Supor and its subsidiaries(hereinafter referred to as "Supor") are mainly engaged in the R&D, production and distribution of kitchen utensils, stainless steel products, daily hardware, small domestic appliances and cookware; its products are cookware and small domestic appliances. In 2022, Supor's operating income reached RMB20,170,527,516.66, of which domestic sales revenue was RMB14,975,644,970.69 and export sales revenue was RMB 5,194,882,545.97. Supor recognizes the revenue when the control right of relevant commodity is transferred to the customer. Supor assesses the contract and business arrangement of the customer, and recognizes the commodity sales revenue after such commodity has left Supor's own warehouse or its specified warehouse, or such commodity has been delivered to the customer with the acceptance receipt issued, or such commodity has been delivered on board to the sea transport carrier with the customs declaration for export and bill of lading obtained. As revenue is a KPI, and Supor has announced the Restricted Stock Incentive Plan in 2021 and 2022 with performance appraisal target as a premise for lifting the sales limitation, there is the risk that the management manipulates the revenue for realizing the performance target. Therefore, we include the conformation and recognition of Supor's revenue as key auditing items.| The audit procedures related to revenue recognition include the following: Understand and evaluate the design and operation effectiveness of key internal control related to the revenue recognition made by the management; Select sales contracts, check major terms governing the transfer of commodity control right, and review if the accounting policies for Supor revenue recognition is in conformity with the requirements in Accounting Standards for Business Enterprises; Check if there are abnormal trading terms and conditions that indicate potential undisclosed relations or transactions with related parties; Use data analysis tools on Supor's transaction information to identify those with abnormal revenues and check if there are any potential undisclosed relations or major transactions with related parties; Select major third-party customers and use enterprise information query tool on their background information to identify if they have any relation with Supor; Select transactions of which the revenues are recorded in the year, and refer to supporting documents such as the orders, invoices, packing lists, receipts of acceptance, customs clearances for export and bills of lading to check if the recognition of corresponding revenues is done according to Supor accounting policies for revenue recognition; Based on audit sampling, carry out the external confirmation procedure for the balance of accounts receivable of relevant customers on the balance sheet date and the amount of sales transactions in the current year; Select transactions of which the revenue is accrued around the balance sheet date, and refer to supporting documents such as the delivery notices, bills of lading or receipts of the goods to check if the revenue is included in the right accounting period; Check whether there are sales returns following the balance sheet date, and check the relevant supporting documents (if any) for significant sales returns, so as to evaluate whether the revenue is recorded in the appropriate accounting period; and Select revenue-related entries in the current year that meet specific risk criteria, inquire the management about the reasons for making these entries, and review relevant supporting documents.