wang\n\n \n \nChief Executive Officer and Director\n\n \n \n \n\nDate: May 14, 2026\n \n \n\n \n\n118\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED**\n\n** **\n\n**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**\n\n** **\n\n**TABLE OF CONTENTS**\n\n** **\n\n    **Page**\n\n**Consolidated Financial Statements**    \n\n[Report of Independent Registered Public Accounting Firm (PCAOB ID: 3487)](#F_001)   F-2\n\n[Consolidated Balance Sheets as of December 31, 2025 and 2024](#F_002)   F-3\n\n[Consolidated Statements of Operations and Comprehensive Income for the years ended December 31, 2025, 2024 and 2023](#F_003)   F-4\n\n[Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2025, 2024 and 2023](#F_004)   F-5\n\n[Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023](#F_005)   F-6\n\n[Notes to Consolidated Financial Statements](#F_006)   F-7\n\n \n\nF-1\n\n \n\n \n\n**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING\nFIRM**\n\n \n\nTo the Board of Directors and Shareholders of\n\nWing Yip Food Holdings Group Limited\n\n** **\n\n**Opinion on the Financial Statements**\n\n \n\nWe have audited the accompanying consolidated\nbalance sheets of Wing Yip Food Holdings Group Limited and its subsidiaries (the “Group”) as of December 31, 2025 and\n2024, and the related consolidated statements of operations and comprehensive income, changes in shareholders’ equity, and cash\nflows for each of the years ended December 31, 2025, 2024, and 2023, including the related notes (collectively referred to as\nthe “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material\nrespects, the financial position of the Group as of December 31, 2025 and 2024, and the results of its operations and its cash\nflows for each of the years ended December 31, 2025, 2024 and 2023, in conformity with accounting principles generally accepted\nin the United States of America (“U.S. GAAP”).\n\n** **\n\n**Basis for Opinion**\n\n \n\nThese consolidated financial statements are the\nresponsibility of the Group’s management. Our responsibility is to express an opinion on the Group’s consolidated financial\nstatements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States)\n(“PCAOB”) and are required to be independent with respect to the Group in accordance with the U.S. federal securities\nlaws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted our audits in accordance with the\nstandards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether\nthe consolidated financial statements are free of material misstatement, whether due to error or fraud. The Group is not required to\nhave, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required\nto obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness\nof the Group’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur audits included performing procedures to assess\nthe risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures\nthat respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the\nconsolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by\nmanagement, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide\na reasonable basis for our opinion.\n\n \n\n/s/ Audit Alliance LLP\n\n \n\nWe have served as the Group’s auditor\nsince 2023\n\n \n\nSingapore\n\n \n\nMay 14, 2026\n\n \n\nF-2\n\n \n\n** **\n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nCONSOLIDATED BALANCE SHEETS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nASSETS \n   \n  \n\nCURRENT ASSETS: \n   \n  \n\nCash and cash equivalents \n$85,269,432  \n$87,927,726 \n\nRestricted cash \n 110,252  \n 880,358 \n\nAccounts receivable \n 6,797,096  \n 7,768,381 \n\nInventories \n 9,838,933  \n 8,456,295 \n\nPrepaid expenses and other current assets \n 30,156,546  \n 7,779,378 \n\nTOTAL CURRENT ASSETS \n$132,172,259  \n$112,812,138 \n\n  \n    \n   \n\nNON-CURRENT ASSETS: \n    \n   \n\nProperty, plant and equipment, net \n$78,840,052  \n$79,568,773 \n\nIntangible assets, net \n 47,602  \n 47,094 \n\nLand-use rights, net \n 603,581  \n 605,343 \n\nRight-of-use assets \n 3,520,386  \n 300,664 \n\nOther non-current assets, net \n 105,570  \n 157,076 \n\nTOTAL NON-CURRENT ASSETS \n$83,117,191  \n$80,678,950 \n\nTOTAL ASSETS \n$215,289,450  \n$193,491,088 \n\n  \n    \n   \n\nLIABILITIES \n    \n   \n\nCURRENT LIABILITIES: \n    \n   \n\nShort-term loans \n$11,010,854  \n$6,712,972 \n\nLong-term loans \n 3,818,049  \n 10,506,144 \n\nAccounts payable \n 10,032,277  \n 8,095,509 \n\nNotes payable \n 367,505  \n 2,934,527 \n\nDeferred income \n 32,175  \n 46,874 \n\nAccrued expenses and other payables \n 2,154,216  \n 3,195,138 \n\nTaxes payable \n 276,897  \n 3,603 \n\nLease liabilities \n 9,765  \n 87,648 \n\nTOTAL CURRENT LIABILITIES \n$27,701,738  \n$31,582,415 \n\n  \n    \n   \n\nNON-CURRENT LIABILITIES: \n    \n   \n\nLong-term loans \n$13,974,489  \n$4,335,336 \n\nLease liabilities \n 5,833  \n 278,282 \n\nDeferred tax liabilities \n 1,729,774  \n 1,550,063 \n\nTOTAL NON-CURRENT LIABILITIES \n$15,710,096  \n$6,163,681 \n\nTOTAL LIABILITIES \n$43,411,834  \n$37,746,096 \n\n  \n    \n   \n\nCOMMITMENTS AND CONTINGENCIES (NOTE 19) \n \n—\n  \n \n—\n \n\n  \n    \n   \n\nSHAREHOLDERS’ EQUITY \n    \n   \n\nOrdinary shares (No par value; 50,330,928 and 50,023,428 shares issued and outstanding as of December 31, 2025 and 2024)\n\n \n$\n-\n  \n$\n-\n \n\nAdditional paid-in capital \n 44,127,247  \n 42,997,303 \n\nStatutory reserve \n 13,580,630  \n 12,087,066 \n\nAccumulated other comprehensive loss \n (2,218,614) \n (9,307,406)\n\nRetained earnings \n 116,388,353  \n 109,968,029 \n\nTOTAL SHAREHOLDERS’ EQUITY \n$171,877,616  \n$155,744,992 \n\nTOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY \n$215,289,450  \n$193,491,088 \n\n \n\nThe accompanying notes are an integral part of\nthese consolidated financial statements.\n\n \n\nF-3\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n  \nYears ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nRevenues \n 135,192,629  \n 144,629,055  \n 134,068,317 \n\nCost of revenues \n (95,666,223) \n (99,833,630) \n (86,972,132)\n\nGross profit \n 39,526,406  \n 44,795,425  \n 47,096,185 \n\n  \n    \n    \n   \n\nOperating expenses: \n    \n    \n   \n\nSelling expenses \n (19,407,502) \n (19,672,532) \n (19,550,604)\n\nGeneral and administrative expenses \n (5,404,193) \n (4,379,642) \n (4,075,896)\n\nResearch and development expenses \n (4,127,391) \n (4,973,452) \n (4,250,451)\n\nTotal operating expenses \n (28,939,086) \n (29,025,626) \n (27,876,951)\n\n  \n    \n    \n   \n\nOther income (expenses): \n    \n    \n   \n\nInterest income \n 84,479  \n 179,412  \n 178,758 \n\nInterest expenses \n (1,065,858) \n (1,064,745) \n (995,345)\n\nOther income, net \n 538,616  \n 58,766  \n 208,908 \n\nOther expense, net \n (1,027,230) \n (2,839,598) \n (2,111,109)\n\nExchange loss \n (21,087) \n (3,298) \n (11,651)\n\nTotal other expenses, net \n (1,491,080) \n (3,669,463) \n (2,730,439)\n\n  \n    \n    \n   \n\nIncome before income tax \n 9,096,240  \n 12,100,336  \n 16,488,795 \n\nIncome tax expenses \n (1,182,352) \n (850,633) \n (2,478,882)\n\nNet income \n 7,913,888  \n 11,249,703  \n 14,009,913 \n\n  \n    \n    \n   \n\nComprehensive income \n    \n    \n   \n\nNet income \n    \n    \n   \n\nForeign currency translation adjustments, net of tax \n (7,088,792) \n 4,188,370  \n 3,831,082 \n\nComprehensive income \n 825,096  \n 15,438,073  \n 17,840,995 \n\nEarnings per share, basic and diluted \n 0.16  \n 0.23  \n 0.29 \n\nWeighted average number of shares \n 50,319,976  \n 48,175,620  \n 47,973,428 \n\n \n\nThe accompanying notes are an integral part of\nthese consolidated financial statements.\n\n \n\nF-4\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n \n\n  \n   \n   \n   \n   \n   \nAccumulated  \n  \n\n  \n   \n   \nAdditional  \n   \n   \nOther  \nTotal \n\n  \nOrdinary Shares  \nPaid-in  \nStatutory  \nRetained  \nComprehensive  \nShareholders’ \n\n  \nShares  \nAmount  \nCapital  \nReserve  \nearnings  \nLoss  \nEquity \n\n  \n   \n$  \n$  \n$  \n$  \n$  \n$ \n\nBalance as of December 31, 2022 \n 47,973,428  \n$\n—\n  \n$37,370,297  \n$8,567,722  \n$88,227,757  \n$(1,287,954) \n$132,877,822 \n\nNet income \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n 14,009,913  \n \n—\n  \n 14,009,913 \n\nAppropriated statutory surplus reserves \n —  \n \n—\n  \n \n—\n  \n 1,868,227  \n (1,868,227) \n \n—\n  \n \n—\n \n\nForeign currency translation adjustment \n    \n \n—\n  \n \n—\n  \n \n—\n  \n \n—\n  \n (3,831,082) \n (3,831,082)\n\nBalance as of December 31, 2023 \n 47,973,428  \n \n—\n  \n 37,370,297  \n 10,435,949  \n 100,369,443  \n (5,119,036) \n 143,056,653 \n\nNet income \n    \n    \n \n—\n  \n \n—\n  \n 11,249,703  \n \n—\n  \n 11,249,703 \n\nAppropriated statutory surplus reserves \n    \n \n—\n  \n \n—\n  \n 1,651,117  \n (1,651,117) \n \n—\n  \n \n—\n \n\nIssuance of ordinary shares \n 2,050,000  \n \n—\n  \n 8,200,000  \n \n—\n  \n \n—\n  \n \n—\n  \n 8,200,000 \n\nOffering cost incurred for initial public offering \n —  \n \n—\n  \n (2,572,994) \n \n—\n  \n \n—\n  \n \n—\n  \n (2,572,994)\n\nForeign currency translation adjustment \n    \n \n—\n  \n \n—\n  \n \n—\n  \n \n—\n  \n (4,188,370) \n (4,188,370)\n\nBalance as of December 31, 2024 \n 50,023,428  \n \n—\n  \n 42,997,303  \n 12,087,066  \n 109,968,029  \n (9,307,406) \n 155,744,992 \n\nNet income \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n 7,913,888  \n \n—\n  \n 7,913,888 \n\nAppropriated statutory surplus reserves \n —  \n \n—\n  \n \n—\n  \n 1,493,564  \n (1,493,564) \n \n—\n  \n \n—\n \n\nIssuance of ordinary shares \n 307,500  \n \n—\n  \n 1,230,000  \n \n—\n  \n \n—\n  \n \n—\n  \n 1,230,000 \n\nOffering cost incurred for over-allotment option \n —  \n \n—\n  \n (100,056) \n \n—\n  \n \n—\n  \n \n—\n  \n (100,056)\n\nForeign currency translation adjustment \n —  \n \n—\n  \n \n—\n  \n \n—\n  \n \n—\n  \n 7,088,792  \n 7,088,792 \n\nBalance as of December 31, 2025 \n 50,330,928  \n \n—\n  \n 44,127,247  \n 13,580,630  \n 116,388,353  \n (2,218,614) \n 171,877,616 \n\n \n\nThe accompanying notes are an integral part of\nthese consolidated financial statements.