Verification of special instructions for correction of accounting errors in the early stage
Report
Chong Kang Hui Zong Bao Zi (2022) No. 90
Chongqing Kanghua Certified Public Accountants (special general partnership)
January, 2002
About Landai Technology Group Corp.Ltd(002765)
Verification report of special instructions for correction of accounting errors in the previous period
Chong Kang Hui Zong Bao Zi (2022) No. 90
Landai Technology Group Corp.Ltd(002765) all shareholders:
1、 Assurance opinion
We have verified the attached Landai Technology Group Corp.Ltd(002765) (hereinafter referred to as Landai Technology Group Corp.Ltd(002765) ) special instructions for early accounting error correction (hereinafter referred to as "special instructions").
We believe that the attached special instructions truthfully reflect the correction of accounting errors in the early period of Landai Technology Group Corp.Ltd(002765) and comply with the relevant provisions of the accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates and correction of errors and the preparation rules for information disclosure of companies offering securities to the public No. 19 - correction and related disclosure of financial information of China Securities Regulatory Commission. 2、 Responsibilities of management and Governance
Landai Technology Group Corp.Ltd(002765) the management is responsible for preparing special instructions in accordance with the relevant provisions of the accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates and correction of errors and the rules for the preparation of information disclosure of companies offering securities to the public No. 19 - correction and related disclosure of financial information of China Securities Regulatory Commission, and ensuring that their contents are true, accurate and complete, There are no false records, misleading statements and major omissions.
The management layer is responsible for supervising the preparation of the special report.
3、 Responsibilities of Certified Public Accountants
Our responsibility is to express assurance opinions on the special instructions on the basis of the implementation of assurance work. We have carried out the assurance business in accordance with the provisions of other assurance business standards for Chinese certified public accountants No. 3101 - assurance business other than audit or review of historical financial information. The code requires us to abide by the code of professional ethics, plan and implement the assurance work, so as to obtain reasonable assurance about whether there are major misstatements in the special description. In the process of assurance, we have implemented the necessary working procedures, including random inspection of accounting records, recalculation and so on.
4、 Description of other matters
This report is only for the purpose of Landai Technology Group Corp.Ltd(002765) disclosing the special instructions for correction of accounting errors in the early stage, and is not suitable for other purposes. The consequences caused by improper use have nothing to do with the certified public accountants and accounting firms performing this business. Chinese certified public accountant: Zhou Xinghui
Chongqing Kanghua Certified Public Accountants
(special general partnership)
Chinese certified public accountant: Luo Tao
(project partner)
China * Chongqing
January 27, 2002
Landai Technology Group Corp.Ltd(002765)
Special instructions for correction of accounting errors in the previous period
In accordance with the accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates and correction of errors, and the rules for the preparation of information disclosure by companies offering securities to the public No. 19 - correction and related disclosure of financial information and other relevant provisions of the China Securities Regulatory Commission, Landai Technology Group Corp.Ltd(002765) (hereinafter referred to as "the company", "the company" or " Landai Technology Group Corp.Ltd(002765) ") corrected relevant accounting errors and retroactively adjusted the financial statements of the company for 2019 and 2020. The correction and retroactive adjustment of previous accounting errors are described as follows: I. nature and reasons of correction of previous accounting errors
On November 30, 2021, the company received the decision on administrative supervision measures issued by Chongqing regulatory bureau of China Securities Regulatory Commission (hereinafter referred to as "Chongqing Securities Regulatory Bureau") (decision on Issuing warning letter for Landai Technology Group Corp.Ltd(002765) ([2021] No. 46) (hereinafter referred to as "decision"). The decision points out that: 1. On accounting issues: first, the accounting of the company's fixed assets liquidation in 2020 is not standardized, and some assets transferred to fixed assets liquidation have not been disposed of for a long time, resulting in less depreciation; Second, the accounting of employee compensation payable is not standardized, and there is cross period accrual of year-end bonus; Third, the inventory accounting is not standardized, and the delivery pricing of some inventories is not accurate, resulting in red ink in the ending inventory balance amount; The calculation of net realizable value of some inventories is wrong, resulting in inaccurate provision for falling price reserves; Fourth, some construction in progress were not transferred into fixed assets and depreciated in time; (V) the accounting of prepayments is not standardized, and some prepayments with long-term accounts are not cleared and accounted for accordingly; Sixth, some sales revenue has the problem of cross period recognition. The above problems have led to a false increase in the company's net profit attributable to the shareholders of the parent company in 2020 by 2.5262 million yuan. 2. On the issue of information disclosure: the value-added tax to be transferred to output tax is wrongly listed in the contract liabilities.