\n\n \n\nF-5\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nCash flows from operating activities: \n   \n   \n  \n\nNet income \n$7,913,888  \n$11,249,703  \n$14,009,913 \n\nAdjustments to reconcile net income to net cash used in operating activities: \n    \n    \n   \n\nDepreciation of property, plant and equipment \n 5,740,644  \n 4,418,774  \n 3,016,946 \n\nWritten off property, plant and equipment \n 976,665  \n 614,527  \n 2,007,477 \n\nAllowance for credit losses \n 71,499  \n (43,797) \n 18,630 \n\nAmortization of intangible assets \n 8,232  \n 9,003  \n 7,402 \n\nAmortization of land use right \n 28,268  \n 27,472  \n 22,933 \n\nAmortization of right-of-use asset \n 188,547  \n 91,368  \n 134,971 \n\nDeferred income taxes \n 179,709  \n (30,365) \n (43,378)\n\nChanges in operating assets and liabilities: \n    \n    \n   \n\nAccounts receivable \n 971,285  \n (376,692) \n (3,310,188)\n\nInventories \n (1,382,638) \n (1,880,144) \n 1,152,696 \n\nPrepaid expenses and other current assets \n (26,066,519) \n (3,857,006) \n 1,139,213 \n\nOther non-current assets \n (19,993) \n 17,241  \n 30,893 \n\nAccounts payable \n 1,936,768  \n 309,118  \n 671,155 \n\nNotes Payable \n (2,567,022) \n 2,934,530  \n \n-\n \n\nDeferred revenue \n (14,699) \n (18,621) \n (19,737)\n\nTaxes payable \n 273,294  \n (853,909) \n (859,792)\n\nLease liabilities \n (350,332) \n 111,330  \n (124,456)\n\nAccrued expenses and other payables \n (1,040,922) \n (238,724) \n (203,052)\n\nNet cash provided by (used in) operating activities \n (13,153,326) \n 12,483,808  \n 17,651,626 \n\n  \n    \n    \n   \n\nCash flows from investing activities: \n    \n    \n   \n\nPurchase of property, plant and equipment \n (4,540,858) \n (10,102,478) \n (217,053)\n\nPurchase of intangible assets \n (6,720) \n (548) \n (5,113)\n\nNet cash used in investing activities \n (4,547,578) \n (10,103,026) \n (222,166)\n\n  \n    \n    \n   \n\nCash flows from financing activities: \n    \n    \n   \n\nIssuance of ordinary shares, net of offering costs \n 1,129,944  \n 6,232,872  \n \n-\n \n\nProceeds from short-term loans \n 13,155,825  \n 7,123,971  \n 6,478,964 \n\nProceeds from long-term loans \n 15,443,795  \n 650,747  \n 4,647,953 \n\nRepayment of short-term loans \n (9,151,878) \n (6,712,972) \n (3,802,870)\n\nRepayment of long-term loans \n (13,080,751) \n (2,880,120) \n (591,558)\n\nDeferred offering costs \n \n-\n  \n \n-\n  \n (605,866)\n\nNet cash provided by financing activities \n 7,496,935  \n 4,414,498  \n 6,126,623 \n\nEffect of exchange rate changes \n 6,775,569  \n (8,950,790) \n 13,817 \n\nNet increase (decrease) in cash \n (3,428,400) \n (2,155,510) \n 23,569,900 \n\nCash and cash equivalents at beginning of the year \n 88,808,084  \n 90,963,594  \n 67,393,694 \n\nCash and cash equivalents at end of the year \n 85,379,684  \n 88,808,084  \n 90,963,594 \n\n  \n    \n    \n   \n\nSupplemental disclosures of cash flows information: \n    \n    \n   \n\nCash paid for income taxes \n 1,110,288  \n 2,352,255  \n 5,310,182 \n\nCash paid for interest expense \n 1,047,746  \n 992,556  \n 923,699 \n\n  \n    \n    \n   \n\nSupplemental disclosures of non-cash information: \n    \n    \n   \n\nLease liabilities arising from obtaining right-of-use assets \n 26,030  \n 183,839  \n 15,225 \n\n \n\nThe accompanying notes are an integral part of\nthese consolidated financial statements.\n\n \n\nF-6\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 1. Organization and principal activities**\n\n \n\nWing Yip Food Holdings Group Limited (“Wing\nYip” or the “Company”) is a company incorporated in Hong Kong with limited liability. The principal activity of\nWing Yip is investment holding.\n\n \n\nWing Yip owns 100% of the equity interests in\nGuangdong Wing Yip Food Co., Ltd (“Wing Yip GD”), a company incorporated in the PRC on December 2, 2010.\n\n \n\nOn November 26, 2017, Horgos Wing Yip Brand\nBusiness Service Co., Ltd. (“Wing Yip HG”) was incorporated in the PRC by Wing Yip GD to provide brand promotion services.\nOn September 22, 2022, Wing Yip HG was dissolved voluntarily.\n\n \n\nOn August 12, 2020, Hainan Wing Yip Food\nTechnology Co., Ltd. (“Wing Yip HN”) was incorporated in the PRC by Wing Yip for production and sale of food.\n\n \n\nOn August 3, 2021, Huaiji Wing Yip Food Technology\nCo., Ltd. (“Wing Yip HJ”) was incorporated in the PRC. On February 23, 2024, Wing Yip HJ was voluntarily dissolved.\n\n \n\nWing Yip GD owns 100% of the equity interests\nin Wing Yip HN, Wing Yip HJ and Wing Yip HG.\n\n \n\nOn November 10, 2025, Shenzhen Qianhai\nMiaoyu Technology Co., Ltd. (“Miaoyu”) was incorporated in the PRC and Wing Yip owns 100% of the equity interests.\n\n \n\nDetails of Wing Yip and its subsidiaries (collectively,\nthe “Group”) as of December 31, 2025 are set out below:\n\n \n\n**Name of Entity**   **Date of\nIncorporation**   **Place of\nIncorporation**   **% of\nOwnership**   **Principal Activities**\n\nWing Yip   April 24, 2015   Hong Kong, China   Parent   Holding company\n\nWing Yip GD   December 2, 2010   Guangdong, China   100   Production and sale of food\n\nWing Yip HN   August 12, 2020   Hainan, China   100   Production and sale of food\n\nMiaoyu   November 10, 2025   Guangdong, China   100   Not yet commence business\n\n \n\nThe Company is listed on the Korea Exchange in\nRepublic of Korea (stock code: 900340) and its consolidated financial statements have been issued and available for public use. The Company\nis also listed on the Nasdaq Capital Market.\n\n** **\n\nF-7\n\n \n\n** **\n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies**\n\n** **\n\n**Basis of presentation**\n\n \n\nThe accompanying consolidated financial statements\nhave been prepared in conformity with accounting principles generally accepted in the United States of America (the “U.S. GAAP”).\n\n** **\n\n**Principles of consolidation**\n\n \n\nThe consolidated financial statements include\nthe financial statements of the Group, which include the Hong Kong-registered entities and PRC-registered entities directly or indirectly\nowned by the Company. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. The\nresults of subsidiaries acquired or disposed of are recorded in the consolidated income statements from the effective date of acquisition\nor up to the effective date of disposal, as appropriate.\n\n \n\nA subsidiary is an entity in which (i) the Company\ndirectly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority\nof the members of the board of directors, to cast a majority of votes at meetings of the board of directors, or to govern the financial\nand operating policies of the investee pursuant to a statute or an agreement among the shareholders or equity holders.\n\n** **\n\n**Use of estimates**\n\n \n\nThe preparation of consolidated financial statements\nin conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and\nliabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, and the reported\namounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and such differences may\nbe material to the consolidated financial statements. Changes in facts and circumstances may cause the Group to revise its estimates.\nIn accordance with ASC 250, changes in estimates are recognized in the period in which the changes in facts and circumstances occur. Significant\naccounting estimates reflected in the Group’s consolidated financial statements include inventory reserve provision, useful lives\nand impairment of long-lived assets, valuation allowance for deferred tax assets, and allowance for credit losses. The Group bases its\nestimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the\nbasis for making judgments about the carrying values of assets and liabilities.\n\n \n\nF-8\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n** **\n\n**Foreign currency translation and transactions**\n\n  \n\nThe reporting currency of the Group is the United States\nDollar (“US$”). The functional currency of Wing Yip is the Hong Kong Dollar (“HKD”). The Company’s\nPRC subsidiaries use Renminbi (“RMB”) as their functional currency.\n\n \n\nThe financial statements of Wing Yip and its subsidiaries,\nother than subsidiaries with a functional currency of US$, are translated into US$ using the exchange rate as of the balance sheet date\nfor assets and liabilities and the average exchange rate for the year for income and expense items. Assets and liabilities denominated\nin foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity\ndenominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash\nflows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements\nof cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments\narising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive\nincome (loss) included in consolidated statements of changes in shareholders’ equity. Translation adjustments resulting from this\nprocess are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations\non transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.\n\n \n\nExcept for shareholders’ equity, the Group’s\nbalance sheet accounts as of December 31, 2025 and 2024 were translated at RMB 6.9931 to $1.00 and RMB 7.2993 to $1.00, respectively.\nThe shareholders’ equity accounts were translated at their historical rate. The currency translation rates applied to the consolidated\nstatements of operations for the years ended December 31, 2025, 2024 and 2023 were RMB 7.1875 to $1.00, RMB 7.1957 to $1.00\nand RMB 7.0809 to $1.00, respectively. Cash flows were also translated at average translation rates for the respective periods. Therefore,\namounts reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on\nthe consolidated balance sheets.\n\n** **\n\n**Cash and cash equivalents**\n\n \n\nCash and cash equivalents consist of cash on hand,\ncash in banks and other monetary funds. The Group maintains cash and cash equivalents with various financial institutions primarily in\nChina. The Group considers all highly liquid investment instruments with an original maturity of three months or less from the date\nof purchase to be cash equivalents. As of December 31, 2025 and 2024, cash and cash equivalents balances were $85,269,432 and $87,927,726,\nrespectively. The majority of the Group’s cash is held in state-owned banks in the PRC, and a portion of such deposits is covered\nby insurance. In China, a depositor has up to RMB500,000 ($71,499) insured by the People’s Bank of China Financial Stability Bureau.\nThe Group has not experienced any losses in its bank accounts and believes it is not exposed to any significant risks with respect to\nits cash held in such accounts.\n\n** **\n\n**Restricted cash**\n\n \n\nRestricted cash includes deposits for notes payable.\nThe Group had restricted cash of $110,252 and $880,358 as of December 31, 2025 and December 31, 2024, respectively. The related deposits\nexpired in February 2026.\n\n** **\n\n**Accounts receivable**\n\n \n\nAccounts receivable are recorded at the gross\nbilling amount less an allowance for any uncollectible accounts due from customers. Accounts receivable do not bear interest.\n\n \n\nEffective January 1, 2024, the Group adopted Accounting\nStandards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial\nInstruments (“ASU 2016-13”), using the modified retrospective transition method. ASU 2016-13 replaces the existing incurred\nloss impairment model with an expected loss methodology, which results in more timely recognition of credit losses. Upon adoption, the\nGroup changed the impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss\nmethodology for financial instruments measured at amortized cost and receivables resulting from the application of ASC 606, including\ncontract assets.\n\n \n\nThe Group maintains an allowance for credit losses\nand records the allowance for credit losses as an offset to accounts receivable, and the estimated credit losses charged to the allowance\nare classified as “General and administrative expenses” in the consolidated statements of comprehensive income. The Group\nassesses collectability by reviewing accounts receivable on aging schedules because the accounts receivable primarily consist of receivables\narising from sales of cured meat products, snack products and frozen meat products. In determining the amount of the allowance for credit\nlosses, the Group considers historical collectability based on past due status, the age of the balances, current economic conditions,\nreasonable and supportable forecasts of future economic conditions, and other factors that may affect the Group’s ability to collect\nfrom customers. Delinquent account balances are written off against the allowance for expected credit losses after management has determined\nthat the likelihood of collection is not probable.\n\n \n\nFor the years ended December 31, 2025 and 2023,\nthe Group recognized expected credit losses against accounts receivable of nil and $19 thousand, respectively. For the year ended December\n31, 2024, the Group reversed a provision for expected credit losses of $44 thousand.\n\n \n\nF-9\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n** **\n\n**Inventories**\n\n \n\nInventories primarily consist of raw materials,\nfinished goods, goods in transit and work in process. Inventory costs include the purchase price and other expenditures that are directly\nattributable to bringing the inventories to their present location and condition. Cost of inventories is computed using the weighted average\ncost method. Inventories are written down to estimated net realizable value, which considers historical usage, expected demand, anticipated\nsales price, and other factors. The Group periodically reviews its inventories for excess or slow-moving items and makes provisions as\nnecessary to properly reflect inventory value. No inventory write-downs were recognized for the years ended December 31, 2025, 2024 and\n2023.\n\n** **\n\n**Prepaid expenses and other current assets**\n\n \n\nPrepaid expenses and other current assets primarily\nconsist of prepayments made to vendors or service providers for future services that have not been provided, other current assets, and\nother receivables from third parties. These advances are unsecured and are reviewed periodically to determine whether their carrying value\nhas become impaired. Management believes that, as of December 31, 2025 and 2024, the Group’s other current assets were not\nimpaired.\n\n** **\n\n**Property, plant and equipment, net**\n\n \n\nProperty, plant and equipment, net, are stated\nat cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives\nof the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Depreciation\nexpense is included in general and administrative expenses. Estimated useful lives are as follows:\n\n \n\nCategory \nEstimated\nuseful lives\n\nBuilding \n20 years\n\nElectronic equipment \n3 to 5 years\n\nTransportation equipment \n4 years\n\nMachinery Equipment \n10 years\n\nOther Equipment \n5 to 10 years\n\nBuilding Improvement \n20 years\n\n \n\nExpenditures for maintenance and repairs, which\ndo not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments\nthat substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or\nsold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of operations and comprehensive\nincome.\n\n** **\n\n**Intangible assets, net**\n\n \n\nIntangible assets consist of copyrights, patent\nrights, and trademark rights developed by the Group, which are recorded at cost less accumulated amortization. Intangible assets are amortized\nusing the straight-line method over their estimated useful lives of 10 years:\n\n** **\n\n**Land use rights, net**\n\n \n\nUnder PRC law, all land in the PRC is owned by\nthe government and cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels\nof land for specified periods of time. These land use rights are sometimes referred to informally as “ownership.” Land use\nrights are stated at cost less accumulated amortization. The estimated useful life for land use rights is 30 years.\n\n** **\n\n**Impairment of long-lived assets**\n\n \n\nLong-lived assets, including property and equipment\nand intangible assets with finite lives, are reviewed for impairment whenever events or changes in circumstances (such as a significant\nadverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not\nbe recoverable.\n\n \n\nF-10\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n** **\n\nThe Group assesses the recoverability of the assets\nbased on the undiscounted future cash flows the assets are expected to generate, and recognizes an impairment loss when estimated undiscounted\nfuture cash flows expected to result from the use of the asset, plus net proceeds expected from disposition of the asset, if any, are\nless than the carrying value of the asset. If an impairment is identified, the Group would reduce the carrying amount of the asset to\nits estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. As\nof December 31, 2025 and 2024, no impairment of long-lived assets was recognized.\n\n** **\n\n**Operating leases**\n\n \n\nThe Group adopted Topic 842 on April 1,\n2019, using a modified retrospective approach reflecting the application of the standard to leases existing at, or entered after, the\nbeginning of the earliest comparative period presented in the consolidated financial statements.\n\n \n\nThe Group, through its subsidiaries, leases its\noffices, which are classified as operating leases in accordance with Topic 842. Under Topic 842, operating leases are required to\nbe recorded on the balance sheet as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments.\nThe Group has elected the package of practical expedients, which allows the Group not to reassess (1) whether any expired or existing\ncontracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption\ndate, and (3) initial direct costs for any expired or existing leases as of the adoption date. The Group also elected the short-term\nlease exemption for lease terms of 12 months or less.\n\n \n\nThe Group reviews all relevant contracts to determine\nwhether the contract contains a lease at its inception date. A contract contains a lease if it conveys to the Group the right to control\nthe use of an underlying asset for a period of time in exchange for consideration. If the Group determines that a contract contains a\nlease, it recognizes a lease liability and a corresponding right-of-use asset on the consolidated balance sheets on the commencement date\nof the lease. The lease liability is initially measured at the present value of the future lease payments over the lease term using the\nrate implicit in the lease or, if not readily determinable, the Group’s secured incremental borrowing rate. An operating lease right-of-use\nasset is initially measured at the value of the lease liability, less any lease incentives, plus any initial direct costs incurred and\nany prepaid rent.\n\n \n\nThe right-of-use asset is initially measured at\ncost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date,\nplus any initial direct costs incurred, less any lease incentives received. All right-of-use assets are reviewed for impairment annually.\nNo impairment of right-of-use assets was recognized as of December 31, 2025 and 2024.\n\n** **\n\nEach lease liability is measured using the Group’s\nsecured incremental borrowing rate, which is based on an internally developed yield curve using interest rates of debt issued with a similar\nrisk profile as the Group and a duration similar to the lease term. The Group considers renewal and termination options, if any, when\ndetermining the lease term used to calculate the right-of-use asset and the lease liability when it is reasonably certain that the Group\nwill exercise such options.\n\n** **\n\n**Fair value measurement**\n\n \n\nFair value is the price that would be received\nfrom selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When\ndetermining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers\nthe principal or most advantageous market in which it would transact and the assumptions that market participants would use when pricing\nthe asset or liability.\n\n \n\nThe established fair value hierarchy requires\nan entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial\ninstrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair\nvalue measurement.\n\n \n\nThe three levels of inputs that may be used to\nmeasure fair value include:\n\n \n\n \n●\nLevel 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.\n\n \n\n●Level\n2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are\nobservable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments.\n\n \n\n●Level\n3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect the\nreporting entity’s own assumptions about what market participants would use in pricing the asset or liability based on the best\navailable information.