In response to the above problems, the company has communicated with the former accounting firm and made corresponding corrections to accounting errors. As for the accounting problems, first, some assets transferred to the liquidation of fixed assets have not been disposed of for a long time, resulting in an underaccrual of depreciation of 751888.81 yuan, which should be adjusted accordingly; Second, there is a situation of inter period accrual of year-end bonus in the accounting of employee compensation payable, which is adjusted to an additional amount of 1487177.72 yuan of employee compensation payable in 2019 and 1282480.98 yuan of employee compensation payable in 2020; Third, the inaccurate pricing of some inventories, resulting in a negative ending inventory balance. The inventory should be increased by 1167731.73 yuan in 2019 and 362841.82 yuan in 2020; In addition, due to the inaccurate provision of some inventory falling price reserves, an additional inventory falling price reserve of 1773227.74 yuan should be made in 2020; Fourth, some projects under construction were not transferred into fixed assets and depreciated in time. In 2020, 1842107.20 yuan of fixed assets should be recognized and 262500.27 yuan should be made up; Fifthly, some long-term outstanding prepayments were not cleared and corresponding accounting treatment was not made. In 2019, 11200.00 yuan of prepayments should be transferred to fixed assets and 16800.00 yuan of depreciation should be accrued. In 2020, 337264.00 yuan should be transferred from prepayments and included in intangible assets, and 36536.95 yuan of amortization should be accrued; In addition, bad debt reserves shall be fully accrued for the advance payment of 210000.00 yuan paid in 2019; Sixth, part of the sales revenue has the problem of cross period recognition. In 2020, the revenue of 2759505.80 yuan and the cost of 2587253.01 yuan should be offset respectively.
On the issue of information disclosure, 626154.04 yuan of VAT to be transferred output tax reported in contract liabilities will be transferred to other current liabilities.
In view of the above facts, the company retroactively adjusted the affected financial data of 2019 and 2020. 2、 The impact of accounting errors in the earlier period on the company's financial status and operating results during the comparison period and the corrected financial indicators
The above previous errors were corrected by retrospective restatement method, and the financial statements of 2019 and 2020 were retroactively adjusted accordingly. After retroactive adjustment, it will not lead to changes in the nature of profit and loss in the relevant annual statements disclosed by the company. The impact of the adjustment on the relevant items of the financial statements is as follows:
(I) specific impact on consolidated balance sheet items and amounts in 2019 and 2020
The affected comparison period is 2020 restatement of the previous payment after 2020 restatement of the previous payment after 2019 restatement of the previous payment adjustment amount after 2019 restatement of the adjustment amount
Inter report item name amount
Accounts receivable 615203608.59 -2759505.80 612444102.79 493095030.09 - 493095030.09 prepayment 25270569.96 -194816.45 25075753.51 18316039.23 -210000.00 18106039.23 inventory 543675302.61 2530598.82 546205901.43 409706657.51 1,1 67731.73 410874389.24 total current assets 1791352233.84 -423723.43 1790928510.41 1379266143.35 957731.73 1380223875.08 fixed assets 1060343911.67 -140.41 1060343771.26 1014717463.16 -382297.02 1014335166.14 construction in progress 61456501.04 -2525198.05 58,93 1302.99 61671703.79 - 61671703.79 intangible assets 346491795.08 300727.05 346792522.13 362841000.14 - 2810.53 362838189.61 deferred income tax assets 98526423.77 835585.80 99362009.57 63768605.76 137183.03 63905788.79 total non current assets 2153532 , 993.82 -1389025.61 2152143968.21 2101831615.93 -247924.52 2101583691.41 total assets 3944885227.66 -1812749.04 3943072478.62 3481097759.28 709807.21 3481807566.49 accounts payable 596089923.22 -782056.73 595307866.49 375500823.15 - 375500823.15 Contract liabilities 12085063.38 -626154.04 11458909.34
Payroll payable 37724035.03 2769658.70 40493693.73 22420669.20 1487177.72 23907846.92 taxes payable 24360485.40 - 20236.00 24340249.40 16075624.69 - 16075624.69 other current liabilities 626154.04 626154.04 2656457.31 2656457.31 total current liabilities 1304009806.30 1967365.97 1305977172.27 1133493379.17 1487177.72 1134980556.89 total non current liabilities 800309892.23 - 800309892.23 825169028.98 - 825169028.98 total liabilities 2,