\n\n \n\nF-11\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n** **\n\nAccounting guidance also describes three main\napproaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The\nmarket approach uses prices and other relevant information generated from market transactions involving identical or comparable assets\nor liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement\nis based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that\nwould currently be required to replace an asset.\n\n \n\nThe Group did not have any non-financial assets\nor liabilities that were measured at fair value on a recurring basis as of December 31, 2025 and 2024.\n\n \n\nThe Group’s financial instruments consist\nprincipally of cash and cash equivalents, accounts receivable, other current assets, short-term loans, long-term loans, accounts payable,\naccrued expenses, and other payables.\n\n \n\nFor short-term loans and long-term loans, the\nfair value approximates their carrying value at year-end, as the fair value is estimated using discounted cash flow, in which interest\nrates used to discount the bank loans approximate market rates.\n\n** **\n\n**Loans**\n\n \n\nLoans comprise short-term loans and long-term\nloans. Loans are recognized initially at fair value, net of transaction costs incurred. Loans are subsequently stated at amortized cost;\nany difference between the proceeds, net of transaction costs, and the redemption value is recognized in the consolidated statements of\noperations and comprehensive income over the period of the borrowings using the effective interest method.\n\n** **\n\n**Accounts payable**\n\n \n\nAccounts payable represent liabilities for goods\nand services provided to the Group prior to the end of the financial year that are unpaid. They are classified as current liabilities\nif payment is due within one year or less (or in the normal operating cycle of the business, if longer). Otherwise, they are presented\nas non-current liabilities. Accounts payable are initially recognized at fair value and subsequently carried at amortized cost using the\neffective interest method.\n\n** **\n\n**Related party transactions**\n\n \n\nA related party is generally defined as (i) any\nperson (or members of such person’s immediate family) that holds 10% or more of the Company’s securities, (ii) the Company’s\nmanagement, (iii) any person or entity that directly or indirectly controls, is controlled by, or is under common control with the Group,\nor (iv) any person or entity that can significantly influence the financial and operating decisions of the Group. A transaction is considered\nto be a related party transaction when there is a transfer of resources or obligations between related parties. Related parties may be\nindividuals or corporate entities.\n\n \n\nTransactions involving related parties cannot\nbe presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not\nexist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated\non terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. However,\nit is not practical to determine the fair value of amounts due from or to related parties owing to their related party nature.\n\n** **\n\n**Revenue recognition**\n\n \n\nThe Group adopted ASC Topic 606 Revenue from\nContracts with Customers (“ASC 606”) on April 1, 2019. Accordingly, the consolidated financial statements for the years\nended December 31, 2025, 2024 and 2023 are presented under ASC 606. Under ASC 606, revenue is recognized when control of\npromised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be\nentitled in exchange for those goods or services. To determine revenue recognition for contracts with customers, the Group performs the\nfollowing five steps: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the\ncontract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant\nfuture reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and\n(v) recognize revenue when (or as) the Group satisfies the performance obligation. VAT that the Group collects concurrently with\nrevenue-producing activities is excluded from revenue.\n\n \n\nF-12\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n**  **\n\nThe Group follows the requirements of Topic 606-10-55-36\nthrough -40, *Revenue from Contracts with Customers, Principal Agent Considerations*, in determining gross versus net revenue recognition\nfor performance obligation(s) in the contract with a customer. Revenue recorded with the Group acting in the capacity of a principal is\nreported on a gross basis equal to the full amount of consideration to which the Group expects to be entitled in exchange for the goods\nor services transferred. Revenue recorded with the Group acting in the capacity of an agent is reported on a net basis, exclusive of any\nconsideration provided to the principal party in the transaction.\n\n \n\nThe Group recognizes revenue for its products\nwhen it has satisfied a performance obligation by transferring control of the promised products to the customer. The customer obtains\nlegal title to and accepts the promised products at the point of delivery. For each performance obligation satisfied at a point in time,\nthe Group recognizes revenue by assessing whether the performance obligation has been met.\n\n \n\nThe principal versus agent evaluation is a matter\nof judgment that depends on the facts and circumstances of the arrangement and whether the Group controls the good or service before it\nis transferred to the customer or whether the Group is acting as an agent of a third party. This evaluation is performed separately for\neach performance obligation identified. For the years ended December 31, 2025, 2024 and 2023, there was no revenue recognized\non a net basis where the Group acted as an agent.\n\n \n\nFor the years ended December 31, 2025,\n2024 and 2023, the Group’s revenues were primarily derived from (i) sales of products through offline channels, including sales\nof cured meat products, snack products and frozen meat products to distributors, and sales of cured meat products and snack products in\nstores, and (ii) sales of cured meat products and snack products primarily through online platforms such as TikTok, JD.com and Pinduoduo.\n\n \n\n*Revenue from sales of products through offline\nchannels*\n\n \n\nThe Group generates revenue from the sale of cured\nmeat products, snack products and frozen meat products to customers. The Group enters into contracts with customers as a principal. The\ncontracts contain a single performance obligation with a standard quality guarantee, which is the transfer of the products or accessories\nto the customers in exchange for consideration. The terms of pricing and payment stipulated in the contract are fixed. The Group typically\noffers credit terms of 30 to 90 days for business customers. The Group recognizes revenue at a point in time when control of the\nproducts has been transferred to customers. The transfer of control is considered complete when products have been accepted and received\nby customers. In the normal course of business, the Group’s products are sold with no right of return unless the item is defective.\n\n* *\n\n*Revenue from sales of products through online\nplatforms*\n\n \n\nIn accordance with ASC 606, the Group, as\na principal, obtains control of specified goods or services before they are transferred to customers, fulfills the promise to provide\nthe specified products to customers, bears the risk of loss due to factors including physical damage, obsolescence and expiration either\nbefore the specified products have been sold to customers or upon return, and determines the selling price for each product at its sole\ndiscretion. Therefore, revenue is recognized in the gross amount of consideration to which the Group expects to be entitled in exchange\nfor the specified products transferred.\n\n \n\nEach customer order is distinct and separately\nidentifiable from other customer orders and is considered a single performance obligation to arrange and transport goods from origin to\nthe destination designated by the customer. As each customer order includes only one performance obligation and no variable consideration,\nno allocation of the transaction price is required. Revenue is recognized at a point in time when goods are delivered to the designated\ndestination, as evidenced by the customer’s signature on the delivery order. For sales through offline channels, revenues are recognized\nfive days after the start of transportation. For sales through online platforms, revenues are recognized seven days after the start of\ntransportation.\n\n \n\nThe Group recognizes revenue net of discounts\nand return allowances when the products are delivered and title passes to customers. For sales of products through online platforms, the\nGroup estimates the likelihood of returns based on historical experience. As of December 31, 2025 and 2024, liabilities for return\nallowances were not material to the consolidated financial statements.\n\n \n\nF-13\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n** **\n\n*Revenue disaggregation*\n\n \n\nManagement has concluded that the disaggregation\nlevel is the same under both the revenue standard and the segment reporting standard. Revenue under the segment reporting standard is\nmeasured on the same basis as under the revenue standard. The Group’s disaggregation of revenue for the years ended December 31,\n2025, 2024 and 2023 are as follows:\n\n \n\n  \nYears ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nRevenue from sales of products through offline \n$133,089,030  \n$142,552,273  \n$132,285,817 \n\nRevenue from sales of products through online platforms \n 2,103,599  \n 2,076,782  \n 1,782,500 \n\nTotal revenue \n$135,192,629  \n$144,629,055  \n$134,068,317 \n\n* *\n\n*Revenue by product category*\n\n \n\nThe following table summarizes the Group’s\ntotal revenues by product category for the years ended December 31, 2025, 2024 and 2023:\n\n \n\n   Years ended December 31, \n\n   2025   2024   2023 \n\nRevenue from sales of cured pork sausages  $53,856,546   $56,415,055   $48,589,050 \n\nRevenue from sales of cured pork meat   14,521,670    16,558,601    21,972,199 \n\nRevenue from sales of other cured meat products   11,601,643    13,042,373    12,714,581 \n\nRevenue from sales of snack products   47,499,585    50,541,248    43,635,556 \n\nRevenue from sales of frozen meat products   7,713,185    8,071,778    7,156,931 \n\nTotal revenue  $135,192,629   $144,629,055   $134,068,317 \n\n** **\n\n**Segment reporting**\n\n \n\nAn operating segment is a component of the Group\nthat engages in business activities from which it may earn revenue and incur expenses and is identified on the basis of the internal financial\nreports that are provided to and regularly reviewed by the Group’s chief operating decision maker (“CODM”) in order\nto allocate resources and assess performance of the segment.\n\n \n\nIn accordance with ASC 280, Segment Reporting,\noperating segments are defined as components of an enterprise about which separate financial information is available that is evaluated\nregularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Group’s\nrevenue segments have similar economic characteristics, and they are managed as a single business unit. The Group uses the “management\napproach” in determining reportable operating segments. The management approach considers the internal organization and reporting\nused by the Group’s chief operating decision maker for making operating decisions and assessing performance as the source for determining\nthe Group’s reportable segments. The Group’s CODM has been identified as the chief executive officer (the “CEO”),\nwho reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. The Group has\ndetermined that there is only one reportable operating segment.\n\n** **\n\n**Cost of revenue**\n\n \n\nCost of revenue consists primarily of (i)\ncosts of materials purchased from suppliers, (ii) sales taxes and additional taxes, and (iii) depreciation of property,\nplant and equipment.\n\n \n\nF-14\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n** **\n\n**Selling expenses**\n\n \n\nSelling expenses include (i) sales service\ncosts incurred from provision of customer services, (ii) traveling costs of sales and marketing staff, (iii) salaries and benefits\nof sales and marketing staff, (iv) advertising costs, and (v) others, such as conference costs.\n\n** **\n\n**General and administrative expenses**\n\n \n\nGeneral and administrative expenses mainly consist\nof (i) salaries, welfare and insurance expenses for the Group’s administrative personnel, (ii) depreciation and amortization,\n(iii) lease expenses relating to leased properties used for administrative and factory purposes, (iv) entertainment expenses\nincurred in connection with business operations, and (v) other expenses, which primarily include travel, office expenses, and other miscellaneous\nexpenses for administrative purposes.\n\n** **\n\n**Research and development expenses**\n\n \n\nThe Group expenses all internal research and development\ncosts as incurred, which primarily comprise costs of materials used for experiments, employee costs, and other expenses related to research\nand development activities.\n\n** **\n\n**Government grants**\n\n \n\nGovernment grants represent cash subsidies received\nfrom the local government in the PRC. Cash subsidies that are not subject to defined rules and regulations governing the criteria\nfor eligibility are recognized when received. Such subsidies are generally provided as incentives from the local government to encourage\nthe expansion of local business.\n\n** **\n\n**Employee benefits**\n\n \n\nFull-time employees of the operating entity in\nthe PRC participate in a government-mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee\nhousing fund, and other welfare benefits are provided to the employees. PRC labor regulations require that the PRC subsidiaries of the\nCompany make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a\nmaximum amount specified by the local government. The Company has made employee benefit contributions under PRC government requirements\nand has no legal obligation beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred,\nwere approximately $721,472, $749,459 and $674,061 for the years ended December 31, 2025, 2024 and 2023, respectively.\n\n** **\n\n**Statutory reserves**\n\n \n\nPursuant to the laws applicable to the PRC, PRC\nentities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund.” Subject\nto certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit\nuntil the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted\nin the PRC (the “PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations\nshould be made to the “reserve fund.” For foreign invested enterprises, the annual appropriation for the “reserve fund”\ncannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under\nthe PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period\nnet income after tax to offset against the accumulated loss.\n\n \n\nF-15\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n**  **\n\nAs of December 31, 2025 and December 31,\n2024, the balance of the required statutory reserves was $13,580,630 and $12,087,066, respectively.\n\n** **\n\n**VAT**\n\n \n\nRevenue represents the invoiced value of goods\nand services, net of VAT. The VAT is based on the gross sales price and VAT rates range up to 13%, depending on the type of products\nsold or service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against\ntheir output VAT liabilities. The net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns\nfiled by the Company’s subsidiaries in the PRC remain subject to examination by the tax authorities for five years from the\ndate of filing.\n\n** **\n\n**Income taxes**\n\n \n\nThe Group accounts for income taxes under ASC 740.\nDeferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated\nfinancial statement carrying amounts of existing assets and liabilities and their respective tax bases.\n\n \n\nDeferred tax assets and liabilities are measured\nusing enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be\nrecovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period\nincluding the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected\nto be realized.\n\n \n\nThe provisions of ASC 740-10-25, “Accounting\nfor Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and\nmeasurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition\nof income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest\nand penalties associated with tax positions, and related disclosures. The Group believes there were no uncertain tax positions as of December 31,\n2025 and 2024.\n\n \n\nThe Group’s affiliated entities in the PRC\nare subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of\nlimitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent.\nThe statute of limitations is extended to five years under special circumstances. As of December 31, 2025, the tax years\nfor the Group’s affiliated entities in the PRC remain open for statutory examination by PRC tax authorities. There were no ongoing\nexaminations by tax authorities as of December 31, 2025 and 2024.\n\n** **\n\n**Comprehensive income (loss)**\n\n \n\nComprehensive income (loss) is defined as the\nchange in equity of the Group during a period arising from transactions and other events and circumstances, excluding transactions resulting\nfrom investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income, requires that all\nitems required to be recognized under current accounting standards as components of comprehensive income be reported in a financial statement\ndisplayed with the same prominence as other financial statements. For each of the periods presented, the Group’s comprehensive income\n(loss) included net income and foreign currency translation adjustments, as presented in the consolidated statements of operations and\ncomprehensive income.\n\n \n\nF-16\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n** **\n\n**Earnings (loss) per share**\n\n \n\nThe Group computes earnings (loss) per share (“EPS”)\nin accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex\ncapital structures to present basic and diluted EPS. Basic EPS are computed by dividing income available to ordinary shareholders of the\nCompany by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that\ncould occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. As of December 31,\n2025 and 2024, there was no dilution impact.\n\n \n\nDiluted earnings per share is calculated by dividing\nnet income attributable to ordinary shareholders, including the redeemable shares, by the weighted average number of ordinary and dilutive\nordinary equivalent shares outstanding during the period. Potential ordinary shares that have an anti-dilutive effect (i.e., those\nthat increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of December 31, 2025\nand 2024, there were no dilutive shares.\n\n \n\n**Concentration and Risks**\n\n** **\n\n*Foreign exchange risk*\n\n* *\n\nThe revenues and expenses of the Group’s\nentities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB, which is not freely convertible\ninto foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China (“PBOC”)\nor other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other\nregulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. The\nvalue of RMB is subject to changes in central government policies and to international economic and political developments affecting supply\nand demand in the China Foreign Exchange Trading System market. These restrictions and fluctuations could affect the Company’s ability\nto access foreign currencies and remit funds outside of the PRC.\n\n \n\n*Credit risk*\n\n \n\nAssets that potentially subject the Group to significant\nconcentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of such assets to credit risk is their\ncarrying amount as at the balance sheet dates. As of December 31, 2025, cash and cash equivalents of $85,269,432 were deposited\nin major financial institutions in the PRC, and each bank accounts is insured by the PRC government with the maximum limit of RMB500,000\n(equivalent US$71,499). To limit exposure to credit risk relating to deposits, the Company primarily places cash and cash equivalent with\nlarge financial institutions in China which management believes are of high credit quality and the Company also continually monitors their\ncredit worthiness.\n\n \n\nAccounts receivable are typically unsecured and\nderived from revenue earned from customers in the PRC, which are exposed to credit risk. The risk is mitigated by credit evaluations.\nThe Company maintains an allowance for credit losses, and actual losses have generally been within management’s expectations. Refer\nto “Note 18. Customer and Supplier Concentrations” for detail.\n\n* *\n\nF-17\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n** **\n\n*Interest rate risk*\n\n \n\nThe Group’s exposure to interest rate risk\nprimarily relates to the interest income generated by excess cash, which is mostly held in interest-bearing bank deposits. The Group’s\nexposure to interest rate risk also arises from its borrowings that have a floating rate of interest. The costs of floating rate borrowings\nmay be affected by the fluctuations in the interest rates. The Group has not been, and does not expect to be, exposed to material interest\nrate risks, and therefore has not used any derivative financial instruments to manage such interest rate risk exposure during the years\nended December 31, 2025, 2024, and 2023.\n\n** **\n\n**Recent accounting pronouncements**\n\n \n\nThe Group considers the applicability and impact\nof all Accounting Standards Updates (“ASUs”). Management periodically reviews new accounting standards as issued and has evaluated\nall other recently issued pronouncements.\n\n \n\nIn November 2024, the FASB issued ASU 2024-03,\n“Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation\nof Income Statement Expenses”. The amendments in this ASU are intended to improve financial reporting by requiring that public business\nentities disclose additional information about specific expense categories in the notes to financial statements at interim and annual\nreporting periods. For interim and annual reporting periods, an entity shall disaggregate, in a tabular format disclosure in the notes\nto financial statements, all relevant expense captions presented on the face of the income statement in continuing operations into the\npurchases of inventory, employee compensation, depreciation, amortization, and depletion. This ASU is effective for annual reporting periods\nbeginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments\nin this Update should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date\nof this Update or (2) retrospectively to any or all prior periods presented in the financial statements. The Group is currently evaluating\nthe impact that the adoption of ASU 2024-03 will have on its consolidated financial statements and related disclosures.\n\n \n\nIn November 2024, the FASB issued ASU 2024-04,\nDebt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. The ASU provides\nadditional guidance on whether induced conversion or extinguishment accounting should be applied to certain settlements of convertible\ndebt instruments that do not occur in accordance with the instruments’ preexisting terms. The ASU requires entities to apply a preexisting\ncontract approach. To qualify for induced conversion accounting under this approach, the inducement offer is required to preserve the\nform of consideration and result in an amount of consideration that is no less than that issuable pursuant to the preexisting conversion\nprivileges. ASU 2024-04 clarifies how entities should assess the form and amount of consideration when applying this approach. In addition,\nthe new ASU clarifies that induced conversion accounting can be applied to settlements of certain convertible debt instruments that are\nnot currently convertible as long as the instrument contained a substantive conversion feature as of both its issuance date and the inducement\noffer acceptance date. The amendments in the ASU are effective for annual reporting periods beginning after December 15, 2025, and interim\nreporting periods within those annual reporting periods. Early adoption is permitted. The Group is currently evaluating the impact that\nthe adoption of ASU 2024-04 will have on its consolidated financial statements and related disclosures.\n\n \n\nF-18\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n \n\n**Note 2. Summary of significant accounting\npolicies** (cont.)\n\n \n\nIn January 2025, the FASB issued ASU 2025-01 Income\nStatement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The Board issued Update 2024-03\non November 4, 2024. Update 2024-03 states that the amendments are effective for public business entities for annual reporting periods\nbeginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Following the issuance of Update 2024-03,\nthe Board was asked to clarify the initial effective date for entities that do not have an annual reporting period that ends on December\n31 (referred to as non-calendar year-end entities). Because of how the effective date guidance was written, a non-calendar year-end entity\nmay have concluded that it would be required to initially adopt the disclosure requirements in Update 2024-03 in an interim reporting\nperiod, rather than in an annual reporting period. The Board’s intent in the basis for conclusions of Update 2024-03 is clear that\nall public business entities should initially adopt the disclosure requirements in the first annual reporting period beginning after December\n15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. However, the Board acknowledges\nthat there was ambiguity between the intent in the basis for conclusions in Update 2024-03 and the transition guidance that was included\nin the Codification when Update 2024-03 was issued. The Group does not expect the adoption of this accounting standard to have an impact\non its consolidated financial statements.\n\n \n\nIn July 2025, the FASB issued ASU 2025-05, “Financial\nInstruments—Credit Losses (Topic 326).” The amendments in this Update provide (1) all entities with a practical expedient\nand (2) entities other than public business entities with an accounting policy election when estimating expected credit losses for current\naccounts receivable and current contract assets arising from transactions accounted for under Topic 606. An entity that elects the practical\nexpedient and the accounting policy election, if applicable, should apply the amendments in this Update prospectively. The amendments\nare effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting\nperiods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued\nor made available for issuance. The Group does not expect the adoption of this ASU to have a material impact on its consolidated financial\nstatements.\n\n \n\nIn November 2025, the FASB issued ASU 2025-08,\n“Financial Instruments—Credit Losses (Topic 326): Purchased Loans.” The amendments expand the population of acquired\nloans subject to the gross-up approach, treating non-credit-deteriorated loans (excluding credit cards) as “seasoned” if purchased\nat least 90 days after origination or acquired in a business combination. ASU 2025-08 is effective for annual reporting periods beginning\nafter December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Group is\ncurrently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements and related disclosures.\n\n \n\nIn December 2025, the FASB issued ASU 2025-11,\nwhich clarifies the scope and disclosure requirements for interim financial reporting under ASC 270. The amendments introduce a principle\nrequiring disclosure of events and transactions occurring after the end of the most recent annual reporting period that have a material\nimpact on the entity and consolidate certain interim disclosure requirements. The amendments are effective for interim reporting periods\nwithin annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Group is currently evaluating the\nimpact that the adoption of this ASU will have on its consolidated financial statements and related disclosures.\n\n \n\nOther accounting standards that have been issued\nby the FASB or other standards-setting bodies are not expected to have a material effect on the Group’s financial position, results\nof operations, or cash flows.\n\n** **\n\n**Note 3. Accounts receivable**\n\n \n\nAccounts receivable consisted of the following:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nAccounts receivable \n$6,797,096  \n$7,768,381 \n\n \n\nF-19\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 3. Accounts receivable, net** (cont.)\n\n** **\n\nThe Group recorded no allowance for credit losses\nfor the year ended December 31, 2025.\n\n \n\nThe Group reversed $43,797 of allowance for credit\nlosses and recognized a currency translation difference of $1,531 for the year ended December 31, 2024.\n\n \n\nThe Group accrued an allowance for credit losses\nof $18,630 and recognized a currency translation difference of $746 for the year ended December 31, 2023.\n\n  \n\nAs of the date of this report, all accounts receivable\noutstanding as of December 31, 2025 had been subsequently collected.\n\n \n\nChanges in allowance for credit losses are as\nfollows:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024  \nAs of\nDecember 31,\n2023 \n\nBeginning balance \n$\n—\n  \n$42,266  \n$24,382 \n\nAddition \n \n—\n  \n \n—\n  \n 18,630 \n\nReversals \n \n—\n  \n            (43,797) \n \n—\n \n\nCurrency translation \n \n—\n  \n          1,531  \n (746)\n\nEnding balance \n$\n—\n  \n$\n—\n  \n$42,266 \n\n** **\n\n**Note 4. Inventories**\n\n \n\nInventories consisted of the following:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nRaw materials \n$9,141,439  \n$7,843,367 \n\nWork in process \n 284,148  \n 223,803 \n\nGoods shipped in transit \n 91,745  \n 88,731 \n\nFinished goods \n 321,601  \n 300,394 \n\nTotal inventory \n$9,838,933  \n$8,456,295 \n\n \n\nFor the years ended December 31, 2025,\n2024 and 2023, the Group recorded no impairment provision for inventories to adjust to the lower of cost or net realizable value.\n\n** **\n\n**Note 5. Prepaid expenses and other current\nassets**\n\n \n\nPrepaid expenses and other current assets consisted\nof the following:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nPrepaid AI expense \n$12,869,885  \n$\n—\n \n\nPrepaid advertising and promotion expenses \n 15,156,368  \n \n—\n \n\nPrepaid rental expense \n 1,637,042  \n 5,102,955 \n\nVAT deductibles \n 52,100  \n 1,899,768 \n\nIncome tax receivable \n \n—\n  \n 339,893 \n\nPrepayment for equipment \n 245,021  \n 234,943 \n\nDeposit \n 138,565  \n 131,930 \n\nOthers \n 57,565  \n 69,889 \n\nPrepaid expenses and other current assets \n$30,156,546  \n$7,779,378 \n\n \n\nFor the years ended December 31, 2025,\n2024 and 2023, the Group recorded no allowance for other receivable.\n\n \n\nF-20\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n \n\n**Note 6. Property, plant and equipment,\nnet**\n\n \n\nProperty, plant and equipment, net consisted of\nthe following:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nBuilding \n$65,985,565  \n$61,778,651 \n\nMachinery Equipment \n 32,994,990  \n 33,117,464 \n\nElectronic Equipment \n 1,583,108  \n 2,187,806 \n\nTransportation Equipment \n 226,549  \n 228,279 \n\nOther Equipment \n 84,997  \n 81,431 \n\nBuilding Improvement \n 2,861,334  \n 795,659 \n\nSubtotal \n$103,736,543  \n$98,189,290 \n\nLess: accumulated depreciation \n (24,896,491) \n (18,620,517)\n\nTotal \n$78,840,052  \n$79,568,773 \n\n \n\nDepreciation expenses for the years ended\nDecember 31, 2025, 2024 and 2023 were $5,740,644, $4,418,774 and $3,016,946, respectively.\n\n \n\nAs of December 31, 2025 and 2024, the buildings\nwith carrying values of $26,655,712 and $27,028,129, respectively, have been pledged for the purpose of obtaining bank loans.\n\n** **\n\n**Note 7. Intangible assets, net**\n\n \n\nIntangible assets, net, consisted of the following:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nTrademark right \n$10,414  \n$9,977 \n\nCopyright \n 212  \n 203 \n\nPatent right \n 80,178  \n 70,197 \n\nSubtotal \n 90,804  \n 80,377 \n\nLess: accumulated amortization \n (43,202) \n (33,283)\n\nIntangible asset, net \n$47,602  \n$47,094 \n\n \n\nAmortization expenses for the years ended\nDecember 31, 2025, 2024 and 2023 were $8,232, $9,003 and $7,402, respectively.\n\n \n\nEstimated future amortization expenses are as\nfollows:\n\n \n\n  \nAmortization\nexpenses \n\nFiscal year 2026 \n$9,037 \n\nFiscal year 2027 \n 8,984 \n\nFiscal year 2028 \n 8,412 \n\nFiscal year 2029 \n 7,454 \n\nFiscal year 2030 \n 6,683 \n\nThereafter \n 7,032 \n\nTotal \n$47,602 \n\n \n\nF-21\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n \n\n**Note 8. Land-use rights, net**\n\n \n\nLand-use rights, net, consisted of the following:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nLand-use rights \n$857,989  \n$821,997 \n\nLess: accumulated amortization \n (254,408) \n (216,654)\n\nLand-use rights, net \n$603,581  \n$605,343 \n\n \n\nAmortization expenses were $28,268, $27,472 and\n$22,933 for the years ended December 31, 2025, 2024 and 2023, respectively.\n\n \n\nAs of December 31, 2025 and 2024, the land-use\nrights have been pledged for the purpose of obtaining bank loans.\n\n \n\nEstimated future amortization expenses are as\nfollows:\n\n \n\n  \nAmortization\nexpenses \n\nFiscal year 2026 \n$28,190 \n\nFiscal year 2027 \n 28,190 \n\nFiscal year 2028 \n 28,190 \n\nFiscal year 2029 \n 28,190 \n\nFiscal year 2030 \n 28,190 \n\nThereafter \n 462,631 \n\nTotal \n$603,581 \n\n** **\n\n**Note 9. Lease**\n\n \n\nThe Group leases factories and stores under non-cancellable\noperating leases, with terms ranging from two to twenty years. The Group considers those renewal or termination options that are\nreasonably certain to be exercised in the determination of the lease term and initial measurement of right-of-use assets and lease liabilities.\nLease expense for operating lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of\n12 months or less are not recorded on the balance sheet.\n\n \n\nAs of December 31, 2025 and 2024, the remaining\nlease term was an average of 10.29 years and 4.50 years, respectively. The Group’s lease agreements do not provide a readily\ndeterminable implicit rate, nor is such rate available from the Group’s lessors. Instead, the Group estimates its incremental borrowing\nrate based on the weighted average borrowing rate for bank loans in order to discount lease payments to present value. The weighted average\ndiscount rate of the Group’s operating leases was 3.5% and 5.59% per annum as of December 31, 2025 and 2024, respectively.\n\n \n\nSupplemental balance sheet information related\nto operating leases from the Group’s operations was as follows:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nRight-of-use assets \n$3,520,386  \n$300,664 \n\nLease liabilities, current \n 9,765  \n 87,648 \n\nLease liabilities, non-current \n 5,833  \n 278,282 \n\nTotal lease liabilities \n$15,598  \n$365,930 \n\n \n\nF-22\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 9. Lease** (cont.)\n\n** **\n\nThe following table presents maturity of lease\nliabilities as of December 31, 2025:\n\n \n\nTwelve months ending December 31, \nAs of\nDecember 31,\n2025 \n\n2026 \n$10,075 \n\n2027 \n 5,876 \n\nTotal future minimum lease payments \n 15,951 \n\nLess: imputed interest \n (353)\n\nTotal \n$15,598 \n\n \n\nAmortization expenses were $188,547, $91,368 and\n$134,971 for the years ended December 31, 2025, 2024 and 2023, respectively.\n\n** **\n\n**Note 10. Other non-current assets, net**\n\n \n\nOther non-current assets, net consisted of the\nfollowing:\n\n \n\n  \nAs of December 31,\n2025  \nAs of December 31,\n2024 \n\nDeposit \n$177,069  \n$157,076 \n\nLess: allowance for credit losses \n (71,499) \n \n—\n \n\nTotal other non-current assets \n$105,570  \n$157,076 \n\n \n\nThe Group accrued an allowance for credit losses\nof $71,499 for the year ended December 31, 2025.\n\n \n\n**Note 11. Loans**\n\n \n\nShort-term loans\n\n \n\nShort-term loans consisted of the following:\n\n \n\n  \nAs of\n\nDecember 31,\n2025  \nAs of\n\nDecember 31,\n2024 \n\nGuangdong Huaxing Bank \n$2,144,972  \n$2,054,992 \n\nChina Guangfa Bank \n 4,146,945  \n 684,997 \n\nZhongshan Rural Commercial Bank \n \n—\n  \n 410,998 \n\nBank of Guangzhou \n 714,990  \n 684,997 \n\nChina Resources Bank of Zhuhai CO.LTD \n \n—\n  \n 1,369,994 \n\nChina Bohai Bank Co.,Ltd \n 714,990  \n 684,997 \n\nConstruction bank of China \n 1,143,985  \n \n—\n \n\nAgricultural Bank of China \n 714,990  \n \n—\n \n\nBank of China \n 1,429,982  \n \n—\n \n\nChina Everbright BANK CO., LTD \n \n—\n  \n 821,997 \n\nTotal \n$11,010,854  \n$6,712,972 \n\n \n\nThe Group’s short-term loans are primarily\nused for working capital purposes and bear interest at rates of 2.40% ~ 5.50% (2024: 3.10% ~ 5.50%) per annum, with\na weighted average interest rate of 3.44% (2024: 4.46%) per annum. The maturity dates of the short-term loans as of December 31, 2025\nrange from January 2026 to December 2026.\n\n \n\nCertain bank borrowings are guaranteed by Xiantao\nWang, Tingfeng Wang, Haobo Ye, Quanbo Ye, Suhua Ye, Liyu Huang and Wing Yip, and secured by mortgages on the buildings and land use rights\nof Wing Yip GD, as of December 31, 2025 and 2024.\n\n \n\nFor the years ended December 31, 2025,\n2024 and 2023, the interest expense on short-term loans amounted to $268,808, $287,098 and $221,636, respectively.\n\n \n\nF-23\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 11. Loans** (cont.)\n\n** **\n\nLong-term loans\n\n \n\n  \nAs of December 31,\n2025  \nAs of December 31,\n2024 \n\nChina Guangfa Bank \n$11,153,852  \n$12,439,549 \n\nConstruction bank of China \n \n-\n  \n 1,301,495 \n\nZhongshan Rural Commercial Bank \n 386,095  \n 1,041,196 \n\nMinsheng Financial Leasing Co. LTD \n \n-\n  \n 59,240 \n\nChina Resources Bank of Zhuhai CO.LTD \n 4,161,245  \n \n-\n \n\nAgricultural Bank of China \n 2,091,346  \n \n-\n \n\nSubtotal of long-term loans \n 17,792,538  \n 14,841,480 \n\nLess: current portion \n (3,818,049) \n (10,506,144)\n\nLong-term loans – non-current portion \n$13,974,489  \n$4,335,336 \n\n \n\nThe Group’s long-term loans are primarily\nused for working capital purposes and bear interest at rates of 2.60% to 4.90% (2024: 3.50% to 4.90%) per annum, with a weighted average\ninterest rate of 3.63% (2024: 3.75%) per annum. The maturity dates of the long-term loans as of December 31, 2025 range from June 2026\nto November 2028.\n\n \n\nCertain bank borrowings are guaranteed by Xiantao\nWang, Tingfeng Wang, Haobo Ye, Quanbo Ye, Suhua Ye, Liyu Huang and Wing Yip and are secured by mortgages on the building and land use\nrights of Wing Yip GD, as of December 31, 2025 and 2024.\n\n \n\nFor the years ended December 31, 2025,\n2024 and 2023, the interest expense on long-term loans amounted to $778,938, $705,459 and $702,062, respectively.\n\n** **\n\n**Note 12. Accounts payable**\n\n \n\nAccounts payable consisted of the following:\n\n \n\n  \nAs of\n\nDecember 31,\n2025  \nAs of\n\nDecember 31,\n2024 \n\nAccount payable to the third parties \n$10,032,277  \n$8,095,509 \n\nTotal accounts payable \n$10,032,277  \n$8,095,509 \n\n** **\n\n**Note 13. Deferred income**\n\n \n\nDeferred income consisted of the following:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nGovernment grant income \n$32,175  \n$46,874 \n\nTotal deferred income \n$32,175  \n$46,874 \n\n \n\nF-24\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n \n\n**Note 14. Accrued expenses and other payables**\n\n \n\nAccrued expenses consisted of the following:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nPayroll payable \n$1,847,920  \n$2,381,814 \n\nEquipment payable \n 105,819  \n 625,930 \n\nWater, electricity and steam expenses \n 200,477  \n 177,652 \n\nOthers \n \n—\n  \n 9,742 \n\nTotal \n$2,154,216  \n$3,195,138 \n\n** **\n\n**Note 15. Income taxes**\n\n \n\nThe Group is subject to income taxes on an entity\nbasis on income derived from the location in which each entity is domiciled.\n\n** **\n\n**Hong Kong**\n\n \n\nIn accordance with the relevant tax laws and regulations\nof Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate\non taxable income. From the year of assessment 2018/2019 onwards, Hong Kong profits tax rates are 8.25% on assessable profits up\nto HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000.\n\n \n\nWing Yip was incorporated in Hong Kong and\nis subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance\nwith relevant Hong Kong tax laws. From year of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25% on assessable\nprofits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. For the years ended December 31,\n2025, 2024 and 2023, Wing Yip provided provision of income tax expenses of nil.\n\n** **\n\n**PRC**\n\n** **\n\n**Mainland China**\n\n \n\nGenerally, the Group’s subsidiaries that\nare considered mainland China resident enterprises under mainland China tax laws are subject to enterprise income tax at a rate of 25%\non their worldwide taxable income as determined under such tax laws and accounting standards.\n\n \n\nIn accordance with the implementation rules of\nthe Enterprise Income Tax Law of the PRC (the “EIT Law”), a qualified “High and New Technology Enterprise” (“HNTE”)\nis eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years, and an entity may\nre-apply for the HNTE certificate upon expiration of the prior certificate. The Company’s subsidiary, Wing Yip GD, was qualified\nas an HNTE in 2019 and was therefore eligible to enjoy a preferential tax rate of 15% for the years 2019, 2020 and 2021, to the extent\nit had taxable income under the EIT Law. For fiscal year 2022, Wing Yip GD’s income tax rate was 25%, as it did not re-apply for\nthe HNTE certificate by the end of December 2022 and could not enjoy such tax incentives in 2022. Wing Yip GD re-applied for the\nHNTE certificate in September 2023 and was qualified as an HNTE in December 2023. Accordingly, Wing Yip GD is eligible to enjoy\na preferential tax rate of 15% for the years 2023, 2024 and 2025, to the extent it has taxable income under the EIT Law.\n\n \n\nF-25\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 15. Income taxes** (cont.)\n\n** **\n\nThe provision for income tax consisted of the\nfollowing:\n\n \n\n  \nFor the years ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nCurrent income tax expenses \n$1,073,538  \n$837,640  \n$2,458,123 \n\nDeferred income tax expenses \n 108,814  \n 12,993  \n 20,759 \n\nTotal income tax expenses \n$1,182,352  \n$850,633  \n$2,478,882 \n\n \n\nThe following table sets forth reconciliation\nbetween the statutory earned income tax rate and the effective income tax:\n\n \n\n  \nYears ended December 31, \n\n  \n2025  \n2024  \n2023 \n\nIncome before income tax expenses \n$9,096,240  \n$12,100,336  \n$16,488,795 \n\nIncome tax computed at statutory EIT rate (25%) \n 2,274,060  \n 3,025,084  \n 4,122,199 \n\nTax effect of preferential tax treatments \n (1,105,286) \n (2,317,043) \n (1,585,164)\n\nEffect of other non-deductible expenses \n 29,355  \n 15,065  \n 12,611 \n\nOthers \n (15,777) \n 127,527  \n (70,764)\n\nTotal \n$1,182,352  \n$850,633  \n$2,478,882 \n\n \n\nThe significant components of deferred tax liabilities\nwere as following:\n\n \n\n  \nAs of\nDecember 31,\n2025  \nAs of\nDecember 31,\n2024 \n\nDeferred tax liabilities \n$1,729,774  \n$1,550,063 \n\nTotal deferred tax liabilities \n$1,729,774  \n$1,550,063 \n\n \n\nThe deferred tax liabilities mainly arise from\nthe dividend declared by Wing Yip GD to Wing Yip. The increase from December 31, 2024 to December 31, 2025 was primarily attributable\nto changes in foreign exchange rates.\n\n** **\n\n**Uncertain tax positions**\n\n \n\nThe PRC tax authorities conduct periodic and ad\nhoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax filings. In general,\nthe PRC tax authorities have up to five years to conduct examinations of the tax filings of the Group’s PRC entities. It is\ntherefore uncertain whether the PRC tax authorities may take different views about the Group’s tax filings, which may lead to additional\ntax liabilities.\n\n \n\nThe Group evaluates each uncertain tax position\n(including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits\nassociated with the tax positions. As of December 31, 2025 and 2024, the Group did not have any significant unrecognized uncertain\ntax positions.\n\n** **\n\n**Note 16. Equity**\n\n* *\n\n*Ordinary Shares*\n\n \n\nOn January 1, 2018, the Company conducted\na public offering of 30,000,000 ordinary shares on the Korea Securities Dealers Automated Quotations (“KOSDAQ”) of Korea Exchange\n(“KRX”), and 10,409,095 ordinary shares were issued on November 30, 2018.\n\n \n\nOn November 18, 2019, for a redemption of\nconvertible bonds, 2,888,961 ordinary shares were issued.\n\n \n\nOn January 10, 2020, for a redemption of\nconvertible bonds, 1,939,480 ordinary shares were issued.\n\n \n\nF-26\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n** **\n\n**Note 16. Equity** (cont.)\n\n** **\n\nOn February 11, 2020, for a redemption of\nconvertible bonds, 2,735,892 ordinary shares were issued.\n\n \n\nOn November 27, 2024, the Company consummated\nits initial public offering on the Nasdaq Capital Market of 2,050,000 American Depositary Shares (“ADSs”) at a public offering\nprice of US$4.00 per ADS. Each ADS represents one ordinary share of the Company. The Company’s ordinary shares are also listed on\nthe KOSDAQ of the KRX.\n\n \n\nOn January 8, 2025, the underwriters exercised\nthe Over-Allotment Option in full to purchase an additional 307,500 ADSs. The closing for the sale of the Over-Allotment ADSs took place\non January 14, 2025, resulting in additional gross proceeds of $1,230,000, before underwriting discounts and offering expenses of $100,056.\n\n \n\nAs of December 31, 2025 and 2024, the Company\nhad 50,330,928 and 50,023,428 shares outstanding, respectively.\n\n* *\n\n*Statutory reserve*\n\n \n\nThe Company is required to make appropriations\nto reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined\nin accordance with the PRC GAAP.\n\n \n\nAppropriations to the statutory surplus reserve\nare required to be at least 10% of the after-tax net income determined in accordance with the PRC GAAP until the reserve is equal to 50%\nof the entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board\nof Directors. As of December 31, 2025 and 2024, the balance of the required statutory reserves was $13,580,630 and $12,087,066, respectively.\n\n** **\n\n**Note 17. Restricted net assets**\n\n \n\nThe Company’s ability to pay dividends is\nprimarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations\npermit payments of dividends by the PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC\naccounting standards and regulations. The results of operations reflected in the accompanying consolidated financial statements prepared\nin accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Group’s PRC entities.\n\n \n\nThe PRC entities are required to set aside at\nleast 10% of their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of\ntheir registered capital. In addition, the PRC entities may allocate a portion of their after-tax profits based on PRC accounting standards\nto an enterprise expansion fund, a staff bonus and welfare fund, and a discretionary surplus fund at their discretion. The statutory reserve\nfunds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out\nof China is subject to examination by the banks designated by the State Administration of Foreign Exchange.\n\n \n\nAs a result of the foregoing restrictions, the\nPRC entities are restricted in their ability to transfer their assets to the Company. Foreign exchange and other regulations in the PRC\nmay further restrict the PRC entities from transferring funds to the Company in the form of dividends, loans, and advances. As of December 31,\n2025 and 2024, amounts restricted were the paid-in capital and statutory reserve funds of the PRC entities, which amounted to $42,651,357\nand $39,391,470, respectively.\n\n** **\n\n**Note 18. Customer and Supplier Concentrations**\n\n \n\nSignificant customers and suppliers are those\nthat account for greater than 10% of the Group’s revenue and purchases, respectively.\n\n \n\nThere were no customers accounting for greater\nthan 10% of the Group’s revenue for the years ended December 31, 2025, 2024, and 2023.\n\n \n\nFor the year ended December 31, 2025, three\nsuppliers contributed approximately 13.18%, 10.56%, and 10.55% of total purchases made by the Group, respectively.\n\n \n\nFor the year ended December 31, 2024, four\nsuppliers contributed approximately 16.04%, 14.92%, 11.36%, and 10.12% of total purchases made by the Group, respectively.\n\n \n\nFor the year ended December 31, 2023, two\nsuppliers contributed approximately 14.36% and 12.60% of total purchases made by the Group, respectively.\n\n \n\nThe loss of any significant supplier or the failure\nto procure key raw materials could have a material adverse effect on the Group’s business, consolidated results of operations, and\nfinancial condition.\n\n \n\nF-27\n\n \n\n \n\n**WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS\nSUBSIDIARIES\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n(Expressed in U.S. Dollars, except for the number of shares)**\n\n \n\n**Note 19. Commitments and Contingencies**\n\n** **\n\n**Commitments**\n\n \n\n*Capital Commitments*\n\n \n\nAs of December 31, 2025, the Group had approximately\n$12.58 million in capital commitments.\n\n \n\n*Lease Commitments*\n\n \n\nThe total future minimum lease payments for property\nmanagement fees and short-term leases under non-cancellable operating leases with respect to the office as of December 31, 2025 were payable\nas follows:\n\n** **\n\n  \nLease\n commitment \n\nWithin 1 year \n$37,113 \n\n1-2 years \n 3,567 \n\nTotal \n$40,680 \n\n \n\nExcept for the commitments described above, no\nother commitments that would have a material impact on the Group were identified through the date of issuance of these financial statements.\n\n** **\n\n**Contingencies**\n\n \n\nThe Group may be involved in certain legal proceedings,\nclaims, and other disputes arising from commercial operations, projects, employees, and other matters which, in general, are subject to\nuncertainties and in which the outcomes are not predictable. The Group determines whether an estimated loss from a contingency should\nbe accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the outcomes of these legal proceedings\ncannot be predicted, the Group does not believe these actions, in the aggregate, will have a material adverse impact on its financial\nposition, results of operations, or liquidity.\n\n** **\n\n**Note 20. Subsequent Events**\n\n \n\nThe Group has assessed all subsequent events from\nDecember 31, 2025, up through May 14, 2026, which is the date that these consolidated financial statements were available to be issued,\nand has determined that, there are no additional material subsequent events to disclose in these consolidated financial statements.\n\n \n\nF-28\n\n \n\ntrue\ntrue\n\nThe Group’s disaggregation of revenue for the years ended December 31, 2025,2024 and 2023 are as 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